PURVANSEAugust 08, 2025

Puravankara Limited

8,533words
117turns
6analyst exchanges
6executives
Management on call
Ashish Puravankara
MANAGING DIRECTOR, PURAVANKARA LIMITED
Mallanna Sasalu
CHIEF EXECUTIVE
Rajat Rastogi
CHIEF EXECUTIVE OFFICER, WEST AND COMMERCIAL ASSETS, PURAVANKARA LIMITED
Deepak Rastogi
GROUP CHIEF FINANCIAL OFFICER, PURAVANKARA LIMITED
Niraj Gautam
- DEPUTY CHIEF FINANCIAL OFFICER, PURAVANKARA LIMITED
Harsh Pathak
EMKAY GLOBAL FINANCIAL SERVICES LIMITED
Key numbers — 40 extracted
6.5%
nomic fundamentals continue to remain robust. The RBI has maintained its GDP growth forecast at 6.5% for this year, financial year 2026, reaffirming India’s position as the fastest growing economy i
100 basis point
l estate sector benefited from supportive macroeconomic policies, especially from RBI rate cut of 100 basis points, which brought down the repo rate to 5.5%. This measure was aimed at stimulating credit growth a
5.5%
c policies, especially from RBI rate cut of 100 basis points, which brought down the repo rate to 5.5%. This measure was aimed at stimulating credit growth and investment at the backdrop of global unc
16%
ies. Chennai and Hyderabad led in terms of growth, recording impressive year-on-year increases of 16% and 6% respectively. Mumbai maintained consistent demand and remained the largest market by vol
6%
nnai and Hyderabad led in terms of growth, recording impressive year-on-year increases of 16% and 6% respectively. Mumbai maintained consistent demand and remained the largest market by volumes du
9%
e largest market by volumes during this quarter. India’s Residential real estate market witnessed 9% quarter-on- quarter growth in new unit launches as sales remained largely stable during the Q2 of
58%
nd and high-end housing segments continued capturing the attention of Mumbai’s constituting about 58% of the total sales across the top seven cities during the quarter. The office sector continued it
20.3 million
ear with steady absorption observed across key markets. Office leasing during the quarter reached 20.3 million square feet while new office supply of approximately 17 million square feet became operational. S
17 million
sing during the quarter reached 20.3 million square feet while new office supply of approximately 17 million square feet became operational. Space was taken up by domestic corporates and GCC played a pivota
Rs. 1,124 crore
Company’s financial and operational highlights for this quarter: We achieved a pre-sales value of Rs. 1,124 crores reflecting a 6% year-on-year growth. The sales value of West region increased by 58% Y-o-Y prima
1.25 million
y due to the new launch of Purva Panorama in Thane, Mumbai. Sales volume for the quarter stood at 1.25 million square feet. The customer collections for the quarter stood at Rs. 857 crores. The average realis
Rs. 857 crore
the quarter stood at 1.25 million square feet. The customer collections for the quarter stood at Rs. 857 crores. The average realisation also improved by 9% Y-o-Y to 8,988 per square feet, underscoring sustai
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Guidance — 20 items
Deepak Rastogi
opening
“The RBI has maintained its GDP growth forecast at 6.5% for this year, financial year 2026, reaffirming India’s position as the fastest growing economy in the world.”
In terms of geographical sales contribution
opening
“Our launch pipeline for the year remains robust with approximately 12.32 million square feet of planned development, which includes 9.22 million square feet new project launches and 3.1 million square feet of new phase launches.”
On the commercial front
opening
“We are on track to complete 2 million square feet during Q1 of 2026.”
On the commercial front
opening
“The building will be ready by January 2026 with handover expected one months – two months later post their custom modifications.”
On the business development front
opening
“The project is located in North Bengaluru near the airport and is expected to launch within six months.”
Coming to the financials of this quarter
opening
“We want to highlight our strong growth trajectory over the last three years and the sales growth continues to be at CAGR of 28% while the collections have increased at a CAGR of 37% reflecting our commitment to execution excellence.”
Harsh Pathak
qa
“And when can we expect progressively the launches to come in?”
Rajat Rastogi
qa
“We hope that our Andheri project and our Thane project, they both will be available for launch in quarter four or maybe end of Q3.”
Harsh Pathak
qa
“And I guess this would be phase-wise launches so you know, what is the quantum will be opening, maybe phase-wise, if you can highlight some part of that.”
Rajat Rastogi
qa
“Yeah, I think amongst the three launches that we intend to do in the West region, the total inventory that we open for sale will be in the range of around Rs.”
Risks & concerns — 6 flagged
And it will be very difficult for us to give you a very generic answer to that because it has to be project by project.
— Deepak Rastogi
So, there is no sort of aggregation or aggregation risk or conversion risk or approval risk per se as a new strategy for the BD that we have been doing over the last two years.
— Ashish Puravankara
And second, in terms of debt, I think this quarter sequentially, we have seen some decline in the net debt levels, even the cost of debt has gone down.
— Harsh Pathak
So, Harsh, it is difficult for us to put a number there.
— Deepak Rastogi
As far as commercial is concerned, there is no concern as such.
— Deepak Rastogi
So, which means that there is absolutely no concern, it will be self-pairing.
— Ashish Puravankara
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Q&A — 6 exchanges
Q
Yeah, hi, sir. Thanks for the opportunity. So, first of all, on the upcoming launches, especially in the West region. So, since there is the NGT order has come, and I guess, there has been some clearance in, taking clearance from the state government. So, how do we see launches in the West region? And I see in the presentation, most of them are lined up in Q3 and Q4. Now, where are we on the approval stage? And when can we expect progressively the launches to come in?
Deepak Rastogi
Rajat, do you want to take it? Yes, I will answer it. Hi. Good evening to everyone. So, as you rightly said, a couple of our launches were stuck because of the NGT reason. But now with the favorable order, we have started putting our applications for the MOFA approval. Understanding there is a long queue for all the cases that have been pending for the last one year. We hope that our Andheri project and our Thane project, they both will be available for launch in quarter four or maybe end of Q3. So, from an approval perspective, I think our files, our approvals, our files are moving in the rig
Q
Good evening to everyone. Thank you for the opportunity. Yes. So, firstly, just wanted to get the sense in terms of the launch pipeline in the Bangalore. I mean, if you can give the broader sense about the approval process there, I mean, how should we see the approval? I do understand in the presentation, there is a timeline is given for each of the projects. But in terms of the at what stage of approval, if you can give the broader sense for the project like Grand Hills, Bellandur, Hebbagodi, Kanakapura and Westend.
Mallanna Sasalu
Yeah, this is Mallanna here. So, I think in the document that what we provided, we have already said that, Bellandur is going to come in Q3 and the other one in Kochi, there is a project called Winworth Phase 2, we said it is going to come in for Q4, Grand Hills in Q4 and Hebbagodi in Q3, Westend in Q3, Hennur Road, probably Q4 or Q3, Mallasandra, that is our one of our project in Kanakapura Road that should be coming up in Q3 and another Kanakapura Road project which is called Vajrahalli, it should be coming in Q4. Also, a small part of development, this is that supposed to come in Q3. The is
Q
Hi, sir. Thanks for the opportunity. I just want clarification. In press release, we mentioned about the surplus cash flow. This surplus cash flow also include the redevelopment project, all of the redevelopment project?
Deepak Rastogi
This surplus includes all our ongoing projects, plus also our projects, phases of the existing project which are yet to open for sale. And also the launch guidance which we are given, which is there in our launch guidance in this ICP, Slide #16. It does not include any business development, new business development or which we are signing. It is precisely from our inventory open for sale, plus inventory not open for sale, plus the launch guidance which we are given, which is on Slide #16. Nothing more than that. So, redevelopment is actually included in this, is what I can confirm, basically,
Q
Yeah. Hi, sir. Thanks for the follow-up. So, you highlighted that we have leased the space in Zentech for 150 per square feet. So, if you can throw some light on how the micro market is and what the prevailing rates are. And this rate of 150 per square foot that we have got, how is it comparable to the micro market? And what is enabled to us to get this kind of a rate?
Rajat Rastogi
So, Harsh, I think, just to give you a perspective of South Bangalore market, I think, first and foremost, I think this asset, what we are building is one of the best, really, I think, that is there in the micro market. From a perspective of IKEA coming and choosing us as a product because IKEA does a very, very long due diligence before finalizing any place, especially for the retail operation. So, for them to come over, that really says about this product, which is clearly by far the best product available in the South Bangalore market, number one. Number two, the ongoing rentals for retail
Q
Sir, just wanted to know, do you have any more land parcel or space at Aerocity to launch something commercial or Residential?
Deepak Rastogi
So, we have a Grand Hills project, which is there as part of our launch pipeline, right? So that is there apart from commercial that is a Resi, obviously, which is coming up. So, if you see in Slide #16, you can see number three, Grand Hills actually, you know, pertains to that same Aerocity site, which you are referring to. Grand Aerocity, part of same campus. Okay. Understood. And further after that, I mean, we are looking at a big one to develop that area or when? See, Phase 1 of that Aerocity project, the total commercial is about 2.2 million square foot. What we are completing by December
Q
Thank you all for your time and questions. We appreciate your continued support and interest in Purvankara’s journey. Should you have further queries or require additional information, please feel free to reach out to our investor relations team. We look forward to updating you on our progress in the coming quarters. Have a great day and a nice weekend. Thank you so much.
Management
Speaking time
Rajat Rastogi
20
Harsh Pathak
18
Mallanna Sasalu
15
Ashish Puravankara
14
Chintan Mehta
13
Deepak Purswani
12
Deepak Rastogi
11
Moderator
8
In terms of geographical sales contribution
1
On the commercial front
1
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Opening remarks
Harsh Pathak
Yes. Thanks, Manav. Good evening. First of all, apologies for the delayed start of this con-call. We shall now begin. So, on the behalf of Emkay Global, I would like to welcome the Management and thank them for this opportunity. We have with us today Mr. Ashish Puravankara – Managing Director, Mr. Mallanna Sasalu – Chief Executive Officer (South), Mr. Rajat Rastogi – Chief Executive Officer (West and Commercial Assets), Mr. Deepak Rastogi – Group Chief Financial Officer, and Mr. Neeraj Gautam – Deputy Chief Financial Officer. I shall now hand over the call to the management for the opening remarks. Over to you gentlemen.
Deepak Rastogi
Good evening, everyone. I am Deepak Rastogi and I thank you for joining Puravankara’s Earnings Conference Call to discuss the performance for the 1st Quarter of this financial year. The Result and Investor Presentation are available on the Stock Exchanges, and we hope you have had a chance to review them. I would also like to thank our host for today’ s earnings call, Emkay Global Financial Services. Now, let me start with some brief highlights about the sector performance followed by our financial and operational performance for the quarter. As you know, India’s economy continues to demonstrate strong Resilience despite persistent global uncertainties, geopolitical tensions, supply chain disruptions and evolving tariff policies in key markets such as US. Amid these external challenges, India’s macroeconomic fundamentals continue to remain robust. The RBI has maintained its GDP growth forecast at 6.5% for this year, financial year 2026, reaffirming India’s position as the fastest growi
In terms of geographical sales contribution
Q1 of this year, financial year 50% was contributed by Bengaluru followed by Mumbai and Pune were at 24%; Chennai at 15%; and Kochi at 8%, respectively. Increase of sales from Mumbai and Pune from 15% to 24% during this quarter, indicating growing presence in Western region. Our launch pipeline for the year remains robust with approximately 12.32 million square feet of planned development, which includes 9.22 million square feet new project launches and 3.1 million square feet of new phase launches. Notably, non-Bengaluru projects now account for more than 50% of ongoing and planned projects. Reflecting our strategic geographic diversification, Mumbai and Pune together represents 21% of the planned pipeline, underscoring our strong focus and expanding presence in West India.
On the commercial front
We are on track to complete 2 million square feet during Q1 of 2026. In 2026, we have signed LOI with IKEA for 80,000 square feet of carpet area at Rs. 150 per square feet on carpet area for Purva Zentech. The building will be ready by January 2026 with handover expected one months – two months later post their custom modifications. With regulatory changes such as e-Khata have impacted handovers and revenue recognition timelines. We remain on track for planned delivery of more than 4500 plus units during this financial year. Out of the planned handovers, 3000 plus units, 3015 units, approximately 3.65 million square feet have been completed and the OC has been received already. These are currently awaiting e-Khata issuance for handover possession. During the quarter, we handed over 667 units covering 0.68 million square feet, generating revenue of Rs. 539 crores.
On the business development front
We have been selected as the preferred developer for the redevelopment of 8 housing societies in Chembur, Mumbai with an estimated GDV of Rs. 2,100 crores with developer area of 1.2 million square feet. This forms part of our broader redevelopment portfolio in the city with four key redevelopment projects collectively with a developer area of 3.63 million square feet, which is expected to generate a GDV of approximately Rs. 7,700 crores, further reinforcing our strategic presence and growth momentum in the Mumbai market. Further strengthening our presence in key micro markets, we have entered into a JDA for 5.5 acres land parcel in East Bengaluru with an estimated GDV potential of over Rs. 1,000 crores. Earlier this quarter, Puravankara partnered with KVN Property Holdings LLP for a 24.59 acres land parcel with 3.48 billion saleable area with an estimated GDV of 3,300 crores. The project is located in North Bengaluru near the airport and is expected to launch within six months. These s
Coming to the financials of this quarter
Our revenue was Rs. 539 crores, EBITDA margin for the quarter was 15% while we reported a loss of Rs. 69 crores. The sales and marketing expenses and overheads incurred for the pre sales have been entirely charged to P&L as per Ind AS Standard 115. On our debt position, our net debt stands at around Rs. 2,825 crores which is at a net debt equity ratio of 1.68 with a cash balance of Rs. 718 crores, indicating a strong liquidity profile ensuring stability and operational continuity. Gross debt during this quarter actually reduced by Rs. 138 crores with major debt coming down on the Resi side, but because of the changes or the increase in the commercial, the net increase, sorry reduction was Rs. 138 crores. Cost of debt has reduced to 11.35% driven by continued focus on improving funding efficiencies. We remain committed to optimize financial resources by continuously working on reducing the debt per square feet for under construction projects. In the next couple of quarters, we will see
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