Arvind Smartspaces Plans ₹1,000 Crore Capex; Half of It Allocated to Bengaluru

Arvind Smartspaces, the real estate arm of textile manufacturer Arvind Ltd, is planning a capital expenditure of ₹1,000 crore for the financial year 2026, with Bengaluru emerging as a key focus area for its investments.

The company’s Managing Director and CEO, Kamal Singal, recently shared that around ₹500 crore of this capex will be allocated to projects in Bengaluru. The remaining ₹500 crore will be split equally between Ahmedabad and the Mumbai Metropolitan Region (MMR), with ₹250 crore each earmarked for these two markets. The funding for this capex plan will be raised through a combination of debt, equity, and internal accruals.

The decision to increase investments in Bengaluru is driven by the city’s strong contribution to the company’s performance. Bengaluru accounted for 37 per cent of Arvind Smartspaces’ total sales bookings in FY25. The company recorded ₹1,271 crore in annual sales bookings during the year, marking a 15 per cent growth compared to the previous financial year.

Singal explained that the company intends to focus more on vertical development projects in Bengaluru. These projects offer greater predictability in terms of revenue and execution. "We will be investing a little heavier in vertical projects as it gives more stability to the numbers and execution," he said while outlining the 2:1:1 investment ratio that will be followed across Bengaluru, Ahmedabad, and Mumbai.

In addition to the capex plan, Arvind Smartspaces has outlined an ambitious project launch pipeline for FY26. The company aims to launch new projects worth ₹4,000 crore during the year. Of this, new launches worth ₹2,000 crore are planned for Bengaluru alone. Projects worth ₹1,000 crore each are being lined up for Ahmedabad and MMR.

The Bengaluru projects in the pipeline include a mix of high-rise residential and plotted development schemes. These projects are located across key areas such as Bannerghatta, ITPL, Sarjapur Road, and Airport Road. The company’s plotting project branded as Orchards is also part of this ₹2,000 crore launch pipeline.

In Gujarat, Arvind Smartspaces plans to launch three new projects, including a plotting scheme in Surat and an industrial project. The company has an established presence in Ahmedabad, where it claims to have a pricing premium in the horizontal development segment.

In the Mumbai Metropolitan Region, where the company made its entry last year, a horizontal development project is being planned at Pen-Khopoli. Additionally, the company is preparing to launch a society redevelopment project in Mumbai.

Speaking about the company’s foray into the MMR market, Singal said that while the company is yet to fully test its offerings in Mumbai, it expects to bring differentiated products to the city, particularly in the weekend homes segment.

Arvind Smartspaces continues to maintain a strong market presence in Ahmedabad, where it has traditionally led in the horizontal development segment. According to Singal, the company commands a premium of around 20-25 per cent on its projects in Ahmedabad’s micro markets.

In Bengaluru, the company’s strategy is aligned with its performance in the high-growth residential segment. The city’s sustained demand for residential properties and the company’s track record in this market have contributed to its decision to allocate a larger share of the upcoming capex to Bengaluru.

Meanwhile, the company is also carefully evaluating its approach in Mumbai, aiming to bring unique offerings to a competitive market.

Arvind Smartspaces intends to maintain a balanced approach to funding its capex. By leveraging debt, equity, and internal accruals, the company aims to manage financial risks while pursuing growth across its key markets.

The company’s FY25 performance, with ₹1,271 crore in sales bookings and 15 per cent year-on-year growth, has provided a stable platform to pursue its expanded project pipeline in FY26.

With a clear focus on Bengaluru, a steady presence in Ahmedabad, and a cautious yet optimistic approach to Mumbai, Arvind Smartspaces aims to diversify and strengthen its portfolio in the coming year.