Anarock FY26 Operating Cash Flow Swings to Negative Rs 12.07 Crore Despite 53% Profit Jump

Leading domestic real estate consultancy Anarock Property Consultants Ltd has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise Rs 1,000 crore through an initial public offering (IPO). While the company registered robust growth in operational revenue and net profit during the financial year ended March 31, 2026, its financial disclosures reveal a notable divergence: cash flow from operating activities flipped into negative territory.

Working Capital Squeeze Impacts Cash Generation

According to restated consolidated financial figures disclosed in the draft papers, Anarock’s net cash flow used in operating activities stood at negative Rs 12.07 crore in FY26. This is in stark contrast to the preceding financial year (FY25), when the consultancy generated a positive operating cash inflow of Rs 93 crore.

The primary catalyst behind the operational cash drain was a substantial absorption of funds by working capital requirements. Specifically, trade receivables rose sharply from Rs 316 crore as of March 31, 2025, to Rs 464.21 crore as of March 31, 2026. The delayed conversion of billings into actual cash collections offset strong operating profits before working capital changes, highlighting the credit and collection challenges typical of high-growth real estate advisory models.

Strong Top-Line and Margin Expansion

Despite the cash flow strain, Anarock posted strong statutory earnings driven by vibrant residential housing demand and expansion across its commercial advisory businesses:

• Revenue from Operations: Grew 33.83% year-on-year to Rs 881.90 crore in FY26, up from Rs 658.95 crore in FY25 and Rs 509.23 crore in FY24.
• Total Income: Advanced to Rs 899.24 crore compared to Rs 677.30 crore in the previous fiscal year.
• Profit After Tax (PAT): Surged 53.38% to Rs 93.22 crore in FY26, up from Rs 60.78 crore in FY25 and Rs 44.94 crore in FY24.
• Adjusted EBITDA: Climbed to Rs 150.82 crore from Rs 112.90 crore in FY25, maintaining an adjusted EBITDA margin of 17.10%.
• Net Margin: Stood at 10.57%, an improvement over 9.22% logged in FY25.

As of March 31, 2026, the company maintained a debt-free capital structure with zero outstanding borrowings and reported net worth of Rs 645.22 crore, backed by cash and cash equivalents of Rs 84.33 crore.

Breakdown of the Rs 1,000 Crore IPO

The proposed public issue comprises two primary elements:

• Fresh Issue: Up to Rs 550 crore of new equity shares.
• Offer for Sale (OFS): Up to Rs 450 crore by promoters and institutional investors.
• Pre-IPO Placement: The company may consider raising up to Rs 110 crore via a pre-IPO placement, which would reduce the fresh issue size proportionally.

The selling shareholders under the OFS include promoters Peter Properties Limited and Khushi Trust, alongside several alternative investment funds managed by 360 ONE Alternates Asset Management Limited. The promoters hold a 66.41% stake on a fully diluted basis, while 360 ONE is the largest external shareholder.

Proposed Deployment of Fresh Proceeds:

• Technology and AI Augmentation: Rs 120 crore total, including Rs 80 crore for the core transaction advisory business, Rs 25 crore for the Anarock Channel Partner platform, and Rs 15 crore for its proprietary Anacity application.
• Inorganic Growth: Rs 148 crore earmarked toward funding the acquisition of additional equity in architectural and design firm DSP Design Associates.
• Business Strengthening & Expansion: Rs 89.50 crore allocated for scaling services and hiring specialized talent.
• General Corporate Purposes: The remainder of the net fresh capital will fund general growth initiatives and future unidentified acquisitions.

ICICI Securities, IIFL Capital Services, and 360 ONE WAM are serving as the book-running lead managers for the issue, with KFin Technologies acting as the registrar. The equity shares are slated to list on both the BSE and the National Stock Exchange (NSE).

Tags: Anarock Property Consultants SEBI IPO Real Estate 360 ONE WAM BSE