Puravankara Navigates Growth with Strategic Pipeline and Market Resilience in Q2 FY26

Puravankara Limited, a prominent player in the Indian real estate sector, has demonstrated resilience and strategic foresight in its Q2 and H1 FY26 performance. Despite reporting a consolidated net loss of INR 42.99 crore for the quarter ended September 30, 2025, compared to a loss of INR 17.06 crore in Q2 FY25, the company's operational metrics paint a picture of underlying strength and strategic positioning. The management attributes the reported loss primarily to the timing of revenue recognition under IndAS and significant strategic investments in new projects, emphasizing that it does not reflect any operational weakness.

For Q2 FY26, Puravankara recorded robust pre-sales of INR 1,322 crore, marking a 4% year-on-year increase from INR 1,270 crore in Q2 FY25. This growth was notably driven by sustenance sales, underscoring strong customer trust and brand equity. The average price realization also saw a healthy uptick of 7% year-on-year, reaching INR 8,814 per square foot, reflecting sustained market demand and effective pricing strategies. Customer collections remained strong, increasing by 8% year-on-year to INR 1,047 crore, indicating efficient execution and payment adherence. For the first half of FY26 (H1 FY26), pre-sales totaled INR 2,445 crore, a 4% increase from H1 FY25, with collections hitting INR 1,904 crore, maintaining a solid cash conversion ratio.

Strategic Expansion and Pipeline Growth

Puravankara has made significant strides in bolstering its project pipeline, adding over 6.36 million square feet of developable area with a potential Gross Development Value (GDV) of approximately INR 9,100 crore during H1 FY26. Key additions include a 24.6-acre partnership at KIADB Hardware Park in North Bengaluru, a 5.5-acre joint development in Balagere, East Bengaluru, and preferred developer status for eight societies in Chembur, Mumbai, adding 1.2 million square feet. The prestigious Malabar Hills redevelopment in Mumbai, contributing 0.7 million square feet and a GDV of INR 2,700 crore, further enhances the premium residential portfolio. These strategic acquisitions diversify the company's exposure across premium and mid-income segments, enhancing revenue visibility and de-risking its growth trajectory. The company's land bank now exceeds 32 million square feet, providing a multi-year runway for future launches.

Management highlighted that the H2 FY26 pipeline includes 15.46 million square feet across Mumbai, Bengaluru, Chennai, and Pune, with a potential of INR 5,800 crore. The company expects to launch approximately 80% of INR 9,000 crore to INR 10,000 crore worth of inventory in H2 FY26. Specific project launches are anticipated, with the Andheri project expected in January (Q4 FY26), Miami in March/April/May (Q4 FY26/Q1 FY27), Thane by Q4 FY26, and Bandra by Q4 FY26. The company is also actively pursuing commercial assets, with Zentech and Aerocity expected to receive Occupancy Certificates by Q4 FY26 and Q1 FY27, respectively, which is expected to boost sales and leasing momentum.

Debt Management and Market Outlook

Puravankara has demonstrated disciplined capital management. The debt per square foot for Residential and Land portfolios has reduced by 31% over the last three years, from INR 1,248 in March 2022 to INR 859 in September 2025, reflecting improved capital efficiency. The cost of debt has also decreased to 11.32% quarter-on-quarter, driven by an optimized borrowing mix and funding efficiency. The net debt stands at INR 2,894 crore, which is comfortably offset by a projected surplus of INR 15,568 crore (more than 5x coverage) from ongoing, pipeline, and commercial projects, ensuring strong cash flow visibility and financial stability.

India's residential sector continues to exhibit sustained buoyancy, with sales and launches surpassing the 2,00,000-unit mark over the January to September (Q4 FY25 – Q2 FY26) period. The office real estate market also maintained strong growth, with leasing activity reaching 19.9 million sq. ft. in Q2 FY26. The company is well-positioned to capitalize on these favorable market dynamics, with a focus on optimizing costs, enhancing efficiency, and driving shareholder returns. Despite some regulatory delays in Bangalore and Mumbai, management remains confident in achieving its delivery targets, with the initial plan of delivering 3,000 plus units this year remaining on track.

Puravankara's Q2 FY26 performance, while showing a reported loss, highlights its strategic clarity and disciplined execution in a buoyant real estate market. The company's focus on pipeline expansion, efficient capital management, and diversified offerings positions it for sustained growth and value creation in the coming periods.