Arvind SmartSpaces Limited (ARVSMART) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Erwin Smart Spaces Ltd. Q4 and FY26 post results earnings con call. As a reminder, all participant lines will be in the lesson only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference with Mr. Amit Kumar Sharma from Ad Factor. Thank you, Inuvit, you, sir.

Thank you, Ikra. Good afternoon, everyone, and thank you for joining us on the Q4 and full-year FY26 results conference call of Urban Smart Spaces Limited. On the call today, we have with us Mr. Kunil Nalbhai, chairman of the company, Mr. Priyansh Kapoor, managing director and CEO. Mr. Amit Chamaria, CFO, Mr. Vikram Rajput, Head Business Development, MMR, and Investor Relations, and Mr. Sathya Prakash Mishra, Head Investor Relations, Arvinds Limited. Please note that a copy of the disclosures is available on the investor sections of the website of Arvinds Smart Spaces Limited, as well as on the stock exchanges. Please do note that anything said on this call that reflects the outlook towards the future should be construed as a forward-looking statement and must be reviewed in conjunction with the risks that the company possesses. I would now like to hand over the call to Mr. Kulin Lalbhai for his opening remarks. Thank you and go to you, sir.

Thanks, Amit. Good afternoon, everyone, and a very warm welcome to you all joining us today. Thank you for taking time to participate in the Arvind Smart Spaces FY26 and Q4 Earnings Call. India today stands at the intersection of multiple structural tailwinds that are reshaping residential real estate demand. Sustained economic growth, rising formalization, increasing household income, rapid urbanization, improving infrastructure, expanding mortgage penetration, and growing aspirations towards global standards of living are collectively transforming the sector's long-term outlook. Residential real estate demands in India are increasingly being shaped by lifestyle aspirations, community preferences, wellness considerations, and the desire for superior living environments. Even amidst global geopolitical uncertainty, evolving trade alignments, and periodic economic volatility, India's domestic growth engine has remained remarkably resilient. The country continues to be amongst the world's fastest-growing major economies, supported by strong demographics, rising consumption, and sustained infrastructure creation. Against this backdrop, the residential real estate sector in FY26 entered a phase of healthy normalization and growing maturity. Demand remained fundamentally user-driven. Inventory levels across major markets stayed broadly balanced. Additionally, interest rate moderation and RBI repo rate reductions improved affordability, particularly within the mid-income and aspiring premium segments that define our core addressable market. Perhaps the most important structural shift underway is the accelerating consolidation of the sector in favor of organized and branded developers. Customers, landowners, and capital providers are increasingly gravitating towards developers with credibility, governance standards, execution capability, and balance sheet discipline. At Urban Smart Spaces, we believe we are very well poised to participate in this opportunity. We are focused on building an organization capable of navigating economic cycles, understanding evolving customer aspirations, allocating capital prudently, attracting talent, executing consistently at scale, and maintaining trust over decades. This is the architecture we have been consciously building at Urban Smart Spaces. Over the past several years, we have invested patiently in strengthening every key growth driver for the company. Leadership depth, organizational capability, capital discipline, market selection, product strategy, digital capability, governance frameworks, and customer engagement. FY26 was the year when many of these investments began translating into visible momentum. Today, we have an increasingly diversified portfolio across Andabaz, Bangalore and MMR with growing strength across both horizontal and vertical developments. At the same time, we have continued to strengthen leadership bandwidth, deepen city-level operating structures, and build a more agile and execution-focused organization. We believe the organization we have built is now increasingly ready to scale responsibly strategic and strategic.

Thank you, Kulin. Good afternoon, everyone, and thank you for joining us on this call. F526 has been a landmark year for Arvind Smart Spaces, marked by record bookings, strong cash generation, and strategic expansion across the key growth markets. During the year, we achieved our highest ever annual booking value of Rs. 1,550 crores, representing a strong 22% year-on-year growth. This performance was driven by sustained demand across our existing portfolio, as well as excellent traction in our newly launched projects. New launches contributed nearly 60% of annual bookings, amounting to approximately Rs.930 crores, reflecting both healthy market demand and strong customer confidence in our offerings. Our performance demonstrates the strength of our brand, execution capabilities, and our ability to identify high-potential micro-markets aligned with evolving customer aspirations. What is particularly encouraging is the strong response we received in newer geographies, which validates both our market selection strategy and our product positioning approach. Bangaluru continued to be a key growth engine for us, contributing Rs. 485 crores and accounting for almost 31% of our annual bookings. Over the years, we have built strong operating capabilities and developed a deep understanding of several important micro markets within the city. We continued infrastructure-led growth and scale-up of our vertical portfolio in Bangalore. We remain highly optimistic about the long-term opportunity in this market. Another encouraging trend during the year was increasing contribution from sustainment sales. This reflects growing customer confidence in our product quality, pricing strategy, and execution track record. Over the past few years, we have consciously focused on improving sustainment sales. The performance and we are beginning to see now meaningful results from those efforts. Herefore, FY26 was specially strong for us. During the quarter, we achieved our highest ever quarterly booking and collections. With bookings crossing Rs. 600 crore milestones for the first time. We launched one project each in Bengaluru and Vadodra during the quarter. In Bengaluru, we launched Arvind Skycrest in Varargatta towards the end of the quarter. Where we achieved bookings of 164 units, amounting to Rs. 262 crores, translating to approximately 53% of the total inventory. This was within a week of the launch. Similarly, in Vadodara, we launched Arvin Greenfields on Ajwa Road and achieved bookings of 323 units, amounting to Rs. 178 crores, representing nearly 42% of the launched inventory. These launch outcomes reinforce the strength of underlying end-user demand, as well as our ability to execute differentiated products across diverse markets. On the business development front, FY26 was transformational for us. During the year, we added projects with an estimated cumulative top-line potential of Rs. 3,140 crores, significantly enhancing our medium-term growth visibility. We entered the Mumbai residential apartment market through a premium redevelopment project in Santa Cruz, expanded our Banguru footprint through acquisition in Sarjapur and Whitefield, and we strengthened our Ahmedabad presence with a high-rise development in Vastrapur. These additions further deepen our presence within the vertical developments, which are becoming an increasingly important part of our portfolio mix. Subsequent to the year-end, we also signed our largest-ever high-rise project in Mumbai, with an estimated top-line potential of approximately Rs. 2,400 crores. This further reinforces our conviction in the long-term opportunity within the Mumbai metropolitan region. At the same time, our approach towards MMR remains disciplined and partnership-led. We continue to focus on asset light structures, redevelopment opportunities, and micromarkets where demand visibility, capital efficiency. While discussing business development, I would also like to share an update on Surat. After a detailed evaluation, we have decided not to proceed with the project as we were not comfortable with certain technical and legal complexities associated with it. We continue to believe Surat remains an attractive long-term market and we will evaluate future opportunities there selectively on a case-to-case basis. Let me now move to the financial highlights. For FY26, we reported revenues of Rs.564 crore as against Rs.713 crore last year. Adjusted EBITDA stood at Rs.156 crore compared to Rs.196 crore last year. While PAT came in at Rs.103 crore versus Rs.119 crore in FY25. The decline in annual revenue was timely due to the timing of the revenue recognition of some of the projects. Importantly, from a broader perspective, our profitability trajectory remains strong, with PACT margins remaining healthy and annual PACT continuing to sustain around the Rs. 100 crore mark for the second consecutive year. Q4 performance, however, was particularly encouraging. For the quarter, our revenue stood at Rs. 155 crores compared to Rs. 163 crore last year. Q4 adjusted EBITDA grew 26% year-on-year to Rs. 56.4 crores. While PAD grew 103% year-on-year to Rs.44 crores against Rs.21.8 in the corresponding quarter last year. Strong collections and healthy profitability translated into net operating cash flows are Rs.417 crores during FY26, further reinforcing the resilience and quality of our business model. During Q4 alone, operating cash flows stood at Rs.96 crores. Based on the current project pipeline, we estimate unrealized operating cash flows exceeding Rs. 4970 crores, which we expect to realize over the next 4-5 years. Our focus continues to remain firmly anchored on creating sustainable long-term value for our shareholders. In line with this commitment, the Board of Directors has recommended a final dividend of Rs. 2.25 per equity share or face value of Rs. 10 each. Looking ahead, we remain optimistic about the long-term structural demand outlook for residential real estate, particularly for organized and trusted developers. With a strengthened pipeline, deeper presence across key growth markets, improving operating capabilities, and a disciplined approach towards capital allocation, we believe we are well poised to sustain growth momentum over the long term and create value for all the stakeholders. With that, I will now conclude our opening remarks, and we can start the question and answer session.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question, may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We will take our first question from the line of Amit Trivastava from 3631 Capital. Please go ahead.

Yeah, hi. Thank you for the opportunity, sir. Sir, my first question is regarding the BD, which we have done for the F.26 around 3,200 crores. Can you share how much is the cost spending equity investment for these projects? And what would be the guidance for the BD for the coming year in F.267? And if you can give the break-up also, which geography you are more aggressively looking, which geography, or you want to maintain the mix currently, what do we have?

Yeah. Right. Thanks, Amit, for the question. So, Amit, for FY26, like you said, we have done BD, which is approximately about Rs.3,200 crores. We've generally not been giving break-up of capital deployed across each project, but there is a very specific question, we can probably take it offline, and you can reach out to the team. To give the BD guidance for the new financial year, FY27, we have a strong momentum which is continued in the current year. As you know, we have already logged one project in Mumbai with a top line of about Rs. 2400 crores. So, we believe, I think, this year we can have BD locked in about 4000 to 5000 crores for the financial year.

Sir, I just wanted a total commitment, sir, not the break-up of project-wise.

So last year, if you see across the portfolio, we have actually got investing activities exceeding about 600 crores. So that is the amount which is actually going towards the BD which has been done.

Okay, okay. And if we look at our Mumbai project pipeline, which is around

4200 crores, where we are looking

implied OCF of around 750 crores. Whereas in Karnataka, we have a 2800 crore of pipeline. There the OCF would be around 1300 crores. So is this primarily to do with redevelopment project or any other specific reason why there is a OCF generation is significantly different?

So, in Bangalore, quite a few of our recent acquisitions, as you know, were outright in nature. And Mumbai, so the three projects that we have, one is a joint development, the other two are actually redevelopments. So, hence the OCF numbers are actually lower than the outright projects.

So, how to see this going as the trends, because two years back, we have a very strong OCF generation as a percentage of collection, if we look at. Last two years, we are around 36-37% of the collection. Can we expect this is a sustainable number or it will further go down because project mix are changing?

Amit, see, I think if you see in terms of generally the OCF as a percentage of collections, while we have been doing exceedingly well, in the long run, you will expect it to be closer to the margin profile of the portfolio that we have. And our guidance is we are looking at projects with a 22 to 25 percent EBITDA margin. So in the long run, we do expect it will start getting closer. I think today for us, because the plotted portfolio is also a fairly large part of our offering, so the percentage is on the higher side. Thank you. In the last few years of cycle that we have seen, our percentage has been slightly more, in fact, because of the pricing advantage. In the long run, our guidance remains closer to the 25, but I think for now, we might be somewhere in the 25 to 30 range for the next few years.

Okay. And sir, for the next year, the pipeline, if you can explain us how the pipeline would be there for the ECOI 27 launch project-wise, if you can give one, or quarter-wise also, if you can give, that would be the launch pipeline. Yeah, launch pipeline, sir.

Amit, we are expecting in the current year, we are looking at almost six launches across our portfolio. So while difficult to break it quarter-wise, but in terms of market, our expectation is that we'll be launching one project at least in Andabas. So that is a project in Vastrapur. We are looking at three launches in Bangalore and we are at least looking at two launches coming up in Mumbai. So that is currently our expectation. We think put together, we might be putting out inventory of about 3,000 to 3,500 crores with these six launchers, as some of the launchers which are fairly big will be brought in the market in phases.

And this year, we are expecting 30-35% growth in our booking, sir?

Yes, the long-term guidance remains at 25-30% CAGR over the 4-5 years. I think this year, we have a chance of being able to do better. So, I think we have a chance that we can do about 35-40% in the current financial year.

Okay. And so last one, clarification regarding the Forest Trail Bangalore project, which was launched two, three years back, despite the strong overall market environment back time, but the project still appears to have 50% unsold inventory. And in FY26, we have seen a cancellation also. There is no incremental sales. So can you give some idea of what is happening in that project? What would be the strategy to liquidate the inventory in that game?

Actually, you're right. So, Forest Hill, purely on the numbers front, looks like there is less movement on the sales, but I think there was a conscious strategy. We wanted to have some readiness on the site from an experience perspective because these are essentially row houses and villa projects. So, we wanted to create some sort of a customer experience to be able to get the right kind of pricing and right kind of appreciation from the customer. So that work is on, where we are creating some sort of a site experience with a show villa and some landscape, which has actually taken quite a few months to get ready. I think we expect it to be ready over the next three, four months, and then we will be going forward with a stronger sales activation so that we are able to convey the, I would say, the premium proposition that we are offering in this project. So we do expect the sales will be far better in the current year, and that should start.

Okay, okay. Thank you very much, sir. It will be helpful. Thank you, Amit.

Thank you. Next question is from the line of Jainam Shah from Equator Securities. Please go ahead.

Yeah, hi, good afternoon. Thanks for the opportunity and congratulations on the good side of numbers. Can you please speak louder? Yeah, sure. Can you hear me now?

Yes.

Yeah, so my question is mainly on the pre-sales part. So as you have guided that for next 4-5 years, we will be targeting 25% CHR. This year, we might be doing like a 35-40% growth. And on the other hand, we are seeing that launches would be of course for 3,300 CR. So just wanted to check on this part. Launches would be back-ended largely maybe in the second half, given that the current geopolitical situation, there might be some, you can say, issue with the footfalls and all. And let's say our conversion into the launches has been great across the projects maybe at 60-70%. In that case, this 35-40% number is conservative in terms of pre-sales guidance, or we are, let's say, not sure if few projects might roll over to the next year.

Thanks, Janam. So, good question. So, Janam, I think it's a combination of both. One, I think, while we are looking at six launches in the current year, but I think we have a stronger pipeline towards the second half of the year than actually first half. So among all the projects, our project in Ahmedabad is ahead probably in terms of the approval timeline, and it is looking more like an H1 launch right now, but when we are looking at most of the other projects, they are looking somewhere closer to, I would say, H2 from a timeline. So when we have given this guidance on the sales, we have considered that. As a key factor, and second, of course, this risk of some slippage always remains in our business from an upper-world standpoint, while today when we are guiding, I think we are reasonably sure we are not very, very late in the year, but I think we are just trying to maintain that guidance, keeping in mind that H2 pipeline is stronger than H1.

Got it, got it. From the costing point of view, given that few of the commodity costs have increased, how are you seeing the realization for our existing project going forward? Are we being able to pass on this to the customer when we are not yet, you can say, passing it on and taking it on our own books as of now?

I think your question is about the commodity price increase, right? Yes, we are noticing an increase across the costing and the material that we are procuring. So, there is an increase across the portfolio. So, what we have seen actually pre-war and post-war, if I were to compare it immediately across the portfolio, I think we are seeing almost a... A 4% increase in the costing of the product that we are actually offering to the customer. Having said this, in our own budgeting, we have taken a sufficiently large cushion in the form of contingency and inflation that we normally budget as a part of our practice. So we are not worried about... At least today, passing this on to the customer because it won't be needed with the kind of budgeting process that we have followed. However, we have to continue to watch this particular situation very closely and how the prices of commodity and material moves for the next few quarters will be quite important for us to determine what needs to be passed on in terms of increase to the customer.

Got it, got it. And if you can just throw some light on the new platform that has been created with the HDFC Capital and the already existing platform watch the status over there.

So, Jainam, so currently we have been using, in fact, the current platform with HDFC quite actively, and the idea of this new platform is also, it's an extension of that. I would request Amit to share maybe numbers of how much have we used from the current one.

So, JNM, we have currently, so we had a platform of about 600 crores with HDFC. From that, we have already used 350 crores. So, the idea is to kind of backfill that number and create additional capital available for us as we expand and grow. So, we are creating those lines which are available for us on call, essentially.

Got it, got it. But nothing on the, you can say, the project-specific thing like luxury or ultra-luxury or maybe affordable, something like that. So, for that, we have not created the separate room. It's more of a line of credit for the future projects.

Yes, this is not specific to any particular product type. This line is available to us for any kind of products that we get into.

Got it. That is so much. If anything, I'll join them. Thank you so much.

Thank you. Next question is from the line of Bajrang Bafna from Sunidhi Securities. Please go ahead.

Congratulations for a good set of numbers.

Sir, my first question pertains to you.

Bajrang, would you please speak louder? Your unrecognized revenue is close to 3,700 crores as on 31st March. So, last year we have seen, you know, our P&L revenues have seen slightly, though our margins were better. So, how do you see, you know, the, basically the delivery in the FY27 in terms of recognizing this revenue in the P&L? So, what sort of delivery pipeline of this number is there for, lined up for FY27?

Right. Thanks, Majdan, for the question. So, Majdan, we currently have not been giving exact guidance on the revenue target because, as you know, that is largely the way real estate accounting works and, again, the impact of binary approvals on being able to recognize. The revenue. So largely I think this year was a slight bit because some of the occupation certificates that we were expecting probably are deferred to FY27. So while we are expecting FY27 numbers to be better from a reporting accounting perspective, we don't want to give an exact guidance on this particular thing, but we do expect to show strong growth over what we have reported in the FY26 financial year.

Any band is possible? Within that band, it is doable? If that could help us to...

We'll take this as a feedback, Bajrang. Maybe if we feel, I think this needs to be added in the guidance, we will probably consider in future.

Done, done, sir. And if you see the cash flows, you know, from all the ongoing and the future projects is close to 5,000 crore right now, which is shown in the latest presentation. So, just to get a sense, you know, what could be the average time period, you know, within which this is expected to be realized, some ballpark guidance on that, maybe three years or three and a half years or maybe four years. So, because now you have entered into the residential projects also, which are little lengthy in terms of your earlier model. So, just to get a sense on that, what could be the average cash flows that we could see for next, you know, out of this 5,000 crore.

So I think when you look at this current portfolio, I think largely we are expecting to monetize most of this in the next four to five years. That is what we are currently targeting from this.

Oh, okay. And just to, from a broader perspective, I think you have already guided on the pre-sales numbers. How do you see this year? But just from a, you know, strategy perspective, like you have entered into the Maharashtra also, and you want to be a satellite model. So how the debt situation, because, you know, we have already moved from negative cash to right now 167 crore of debt. So, considering next two, three years, you know, you have the HDFC platform availability also where little funds are still there to be utilized. But broadly, how do you see the debt position to move, you know, over FI 27 and 28?

Right. So, Marjan, currently our debt position even right now remains very comfortable. We are at 0.26 net debt to equity ratio, as you see. So, we are quite cautious in terms of what we want to add. Having said this, we do want to have some good mix of debt because we also believe that the structural demand in real estate is strong and there might be also opportunities to be able to add good assets, keeping in mind the current market situation. So, but our guidance remains that we will not exceed a ratio of 1 to 1, so that is our net debt to equity ratio that we have already guided for. So, we will maintain that discipline throughout.

Okay, and just my last question, sir, broadly, because we are hearing a lot of adoption of, you know, AI and a lot of, you know, most of the larger companies, not only in India but across the globe, we are hearing that a lot of firing is happening and layoffs are pretty much high. So since you are there in Bengaluru, which is the IT hub of the country, so what is your, you know, prognosis and sense considering these situations are, you know, also happening in India also? So how do you see, you know, the ground experience and the ground reality? Because are you seeing some sort of, because earlier we used to see whatever projects that were launched in Bengaluru, within the first few hours, everything was getting sold. So now we see, you know, 50-60% are getting sold in the first week and all. So just your sense on that. Of course, we know that now these are larger projects, so earlier projects were pretty small. So obviously that point is well taken. But just your ground reality, what you are sensing in terms of demand when we see a lot of layoffs are happening in the IT sector.

So I think, Bajan, we are also continuously tracking all the markets that we are in quite closely. So something definitely we also want to keep our watch on. But today, at least our interpretation is that markets have become more stable. So maybe the euphoria of the last four or five years of cycle, the level at which the market was growing probably is not definitely at the same level. But we are not seeing, I would say, any major worrying sign because of the structural demand being quite strong from our perspective. Second, like we said in the past, I think the locations that we have picked up are very, very, very strong. So, I think Real Estate still remains a very micro-market and location-driven business. So, I think with the locations that we are looking at, we still believe there is a strong enough interest coming in. The Banargatta absorption is also, it's not actually a quarter-hour absorption. This project got its approval in the last seven days of the... So it is actually not a quarter sale. This is frankly, this 50% plus absorption is frankly one weekend that we were able to get within the financial year. So we do believe I think interest remains strong. Having said this, I think the euphoria probably that real estate was enjoying may have gone more towards the stable and more, I would say, organized demand. And if you see, even a sustainable sales is actually reflecting that. So, we have done more than 600 crores of sustenance sales in the last financial year, and even in the last quarter, we did almost close to 180 crores from sustenance. So, that is reflecting that even when people are actually taking their time evaluating assets, there is strong enough demand coming in. And even on sustenance, this will be one of our much stronger quarters, what we have managed to deliver in Q4. So, I think stable, and that is what we are currently seeing, but we are very watchful of the market.

Okay. All the very best, sir, and thank you very much.

Thank you. Ladies and gentlemen, before we take the next question, a reminder to all the participants, if you wish to ask a question, please press star and 1. We will take our next question from the line of Pankaj from Avis Capital. Please go ahead.

Yeah, good afternoon. Firstly, congratulations on a good set of numbers. I know it's on a statutory financial standpoint. They are not reflecting that. But that's the nature of business. My quick couple of questions, and this is in continuation to what my earlier friends have also asked. One is an account of the EBITDA margins or profitability margins. You mentioned that you are uncomfortable giving up guidance on FY27 top-line numbers, but my question is that are you going to hold on the EBITDA margins, more especially considering because we are into a Middle East crisis and we have seen inflation should go up considering the fuel price increase, which we have seen recently, And there will be more also coming in. And which obviously will have an impact on cost of raw material for you. So what kind of margin of safety or cushion you have created so as to continue giving healthy margins? Second is, I see some negative on Forest Trail project in Karnataka, some 11-odd crores, 5-odd units. So, I assume these are cancellations in FY26. If yes, how are you reading it? Is it a matter of concern for you? Because, anyways, more than 50% of the project is still unsold, and we see cancellations on top of it. Is it really worrying you, or maybe you may like to add some color on that?

Right. Thanks, Konkuch. So, Pankaj, on EBITDA margin, when we, of course, the margins that get visible outside are more accounting margins, because that is what gets reported. But if I talk about what we are, when we look at the margins for the new sales that we are doing, so we are fairly confident that we can continue to maintain the trajectory of 22 to 25 percent, even in the current year. And the way we have started and what we are actually seeing in Kortover, we don't feel that there is any margin risk. Like I mentioned that while we are seeing some cost increase, but we have in our budgets, we have taken sufficient cushion to be able to absorb this. So I think if this is not very, very long drawn and this commodity increases probably for maybe a quarter or more, I think quite comfortable for us to be able to manage this in the current P&L comfortably without even passing on the increase of prices to the customers. So that is something we are confident about. On forest drills, I think I just, like I mentioned earlier, to the earlier question, so forest drill, some of the projects across the portfolio, I think some cancellations. Are a part of regular business. So, for projects which are, I would say, in sustaining stage. Most of the cancellations are not visible outside. Because we also have fresh sales which are focused from the new sourcing and new activations that we're going in. So for instance, we have been trying to get the customer experience ready. So this is a row house villa project. So we have been taking time to complete, I would say, what we believe will add to the customer experience. So we wanted a certain readiness in. So last financial year, we have not been able to take a very large activation on that particular asset. And with especially the new launches coming in, we have actually now planned that coming in FY27. So once the site experience is ready, and we start getting new sales coming in, I think this negative will not be visible in FY27. So we believe, we are quite confident of the product there. I think it's simply about just restarting the sales activation after getting customer experience to a level where we feel it is justifying the premium product that we have tried to bring to the market.

Okay, thank you. That's all I have. Thank you.

Thank you. Next question is from the line of Harish Patak from Moodylal Oswal. Please go ahead.

Yeah, hi, Tim. Thanks for the opportunity. So, my first question is on the sustenance sales. So, while we have seen, you know, improvement in velocity there in the recent quarter, so what measures have we taken at the corporate level, you know, to keep this engine running? Because, you know, as our base is growing and we have six launches also lined up for the current year, I think it will be also important for the sustenance sales to keep going. So, what measures have we taken on that trend?

Right, Ash. So, Ash, this is something that we have been tracking now quite regularly as a part of a strategy because this, we understand, brings... And I think the results are actually quite visible. So in terms of strengthening the team, ensuring that we have the right tools and a focus on looking at all the key inputs that translate eventually into the customer buying. So whether it is experience, whether it is the digital tracking, lead management, lead generation. So all those things we are quite focused on. So we believe, I think, we can continue to show good sustenance growth even in the new financial year.

So, you know, I mean, the growth target that we have given 35 to 40 percent for this year, so what kind of proportion is expected from the sustenances?

So then we are, while this of course will change depending on the mix of launches and the sustenance inventory also that is available because some of the inventories and sustenance also comes to the market stage wise. But when we are looking at our current mix today, our understanding is sustenance can show a growth of about 15% over what we have delivered in FY26. So 15% of growth can come from there. Of course, when we are guiding for total sales growth of So, we have three projects right now, as you know, in the portfolio, so while we are working on all the three at the same time, And we are hoping two of them will see the market. I think today from a process, I would say approval process and readiness perspective, maybe the plotted project in Pankopoli is actually ahead. The other one probably either between the Santa Cruz or Goregaon. That is what we feel we should be able to launch in the current year.

Understood. And finally on the Goregaon project, I think we have a JV partner. Then can you throw some color on who our JV partner is and what kind of arrangements we have?

So, as you know, I think we've taken this project from a partner who had been working with the, this is a MADA redevelopment, so there is a society, there are tenants from MADA who are actually there, so there is a group called Oxford Sigma, so they have actually worked with these tenants in the past and they have brought the project to a certain stage, so our joint venture is with them, so there is a profit sharing agreement that we have with the Oxford Sigma group. So, they have a certain responsibility in terms of managing the site, bringing approvals to a certain stage, and, of course, once they bring it to that particular stage, Aravind Smart Spaces plays a larger role in terms of the development, design, sales, and construction to take the project ahead.

And, Surya, and finally on the Koppoli project, I think it's a large 1,500 crore worth of projects. So, what proportion of inventory will we be launching in the first phase?

Thank you. I think our sense is we might be baking into three phases, most likely. So I think while the first phase should be somewhere between 500 to 600 crores is currently what we think, but it's going to be a function of also the execution logistics. So today we have made our plans ready and we are just probably doing some final work there. So this is a function of how the approvals and also how the construction logistics works. But 500 to 600 is what we believe should be the first phase.

Thank you. Thank you for taking my pictures.

Thank you.

Thank you. Next question is from the line of Vidwik Sait from Venaf Financial Services. Please go ahead.

Hi. Good afternoon, sir. So, a couple of questions from my end. So, firstly, what is the BD target for FI27?

Right, thanks, Ritwik. So, BDT, Ritwik, we are looking at about 4,000 to 5,000 crores of GDV to lock-in for FY26.

Okay, and the spends will be similar in FY27 versus FY26?

Ritwik, sorry, you are not clearly audible. Can you be slightly louder? Okay, this is better. Yes, much better.

Yeah, so the spends will be similar to FY26.

So I think slightly more because last year, as you know, we logged about 3,200 and our spends are closer to 600. So we may probably have slightly more than last year, but it's a proportion of how much we actually get in the JD and how much in the outright structure. So it could be slightly more. One positive. From, I would say, the first project perspective that we've learned, it is actually a joint venture. So, probably has a lower amount of outflow that goes for the top line. So, slightly more than 600, but maybe not a very drastic shift.

Okay, got it. What can be the OCF trajectory in FY27? We've done a very good growth in FY26 of close to 25%, which is tracking the pre-sales. So, FY27, can it track the pre-sales as well?

Yeah, so I think our OCS has been extremely, extremely strong, but I think there are two forces that are going in, and if you also see our results will display, that our construction spends have really caught very good speed in quarter three and quarter four, so we want to continue the trajectory in FI 27. So, while we're expecting growth on collections, but at the same time, we do expect, I think, quite some rapid growth in terms of our outflow and focus on construction. So, somewhere, I think, we are looking at maintaining the same trajectory for OCF that we have probably delivered in FY27 in terms of the absolute numbers.

Okay. Okay. So, OCF will be flat in FY27.

Largely, but again, I think very difficult to probably give an exact guidance because it's a function of how much outflow goes towards construction, but we will be quite happy if we are able to maintain the same number actually, because that will reflect that our construction speed has also been at a level that we are comfortable with.

Got it. Got it. And so one final question from my end on the inventory. So we have about 3000 crore from launch projects, which is unsold. And you mentioned in the previous question that 15 to 20% of sustain in sales is possible in FI 27. So would it be a fair assumption that this unsold inventory will take anywhere from three to four years to get sold, the current unsold inventory?

Sorry, I could not get the question very clearly.

Okay, so let me try again. The unsold inventory right now is approximately 3000 crores from the launch project.

Right.

And you mentioned that we are looking at 15 to 20% sustenance in FY27 also. So, would it be fair to assume that we can liquidate this unsold inventory which is already launched in the next three years?

Yes, I think that's a fair assumption. So, I think from a time perspective, I think when we are also talking about our current projects, most of the last, we are saying four to five years for the overall inventory. So, what is launch, I think three years is a fair assumption to make right now.

Okay, okay. Sure, sir, got it. All the best and thank you.

Thank you.

Thank you. Next question is from the line of Ashish Nayal from Aditya Birla Housing Finance. Please go ahead.

Hi, thank you for the opportunity. Sir, I just wanted to ask you that you are standing at a net debt of 167 CR, approximately 167 CR. Sir, what are your debt plans for the future in FY27 if I talk about and FY28 if I specifically like if you want to bifurcate between 27 and 28? For the next one.

So, thank you, Ashish, for that question. We are generally not giving a guidance on our debt positions, but like Priyansh was mentioning earlier, we have internally defined a threshold for ourselves, where we will always try to keep the debt equity ratio to below 1 is to 1. Having said that, we, like Priyansh mentioned, we will be generating a healthy OCF next year as well. So, that is the first source that we tap in for our BD deployments. And then over and above that, there will be some amount that could be required, which will be generating externally through bank and NBFC debt. We have also taken an internal sign-off on NCD, so that is something that we are keeping as an option available for ourselves as well. So we will be utilizing all of these two, three different avenues available for us, but our first source will always be the OCF that we are generating.

Are there any future investments or equity that we are expecting to infuse so that the debt equity will be below 1%?

So Ashish, I think just the stage at which it is needed, I think we will definitely evaluate that. But today, if you see, we are at 0.26 from a debt equity ratio perspective. So we are quite comfortable. So I think the way it is, we are seeing the trajectory for at least the current financial year, very unlikely that we will be getting to that particular threshold. So at this stage, this question is probably not arising. Maybe make subsequent financial years when this is applicable and we are near the debt threshold, it will definitely be evaluated.

Got it, sir. Got it, sir. Sir, there are many projects in Langlois who have, like, HBC is a partner. Sir, are they a partner that has a net or they have quality equity in the projects, sir? And to throw some more light on it, sir, which are the projects in which HBC is a partner?

So, so, uh, The projects where SDFC is a partner, we are already disclosing that in our slides. If you just refer to the project-wise details and the economic interest, you will be able to see there are currently three projects where they are involved. And the structure is again, is an OCD kind of a structure. So, where they are investing.

It is an OCD type of a structure, sir.

Thank you. Next question is from the line of Biplug Department from NK Global. Please go ahead.

Good afternoon, everyone, and congratulations on the excellent result. So, first question is on the, you know, deal pipeline in MMR. How does the deal pipeline in MMR look like currently? And are we targeting smaller projects, I mean, relatively smaller projects with GDP of, say, around 500 crores or larger projects around 2,000 crores? Opportunity, whatever you get, we can, we'll do 3000 as well as 2400 codes. So that is my first question.

Thanks, Viplug. So the deep pipeline in Mumbai still remains strong for us. So there is of course a lot of deals that are coming in. But having said this, now in Mumbai we are moving to the next stage focus that is bringing some of our projects that we have already logged to the market. At the same time, we continue to evaluate the right kind of deals that are coming and getting discussed with us. As a strategy, I think our sweet spot is somewhere between 500 to 1000 crores. So that is, I would say, our sweet spot where we are actively sourcing deals in the Mumbai market. Having said this, like you said, business development is one area in Mumbai, you have to take a call which is deal by deal looking at the economics of that particular project involved and also the location that is available. But 1000 maybe our sweet spot, plus or minus maybe 20-25% in Mumbai. That is what we are looking at. So, actively, the focus is in this particular category.

Okay, great. And second question is on, you know, we have seen quite a few additions in your team. So, just wondering how many senior executives have been added to key roles in the last one year?

So, there's been quite a few, in fact. So, a lot of CXOs who have actually joined in the last one year. Maybe I think if you look at almost close to 50% of the team that is now working directly with me has actually come in the last one year. So that is what we have managed to work. And I think we are very happy with the quality of the talent now we are adding. And that is reflecting in the way we are building the organization.

So the bandwidth might have increased. I mean, earlier you may be doing four, five. So does it mean that we'll see ramp up in launches going forward as well as execution?

I think these are all actually steps to build the organization in the long run and strengthen our ability to execute, which will reflect in the number of launches, the quality of execution, the quality of product, quality of sales that we bring in. So these are steps in that particular direction. And I think at the same time, I think we want to, we have a very clear, defined internal goalpost in the way we are looking at growth. So, the quality of talent is bringing in the foundations first for the organization, and this, of course, in the subsequent years will allow us to... Change completely the orbit also that we are trying to aim as an organization.

That's good. And the final question is on the Goligal project, the JV structure. I thought it is JDI. So JV structure, can you give us some color on the structure? What is your profit share? What is its responsibilities? And is the partner contributing any incremental capital to the project? Or going forward, all the capital would be brought in by you and the project rate?

So, this becomes effectively a two-level structure because we have a partner who has already brought the project to a certain stage, and the way we have structured the deal, both of us actually have the right to be able to invest. So, there are some investments that have already happened from the partner in the past, and we are clear what investments we need to make in the future. So after, I would say, looking at the full nature of the deal, our economic interest, like we mentioned, comes to about a 44% kind of profit share. But good thing is that actually also ensures our investments are commensurate with the kind of returns we are taking. And the way, I think all the responsibilities in terms of some of the critical areas are also Thank you.

Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr. Priyansh Kapoor, Managing Director and CEO, for closing comments.

Thank you, everyone, for participating in this earnings call of Arvind Smart Spaces. I hope we have been able to address most of your queries. However, if there is anything missed out on any of your questions, kindly reach out to our IR team, and they will be happy to connect with you offline and clarify and give further information as may be required. Looking forward to interacting with all of you in the coming quarter. Thanks for your time.

Thank you. On behalf of Elvin Smart Spaces Limited, that concludes this conference. Thank you all for joining us today, and you may now disconnect your lines.