Arvind SmartSpaces adds Rs 470 crore Sarjapur Road project, lifts FY27 business development pipeline to Rs 3,100 crore

Arvind SmartSpaces Ltd has expanded its Bengaluru pipeline with the acquisition of a residential high-rise development on Sarjapur Road under a joint-development arrangement. The 2.5-acre project has an estimated saleable area of around 3,60,000 sq. ft. and top-line potential of Rs 470 crore, including the development partner’s share.

The project will extend Arvind SmartSpaces’ existing Arvind Sylva development in the Sarjapur Road micro-market. It is the company’s 11th high-rise project in Bengaluru and lifts its cumulative new-business-development top-line potential for FY27 to approximately Rs 3,100 crore.

The addition underscores the developer’s strategy of building depth in its three principal markets of Gujarat, Bengaluru and the Mumbai Metropolitan Region, rather than widening its geographic footprint. Joint developments can enable developers to secure projects with lower upfront land acquisition requirements than outright land purchases, although project economics, approvals, Construction execution and sales velocity remain important variables.

The estimated Rs 470 crore development potential is sizeable in relation to the company’s reported financial scale. It is equivalent to about 83 per cent of Arvind SmartSpaces’ consolidated FY26 net sales of Rs 564.05 crore. However, the project’s top-line potential is not comparable with immediately recognised revenue, since Real Estate revenue is accounted for over the execution cycle and is dependent on construction progress and approvals.

Sarjapur Road has emerged as a key residential corridor in south-east Bengaluru, supported by access to the Outer Ring Road technology hub and planned metro connectivity. The company said the project is located close to a new campus of an information technology major, besides hospitals, schools and recreational infrastructure.

Bengaluru has become an increasingly important market for Arvind SmartSpaces since it entered the city in 2013. With the latest addition, the company has added 16 projects in Bengaluru, of which eight have been delivered and eight are under various stages of development. The company’s annual report for FY26 had cited 15 Bengaluru projects, including seven completed developments, showing the pace of recent business development in the city.

Managing Director and Chief Executive Officer Priyansh Kapoor said the Sarjapur Road addition deepens the company’s vertical-development portfolio in Bengaluru. He added that the response to recent launches in the surrounding location reflected traction for the Arvind brand among homebuyers and landowners.

The Bengaluru expansion follows a strong start to FY27 in terms of reported quarterly financial performance. Consolidated net sales rose to Rs 317.63 crore in the June 2026 quarter from Rs 101.76 crore a year earlier, while profit after Tax increased to Rs 97.39 crore from Rs 11.96 crore. Management has nevertheless cautioned that reported revenue can be uneven because recognition is linked to construction and occupancy-related approvals.

It has guided for FY27 booking growth of 35 per cent to 40 per cent, implying bookings of Rs 2,100 crore to Rs 2,200 crore, and business development of Rs 4,000 crore to Rs 5,000 crore in gross development value. The Rs 3,100 crore pipeline disclosed so far indicates progress towards that business-development target, though further additions and timely launches will be needed to meet the full-year range.

As of 12:54 PM on September 28, 2026, Arvind SmartSpaces shares were trading at Rs 613.90. The stock was about 11.6 per cent below its 52-week high of Rs 694.30 and 22.6 per cent above its 52-week low of Rs 500.90. Over the preceding year, the shares declined 4.61 per cent, marginally underperforming the BSE 500’s 4.14 per cent decline.

Disclaimer: The article is for informational purposes only and not investment advice.