Puravankara — Q1 FY26 earnings call

Call held 8 Aug 2025

Management summary

Puravankara reported a mixed Q1 FY26, with strong pre-sales growth and improved realizations, but lower revenue and a reported loss attributed to regulatory delays (e-Khata, NGT) impacting handovers and new launches. The company highlighted a robust launch pipeline across residential and commercial segments, strategic business development wins, and a focus on debt reduction and funding efficiency, expressing confidence in future performance as regulatory hurdles are cleared.

Highlights

  • Pre-sales value reached ₹1,124 crores, marking a 6% year-on-year growth.

  • Sales volume stood at 1.25 million square feet, with average realization improving by 9% YoY to ₹8,988 per square feet.

  • Customer collections for the quarter were ₹857 crores.

  • Revenue for the quarter was ₹539 crores, with an EBITDA margin of 15%, resulting in a reported loss of ₹69 crores.

  • Net debt stood at ₹2,825 crores, with a net debt-to-equity ratio of 1.68; gross debt reduced by ₹138 crores.

  • The launch pipeline for FY26 targets approximately 12.32 million square feet of planned development.

  • The company is on track to complete 2 million square feet of commercial space in Q1 2026, including a signed LOI with IKEA for 80,000 sq ft at ₹150 per sq ft.

  • Planned delivery of over 4500 units is expected in FY26, with 3015 units (3.65 million sq ft) already completed and OC received, awaiting e-Khata issuance for handover.

Key financials

  1. Pre-sales Value ₹1,124 Cr +6%YoY
  2. Sales Volume 1.25 million sq ft
  3. Customer Collections ₹857 Cr
  4. Average Realization ₹8,988/sq ft +9%YoY
  5. Revenue ₹539 Cr
  6. EBITDA Margin 15%
  7. Loss ₹69 Cr
  8. Net Debt ₹2,825 Cr
  9. Net Debt Equity Ratio 1.68
  10. Cash Balance ₹718 Cr
  11. Gross Debt Reduction ₹138 Cr
  12. Cost of Debt 11.3%

What they filed

Q1 FY27: revenue up 306.3%, net profit up 126.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue275 189 155 126 334 +21%723 +283%1,119 +622%512 +306%
EBITDA10 -9 -46 -31 13 +30%124 +1478%195 +524%82 +365%
Net profit-25 -82 -76 -68 -36 −44%64 +178%111 +246%18 +126%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Geographical Sales Contribution
    50% Bengaluru24% Mumbai and Pune15% Chennai8% Kochi

Guidance & targets

Volume

  • Total Planned Development Area Volume · FY26 · High confidence 12.32 million sq ft
    Our launch pipeline for the year remains robust with approximately 12.32 million square feet of planned development, which includes 9.22 million square feet new project launches and 3.1 million square feet of new phase launches.

    — Deepak Rastogi

  • Commercial Area Completion Volume · Q1 2026 · High confidence 2 million sq ft
    We are on track to complete 2 million square feet during Q1 of 2026.

    — Deepak Rastogi

  • Units Delivered Volume · FY26 · High confidence >4500 units
    We remain on track for planned delivery of more than 4500 plus units during this financial year.

    — Deepak Rastogi

  • Units Completed (OC received) Volume · Already achieved · High confidence 3015 units / 3.65 million sq ft
    Out of the planned handovers, 3000 plus units, 3015 units, approximately 3.65 million square feet have been completed and the OC has been received already.

    — Deepak Rastogi

  • Thane Retail Development Area Volume · Future · High confidence 3 lakh sq ft
    Number two, yes, it is a mixed use. We have a sizable retail because it is right on the Ghodbunder Road, one of the most premium locations in Thane and we are developing close to 3 lakh square feet of retail in this project.

    — Rajat Rastogi

Realization

  • Commercial Leasing Rate (IKEA) Realization · Ongoing · High confidence ₹150 per sq ft
    We have signed LOI with IKEA for 80,000 square feet of carpet area at Rs. 150 per square feet on carpet area for Purva Zentech.

    — Deepak Rastogi

Project Delivery

  • IKEA Project Handover Project Delivery · Q4 FY26 · High confidence January-March 2026
    The building will be ready by January 2026 with handover expected one months - two months later post their custom modifications.

    — Deepak Rastogi

  • Aerocity OC & Area Project Delivery · Q3 FY26 · High confidence December (OC), 1.3 million sq ft (Area)
    Aerocity is coming up very, very well. We are expecting OC to come by December for both towers, which is around 1.3 million square feet.

    — Rajat Rastogi

Project Value

  • Chembur Redevelopment GDV Project Value · Future · High confidence ₹2,100 crores
    We have been selected as the preferred developer for the redevelopment of 8 housing societies in Chembur, Mumbai with an estimated GDV of Rs. 2,100 crores with developer area of 1.2 million square feet.

    — Deepak Rastogi

  • Redevelopment Portfolio GDV Project Value · Future · High confidence ₹7,700 crores
    This forms part of our broader redevelopment portfolio in the city with four key redevelopment projects collectively with a developer area of 3.63 million square feet, which is expected to generate a GDV of approximately Rs. 7,700 crores

    — Deepak Rastogi

  • East Bengaluru JDA GDV Project Value · Future · High confidence ₹1,000 crores
    Further strengthening our presence in key micro markets, we have entered into a JDA for 5.5 acres land parcel in East Bengaluru with an estimated GDV potential of over Rs. 1,000 crores.

    — Deepak Rastogi

  • North Bengaluru JDA GDV Project Value · Future · High confidence ₹3,300 crores
    Puravankara partnered with KVN Property Holdings LLP for a 24.59 acres land parcel with 3.48 billion saleable area with an estimated GDV of 3,300 crores.

    — Deepak Rastogi

  • West Region Launch Inventory Value Project Value · Q3/Q4 FY26 · High confidence ₹3,000 crores
    I think amongst the three launches that we intend to do in the West region, the total inventory that we open for sale will be in the range of around Rs. 3,000 crores.

    — Rajat Rastogi

  • Thane Project GDV Project Value · Over 1.5 years · High confidence ₹3,700 crores
    So, one is the overall, you are right, it is overall a Rs. 3,700 odd crores GDV project. We are looking at launching the entire project over a period of 1.5 years.

    — Rajat Rastogi

Project Launch

  • North Bengaluru JDA Launch Project Launch · Q3 FY26 · High confidence Within 6 months
    The project is located in North Bengaluru near the airport and is expected to launch within six months.

    — Deepak Rastogi

  • Aerocity Commercial Phase 2 Launch Project Launch · Q4 FY26 · High confidence January (start)
    And then we hope in January, start the Phase 2 of the commercial, which is another million square foot.

    — Ashish Puravankara

Monetization

  • Zentech Asset Monetization Monetization · By end of FY26 · Medium confidence Substantial part
    So, we hope by the end of this financial year, we will be able to monetize a substantial part of that asset.

    — Rajat Rastogi

Collections

  • Balance Collections from Sold Units Collections · Next 2-3 years · High confidence ₹4,643 crores
    So, that is for coming from our current ongoing project, which is two years to three years, we will be able to achieve this collection.

    — Deepak Rastogi

Profitability

  • EBT Margin (Redevelopment) Profitability · Ongoing · High confidence 20-25%
    I think the EBT levels that we would like to operate would be between 20% - 25% across our project portfolio. I am talking about redevelopment projects.

    — Ashish Puravankara

  • EBT Margin (Owned Land Development) Profitability · Ongoing · High confidence ~30%
    Approximately about 30%.

    — Ashish Puravankara

  • IRR (Outright Sales) Profitability · Ongoing · High confidence >=18%, up to 30-35%
    But anything which we look at it should be upward of at least 18% IRR. That is the way we look at it. And it can go up to, you know, 30% - 35% and even higher than that.

    — Deepak Rastogi

Commercial Leasing

  • Aerocity Leasing Start Commercial Leasing · Q3/Q4 FY26 · Medium confidence Start leasing activity
    We are hopeful that in Q3 and Q4, we will be able to get a hang for to start with the leasing activity in that asset.

    — Rajat Rastogi

Business Development

  • Project Launch Turnaround Time Business Development · Ongoing · High confidence 6-8 months
    the target to the team is that from the time you acquire, you need to turn around on an average six months to eight months, you need to get these projects to launch.

    — Ashish Puravankara

Pre-sales

  • Pre-sales Growth Pre-sales · FY26 · Medium confidence Growth
    No, we have never given a guidance or a number, but definitely, there will be a growth in that number.

    — Ashish Puravankara

Risks & concerns

  • e-Khata registration delays impacting handovers and collections

    medium

    New electronic e-Khata process causing 1-2 month delays in project handovers and final 10% collections, impacting current quarter's revenue recognition.

    Management acknowledged

  • NGT order delays for West region project launches

    medium

    Past NGT order stalled launches in the West region; though resolved, approvals are still in process, pushing launches to Q3/Q4 FY26.

    Analyst acknowledged

  • Bangalore Development Authority and BBMP bylaws revision for setbacks

    low

    Revisions in bylaws for setbacks by local authorities in Bangalore caused past project approval delays, but management is confident in launching projects within the year.

    Management acknowledged

Q&A highlights

3 direct
Launch timelines for West region projects, especially after the NGT order resolution. Direct
So, from an approval perspective, I think our files, our approvals, our files are moving in the right direction. They are moving swiftly. And I think in a matter of two to three months, we should start getting approvals. But I think the launches, as you said, will happen either in the end of Q3 or in the early of Q4.

Clarifies the impact of a significant regulatory hurdle and provides a timeline for substantial new launches in a key region, indicating future revenue drivers.

Asked by Harsh Pathak

Reasons for lower collections/operating surplus and the nature of the ₹322 crores investment in equity. Direct
So, current quarter as we have mentioned that there is less launches and that impacted our collection a bit... we have balanced collection to receive from the sold units itself Rs. 4,643 crores... the drawdown which we have done from HDFC capital, which is Rs. 282 crores... And another Rs. 50 crores we have drawn from 361... That money we have utilized for our Deccan redevelopment project in Mumbai.

Addresses concerns about cash flow quality and explains a large investment, linking it to future collections and strategic land acquisitions.

Asked by Deepak Purswani

The impact of the new e-Khata registration process on project handovers and collections in Bangalore. Direct
So, the question here was that e-Khata was a piece of paper. Now, they made it, it is just the same khata, but it is in electronic form... And because of which what has happened is that when we get the khata, then only we can go and register it... it is a delay of one or two months that we need to take it in our stride and move forward.

Identifies a specific regulatory challenge causing delays in project handovers and final collections, explaining the current quarter's lower revenue despite project completion.

Asked by Chintan Mehta

3 min read 7 chapters

Detailed narrative

Q1 FY26 Financial Performance Overview

Puravankara reported a pre-sales value of ₹1,124 crores in Q1 FY26, reflecting a 6% year-on-year growth, with sales volume at 1.25 million square feet. The average realization improved by 9% YoY to ₹8,988 per square feet. Customer collections for the quarter stood at ₹857 crores. However, the company reported a revenue of ₹539 crores and a loss of ₹69 crores, with an EBITDA margin of 15%, primarily due to delays in handovers and revenue recognition caused by regulatory changes like e-Khata.

Robust Launch Pipeline and Geographic Diversification

The company maintains a robust launch pipeline for FY26, targeting approximately 12.32 million square feet of planned development, including 9.22 million square feet of new project launches. Non-Bengaluru projects now account for over 50% of ongoing and planned projects, with Mumbai and Pune representing 21% of the planned pipeline. Key upcoming launches in the West region, including Thane and Andheri, are expected in Q3/Q4 FY26, with a total inventory value of around ₹3,000 crores.

Commercial Asset Development and Monetization

Puravankara is on track to complete 2 million square feet of commercial space in Q1 2026. A significant development is the LOI signed with IKEA for 80,000 square feet at Purva Zentech, with a leasing rate of ₹150 per square feet, and handover expected by Q4 FY26. The company aims to monetize a substantial part of the Zentech asset by the end of FY26. Additionally, Aerocity's 1.3 million square feet Phase 1 is expected to receive OC by December, with Phase 2 (another 1 million sq ft) planned for launch in January.

Business Development Initiatives and Future Projects

The company secured redevelopment rights for 8 housing societies in Chembur, Mumbai, with an estimated GDV of ₹2,100 crores, contributing to a broader redevelopment portfolio of ₹7,700 crores across 3.63 million square feet. New JDAs include a 5.5-acre parcel in East Bengaluru with a GDV potential of over ₹1,000 crores and a 24.59-acre parcel in North Bengaluru with an estimated GDV of ₹3,300 crores, expected to launch within six months. Management emphasized a strategy of acquiring clean, clear lands with a 6-8 month turnaround to launch.

Debt Management and Funding Efficiency

Net debt stood at ₹2,825 crores, with a net debt-to-equity ratio of 1.68, and a cash balance of ₹718 crores. Gross debt reduced by ₹138 crores during the quarter, and the cost of debt decreased to 11.35%. Management highlighted a focus on optimizing financial resources and reducing debt per square foot for under-construction projects. The company expects to collect ₹4,643 crores from sold units over the next 2-3 years.

Impact of Regulatory Changes: e-Khata and NGT

Regulatory changes, particularly the new e-Khata electronic registration process, have delayed handovers and final collections for completed projects, impacting current quarter revenue. Approximately 3015 units (3.65 million sq ft) are completed and have received OC but await e-Khata issuance for possession. Similarly, launches in the West region were previously stalled by an NGT order, but with a favorable resolution, approvals are now progressing, with launches expected in Q3/Q4 FY26.

Market Outlook and Profitability Targets

Management expressed optimism about India's resilient economy and the residential real estate sector, supported by RBI rate cuts. They noted stable demand and robust off-take for launched projects, especially for larger players. The company targets EBT levels of 20-25% for redevelopment projects and approximately 30% for owned land development. For outright sales, the target IRR is upward of 18%, potentially reaching 30-35% depending on the project and location.

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