Arvind SmartSpaces' operating margin drops 14.12 pp as revenue falls QoQ
Costs declined more slowly than revenue, while management reported sharp YoY growth in bookings and collections.
Filed 05 Nov 2026, 16:53 IST · after market close · Arvind SmartSpaces Ltd (ARVSMART)
Key takeaways
- Revenue fell -50.46% QoQ, but expenses fell only -36.67%, driving a 14.12 percentage-point contraction in operating margin.
- Net profit declined -76.64% QoQ as interest expense rose +16.31% and the tax rate increased 2.44 percentage points.
- Management reported quarterly bookings of Rs 906 cr, up +110% YoY, and collections of Rs 418 cr, up +77% YoY.
Price around the results
Revenue contraction drove a sharper profit decline
Consolidated revenue fell -50.46% QoQ to Rs 157.36 cr, while operating profit declined -64.67% to Rs 55.26 cr. The sharper operating-profit fall reflects expenses declining only -36.67%, slower than revenue. Net profit fell -76.64% to Rs 22.75 cr, with interest expense rising +16.31% QoQ.
Margin narrowed despite operating profit remaining above sector median
Operating margin contracted 14.12 percentage points QoQ to 35.12% because costs fell less than revenue. Other income contributed 15.67% of profit before tax, making it a meaningful part of reported profitability. The company’s margin was 23.56 percentage points above the 11.56% median for the 262 Consumer Discretionary peers that had reported.
Bookings and new launches point to operating activity beyond reported revenue
Management reported quarterly bookings of Rs 906 cr, up +110% YoY, and collections of Rs 418 cr, up +77% YoY. The company said Arvind Sylva was launched in August 2026 in Sarjapur Road, Bengaluru, as its largest vertical project to date, while Arvind Iconia was launched in Vastrapur, Ahmedabad, toward the end of the quarter. Management said FY27 new business development has aggregate top-line potential of approximately Rs 3,100 cr.
Results were filed after market close
The consolidated results were filed after market close on 5 Nov 2026. The quarter-to-quarter comparison shows a 14.12 percentage-point margin decline from Q1FY27, rather than a third consecutive quarterly decline that can be established from the available trend.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹157 cr | ₹318 cr | -50.46% |
| Other income | ₹5 cr | ₹4 cr | +15.23% |
| Expenses | ₹102 cr | ₹161 cr | -36.67% |
| Operating profit | ₹55 cr | ₹156 cr | -64.67% |
| Operating margin (%) | 35.12% | 49.24% | — |
| Interest | ₹26 cr | ₹22 cr | +16.31% |
| Depreciation | ₹2 cr | ₹5 cr | -53.46% |
| Profit before tax | ₹32 cr | ₹134 cr | -75.83% |
| Tax | ₹10 cr | ₹37 cr | -73.65% |
| Net profit | ₹23 cr | ₹97 cr | -76.64% |
| EPS (₹) | ₹3.93 | ₹21.80 | -81.97% |
Operating margin of 35.12% compares with a Consumer Discretionary sector median of 11.56% across 262 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.44% | -3.45% |
Volume on the results session was 1.79× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Quarterly bookings stood at Rs.906 Cr, up 110% year on year.
- Quarterly collections stood at Rs.418 Cr, up 77% year on year.
Guidance & outlook
- FY27 new business development has an aggregate top-line potential of approximately Rs.3,100 Cr.
Expansion
- Arvind Sylva was launched in August 2026 at Sarjapur Road, Bengaluru, as the company’s largest vertical project launched to date.
- Arvind Iconia was launched in Vastrapur, Ahmedabad, toward the end of the quarter.
What to watch
- Whether operating margin recovers from 35.12% after the 14.12 percentage-point QoQ decline.
- Whether interest expense moderates after rising +16.31% QoQ.
- Whether bookings and collections remain above Rs 906 cr and Rs 418 cr, respectively.