Puravankara — Q3 FY26 earnings call

Call held 13 Feb 2026

Management summary

Puravankara delivered a strong Q3 FY26, marked by robust income growth, significant margin expansion, and a return to profitability. The company saw healthy presales and collections, alongside a reduction in net debt. Management outlined an aggressive launch pipeline for Q4 FY26 and the coming financial year, particularly in Mumbai and Bengaluru, and provided updates on its commercial projects, with a positive outlook on market demand and pricing strategy.

Highlights

  • Total income grew significantly by 230% YoY to ₹1,104 crores in Q3 FY26, driven by higher handovers.

  • EBITDA margin improved substantially to 23% in Q3 FY26 from 10% in Q3 FY25, reflecting operational efficiency.

  • Company reported a profit after tax of ₹58 crores in Q3 FY26, reversing a loss of ₹94 crores in Q3 FY25.

  • Presales for Q3 FY26 grew 17% YoY to ₹1,414 crores, with collections up 22% YoY to ₹1,140 crores.

  • Net debt reduced by ₹244 crores in Q3 FY26, and cost of debt declined to 11.08% from 11.32% in Sep 2025.

  • Strong launch pipeline for Q4 FY26 and beyond, including projects worth ~₹6,700 crores in Q4 alone.

Concerns

  • Analyst noted a significant increase in debt and interest cost from March 2020 to Sep 2025, though management clarified recent reductions.

  • Past delays in project approvals due to regulatory changes, though management states these are now resolved.

  • Erratic dividend policy noted by an analyst, with management prioritizing reinvestment for growth during sector consolidation.

Key financials

2 periods

Headline

  • Net Debt (Dec 31, 2025)
    ₹2,482 Cr

Q3 FY26

  • Presales
    ₹1,414 Cr
    YoY +17%
  • Collections
    ₹1,140 Cr
    YoY +22%
  • Total Income
    ₹1,104 Cr
    YoY +230%
  • EBITDA Margin
    23%
  • PAT
    ₹58 Cr

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.

Order book

high confidence

Total value

₹3,839 Cr

as of 2025-12-31 quantified

9% YoY

Inflow this quarter

₹1,414 Cr

Execution

2.58 million square feet across 2,446 homes handed over in 9 months FY26

Pipeline

other

Upcoming launches for Q4 FY26 in Bengaluru and Mumbai, plus 9-month BD pipeline

The company has a strong long-term growth pipeline and is continuously adding new projects, expecting stronger sales momentum in the coming years.

Source: Prepared remarks

Capital allocation

high confidence
  • Debt Net ₹2,482 Cr · 1.5× EBITDA Cost 11.1%
    • Repayment Gross debt reduced by INR 35 crores in Q3 FY26 ₹35 Cr
    • Repayment Net debt declined by INR 244 crores in Q3 FY26 ₹244 Cr
    Our net debt stood at approximately INR2,482 crores as on 31st December 2025, with a net debt-to-equity ratio of 1.47x. ... Additionally, the cost of debt declined further to 11.08% from 11.32% in September 2025.
  • M&A Mumbai redevelopment projects (Chembur, Malabar Hills) Acquisition · Signed · Consideration ₹[object Object] (undisclosed)

    Strengthen long-term growth pipeline and enhance geographic diversification

    Chembur: 1.2 MSF, GDV INR 2,100 crores; Malabar Hills: 0.7 MSF, GDV INR 2,700 crores

    In Mumbai, we secured redevelopment projects in Chembur and Malabar Hills. The Chembur development involves 8 residential societies expanding 3.78 acres with approximately 1.2 million square feet of developable area and estimated gross development value of INR2,100 crores. The Malabar Hills project covers 1.443 acres, offering around 0.7 million square feet with estimated gross development value of INR2,700 crores.
  • M&A Bengaluru land acquisition (Attibele) Acquisition · Signed · Consideration ₹[object Object] (undisclosed)

    Strengthen long-term growth pipeline and enhance geographic diversification

    53.5 acres, 6.41 MSF, GDV INR 4,800 crores

    In Bengaluru, key addition includes 53.5 acres land acquisition in Attibele, contributing approximately 6.41 million square feet with an estimated gross development value of INR4,800 crores.
  • M&A Joint Venture North Bengaluru (KVN Property Holdings LLP) Joint venture · Signed · Consideration ₹[object Object] (undisclosed)

    Strengthen long-term growth pipeline and enhance geographic diversification

    24.59 acres, 3.48 MSF, GDV INR 3,300 crores

    A joint venture in North Bengaluru with KVN Property Holdings LLP expanding 24.59 acres and about 3.48 million square feet with an estimated gross development value of INR3,300 crores located near the airport.
  • M&A Joint Venture East Bengaluru (Balegere) Joint venture · Signed · Consideration ₹[object Object] (undisclosed)

    Strengthen long-term growth pipeline and enhance geographic diversification

    5.5 acre land parcel, 0.85 MSF, GDV INR 1,000 crores

    And a joint venture -- joint development in East Bengaluru at Balegere covering 5.5 acre land parcel with around 0.85 million square feet and estimated gross development value of INR1,000 crores.
  • Liquidity Cash ₹1,082 Cr Strong liquidity profile ensuring operational stability.
    Our cash and bank balance at 31st December 2025 stood at INR1,082 crores, indicating a strong liquidity profile and ensuring operational stability.

Guidance & targets

Presales

  • Q4 FY26 Presales from Launches + Sustenance Presales · Q4 FY26 · Medium confidence ₹2,800-3,000 crores
    As I said, it's around 25% that we should be able to sell of everything that we are going to be launching. So from the launches itself, we should be getting around somewhere around INR1,800 crores to INR2,000 crores and add to that -- INR1,800 crores to INR2,000 crores and add to that another INR1,000 crores of sustenance. So you have your number there.

    — Mallanna Sasalu

Launches

  • Mumbai Andheri Project Launch Launches · Q4 FY26 · High confidence February 2026
    So from a launch perspective, we have already received RERA for our Andheri project, and we are looking forward to launch it in the coming week. So Andheri, Lokhandwala will definitely happen in the month of February.

    — Rajat Rastogi

  • Mumbai Thane Project Launch Launches · Q4 FY26 · High confidence End of February / First week of March 2026
    For our Thane launch, which is the 2 towers, we are in the final stages of the securing the approvals, and we are very positive that we should be able to launch it in quarter 4, maybe end of February on the first week of March.

    — Rajat Rastogi

  • Mumbai Pali Hills Project Launch Launches · Q4 FY26 / Q1 FY27 · High confidence End of March / April 2026
    Our approvals, we have already secured IOD for our Pali Hills project. Vacation notice has already been sent to the society. We are looking forward to launch it by end of March or in April.

    — Rajat Rastogi

  • Bengaluru Q4 FY26 Project Launches (4 projects) Launches · Q4 FY26 · High confidence ₹4,700 crores
    And for sure that there are going to be 4 projects that are going to be launched in this quarter, namely Hennur Road. And there's a project called Westend and Kanakapura and KIADB. And the value of that would be approximately INR4,700 crores and which is going to come to market within this quarter.

    — Mallanna Sasalu

  • Mumbai Andheri Phase 2 Launch Launches · FY27 · High confidence End of Q1 / Early Q2 FY27
    In terms of the Phase 2 launch, Phase 2 launch, we're expecting to happen in the -- by the end of quarter 1 or early quarter 2.

    — Rajat Rastogi

  • Mumbai Chembur Project Launch Launches · FY27 · High confidence Q3 FY27
    So I think we should be in a position of launching it in quarter 3 of the coming financial year.

    — Rajat Rastogi

  • Mumbai Malabar Hill Project Launch Launches · FY27 · High confidence Q3-Q4 FY27
    So Malabar hill should happen between quarter 3 to quarter 4 of the coming financial year.

    — Rajat Rastogi

Commercial Projects

  • Zentech and Aerocity Occupation Certificate Commercial Projects · Q4 FY26 · High confidence End of March 2026
    Happy to share that both these projects will get occupation certificate by end of March.

    — Rajat Rastogi

  • Zentech and Aerocity Annual Annuity Commercial Projects · Post full leasing · Medium confidence ₹200 crores
    So all these -- both the assets of Aerocity and Zentech once fully leased, will set us a rental of close to around INR200 crores annuity.

    — Rajat Rastogi

What to watch in Q4 FY26

Mumbai Andheri Project Launch

Next quarter (Q4 FY26)
Current RERA received, launch in coming week (Feb)
Target Project launched and sales commenced

Why it matters

This is a key launch in a major market, crucial for Q4 sales performance.

So from a launch perspective, we have already received RERA for our Andheri project, and we are looking forward to launch it in the coming week. So Andheri, Lokhandwala will definitely happen in the month of February.

Risks & concerns

  • Project Approval Delays

    medium

    Regulatory changes in setback rules caused delays in project plans 6-8 months prior, but these issues are now resolved and approvals are on track.

    I think about 6, 8 months ago, there were a few changes that the authority had done in certain setback rules, etc, and therefore, we had to sort of redraw the plans. But that said, I think that is behind us.

    Management acknowledged

  • Increasing Debt and Interest Costs

    medium

    Analyst noted a significant increase in debt and interest costs over recent years, but management explained this was due to investments in high-potential business development, which is expected to generate future cash flows for debt reduction.

    So if you're saying that it's -- what you mentioned is that the debt has gone from INR2,700 crores to INR4,700 crores. That's around INR2,000 crores of debt increase has resulted in more than INR30,000 crores of capability to develop has increased. ... But by and large, if you look at our debt, even if you look at just quarter-on-quarter basis, if I compare my debt compared to the immediate previous quarter, gross debt has come down. My cash and cash equivalent is about INR1,000 crores and thereby my net debt is down by about INR200 crores more than INR200 crores.

    Analyst downplayed

  • Erratic Dividend Policy

    low

    Analyst highlighted inconsistent dividend payments, to which management responded that the intent to reward shareholders exists, but current focus is on reinvesting for growth during sector consolidation.

    My next question was on the dividend policy of the company. Our company has been very erratic in terms of paying dividends. It gives a dividend 1 year, then it skips for 2 years and then it's again giving a dividend. So what is going to be the dividend policy going forward? ... it is always there on our minds. And whenever the opportunity allows us, I think those years, we will issue dividend.

    Analyst acknowledged

Q&A highlights

6 direct
Mumbai Launch Pipeline and Medium-Term Outlook Direct
So from a launch perspective, we have already received RERA for our Andheri project, and we are looking forward to launch it in the coming week. So Andheri, Lokhandwala will definitely happen in the month of February. For our Thane launch, which is the 2 towers, we are in the final stages of the securing the approvals, and we are very positive that we should be able to launch it in quarter 4, maybe end of February on the first week of March. ... Our approvals, we have already secured IOD for our Pali Hills project. ... We are looking forward to launch it by end of March or in April. Similarly, for our Miami project, we have -- we're in the advanced stages of getting the approval, hoping to be completed by the end of February. And then subsequently, we will issue a vacation notice. So we're hoping that in quarter 1 of the coming financial year, we should be able to launch our Breach Candy project which is Miami.

Provides specific timelines and project names for upcoming launches in the crucial Mumbai market, indicating future sales potential.

Asked by Deepak Purswani

Southern Region Launch Pipeline and Medium-Term Outlook Direct
As we had given the guidelines in our investment presentation, that we had around 11 projects for launching. And so they are in various levels of approvals. And for sure that there are going to be 4 projects that are going to be launched in this quarter, namely Hennur Road. And there's a project called Westend and Kanakapura and KIADB. And the value of that would be approximately INR4,700 crores and which is going to come to market within this quarter.

Details the significant launch pipeline for the Southern region, particularly Bengaluru, with specific projects and their estimated value for Q4 FY26.

Asked by Deepak Purswani

Sales Run Rate and 2-3 Year Outlook Direct
If you really look at the pipeline and INR3,900 crores has already been done and the pipeline that generally we do around INR1,100 crores to INR1,200 crores from our sustenance which means that when you add them together, we're already at INR5,200 crores. And it is anybody's guess what happens in the launches. Generally, we sell around 30% to 40%, even if I sell even if we sell around 25% in this launch of whatever the numbers that you've just now rolled out, and you can do the calculation. I think we should be in -- rather than putting a number to the whole thing that I'm giving you kind of a guidance as to where this may be heading towards. And looking at the next 2, 3 years, with the business development that is going on and as you may be seeing that there is an announcement almost every couple of months, once about our business development activity. And we think that this run is going to continue stronger and stronger over the next 1, 2, 3, 4 years, I believe.

Provides management's perspective on sales trajectory and internal targets for the coming years, indicating strong growth expectations from the current pipeline.

Asked by Deepak Purswani

Pricing Strategy for New Mumbai Projects Direct
This is Rajat here. So with regards to our pricing strategy in the West region, I think for Puravankara by default has been a premium player. And whatever projects that we are doing currently also, they're all at least 5% to 10% higher than the micro market. So our strategy in the Andheri market as well as in the Thane market will always be slightly not higher than what the local pricing is. So just to and I think with the kind of reception we are getting from the customers. ... So what -- the thing that -- what I want to emphasize is that there are micro markets and the quality of the land and then there is a place, where it is located and also the local economics actually drive what is the kind of pricing strategy that will happen. And larger as a company, the strategy is very simple, where we are among the crowd, then we got to be better than everybody else in terms of our pricing by 5%, 10%, 12%.

Clarifies the company's premium pricing strategy, aiming for 5-12% higher than competitors, which is crucial for margin expansion and brand positioning.

Asked by Vatsal Kothari

Andheri Project GDV and Phase 2 Launch Direct
Sure. So the overall GDV of the project right now is around INR1,550 crores right now, what we are launching is close to around INR850 crores worth of inventory. Pricing, frankly, we're still to reveal the pricing to the market. But I think as I said that the current micro market is hovering in the range of around INR38,000 to INR40,000. ... In terms of the Phase 2 launch, Phase 2 launch, we're expecting to happen in the -- by the end of quarter 1 or early quarter 2.

Provides specific financial details and launch timelines for the significant Andheri project, aiding in valuation and future sales projections.

Asked by Vatsal Kothari

Debt Levels and Interest Cost Trend Partial
So if you're saying that it's -- what you mentioned is that the debt has gone from INR2,700 crores to INR4,700 crores. That's around INR2,000 crores of debt increase has resulted in more than INR30,000 crores of capability to develop has increased. ... But by and large, if you look at our debt, even if you look at just quarter-on-quarter basis, if I compare my debt compared to the immediate previous quarter, gross debt come down. My cash and cash equivalent is about INR1,000 crores and thereby my net debt is down by about INR200 crores more than INR200 crores. ... I think the only addition there to the cash flow would be, I think, all the effort in the business development that has happened over the last, I think, 12 to 18 months to secure all these projects, right? I think what we would or what we are planning is we're going to see a new launch almost between the West and the South, almost on a monthly basis, right? So all these projects, the investment is already done. So now with the sales, you're going to see an exponential sort of improvement in terms of cash flows, etc. So we're going to see the benefit of that.

Addresses analyst's concern about rising debt and interest costs by explaining that debt is funding significant business development with high GDV potential, which is expected to generate strong cash flows and reduce debt in the future.

Asked by Rajiv Rupani

Commercial Projects Update (Zentech and Aerocity) Direct
So the Zentech project is doing really well. I think we've sold almost 127,000 square feet. We've also leased to IKEA, which is close to 90,000 square feet. So that project is getting good momentum in the micro market. Happy to share that both these projects will get occupation certificate by end of March. ... Aerocity also is getting a very good traction from global companies, GCC is doing a lot of visits. We're hoping that we'll be able to sign a good deal in the coming quarters.

Provides key operational updates and timelines for commercial projects, indicating progress towards revenue generation from annuity income.

Asked by Harsh Pathak

Dividend Policy Partial
My next question was on the dividend policy of the company. Our company has been very erratic in terms of paying dividends. It gives a dividend 1 year, then it skips for 2 years and then it's again giving a dividend. So what is going to be the dividend policy going forward? ... Yes. See, I think by intention, let me say, I think the intent is obviously to reward the shareholders for the support and the faith they have in the organization. I think the last 4, 5 years have been unpredictable starting from COVID, etc, right? And then the call is today, we are seeing the consolidation that's happening across the major cities in terms of the strong brands. ... So it's -- quite honestly, it's a decision between those 2. But as an organization, yes, it is always there on our minds. And whenever the opportunity allows us, I think those years, we will issue dividend.

Clarifies management's stance on dividend payments, balancing shareholder returns with the need to reinvest for growth during a period of sector consolidation.

Asked by Rajiv Rupani

3 min read 6 chapters

Detailed narrative

Strong Q3 FY26 Financial Performance and Return to Profitability

Puravankara reported a robust financial performance in Q3 FY26, with total income surging by 230% year-on-year to ₹1,104 crores, compared to ₹334 crores in Q3 FY25. This growth was primarily driven by a significant increase in project handovers during the quarter. The company's operational efficiency also saw substantial improvement, with the EBITDA margin expanding to 23% in Q3 FY26 from 10% in the prior year. Consequently, Puravankara returned to profitability, posting a profit after tax of ₹58 crores, a notable turnaround from a loss of ₹94 crores in Q3 FY25.

Robust Sales and Collections Momentum

The company maintained strong sales momentum, recording presales of ₹1,414 crores in Q3 FY26, representing a 17% year-on-year growth. This was supported by a 12% improvement in average realization to ₹9,500 per square foot, with sales volume reaching 1.49 million square feet. Collections also saw a healthy increase, growing 22% year-on-year to ₹1,140 crores in Q3 FY26. For the nine months ended FY26, presales stood at ₹3,839 crores (up 9% YoY) and collections at ₹3,045 crores (up 8% YoY), demonstrating consistent customer traction and construction progress.

Aggressive Launch Pipeline and Business Development

Puravankara is set for an aggressive launch schedule, with approximately ₹6,700 crores worth of new inventory planned for Q4 FY26 across Mumbai and Bengaluru. This includes projects like Andheri, Thane, and Pali Hills in Mumbai, and four projects in Bengaluru (Hennur Road, Westend, Kanakapura, KIADB) valued at ₹4,700 crores. Over the nine months of FY26, the company added five new projects, totaling 12.76 million square feet with an estimated gross development value (GDV) of ₹13,900 crores, significantly strengthening its long-term growth pipeline and geographic diversification.

Prudent Debt Management and Liquidity

As of December 31, 2025, Puravankara's net debt stood at ₹2,482 crores, with a net debt-to-equity ratio of 1.47x. The company successfully reduced its gross debt by ₹35 crores and net debt by ₹244 crores during Q3 FY26, reflecting effective debt management. The cost of debt also saw a decline to 11.08% from 11.32% in September 2025. With a cash and bank balance of ₹1,082 crores, the company maintains a strong liquidity profile, supporting its operational stability and future growth initiatives.

Commercial Real Estate Progress and Outlook

The commercial real estate segment showed strong momentum, with the Zentech project having sold almost 127,000 square feet and leased approximately 90,000 square feet to IKEA at ₹97.5 per square foot. Both Zentech and Aerocity projects are expected to receive their occupation certificates by the end of March 2026. Once fully leased, these assets are projected to generate an annual annuity income of approximately ₹200 crores. The company is also progressing with a new commercial project in Hebbal, Bengaluru, with concrete pouring expected by Q2 FY27.

Premium Pricing Strategy and Market Resilience

Puravankara continues to adopt a premium pricing strategy, with its projects typically priced 5% to 12% higher than the micro-market average, particularly in the West region. This strategy is supported by strong end-user demand, declining interest rates, and stable income, which contribute to resilient residential real estate sales. The company aims to differentiate its products to command a site premium, ensuring healthy price appreciation year-on-year across its portfolio.

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