Arvind Smartspaces Upgraded to AA-/Stable by India Ratings Following Sustained Growth and Improved Credit Metrics

Arvind Smartspaces Upgraded to AA-/Stable by India Ratings Following Sustained Growth and Improved Credit Metrics​

Ahmedabad, June 24, 2026: Arvind Smartspaces Limited (ASL), the residential real estate development arm of the Lalbhai Group, has received an upgrade to 'IND AA-' from 'IND A+' by India Ratings & Research (Ind-Ra). The rating reflects the company's sustained operational improvement, stable cash flow generation, and prudent financial management following FY26 results.

ASL’s performance in FY26 demonstrated significant growth across its key metrics. Pre-sales increased by approximately 22% year-on-year to INR15,500 million (up from INR12,710 million in FY25). Collections also rose notably by 16.6% year-on-year, reaching INR11,000 million from INR9,420 million in the previous fiscal year.

The company recorded a net operating cash flow (OCF) of INR4,170 million in FY26, up from INR3,510 million in FY25. This solid operational performance supported ASL’s improved financial profile, as reflected in its consolidated financials:

Debt and Financing Ratings Assigned by Ind-Ra​

In addition to the upgrade of the issuer rating, India Ratings assigned ratings for several financial instruments issued or proposed by ASL. The agency has provided stable outlooks across these debt products.

Details of the rated instruments are as follows:


The upgrade and subsequent ratings also reflect the company's continued capability to fund its expansive business development activities. While gross debt increased to INR5,774 million in FY26 (up from INR2,789 million in FY25), net leverage remained low at 0.79x in FY26, which is within the range of 1.5x–2x expected through FY27–FY29.

Operational Strength and Strategy Diversification​

Ind-Ra noted that ASL's improved operational performance was supported by strong pre-sales growth (comprising 60% from new launches) and steady collection efficiency at 71%.

The company has focused on reducing concentration risk through strategic diversification across projects and geographies. While the majority of ongoing operations are concentrated in Ahmedabad (74%), ASL plans to launch six new projects in FY27, aiming for a balanced portfolio split among Mumbai Metropolitan Region (MMR), Bengaluru, and Ahmedabad in the medium term.

ASL has completed 16 projects since its inception in 2009, covering 9.8 million square feet (msf). The company currently has 16 ongoing projects with over 57.9 msf in developable area. Financial strength remains robust, with a significant portion of the committed receivables covering over 71% of committed costs.

ARVSMART Stock Price Movement​

As of 2:40 PM, shares of Arvind SmartSpaces Limited are edging up to ₹608.25, reflecting a gain of 0.15% in the ongoing session. The stock trades on moderate activity, having seen a volume of 10,864 shares as it continues through its live market trading period.