Real estate developer Puravankara Limited reported steady performance in the second quarter of FY26, marked by moderate sales growth and a robust expansion of its development pipeline. The company recorded sales of Rs. 1,322 crore, up 4% year-on-year, on a sales volume of 1.5 million sq. ft., while average realisation increased 7% to Rs. 8,814 per sq. ft.
Customer collections rose 8% year-on-year to Rs. 1,047 crore, reflecting consistent buyer confidence and sustained demand for Puravankara’s projects. The company reported a total revenue of Rs. 663 crore, up 28% from a year ago, and a net loss of Rs. 42 crore for the quarter.
Growth Driven by Sustenance Sales
Commenting on the company’s performance, Ashish Puravankara, Managing Director, Puravankara Limited, said that the company maintained strong growth momentum driven by sustained sales.
“In Q2FY26, we sustained growth driven entirely by sustenance sales, achieving pre-sales of Rs. 1,322 crore and collections of Rs. 1,047 crore, both increasing year-on-year,” he said. “In the first half of the year, we strengthened our development pipeline by adding over 6.36 million sq. ft. of potential developable area with an estimated GDV of Rs. 9,100 crore.”
The MD highlighted that the company’s expansion includes two marquee redevelopment projects in Mumbai, at Chembur and Malabar Hill, along with strategic partnerships in North and East Bengaluru. These align with Puravankara’s focus on growing in high-demand micro-markets through disciplined capital allocation.
Upcoming Launch Pipeline
With regulatory clarity following recent bye-law revisions, Puravankara is gearing up to accelerate its launch pipeline of 12.67 million sq. ft. over the next three quarters.
This includes a landmark 3.4 million sq. ft. project at KIADB Hardware Park, Bengaluru, and a redevelopment project in Andheri Lokhandwala, both set to launch in January 2026. Most of these projects are in the final stages of approval, positioning the company for sustained growth in FY26.
While the first half saw marginal delays in handovers and sales due to regulatory transitions such as e-Khata implementation and bye-law changes, the company remains confident of meeting handover targets in the second half through “focused execution and strong operational preparedness.”
Operational Highlights
In Q2FY26, Puravankara sold 1.5 million sq. ft. worth Rs. 1,322 crore, with average realisation at Rs. 8,814 per sq. ft. and collections of Rs. 1,047 crore.
In H1FY26, the total area sold was 2.75 million sq. ft., translating into sales of Rs. 2,445 crore and an average realisation of Rs. 8,891 per sq. ft. Customer collections during the first half stood at Rs. 1,904 crore.
The company handed over 663 units covering 0.67 million sq. ft. in Q2, generating total income of Rs. 663 crore. In the first half, 1,330 units spanning 1.36 million sq. ft. were delivered, generating Rs. 1,201 crore in revenue.
Financial Performance
On a consolidated basis, total revenue for Q2FY26 stood at Rs. 663 crore, with a net loss of Rs. 42 crore. For H1FY26, total revenue was Rs. 1,201 crore, with a net loss of Rs 111 crore.
Despite near-term losses, the company maintains a strong financial position, supported by a healthy project surplus and prudent leverage management.
Strong Cash Flow Visibility
As of September 30, 2025, Puravankara’s total estimated surplus from all completed and ongoing projects was Rs. 7,679 crore. The surplus from commercial projects stood at Rs. 2,008 crore, while pipeline projects are expected to generate an additional Rs. 5,881 crore, taking the overall estimated surplus to Rs. 15,568 crore.
Against this, the company’s net debt stands at Rs. 2,894 crore, implying a healthy cover of over five times. The company noted that the surplus calculations exclude sales and marketing costs, corporate overheads, income tax, and future debt repayments.
The weighted average cost of debt declined to 11.32%, while the net debt-to-equity ratio stood at 1.77 as of the end of Q2FY26, indicating stable financial management.
Business Development in H1FY26
During the first half of FY26, Puravankara added 6.36 million sq. ft. of new projects with a potential gross development value (GDV) exceeding Rs. 9,100 crore.
Key additions include:
- KIADB Hardware Park, North Bengaluru: Partnered with KVN Property Holdings LLP for a 24.59-acre parcel with 3.48 million sq. ft. of developable area and potential GDV of over Rs. 3,300 crore.
- Balegere, East Bengaluru: Entered a joint development for 0.85 million sq. ft. of developable area with potential GDV of over Rs 1,000 crore.
- Chembur, Mumbai: Selected as the preferred developer for redevelopment of eight residential societies, unlocking 1.28 million sq. ft. of potential with GDV of Rs 2,100 crore.
- Malabar Hill, Mumbai: Through a wholly owned subsidiary, secured a prestigious redevelopment project offering 0.75 million sq. ft. of premium space with GDV potential of Rs. 2,700 crore.
Outlook
India continues to remain one of the fastest-growing major economies, with GDP growth of 7.8% in Q1FY26 and an IMF projection of 6.4% for the full year. The RBI’s 100 bps rate cut to 5.5%, coupled with steady capital inflows of USD 1.5 billion in Q2, underscores investor confidence.
Real estate activity remains strong, particularly in offices (39%) and data centres (38%), while residential sales and prices have risen 5–10% across major metros, including NCR, Bengaluru, and Chennai.
With this positive macroeconomic backdrop, Puravankara is well-positioned to capitalise on sustained housing demand and an expanding premium redevelopment portfolio, supported by disciplined financial management and a strong project pipeline.
