Bengaluru: Puravankara Limited (NSE: PURVA |
BSE: 532891), one of India’s most trusted and admired real estate developers,
announced its financial results for the first quarter (Q1FY26) ending June 30,
2025.
In Q1FY26, the company recorded sales of Rs 1,124 crores, up
6% year-on-year, on sales volume of 1.25 million sq. ft. The average
realisation rose 9% to Rs 8,988 per sq. ft, while collections stood at Rs 857
crores.
Commenting on the company’s performance, Mr Ashish
Puravankara, Managing Director, Puravankara Limited, said, “This
year marks our Golden Jubilee, and we are proud of the trust our customers have
placed in us as well as the milestones we have achieved on this journey. In
this quarter, we delivered a strong performance, with a 6% year-on-year
increase in pre-sales, supported by healthy customer interest in our ongoing
projects. Healthy collections for the quarter underscore the continued
confidence that homebuyers have in our developments.
Our handovers and sales were less than our expectations
due to regulatory changes, including e-Khata and changes in byelaws. However,
our team is confident of achieving the scheduled handover and launches.
Our recent land acquisitions with an aggregate GDV
potential of Rs 6,400 crores have further strengthened our growth pipeline. In
Mumbai, redevelopment continues to gain traction, with our appointment as the
preferred developer for eight housing societies in Chembur (GDV over Rs 2,100
crores). In the South, we have entered a JV for a 24.59-acre parcel near the
airport in North Bengaluru (GDV over Rs 3,300 crores) and signed a JDA for a
5.5-acre parcel in Balegere, East Bengaluru (GDV over Rs 1,000 crores). These
additions diversify our portfolio and position us strongly for sustained
growth.”
Operational Q1FY26 Highlights:
- Total
area sold: 1.25 million square feet (msft) - Total
sales value: Rs 1,124 crores - Average
sales realisation: Rs 8,988 per square foot (psft)
Consolidated Q1FY26 Financial Performance:
- Total
revenue stood at Rs 539 crores - Net
loss for the period was Rs 69 crores - Collections:
Rs 857 crores
Possession:
- While
regulatory changes such as the e-Khata process have impacted handover and
revenue recognition timelines, we remain on track for the planned delivery
of over 4,500 units during the financial year - Out of
planned handovers, 3.65 million square feet (3,015 units) have been
completed and Occupancy Certificates (OC) received; these are currently
awaiting e-Khata issuance for handover possession - In
Q1FY26, we handed over 667 units, covering 0.68 million square feet,
generating revenue of Rs 539 crores
Projected Cash Flows:
As of 30 June 2025:
- The total
estimated surplus from all completed and ongoing projects stands at Rs
7,915 crores - The
estimated surplus from commercial projects is Rs 1,934 crores - The
estimated surplus from pipeline projects is Rs 5,578 crores - The
overall estimated surplus across all categories exceeds Rs 15,427 crores - The
cost considered for surplus calculation does not include sales &
marketing costs, corporate overheads, income tax and future repayment of
debt
Launches
- Changes
in byelaws and regulatory processes temporarily impacted the launch
schedule. However, with the revised byelaws now notified, the company is
back on track to launch 12.32 million square feet as per the planned
timeline - During
the quarter, the company launched 1.16 million square feet across various
phases of ongoing projects
Business development:
- Puravankara
was selected as the preferred developer for eight redevelopment housing
societies in Chembur, Mumbai, with a Gross Development Value (GDV) of over
Rs 2,100 crores - Entered
into a joint venture for a 24.59-acre land parcel near Bengaluru
International Airport, with a GDV of over Rs 3,300 crores - Signed
a Joint Development Agreement (JDA) for a 5.5-acre parcel in Balegere,
East Bengaluru, with a GDV of over Rs 1,000 crores
Debt
- The
weighted average cost of debt has reduced to 11.35% as of June 30, 2025,
compared with last quarter - Net
debt stood at Rs 2,825 crores, with a net debt-to-equity ratio of 1.68 for
Q1 FY26
India’s real estate sector is expected to continue
demonstrating strong growth potential in FY26, supported by sustained end-user
demand, improved affordability, and a favourable policy environment. Office
leasing momentum remains robust, with nearly 49 million sq. ft. absorbed in
H1CY25, while residential sales are projected to grow 5–7% through FY25–26,
according to industry estimates. The recent rate cuts by the RBI have further
boosted consumer sentiment and purchasing power. Puravankara is well-poised for
continued expansion and is confident in its ability to capture emerging
opportunities across key micro-markets.
