Shares of Arvind SmartSpaces Ltd declined over 4% to ₹689.30 in early trade on Wednesday, reacting to the company’s March quarter results announced post-market on Tuesday. The stock dropped ₹32.05 from the previous close of ₹721.35, as investors appeared cautious despite a healthy growth in profit and revenue.
For the fourth quarter ended March 31, 2025, the company posted a 22.6% year-on-year (YoY) rise in net profit at ₹19 crore, compared to ₹15.5 crore in the same period last year. Revenue from operations grew 38.8% YoY to ₹163 crore.
However, the decline in EBITDA margin to 20.6% from 26.8% in Q4FY24 appears to have weighed on investor sentiment. While operating EBITDA rose 6.7% YoY to ₹33.5 crore, the margin compression hinted at rising costs or pricing pressures.
Quarterly bookings stood at ₹381 crore, up 18% YoY, but collections remained flat at ₹215 crore. The company reported a net debt of ₹27 crore as of March 31, 2025, reversing a net cash position of ₹41 crore a year ago.
For FY25, the company recorded a 109% surge in revenue from operations to ₹713 crore and a 133% increase in net profit to ₹119.2 crore. It also proposed a final dividend of ₹6 per share (60%) for the financial year.
Despite the strong annual growth and a promising pipeline including a new 150-acre project in Ahmedabad, concerns over rising debt and contracting profitability metrics likely led to the selling pressure in Wednesday’s session.
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