Puravankara Limited , a prominent real estate developer, has received an affirmation of its long-term issuer rating at 'IND A-/Stable' from India Ratings and Research. This rating update comes alongside the withdrawal of ratings for specific debt instruments, signaling significant developments in the company's financial landscape.

Rating Actions and Debt Repayment

India Ratings has taken the following actions:

1. Affirmed Puravankara's long-term issuer rating at 'IND A-/Stable'
2. Withdrawn ratings for:
   • Non-convertible debentures worth INR 1,800 million
   • Commercial paper worth INR 1,800 million

The withdrawal of ratings follows the full repayment of these debt instruments, as confirmed by the receipt of a no-dues certificate.

Financial Performance and Challenges

Puravankara's financial performance presents a mixed picture:

The company faces challenges from high leverage, attributed to:

• Delayed equity funding for business development
• Elevated debt from under-construction commercial real estate projects

Future Outlook and Projections

Puravankara has outlined plans for the future:

• Launch of 8.48 million square feet of projects by the end of FY26 across its brands
• Total debt expected to reach INR 41.00 billion by FY26

Financial ratios and projections:

Recent LODR Disclosure

In a recent disclosure dated November 12, 2025, under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Puravankara Limited informed that India Ratings & Research Pvt. Limited has reviewed and affirmed the company's credit rating as 'IND A-/Stable'. This aligns with the rating action reported in the main news, reinforcing the stability of the company's credit profile.

The affirmation of Puravankara's rating at 'IND A-/Stable' reflects the company's steady performance in collections and sales, balanced against the challenges of high leverage and delayed project launches. As the real estate sector continues to evolve, Puravankara's ability to manage its debt levels and execute its project pipeline will be crucial factors in maintaining its financial stability and market position.

Puravankara Limited , a leading real estate developer, has reported a robust performance for the second quarter of fiscal year 2026 (Q2 FY26), demonstrating resilience in a dynamic market environment.

Sales and Financial Highlights

Puravankara achieved sales of ₹1,322 crore in Q2 FY26, marking a 4% year-over-year increase. The company's average realization rose by 8% compared to the same period last year, indicating strong pricing power and product mix optimization.

Key financial metrics for Q2 FY26 include:

Operational Performance

Customer collections for the quarter grew by 8% year-on-year to ₹1,047.00 crore, reflecting strong cash flow management. The company handed over 663 units spanning 0.67 million sq. ft. during Q2 FY26, generating a total income of ₹663.00 crore.

Strategic Expansion and Land Acquisitions

In the first half of FY26, Puravankara significantly expanded its development pipeline, adding over 6.36 million sq. ft. of potential developable area with an estimated Gross Development Value (GDV) of ₹9,100.00 crore. Notable acquisitions include:

• A joint venture in North Bengaluru for a 24.59-acre land parcel with 3.48 million sq. ft. developable area and a potential GDV of over ₹3,300.00 crore.
• Two marquee redevelopment projects in Mumbai at Chembur and Malabar Hill.
• Strategic partnerships in North and East Bengaluru.

Future Outlook

Puravankara is poised to accelerate its launch pipeline of 12.67 million sq. ft. over the next three quarters. Key upcoming projects include:

• A landmark project in Bengaluru spanning 3.48 million sq. ft. at KIADB Hardware Park.
• A redevelopment project in Andheri Lokhandwala, Mumbai.

Both projects are scheduled for launch in January 2026.

Management Commentary

Ashish Puravankara, Managing Director of Puravankara Limited, commented on the company's performance: "In Q2 FY26, we sustained strong growth momentum driven entirely by sustenance sales, achieving pre-sales of ₹1,322 crore and collections of ₹1,047 crore, both increasing year on year. With regulatory clarity now in place following the recent bye-law revisions, we are poised to accelerate our launch pipeline over the next 3 quarters."

He added, "While handovers and sales in the first half were marginally impacted by regulatory transitions such as e-Khata implementation and bye-law changes, we remain confident of achieving our targeted handovers in the next two quarters through focused execution and strong operational preparedness."

Financial Position

As of September 30, 2025, Puravankara's net debt stood at ₹2,894.00 crore, with a net debt-to-equity ratio of 1.77. The company's weighted average cost of debt has reduced to 11.32%, reflecting improved financial management.

Puravankara's strong pipeline and strategic land acquisitions position it well for future growth in key markets across India. The company's focus on expanding in high-demand micro-markets through disciplined capital allocation is expected to drive sustainable growth in the coming quarters.