Puravankara

India Ratings and Research affirmed Puravankara Limited's long-term issuer rating at IND A-/Stable while withdrawing ratings for non-convertible debentures worth INR 1,800 million and commercial paper worth INR 1,800 million. The withdrawal follows full repayment of debt instruments and receipt of no-dues certificate. The rating reflects steady growth in annual collections with strong sustenance sales and improved execution efficiency, though pre-sales remained lower than expected due to delayed project launches. The company faces challenges from high leverage due to delayed equity funding for business development and elevated debt from under-construction commercial real estate projects expected to be commercialized by March 2026. Puravankara reported quarterly pre-sales increase of 4.5% to INR 24.6 billion and stable collections at INR 19.0 billion. The company plans to launch 8.48 million square feet of projects by end-FY26 across its brands. Net debt-to-net working capital ratio increased to 0.91x, with total debt expected to reach INR 41 billion by FY26. The agency expects net debt-to-operational cash flow ratio to remain at 3.5x-4.0x through the cycle.

Puravankara achieved ₹1,322 crore in Q2 sales, marking a 4% year-over-year increase, alongside 8% higher realization. The company is expanding operations across Mumbai, Bengaluru, and Pune while focusing on affordable housing, joint ventures, and strategic land acquisitions. Puravankara aims to strengthen its balance sheet and improve operating efficiency for sustainable margin expansion in both residential and commercial segments.

Puravankara reported a consolidated net loss of 430 million rupees in Q2, significantly higher than the 171 million rupee loss in the same period last year. Revenue increased to 6.44 billion rupees from 4.95 billion rupees year-over-year. EBITDA declined to 1.04 billion rupees from 1.12 billion rupees, while EBITDA margin compressed to 16.15% from 22.6% in the previous year.