Anarock Property Consultants IPO

Strengths · 8

• 01Revenue from operations grew from Rs 509.23 crore in FY2024 to Rs 658.95 crore in FY2025 and Rs 881.90 crore in FY2026.
• 02Profit for the year rose from Rs 44.94 crore to Rs 60.78 crore and then Rs 93.22 crore, with PAT margin improving from 8.82% to 9.22% and 10.57%.
• 03The restated consolidated balance sheet shows no borrowings as on 31 March 2026, 2025 or 2024, and no contingent liabilities as on 31 March 2026.
• 04The revenue mix has widened: Transaction Advisory fell from 70.38% of revenue in FY2024 to 50.17% in FY2026 as Leasing and Investment Advisory rose to 34.79% and Management Services added 10.11% in five months.
• 05Homes sold under exclusive mandates carried a gross transaction value of Rs 13,305.27 crore in FY2026, and active exclusive mandates rose to 165 from 143 in FY2024.
• 06No single client gave 6.00% or more of revenue from operations in any of the three fiscals, and the top 10 clients were 27.57% of FY2026 revenue.
• 07Return on net worth was 14.45% in FY2026 against 11.17% in FY2025, with net asset value of Rs 50.71 per equity share.
• 08The company works with more than 45,000 channel partners across India and had 2,192 permanent employees as on 31 March 2026, with no attrition among key managerial and senior management personnel in three years.

Risks · 10

• 01Net cash from operating activities was negative at Rs 12.07 crore in FY2026 even though profit for the year was Rs 93.22 crore, because trade receivables rose by Rs 177.12 crore during the year.
• 02Trade receivables were Rs 464.21 crore as on 31 March 2026, equal to 52.64% of FY2026 revenue from operations, and the document says collection cycles may be extended.
• 03Bad debts written off rose to Rs 50.70 crore in FY2026 from Rs 21.17 crore in FY2025 and Rs 15.31 crore in FY2024.
• 04Transaction Advisory and Leasing and Investment Advisory together gave 84.96% of FY2026 revenue from operations, so results stay tied to the residential and commercial property cycle.
• 05The newer businesses lose money: Management Services, Anacity and the channel partner platform posted negative segment results of Rs 2.79 crore, Rs 15.69 crore and Rs 6.32 crore in FY2026.
• 06Employee benefits expense was 63.53% of total expenses in FY2026, a largely fixed cost base that cannot be cut quickly in a downturn.
• 07The offer for sale of Rs 450.00 crore out of the Rs 1,000.00 crore offer brings no money to the company, and nine 360 ONE funds are selling shares acquired at a weighted average cost of Rs 79.82 each.
• 08The DSP Design acquisition closed on 27 September 2026 and is not reflected in the restated financials, the proforma balance sheet carries Rs 52.44 crore of borrowings that all belong to DSP, and Rs 148.00 crore of the net proceeds goes to buying out the rest of DSP in four further tranches.
• 09The statutory auditors' CARO 2020 annexures for FY2026, FY2025 and FY2024 carry unfavourable remarks, including delay in repayment of principal and interest, roll over of an associate's loan, cash losses at a subsidiary and an associate, and going concern of a subsidiary.
• 10Eight tax proceedings, one statutory or regulatory proceeding and three material civil proceedings are pending against the company, involving Rs 82.00 million in aggregate, and part of the funds raised goes to unidentified acquisitions and general corporate purposes with no amount yet fixed.

Anarock Property Consultants Limited, incorporated in 2011 as Jones Lang LaSalle Residential Private Limited and renamed Anarock in 2017, is a real estate services platform based at Bandra Kurla Complex in Mumbai. It earns fees across four reportable segments: Transaction Advisory, which handles residential project sales on exclusive developer mandates; Leasing and Investment Advisory, which covers office and retail leasing, land, capital markets, investment banking and hospitality advisory; Management Services, which runs project and development management; and technology solutions, which comprises the Anarock Channel Partner platform and Anacity. Its clients include real estate developers, corporate occupiers, retail brands, banks, NBFCs, private equity and sovereign funds, government bodies and individual home buyers. The company had 2,192 permanent employees as on 31 March 2026, against 1,477 in FY2024.

The revenue mix has widened over three years. Transaction Advisory gave 50.17% of FY2026 revenue from operations against 70.38% in FY2024, while Leasing and Investment Advisory rose to 34.79% from 24.10%. Management Services started on 1 November 2025 and contributed 10.11% of FY2026 revenue in its first five months. Anacity gave 4.05% and the channel partner platform 0.66%. Even so, the two older segments together still account for 84.96% of revenue from operations, so results remain tied to residential launches and to office, retail and capital markets activity.

The Transaction Advisory business works on fixed-term exclusive mandates, typically of 9 to 24 months, that end on sell-out or expiry and must be replaced. The company had 165 active exclusive mandates at the end of FY2026 against 143 in FY2024, and homes sold under these mandates carried a gross transaction value of Rs 13,305.27 crore in FY2026. Distribution runs through a network of more than 45,000 channel partners across India as on 31 March 2026, who are independent and non-exclusive. The client base is spread wide: no single client gave 6.00% or more of revenue from operations in any of the three fiscals, and the top 10 clients were 27.57% of FY2026 revenue.

Revenue from operations was Rs 509.23 crore in FY2024, Rs 658.95 crore in FY2025 and Rs 881.90 crore in FY2026, and profit for the year moved from Rs 44.94 crore to Rs 60.78 crore and then Rs 93.22 crore. PAT margin was 8.82%, 9.22% and 10.57% across the three years. The restated consolidated balance sheet carried no borrowings as on 31 March 2026, 2025 or 2024, and no contingent liabilities as on 31 March 2026. Cash generation has lagged profit: net cash from operating activities was Rs 26.57 crore in FY2024 and Rs 93.00 crore in FY2025, but turned negative at Rs 12.07 crore in FY2026 as trade receivables rose by Rs 177.12 crore.

The group has grown partly by acquisition. HVS Anarock Hotel Advisory Services became a subsidiary in November 2023, Anarock Capital Advisors became a wholly owned subsidiary in March 2025, and on 27 September 2026 the company bought 53.68% of DSP Design Associates Private Limited for Rs 64.01 crore. The promoters are Anuj Puri, who is Whole-time Director and Chairman, Rohin Raja Shah, Priti Puri, Nita Shah, Khushi Trust and Peter Properties Limited. The promoters and promoter group held 8,42,81,206 of the 10,30,36,252 equity shares outstanding before the offer, or 81.80%, which works out to 66.41% once the outstanding preference shares convert.

The industry

The draft prospectus says the company has no directly comparable listed peer in India or anywhere else, so investors cannot benchmark it against a single listed company. The Knight Frank report cited in the document puts its overall share of the organised real estate services market at about 3% and its share of transaction services at about 10.1%, and says it has the most comprehensive service offering among the benchmarked players across the residential value chain. The benchmarked peer set is JLL, CBRE, Cushman and Wakefield, Knight Frank India, Colliers International, Savills and Vestian among diversified international property consultants, and Xanadu Realty and Square Yards among domestic residential-focused players. The international consultants listed abroad earn most of their revenue from facilities and project management, while Anarock remains transaction led.

Customer concentration: The largest client gave 4.46% of FY2026 revenue from operations, the top five clients 18.49% and the top 10 clients 27.57%, against 5.39%, 20.75% and 31.07% in FY2024. No single client crossed 6.00% of revenue in any of the three fiscals.