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.

Puravankara Limited , a prominent real estate developer, has reported a significant increase in its consolidated net loss for the second quarter of fiscal year 2026, despite showing growth in revenue. The company's financial results for Q2 FY26 reveal a complex picture of its current market position and operational performance.

Financial Highlights

• Net Loss: Puravankara's consolidated net loss widened to ₹430.00 million in Q2 FY26, compared to a loss of ₹171.00 million in the same period last year.
• Revenue: The company's revenue increased to ₹6.44 billion, up from ₹4.95 billion year-over-year, marking a growth of approximately 30%.
• EBITDA: Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) declined to ₹1.04 billion from ₹1.12 billion in the previous year.
• EBITDA Margin: The EBITDA margin compressed to 16.15% from 22.60% in the corresponding quarter last year.

Operational Performance

The increase in revenue suggests that Puravankara has been successful in driving sales and project completions. However, the widened net loss indicates that the company is facing challenges in managing its costs and maintaining profitability.

Market Dynamics

The real estate sector in India has been showing signs of buoyancy, with both sales and launches surpassing the 200,000-unit mark over the January to September period (Q4 FY25 – Q2 FY26). This positive trend in the broader market contrasts with Puravankara's financial performance, suggesting company-specific factors at play.

Profitability Concerns

The compression in EBITDA margin from 22.60% to 16.15% is a significant concern. This decline in profitability could be attributed to various factors such as increased input costs, higher marketing expenses, or changes in the product mix.

Debt and Financial Position

As of September 30, 2025, Puravankara's net debt stood at ₹2,894.00 crore. The company reports a projected surplus of ₹15,568.00 crore, which is more than 5 times its net debt, indicating strong cash flow visibility and financial stability.

Future Outlook

Despite the current challenges, Puravankara has been actively expanding its development pipeline. In the first half of FY26, the company added over 6.36 million sq. ft. of potential developable area with an estimated Gross Development Value (GDV) of ₹9,100.00 crore. This includes strategic partnerships and redevelopment projects in key markets like Mumbai and Bengaluru.

Management Commentary

Ashish Puravankara, Managing Director of Puravankara Limited, commented on the results: "In Q2FY26, we sustained strong growth momentum driven entirely by sustenance sales, achieving pre-sales of ₹1,322.00 crores and collections of ₹1,047.00 crores, both increasing year on year."

He also highlighted the company's future plans, stating, "We are poised to accelerate our launch pipeline of 12.67 million sq. ft over the next 3 quarters, including a landmark project in Bengaluru spanning 3.48 million sq. ft at KIADB Hardware Park and a redevelopment project in Andheri Lokhandwala, both scheduled for launch in January 2026."

Conclusion

While Puravankara faces short-term profitability challenges, its revenue growth and robust project pipeline suggest potential for future improvement. Investors and market watchers will be keenly observing how the company manages to balance its growth initiatives with profitability in the coming quarters.