This article first appeared on GuruFocus .
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Total Income:Increased 63% year-on-year to INR877 crore, supported by higher handovers.
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EBITDA Margin:Expanded to 25% from 50% in Q1 FY26.
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Profit After Tax:Positive INR25 crore, compared with a loss of INR69 crore in the corresponding quarter last year.
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Pre-sales:INR1,439 crore, an increase of 28% year-on-year.
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Sales Volume:Grew 9% to 1.36 million square feet.
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Average Realization:Rose 18% to INR10,589 per square foot.
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Collections:Grew 40% to INR1,199 crore.
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Handovers:Delivered 745 homes, representing 0.95 million square feet.
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Net Debt:Stood at INR2,836 crore as of June 30, 2026.
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Net Debt-to-Equity:1.57 times.
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Gross Debt:Declined by INR74 crore during the quarter.
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Cash and Bank Balances:INR1,106 crore.
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Average Cost of Debt:11.12%.
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FY27 Pre-sales Guidance:Reiterated at INR11,200 crore.
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Release Date: August 17, 2026
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 ) reported a 28% year-on-year increase in pre-sales to INR1,439 crore, with sales volume up 9% and average realizations up 18%.
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Collections grew 40% year-on-year to INR1,199 crore, indicating strong operating cash flow and conversion of sales into liquidity.
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The company returned to profitability with a positive PAT of INR25 crore, a significant improvement from a loss of INR69 crore in the same quarter last year.
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Total income increased 63% year-on-year to INR877 crore, supported by higher handovers of 745 homes (0.95 million square feet).
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Management reaffirmed its FY27 pre-sales guidance of INR11,200 crore and debt reduction guidance of INR700 crore, expressing confidence in the launch pipeline and demand environment.
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The company is actively pursuing capital recycling, exemplified by the definitive agreement to sell Purva Generique to ICICI Prudential AMC for an enterprise value of approximately INR625 crore, which will enhance financial flexibility.
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Puravankara Ltd ( BOM:532891 ) added four new projects in Bengaluru with a development potential of 4.23 million square feet and an estimated GDV of INR5,200 crore, strengthening its presence in key micro-markets.
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The company's EBITDA margin expanded to 25% from 5% in Q1 FY26, reflecting improved operating leverage and project mix.
Negative Points
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Net debt remains high at INR2,836 crore with a net debt-to-equity ratio of 1.57 times, and the average cost of debt is elevated at 11.12%.
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The launch of several key projects, including West End, Hennur Road, and Cityspire, was delayed from Q1 to Q2 FY27 due to approval-related issues, particularly in Karnataka.
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The company made significant land payments of INR574 crore during the quarter for new acquisitions, which could strain liquidity and impact near-term cash flows.
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While the company returned to profit, the management cautioned that one quarter does not define an earnings trajectory, and revenue recognition remains dependent on project completion and handovers.
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The company's growth is heavily reliant on the timely receipt of approvals and consistent execution across its launch pipeline, which has shown some vulnerability to delays.
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Management indicated that debt reduction is a dynamic process and that opportunities for investment may compete with the goal of deleveraging, potentially slowing the pace of balance sheet improvement.
Q & A Highlights
Q: How should we view the INR574 crore land payment in the cash flow statement, and will the ICICI Prudential transaction reduce debt? A: Neeraj Gautam (CFO) explained that the INR574 crore was used to fully pay for four land acquisitions in Bengaluru during the quarter, covering 41.93 acres with a development potential of 4.23 million square feet and an estimated GDV of INR5,200 crore. Regarding the Purva Generica transaction with ICICI Prudential AMC (enterprise value of approximately INR625 crore), he confirmed it is expected to close this month. The proceeds will be used to repay the INR250 crore debt sitting on that asset, with the remaining cash flow to be deployed judiciously for debt reduction, business development, or working capital needs.
Q: Can you provide an update on the launch pipeline, specifically for projects like West End, Hennur Road, Cityspire, and the Mumbai portfolio? A: Mallanna Sasalu (CEO, South) stated that West End has already received RERA approval and has been launched with good EOI response. Hennur Road and Cityspire (Kochi) faced minor delays due to government transitions in Karnataka, but approvals are expected imminently. Ashish Puravankara (MD) added that in Mumbai, Purva Miami has received RERA and is on sale, Pali Hill will apply for RERA by end of September with a launch in October-November, and Apna Ghar 3 is on track for a Q4 launch. All projects are on track with no major impediments.
Q: Are you confident in achieving the FY27 pre-sales guidance of INR11,200 crore and the debt reduction target of INR700 crore? A: Mallanna Sasalu (CEO, South) reaffirmed the guidance, noting that Q1 performance was in line with internal AOP plans and that the launch pipeline is well-defined. Neeraj Gautam (CFO) confirmed the debt reduction guidance remains intact, despite adding four new projects in Q1, as gross debt was still reduced by INR74 crore. The management emphasized that the guidance is tracked project-wise and is supported by a strong sustenance pipeline of INR10,000 crore.
Q: What is the current demand environment in the key markets of Bangalore and Mumbai? A: Mallanna Sasalu (CEO, South) reported no slowdown in the South, with steady business for well-priced and well-designed products, though growth may not match the exceptional levels of FY24-25. Ashish Puravankara (MD) echoed this for Mumbai, noting that branded players are gaining market share across all price points. He highlighted strong responses in the ultra-luxury segment, particularly for Purva Miami and Bridge Canyon, and expects demand to grow further during the festive period.
Q: What are the margin targets for the next two years, and how do margins vary across project types? A: Neeraj Gautam (CFO) stated that the company maintains an EBITDA margin guidance of 25% to 30% at the portfolio level. He clarified that margins differ based on project natureplotted developments, JDAs, or outright land purchasesbut on a weighted average basis, the company holds the 25% to 30% range. Q1 FY27 EBITDA margin was 25%, up from 50% in Q1 FY26 (likely a typo in the transcript, as 50% seems inconsistent with the context).
Q: What was the contribution from the Estrella project this quarter, and which were the top-selling projects? A: Ashish Puravankara (MD) confirmed that Purva Estrella contributed approximately INR200 crore in gross sales for the quarter, with cumulative sales of around INR800 crore since launch. Neeraj Gautam (CFO) identified the top contributors as Northern Light and Provident Equinox in the South, and Selux in the West. The West commercial business overall contributed INR393 crore, while the South business contributed INR1,046 crore, totaling INR1,439 crore in pre-sales.
Q: Can you provide an update on the Purva Aerocity commercial project, including leasing status and future plans? A: Ashish Puravankara (MD) shared that Aerocity received an OC for 1.3 million square feet, with the balance 0.9 million square feet to be constructed in phases. The company has received strong interest from GCCs and large players, with RFPs filed for approximately 2.5 million square feet. Expected NOI is between INR60 to INR65. Phase 2 construction will commence once 70% to 80% of Phase 1 is leased. Strategically, the asset is viewed as a key growth center in North Bangalore, with potential monetization considered at the right time.
Q: Are there plans for new commercial projects or expansion into new geographies like NCR? A: Ashish Puravankara (MD) announced plans to start construction on a new commercial project in Hebbal, Bangalore, approximately 1.3 million square feet, by end of Q4 FY27. He also confirmed aggressive expansion in Mumbai, with a GDV of nearly INR25,000 crore across various price points. Regarding new geographies, the company is evaluating growth opportunities in the NCR market, particularly Noida, and hopes to gain traction in land development there in the coming quarters.
Q: How do you plan to manage debt reduction over the next three years, and is zero debt a target? A: Mallanna Sasalu (CEO, South) explained that debt management is dynamic, balancing opportunities for investment against debt reduction. He noted that the portfolio has grown to INR58,500 crore due to strategic investments, and the company is comfortable with its current debt position. There is no target to become zero debt, as debt is considered an important part of the business for growth. The company remains committed to the INR700 crore debt reduction guidance for FY27.
Q: Are there any plans to enter the senior living space or other new business lines? A: Neeraj Gautam (CFO) clarified that the company has not announced any plans for senior living. However, he mentioned that the management continues to evaluate new commercial business lines such as data centers and warehousing, and would be open to exploring opportunities if they meet strategic guidelines. The focus remains on core residential and commercial development.For the complete transcript of the earnings call, please refer to the full earnings call transcript .
