This article first appeared on GuruFocus .
Release Date: November 10, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Puravankara Ltd ( BOM:532891 ) recorded pre-sales of 1,322 crore in Q2 FY26, a 4% increase from the previous year, driven by sustenance sales.
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Average price realization rose 7% year on year to ?8,814 per square foot, reflecting sustained demand and effective pricing discipline.
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Customer collections reached 1,047 crore, up 8% from last year, demonstrating strong execution and payment adherence.
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The company has a robust pipeline with 15.53 million square feet planned for H2 FY26, carrying a sales potential of over 5,000 crore.
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Puravankara Ltd ( BOM:532891 ) has a strong land bank exceeding 32 million square feet, providing a multi-year runway for launches and de-risking growth trajectory.
Negative Points
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The company reported a loss of 42 crore in Q2 FY26, compared to a loss of 20 crore in the same period last year, attributed to timing of revenue recognition and strategic investments.
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Launch delays were noted in several projects, including those in Mumbai and Bangalore, due to regulatory and approval processes.
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Interest expenses have seen a sharp rise, moving to 177 crore, impacting cash flow.
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There is high inventory in some projects, such as the Thane project, with 73% unsold in Panorama and 59% in the first phase.
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The company faces challenges in project delivery timelines due to regulatory issues, impacting revenue recognition and handover of units.
Q & A Highlights
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Q: Can you provide an update on the Mumbai pipeline, specifically the Andheri and Miami projects, and the reasons for their launch delays? A: (Unidentified_5) For the Andheri project, we have received all necessary approvals and expect to launch in January. The Miami project is on track for a launch in March, April, or May next year, with approvals progressing well. We face no regulatory issues, and approvals are moving at a fast pace.
Q: How is the launch pipeline for Bangalore, considering upcoming municipal elections? A: (Unidentified_7) We are on track with launches in Bangalore, with some projects like Hebbal and KIADB expected this quarter. Regulatory changes have caused some delays, but we are confident in our launch schedule. Projects like Belandur and City Spire may move to the next financial year.
Q: There has been a sharp rise in interest expenses. Can you explain the reasons behind this? A: (Unidentified_3) The increase in interest expenses is due to the timing of debt servicing and strategic decisions to pay interest on time rather than accruing it. The cost for the quarter is 168.58 crore, compared to 160.90 crore in the previous quarter, reflecting a marginal increase.
Q: What is the status of the HDFC platform and Pune business development activities? A: (Unidentified_3) We have deployed 700 crore out of the 1,150 crore from the HDFC platform, with plans to utilize the remaining funds in the next 3-6 months. In Pune, we are expanding and in advanced discussions for land parcels, focusing on redevelopment opportunities.
Q: How is the Thane project performing, and what steps are being taken to boost sales? A: (Unidentified_5) We are completing existing towers and expect to open them for sale in Q4. We plan to launch two towers, one completed and one new, in Q4. The market positioning is strong, with pricing around ?20,000 per square foot.
Q: Can you provide an update on the Zen Tech and AeroCity commercial projects? A: (Unidentified_5) Zen Tech has seen good sales and leasing activity, with substantial leasing to a large retail player. We expect to get the OC by February. AeroCity is attracting interest from large IT players, with leasing expected to gain momentum once the OC is received in January.
Q: What is the outlook for debt management and project additions? A: (Unidentified_3) We aim to reduce debt by 800 crore in the next 12 months and 1,646 crore in the following year. We will continue leveraging capital for growth while managing debt levels. Project additions will focus on strategic opportunities in Mumbai, Pune, and the South.
Q: What are the expected pre-sales for FY26 and FY27, and how do you see the demand environment? A: (Unidentified_7) We expect to maintain sustenance sales of around 2,600 crore, with launches bringing 9,000 to 10,000 crore to the market. Demand remains robust across micro-markets, and we are optimistic about our brand's performance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
