Puravankara Limited Q1 FY27 Earnings Conference Call Summary

Call Date: August 17, 2026

Operational Performance (Q1 FY27)

  • Presales: Achieved INR1,439 crores, an increase of 28% year-on-year (YoY).
  • Sales Volume: Grew 9% YoY to 1.36 million square feet.
  • Average Realization: Rose 18% YoY to INR10,589 per square foot.
  • Collections: Increased 40% YoY to INR1,199 crores.
  • Handovers: Delivered 745 homes, representing 0.94 million square feet of area.

Financial Performance (Q1 FY27)

  • Total Income: Increased 63% YoY to INR877 crores, primarily driven by higher handovers.
  • EBITDA Margin: Expanded to 25%, compared to 15% in Q1 FY26.
  • Profit After Tax (PAT): Was a positive INR25 crores, compared to a loss of INR69 crores in the corresponding quarter last year (Q1 FY26).

Balance Sheet & Capital Structure (as of June 30, 2026)

  • Net Debt: Stood at INR2,836 crores.
  • Net Debt to Equity: Was 1.57x.
  • Gross Debt: Declined by INR74 crores during the quarter.
  • Cash and Bank Balances: Were INR1,106 crores.
  • Average Cost of Debt: Was 11.12%.

Capital Recycling & Asset Monetization

  • The company entered into a definitive agreement with ICICI Prudential AMC for the sale of Purva Zentech at an enterprise value of approximately INR625 crores, subject to adjustments and closing conditions.
  • The transaction is expected to be completed within August 2026.
  • INR250 crores of debt associated with this asset will be repaid from the proceeds.
  • The remaining capital will be used to enhance financial flexibility and be deployed towards areas with strong strategic and economic value.
  • A land payment of INR574 crores was made during the quarter for new acquisitions, funded from existing cash balances without increasing gross debt.

Growth Pipeline & Business Development

  • Added 4 new opportunities in Bengaluru spanning 41.93 acres.
  • Development Potential: 4.23 million square feet.
  • Estimated Gross Development Value (GDV): INR5,200 crores.
  • The additions include Joint Development Agreements (JDAs) in Sarjapur and Doddagubbi, and land acquisitions at Sanna Amanikere (North Bengaluru Airport corridor) and Mandur (East Bengaluru).

Project Launch Pipeline & Updates

Management provided specific updates on the launch timeline for numerous projects:

  • South (Bengaluru & Kochi): Projects like Westend (RERA approved, launched), Hennur Road (approval delays due to government transition), Cityspire Kochi, and Winworth Kochi (RERA approval pending, expected in Q2) are on track. Grand Hills, Bellandur, Mallasandra, Kanakapura, and Winworth 3 are also on track.
  • West (Mumbai): Projects like Purva Miami (RERA received), Pali Hill (RERA application by end-Sept, launch Oct-Nov), Apna Ghar, and Deonar Baug/Deccan (launch in Q4) are on track.
  • Commercial: A new ~1.3 million square feet commercial project in Hebbal, Bangalore, is scheduled to start construction by Q4 FY27.
  • Purva Aerocity (Commercial): Received Occupancy Certificate (OC) for 1.3 million square feet. The remaining 0.9 million square feet (Phase 2) will commence after 70-80% of Phase 1 is leased. Current expected lease rates are INR60-65 per square foot. The asset is seen as strategic, with a focus on leasing to GCCs and MNCs before considering future monetization.

Guidance & Outlook

  • FY27 Presales Guidance: Reiterated at INR11,200 crores. Confidence is based on the identified launch pipeline, available inventory, and demand depth in core markets.
  • FY27 EBITDA Margin Guidance: Reiterated in the range of 25% to 30%.
  • FY27 Debt Reduction Target: Reiterated at INR700 crores.
  • The company is also evaluating growth opportunities in the NCR market, specifically Noida.

Demand Environment Commentary

Management stated that the demand environment remains steady and sustained across both South (Bengaluru) and West (Mumbai, Pune) markets. They noted that top branded players continue to gain market share and that all price points are performing well.

Management Participants

  • Mr. Ashish Puravankara – Managing Director
  • Mr. Mallanna Sasalu – Chief Executive Officer, South
  • Mr. Rajat Rastogi – Chief Executive Officer, West and Commercial Assets
  • Mr. Neeraj Gautam – Chief Financial Officer

The call was moderated by Ms. Savita Singh from Dolat Capital Markets Private Limited.