Puravankara Limited's shares gained momentum, reaching a day's high of ₹234.95 per share, representing nearly a 2% increase from the day's low of ₹230.95. The rally came after the real estate developer announced that its wholly owned subsidiary secured a significant construction contract worth ₹311.18 crore from Sattva Group.

Major Construction Contract Details

Starworth Infrastructure & Construction Limited (SICL), Puravankara's wholly owned subsidiary, received a Letter of Intent from Sattva Resi Private Limited for the construction of the Sattva AANGANE residential project in East Taluk, Bangalore 560049.

This substantial order is expected to provide a major boost to Puravankara's construction order book and enhance project execution visibility for the group.

Financial Performance Analysis

Puravankara's recent financial results present a mixed picture, with strong revenue growth offset by profitability challenges in Q2 FY26.

On a quarter-on-quarter basis, the company showed revenue growth of 23% from ₹524 crore, while EBITDA demonstrated robust growth of 55% from ₹67 crore. However, the net loss widened from ₹69 crore in the previous quarter.

Profitability Challenges

Despite maintaining EBITDA profitability, Puravankara has been struggling with net profitability over recent quarters. The company's financial difficulties stem primarily from high interest expenses on its debt obligations. While the strong revenue growth indicates healthy business operations, the debt servicing costs continue to impact bottom-line performance.

Company Profile and Market Position

With a market capitalisation of ₹5,526 crore, Puravankara has been shaping Bengaluru's real estate landscape for over 50 years since 1975. The company operates across multiple segments:

• Puravankara brand: Premium luxury housing
• Provident Housing: Mid-income homes
• Purva Land: Plotted developments
• Starworth Infrastructure & Construction: Construction projects
• Commercial office spaces: Office development projects

The company's operations span major metro cities including Bengaluru, Hyderabad, Chennai, Kolkata, Mumbai, Pune, and Goa. Over the past five years, Puravankara's stock has delivered returns of 175%, significantly outperforming the NIFTY 50's return of 78% during the same period.

Puravankara Ltd has announced a significant contract win for its construction subsidiary, marking another milestone in the company's project execution capabilities. The realty firm's wholly-owned subsidiary Starworth Infrastructure & Construction Ltd (SICL) has secured a major residential construction project in Bengaluru.

Major Contract Details

The subsidiary received a letter of intent from Sattva Resi Pvt Ltd for the construction of residential project Sattva AANGANE, located in East Taluk, Bengaluru. The project specifications and financial details are outlined below:

Puravankara clarified that there is no promoter or group interest in the awarding entity and that the order does not qualify as a related-party transaction, ensuring transparency in the business arrangement.

Recent Order Book Expansion

This latest contract adds to the subsidiary's growing order book. In October, SICL received another substantial order worth ₹211.53 crore from SBR Builders for the construction of core & shell with finishes works for the proposed residential project "SBR Global Queen's Ville". These consecutive order wins demonstrate the subsidiary's strengthening position in the construction segment.

Financial Performance Overview

Despite the positive business developments, Puravankara's recent quarterly results showed mixed performance indicators:

While the company achieved strong revenue growth of 29.9% year-on-year, reaching ₹644.40 crore, it reported a wider net loss of ₹41.79 crore compared to ₹16.78 crore in the same period last year. The EBITDA declined by 7.3% to ₹104.47 crore, with margins compressing significantly from 22.7% to 16.2%.

Market Response

Shares of Puravankara were trading 0.47% higher at ₹232.84 on the NSE, reflecting investor confidence in the company's order book expansion and business development initiatives in the construction segment.