PURVA - Puravankara

📊 NSE: PURVA 🏢 Construction 📅 Last Updated: 12/14/2025 11:23

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for FY25 was INR 2,013.61 Cr, representing an 8% YoY decrease. In H1 FY26, pre-sales in the South segment decreased by 11% YoY to INR 1,809 Cr, while the West & Commercial segment saw a 102% YoY increase in sales value due to the launch of 'Purva Panorama' in Thane.

Geographic Revenue Split

The South region remains the primary revenue driver, but the Company is expanding its footprint in Western India (Mumbai and Pune), which now accounts for 21% of the 9.22 Million sq. ft. planned development pipeline.

Profitability Margins

The Company reported a consolidated Loss After Tax of INR 182.92 Cr for FY25, compared to a profit of INR 42.00 Cr in FY24, resulting in a Net Profit Margin of -22%. Q2 FY26 reported a loss of INR 42 Cr compared to a loss of INR 20 Cr in Q2 FY25.

EBITDA Margin

EBITDA margin for FY25 stood at 5.25%, a significant decline from 23.75% in FY24, primarily due to higher input costs and marketing investments for future launches.

Capital Expenditure

In FY25, the Company invested approximately INR 1,284 Cr in land acquisitions, adding 8 Million sq. ft. of developable area with an estimated Gross Development Value (GDV) exceeding INR 13,000 Cr.

Credit Rating & Borrowing

Net debt stood at INR 2,894 Cr as of September 30, 2025. Interest expenses for Q2 FY26 were INR 177 Cr, reflecting a sharp rise from previous periods due to increased borrowing for land and development.

⚙️ Operational Drivers

Raw Materials

Land (INR 1,284 Cr acquisition in FY25), Sub-contractor costs (INR 922.12 Cr in H1 FY26), and Raw materials/components (INR 160.09 Cr in H1 FY26).

Key Suppliers

Not disclosed in available documents; however, sub-contractors are the primary cost component for project execution.

Capacity Expansion

Current economic interest in land bank is 21.98 Million sq. ft. as of March 31, 2025. The Company added 8 Million sq. ft. in FY25 and has a planned development pipeline of 9.22 Million sq. ft.

Raw Material Costs

Land purchase costs were INR 67.78 Cr in H1 FY26 compared to INR 490.02 Cr in H1 FY25. Sub-contractor costs increased 85% YoY to INR 922.12 Cr in H1 FY26.

Manufacturing Efficiency

Customer collections increased 9% YoY to INR 3,937 Cr in FY25, indicating improved operating efficiencies and payment adherence.

📈 Strategic Growth

Expected Growth Rate

Growth Strategy

Growth will be achieved through expansion in Western India (Mumbai/Pune), which now represents 21% of the pipeline, and a focus on plotted developments (Purva Land) which have shorter completion cycles. The Company added 8 Million sq. ft. of land in FY25 with a GDV of over INR 13,000 Cr to fuel future launches.

Products & Services

Residential apartments (luxury and premium affordable), plotted developments, and commercial assets (e.g., Purva Zentech).

Brand Portfolio

Puravankara (Luxury/Premium), Provident Housing (Premium Affordable), and Purva Land (Plotted Developments).

New Products/Services

Launch of 'Purva Panorama' in Thane and upcoming projects in KIADB Hardware Park, Bengaluru. Plotted developments under 'Purva Land' are expected to contribute to faster cash conversion.

Market Expansion

Targeting Western India (Mumbai and Pune) for redevelopment and new developments to diversify from the core South India market.

Strategic Alliances

Partnerships with HCARE Fund 3 (INR 605 Cr NCD), 360 One (INR 50 Cr), and Purva Excellence Fund (INR 116 Cr).

🌍 External Factors

Industry Trends

The industry is seeing a shift toward branded developers and increased home buyer interest in larger homes and well-designed projects with better amenities.

Competitive Landscape

The market is consolidating toward organized, branded developers with strong execution capabilities.

Competitive Moat

Durable advantages include brand strength (Puravankara/Provident) and pricing power, allowing for realization growth despite volume drops. Financial stability is supported by a projected surplus of INR 15,568 Cr, providing 5x coverage over net debt.

Macro Economic Sensitivity

Performance is linked to sales and rental realizations shaped by market dynamics, project location, and brand equity.

Consumer Behavior

Consumers are increasingly considering Puravankara for larger homes and premium amenities, driving sustenance sales.

⚖️ Regulatory & Governance

Industry Regulations

Operations are affected by regulatory approval cycles, particularly in Bengaluru where the transition to GBA (five different corporations) and revenue department software updates delayed project launches.

Environmental Compliance

Sustainability is embedded in operations through inclusive and environmentally sustainable initiatives, though specific costs are not disclosed.

Taxation Policy Impact

The Company reported a tax credit of INR 21.53 Cr in H1 FY26 due to reported losses.

Legal Contingencies

No fraud was reported by auditors under section 143(12) of the Companies Act, 2013. Internal financial controls were found to be adequate with no material observations from auditors.

⚠️ Risk Analysis

Key Uncertainties

Regulatory approval delays in core markets like Bengaluru could impact launch timelines by 15-20%. Input cost inflation and land acquisition costs (INR 1,284 Cr in FY25) remain key margin risks.