Puravankara Reports 4% Pre-Sales Growth in Q2, Expands Project Pipeline

Puravankara Limited , a leading real estate developer, has reported a 4% year-on-year increase in pre-sales for Q2, driven entirely by sustenance sales. The company's performance highlights its resilience in a competitive market and its strategic focus on growth and expansion.

Financial Highlights

Metric	Q2	Q2 Previous Year	YoY Change
Pre-sales	₹1,322.00 crore	₹1,270.00 crore	+4.00%
Average Price Realization	₹8,814.00/sq ft	₹8,237.00/sq ft	+7.00%
Customer Collections	₹1,047.00 crore	₹969.00 crore	+8.00%
Revenue	₹663.00 crore	₹520.00 crore	+27.50%
Net Loss	₹42.00 crore	₹20.00 crore	+110.00%

H1 Performance

For the first half of the fiscal year, Puravankara's pre-sales totaled ₹2,445.00 crore, marking a 4% increase year-on-year. Customer collections reached ₹1,904.00 crore, up 1% from the previous year.

Strategic Expansion

Puravankara has significantly bolstered its project pipeline during H1:

Added over 6.36 million square feet of developable area
Potential Gross Development Value (GDV) of approximately ₹9,100.00 crore
Key additions include projects in North Bengaluru, Chembur Mumbai, East Bengaluru, and Malabar Hills

Future Outlook

The company plans to launch 15.46 million square feet across Mumbai, Bengaluru, Chennai, and Pune in H2, with a potential GDV of over ₹5,800.00 crore. This expansion strategy underscores Puravankara's confidence in the market and its ability to capitalize on emerging opportunities.

Financial Position

As of Q2, Puravankara's net debt stands at ₹2,894.00 crore. The debt per square foot is ₹859.00 for residential projects and ₹252.00 for commercial projects. The company expects to reduce its debt by ₹800.00 crore in the next 12 months through scheduled repayments.

Management Commentary

Niraj Gautam, Chief Financial Officer of Puravankara Limited, commented on the results: "Our Q2 performance demonstrates the strength of our brand and the resilience of our business model. The reported loss is largely due to the timing of revenue recognition under IndAS and our strategic investments in new projects. It does not indicate any underlying operational weakness."

Gautam added, "Our cash flows remain robust, with operating cash generation supporting our growth initiatives, and our balance sheet remains strong. We are mindful of our debt levels and are continuously monitoring the balance between leverage and growth."

Market Outlook

The management expressed optimism about the real estate market, particularly in the ₹1-2 crore segment. They noted price appreciation ranging from 5% to 17% across major metros like Bangalore, Mumbai NCR, and Chennai.

Puravankara's focus on both residential and commercial projects, along with its strategic land acquisitions and project launches, positions the company to capitalize on the strong demand in the real estate sector. The company's ability to maintain sales momentum despite challenging market conditions reflects its strong brand presence and effective execution strategies.

As Puravankara continues to expand its project portfolio and improve its financial metrics, investors and stakeholders will be keenly watching the company's performance in the coming quarters, particularly its ability to convert its robust pipeline into strong sales and profitability.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.43%	-4.08%	-10.73%	-14.43%	-42.78%	+216.42%

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:

Affirmed Puravankara's long-term issuer rating at 'IND A-/Stable'
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:

Metric	Performance
Annual Collections	Steady growth
Sustenance Sales	Strong
Execution Efficiency	Improved
Pre-sales	Lower than expected due to delayed project launches
Quarterly Pre-sales	Increased by 4.50% to INR 24.60 billion
Collections	Stable at INR 19.00 billion

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:

Metric	Current/Projected Value
Net debt-to-net working capital ratio	0.91x
Net debt-to-operational cash flow ratio	Expected to remain at 3.50x-4.00x through the cycle

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.