Puravankara Q1 FY27 earnings call

Puravankara reported a strong Q1 FY27, with presales growing 28% year-on-year to INR 1,439 crores, driven by a 9% increase in sales volume to 1.36 million square feet and an 18% rise in realization to INR 10,589 per square foot. Collections also saw robust growth, up 40% year-on-year to INR 1,199 crores. The company handed over 745 homes, totaling 0.94 million square feet, contributing to a 63% year-on-year increase in total income to INR 877 crores.

The company's financial performance showed significant improvement, with EBITDA margin expanding to 25% in Q1 FY27, up from 15% in Q1 FY26. Profit after tax turned positive at INR 25 crores, compared to a loss of INR 69 crores in the corresponding quarter last year. On the balance sheet front, net debt stood at INR 2,836 crores as of June 30, 2026, with gross debt declining by INR 74 crores during the quarter, and cash and bank balances at INR 1,106 crores. The average cost of debt was 11.12%.

Puravankara added four new land opportunities in Bengaluru during the quarter, spanning approximately 41.93 acres with a development potential of 4.23 million square feet and an estimated Gross Development Value (GDV) of INR 5,200 crores. These acquisitions were funded by utilizing existing cash and cash equivalents of INR 574 crores, without increasing gross debt. Additionally, the company entered a definitive agreement with ICICI Prudential AMC for an enterprise value of approximately INR 625 crores, which is expected to release capital and facilitate the repayment of INR 250 crores of associated debt.

The company reiterated its FY27 presales guidance of INR 11,200 crores, with several key projects in the launch pipeline. Westend has received RERA approval and launched, while Cityspire and Winworth are awaiting final RERA approvals for a Q1 launch. Mumbai projects like Miami have received RERA and are on sale, with Pali Hill expected to apply for RERA by September for an October-November launch. However, the Hennur Road project in Karnataka faced delays due to changes in government and ministries, though clarity is expected soon.

Puravankara provided an update on its Purva Aerocity commercial project, confirming receipt of OC for 1.3 million square feet, with the balance 0.9 million square feet to be developed in phases. The company is actively filling RFPs and expects LOI for leasing between INR 60-65. Phase 2 construction will commence once 70-80% of Phase 1 is leased out. The company also plans to start construction on a new 1.3 million square feet commercial project in Hebbal, Bangalore, by the end of Q4.

Management expressed a positive outlook on demand in Bangalore and Mumbai, noting that branded players are gaining market share and all price points are performing well. The company is aggressively expanding in Mumbai, with INR 25,000 crores GDV spread across various micro-markets. Beyond its core South and West regions, Puravankara is actively exploring growth opportunities in the NCR market, particularly focusing on Noida, where it sees significant potential for branded developers.