Puravankara Q2 profit turns positive after Rs 148.83 crore gain

Puravankara Limited reported consolidated net profit of Rs 83.74 crore for the quarter ended September 30, 2026, but the result turned positive after a Rs 148.83 crore exceptional gain from selling Purva Ruby Properties Private Limited, while the group recorded a Rs 54.98 crore loss before exceptional items and tax.

Why did Puravankara report a Q2 profit?

Puravankara reported a profit because it recognised a Rs 148.83 crore gain on disposal of Purva Ruby Properties Private Limited as an exceptional item in the quarter ended September 30, 2026. Puravankara sold its entire equity interest in that subsidiary for Rs 145 crore and ceased to exercise control over it after the transaction was completed.

Before that exceptional item, Puravankara recorded a Rs 54.98 crore loss before exceptional items and tax, compared with a Rs 56.65 crore loss in the corresponding quarter a year earlier. Adding the disposal gain took profit before tax to Rs 93.85 crore; a Rs 10.11 crore total tax charge then resulted in a Rs 83.74 crore net profit, against a Rs 42.99 crore loss in the quarter ended September 30, 2025.

The disposal gain also distinguishes the quarter from the preceding quarter ended June 30, 2026. Puravankara reported Rs 25.23 crore net profit in that quarter without an exceptional item, supported by Rs 26.02 crore profit before exceptional items and tax. Basic earnings per share were Rs 3.42 in the September quarter, compared with Rs 1.22 in the prior quarter and a loss per share of Rs 1.76 a year earlier.

How did Puravankara’s revenue and expenses change?

Puravankara’s revenue from operations rose to Rs 1,032.50 crore in the quarter ended September 30, 2026, from Rs 848.72 crore in the preceding quarter and Rs 644.20 crore in the corresponding quarter a year earlier. Total income, including Rs 18.52 crore of other income, reached Rs 1,051.02 crore, compared with Rs 877.15 crore sequentially and Rs 662.73 crore a year earlier.

Costs also increased to Rs 1,106.11 crore in the September quarter, from Rs 851.09 crore in the June quarter and Rs 719.25 crore a year earlier. Sub-contractor cost was Rs 650.03 crore, raw-material and component cost was Rs 159.45 crore, and other expenses were Rs 230.87 crore; finance cost increased to Rs 180.42 crore from Rs 168.58 crore in the year-earlier quarter.

Inventory movement was a material offset within expenses, with a Rs 294.41 crore decrease in stock of flats, land stock and work-in-progress in the September quarter, compared with a Rs 796.15 crore decrease in the June quarter. Land purchase cost fell to Rs 67.91 crore from Rs 716.33 crore in the preceding quarter, while employee-benefit expense increased to Rs 97.38 crore from Rs 88.83 crore.

What does Puravankara’s half-year performance show?

Puravankara’s consolidated revenue from operations for the six months ended September 30, 2026 was Rs 1,881.22 crore, compared with Rs 1,168.60 crore in the previous-year period. The group’s loss before exceptional items and tax narrowed to Rs 28.96 crore from Rs 146.73 crore, while the Rs 148.83 crore subsidiary-disposal gain lifted reported net profit to Rs 108.97 crore from a Rs 111.54 crore loss.

The half-year cost profile changed alongside the increase in revenue. Land purchase cost rose to Rs 784.24 crore from Rs 67.78 crore a year earlier, while the inventory decrease expanded to Rs 1,090.56 crore from Rs 552.08 crore. Finance cost was Rs 359.36 crore, up from Rs 329.48 crore, and other expenses increased to Rs 417.04 crore from Rs 239.83 crore.

Puravankara operates in one reportable segment, real estate development and related activity, so the filing does not provide separate project, geography or business-line profitability. The group is domiciled in India and stated that it has no significant foreign operations, meaning its Rs 1,881.22 crore half-year operating revenue is presented as a single-segment result.

What changed in Puravankara’s balance sheet and cash flow?

Puravankara’s total assets were Rs 18,324.48 crore at September 30, 2026, compared with Rs 17,257.63 crore at March 31, 2026. Inventories increased to Rs 12,290.08 crore from Rs 11,490.27 crore, while cash and cash equivalents on the balance sheet declined to Rs 916.52 crore from Rs 1,282.56 crore.

Borrowings shifted between maturity buckets during the six months. Non-current borrowings rose to Rs 445.43 crore from Rs 301.88 crore, while current borrowings fell to Rs 4,919.47 crore from Rs 5,270.03 crore. Equity attributable to owners of the parent increased to Rs 1,896.82 crore from Rs 1,787.57 crore.

Net cash used in operating activities was Rs 3.38 crore in the six months ended September 30, 2026, compared with Rs 262.88 crore generated a year earlier. The period included a Rs 1,109.18 crore increase in trade receivables and a Rs 306.56 crore increase in inventory assets, partly offset by a Rs 1,077.54 crore increase in other liabilities; consideration received for loss of control of a subsidiary was Rs 137.02 crore in investing cash flow.

Conclusion

Puravankara’s Rs 83.74 crore Q2 profit reversed a Rs 42.99 crore loss a year earlier as revenue rose to Rs 1,032.50 crore, but the reported result depended on a Rs 148.83 crore gain from disposing of Purva Ruby Properties Private Limited. Before exceptional items and tax, the group remained in a Rs 54.98 crore loss, although that was slightly narrower than the Rs 56.65 crore loss in the corresponding quarter.

The next disclosures will need to clarify progress on unresolved legal matters, including Rs 51.31 crore of deposits and advances subject to title-related proceedings and a potential tax impact of Rs 45.08 crore from assessment orders under appeal. Management has made no provision for these matters pending legal resolution, based on its evaluation of the outcomes.