Arvind SmartSpaces Limited has received a disclosure regarding a significant change in shareholding by HDFC Capital Affordable Real Estate Fund-1 (HCARE-1). The fund has disposed of a substantial portion of its holdings in the real estate company through open market transactions.

Share Disposal Details

HDFC Capital Affordable Real Estate Fund-1, operating through its trustee Vistra ITCL (India) Limited, disposed of 23,00,000 shares on February 17, 2026. This transaction was conducted through open market sales, representing a significant reduction in the fund's investment in the company.

Shareholding Changes

The disposal resulted in a substantial reduction in HCARE-1's stake in Arvind SmartSpaces Limited. The fund's shareholding decreased from 8.79% to 3.78% of the company's total share capital.

Company Capital Structure

Arvind SmartSpaces Limited's capital structure remained unchanged following the transaction. The company maintains its paid-up equity share capital at ₹45,86,69,790, consisting of 4,58,66,979 equity shares with a face value of ₹10 each.

Regulatory Compliance

Vistra ITCL (India) Limited, in its capacity as trustee for HDFC Capital Affordable Real Estate Fund-1, filed the mandatory disclosure under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The fund is classified as a Category II alternative investment fund registered with SEBI and does not belong to the promoter or promoter group of Arvind SmartSpaces Limited.

The disclosure was submitted to both BSE Limited and National Stock Exchange of India Limited, where the company's shares are listed under the scrip code 539301 and symbol ARVSMART respectively.

Arvind SmartSpaces Limited delivered exceptional financial performance in Q3 FY26, reporting record quarterly collections and announcing a strategic leadership transition during its earnings conference call held on February 11, 2026.

Record Financial Performance in Q3 FY26

The company achieved its highest ever quarterly collections of Rs. 317 crore in Q3 FY26, marking a robust 38% year-on-year growth. This performance was complemented by strong booking momentum, with quarterly bookings reaching Rs. 331 crore, representing a significant 48% increase compared to the same period last year.

For the nine-month period ending December 31, 2025, Arvind SmartSpaces reported its highest ever collections of Rs. 744 crore, up 2% year-on-year, alongside bookings of Rs. 938 crore, representing 5% growth compared to the previous year.

Leadership Transition and Strategic Direction

The company announced a significant leadership transition with Priyansh Kapoor taking over as Managing Director from Kamal Singal, who successfully led the company for over 15 years. Kamal Singal will continue to contribute as Whole-Time Director overseeing Strategy and Investments, while also taking on broader Group-level responsibilities.

Chairman Kulin Lalbhai highlighted the strategic initiatives implemented over recent quarters, focusing on strengthening organizational capabilities, enhancing leadership depth, and building accountability at city levels. These efforts have resulted in improved execution momentum and a stronger project pipeline.

Robust Business Development Pipeline

Arvind SmartSpaces significantly expanded its project portfolio during FY26, adding developments with cumulative topline potential of approximately Rs. 2,510 crore across key markets:

The company maintains a target of Rs. 3,500-4,000 crore in business development guidance for the current financial year, with a healthy pipeline of opportunities across Gujarat, Bengaluru, and MMR markets.

Strong Operational Cash Flows and Market Position

Arvind SmartSpaces demonstrated exceptional cash flow generation with quarterly operating cash flows of Rs. 169 crore, representing 128% year-on-year growth. For the nine-month period, operating cash flows reached Rs. 321 crore, up 16% compared to the previous year.

The company estimates unrealized operating cash flow exceeding Rs. 4,581 crore from its current project pipeline, expected to materialize over the next 4-5 years. With a net debt position of Rs. 79 crore as of December 31, 2025, the company maintains a strong balance sheet position despite expanding operations.

Upcoming Launch Pipeline

Looking ahead to Q4 FY26, Arvind SmartSpaces plans to launch projects with approximately Rs. 1,500-1,600 crore in gross development value, including phases of industrial and residential developments across multiple markets. The company maintains its pre-sales guidance while focusing on sustenance sales, which have emerged as a meaningful contributor to overall bookings, providing stability and predictability to cash flows.