Puravankara leaves Rs 280.79 crore unprovided in Q2 accounts

Puravankara Limited left Rs 280.79 crore of disclosed litigated balances, potential tax impact and benami-linked land without provisions in its consolidated results for the quarter ended September 30, 2026. The total combines Rs 222.51 crore of project-related matters, Rs 45.08 crore of potential tax impact and Rs 13.20 crore of land carrying value.

What disputed balances remain unprovided in Puravankara's accounts?

Puravankara has not made provisions for Rs 222.51 crore of deposits, advances, inventory, receivables, other balances and minority-shareholder claims subject to legal proceedings at September 30, 2026. The largest item is Rs 82.70 crore of inventory in a launched project under land-acquisition proceedings by government authorities, while claims by minority shareholders of a subsidiary total Rs 35.00 crore.

Deposits and advances of Rs 51.31 crore concern joint development arrangements and land acquisitions where proceedings relate to obtaining clear and marketable title. Customer receivables of Rs 33.10 crore and other balances of Rs 20.40 crore recoverable from joint-development partners and other parties are also under litigation. Puravankara said the affected items remain classified as good and recoverable based on management's legal evaluation of the ultimate outcomes.

How did Puravankara's litigated balances change from March 2026?

Puravankara's disclosed civil and project-related balances fell by Rs 32.40 crore, from Rs 254.91 crore at March 31, 2026 to Rs 222.51 crore at September 30, 2026. Customer receivables under litigation fell Rs 25.10 crore to Rs 33.10 crore, and land-title deposits and advances declined Rs 10.10 crore to Rs 51.31 crore.

The aggregate decrease was partly offset by a Rs 2.80 crore rise in other litigated balances, from Rs 17.60 crore to Rs 20.40 crore. The Rs 35.00 crore minority-shareholder claims and Rs 82.70 crore inventory subject to land-acquisition proceedings did not change. The filing reports balance movements but does not describe a resolution, settlement or timetable for these proceedings.

The Rs 82.70 crore disputed inventory remained within consolidated inventories of Rs 12,290.08 crore at September 30, 2026, up from Rs 11,490.27 crore at March 31, 2026. Trade receivables were Rs 809.77 crore, compared with Rs 786.82 crore six months earlier. Puravankara did not quantify the potential effect on carrying values, profit or cash flow if its legal assessment changes.

What do Puravankara's tax and benami proceedings involve?

Puravankara disclosed Rs 45.08 crore of potential tax impact from assessment orders for assessment years, or AYs, 2016-17 through 2024-25. The orders disallow certain expenses on the grounds that they were not incurred for business purposes, alongside other adjustments. The amount was unchanged from March 31, 2026, and Puravankara and certain group companies have filed appeals.

A search under Section 132 of the Income Tax Act took place in October 2023 involving Puravankara, certain group companies and its promoters. Puravankara said the disputed expenses were incurred in the ordinary course of its ongoing real-estate development projects and that the group is reasonably confident it can provide supporting evidence. No appeal hearing date or resolution schedule was disclosed.

Separately, a notice under the Prohibition of Benami Property Transactions Act, 1988 concerns 43.5 acres of land parcels with a carrying value of Rs 13.20 crore. The notice asks why benami proceedings should not begin and why Puravankara should not be held to be the beneficial owner; Puravankara said it has filed responses. The carrying value was unchanged from March 31, 2026, and no provision was recorded for the potential consequences of either proceeding.

The Rs 280.79 crore headline total is an aggregation of differently described disclosures, not a single claim, liability or provision reported by Puravankara. It adds Rs 222.51 crore of civil and project-related items to the Rs 45.08 crore potential tax impact and Rs 13.20 crore benami-linked land carrying value. Management cited its legal evaluation in explaining the absence of provisions.

How do the unprovided matters compare with Puravankara's Q2 results?

Puravankara reported consolidated net profit of Rs 83.74 crore for the quarter ended September 30, 2026, compared with a net loss of Rs 42.99 crore a year earlier. The quarterly result included an exceptional gain of Rs 148.83 crore on the disposal of Purva Ruby Properties Private Limited, while loss before exceptional items and tax was Rs 54.98 crore.

Revenue from operations rose to Rs 1,032.50 crore in the September 2026 quarter from Rs 644.20 crore in the corresponding quarter of 2025. For the six months ended September 30, 2026, revenue increased to Rs 1,881.22 crore from Rs 1,168.60 crore, while net profit was Rs 108.97 crore against a net loss of Rs 111.54 crore in the prior-year period.

At September 30, 2026, total consolidated assets were Rs 18,324.48 crore, compared with Rs 17,257.63 crore at March 31, 2026. Current borrowings declined to Rs 4,919.47 crore from Rs 5,270.03 crore, while non-current borrowings increased to Rs 445.43 crore from Rs 301.88 crore. The group reports one segment, real-estate development and related activity, and therefore gives no segment-level allocation for the disputed items.

Conclusion

Puravankara's September 2026 consolidated accounts disclose Rs 280.79 crore across litigated project balances, potential tax impact and land covered by a benami notice without provisions. Civil and project-related matters declined Rs 32.40 crore from March 2026, but the Rs 82.70 crore inventory under land-acquisition proceedings, Rs 35.00 crore minority claim, Rs 45.08 crore potential tax impact and Rs 13.20 crore land carrying value remained unchanged.

The next disclosed developments are the appeals against the tax assessments for AY 2016-17 to AY 2024-25, the authorities' response to Puravankara's submissions concerning 43.5 acres, and the progress of the land-title, land-acquisition, receivables and minority-shareholder proceedings. Puravankara has not disclosed expected settlement amounts, hearing dates or resolution timelines for those matters.