Arvind Smartspaces Limited (ASL), the real estate development arm of the Lalbhai  Group, has been upgraded to ‘AA-/Stable’ by India Ratings & Research. The upgrade reflects the company’s  consistent growth, improved scale, steady cash flow generation, and prudent financial management. ASL continues to report stable operating performance, supported by sustained demand across its key markets and a consistent execution track record. 

For FY26, the company reported:

• Booking value of Rs. 1,550 Cr, representing a 22% year-on-year increase

• Collections of Rs. 1,100 Cr, up ~17% year-on-year

• Operating cash flows of Rs. 417 Cr

The growth in bookings and collections, along with steady sales across projects, has supported the rating  upgrade. Despite increased investments towards business development and expansion, ASL has maintained a  balanced and disciplined financial profile. India Ratings has noted that the company’s internal cash generation  remains adequate to support its growth plans, reflecting a measured approach to capital allocation.

As part of its growth strategy, ASL is progressing with geographic diversification, including a planned expansion  into the Mumbai Metropolitan Region (MMR), in addition to its established presence in Ahmedabad and Bengaluru. This is expected to support scale while reducing concentration risk over time.

Commenting on the upgrade, Priyansh Kapoor, CEO and MD, said: “The rating upgrade reflects the strength  of our operating model, consistent execution capabilities, and disciplined approach to growth. As we expand  into new geographies, we remain committed to delivering sustainable value while maintaining strong cash flows  and robust credit quality, thereby enhancing stakeholder confidence.”