Summary
Puravankara Limited - Q3 FY 2026 Earnings Call Summary Friday, February 13, 2026, 11:00 AM IST
Event Participants
Executives 4 Ashish Puravankara (Managing Director), Mallanna Sasalu (CEO, South), Neeraj Gautam (CFO), Rajat Rastogi (CEO, West & Commercial Assets)
Analysts 5 Chintan Mehta, Deepak Purswani, Harsh Pathak, Jahnvi Shah, Rajiv Rupani
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Presales Value | ₹1,414 crores | +17% YoY; driven by strong pricing momentum and sustenance sales. |
| Collections | ₹1,140 crores | +22% YoY; highest ever quarterly collection supported by construction progress. |
| Sales Volume | 1.49 million sq. ft. | Sustained traction across key markets; 9M FY26 volume at 4.24 million sq. ft. |
| Average Realization | ₹9,500 per sq. ft. | +12% YoY; reflects a shift toward mid and premium segments. |
| Total Income | ₹1,104 crores | +230% YoY; significant jump driven by higher handovers during the quarter. |
| EBITDA Margin | 23% | +1,300 bps YoY; improved operational efficiency and operating leverage. |
| Profit After Tax | ₹58 crores | Reversal from a loss of ₹94 crores in Q3 FY25. |
| Net Debt | ₹2,482 crores | Declined by ₹244 crores QoQ; net debt-to-equity ratio at 1.47x. |
| Cost of Debt | 11.08% | -24 bps vs Sep 2025; management continues to optimize borrowing costs. |
Geographic & Segment Commentary
- South (Bengaluru): Management is launching 4 marquee projects in Q4 FY26 (Hennur Road, Westend, Kanakapura, KIADB) with a combined GDV of ~₹4,700 crores. Despite earlier regulatory delays due to setback rule changes, the region remains the core volume driver with 12.76 million sq. ft. of potential area added in 9M FY26.
- West (Mumbai & Pune): Strategic focus on high-value redevelopment; secured projects in Chembur (GDV ₹2,100 crores) and Malabar Hills (GDV ₹2,700 crores). The Andheri Lokhandwala project is slated for a February launch, with Thane adding ₹800 crores of new inventory in Q4.
- Commercial Assets: The Zentech and Aerocity projects are nearing completion with OCs expected by March 2026. Zentech has leased 90,000 sq. ft. to IKEA at ₹97.5/sq. ft., and the segment is projected to generate ~₹200 crores in annual annuity income once fully leased.
Company-Specific & Strategic Commentary
- Portfolio Expansion: The company has scaled its top-line portfolio to over ₹50,000 crores, adding 12.76 million sq. ft. of development area in 9M FY26 with an estimated GDV of ₹13,900 crores.
- Speed to Market: Management has reduced the turnaround time from land acquisition to launch to 6-8 months by focusing on “clean” converted lands rather than long-gestation agricultural parcels.
- Premium Pricing Strategy: Puravankara targets a 5-10% price premium over micro-market averages by offering superior amenities and larger project scales compared to local competitors.
- Asset Monetization & Handovers: Handed over 1.23 million sq. ft. (1,116 homes) in Q3, bringing the 9M total to 2.58 million sq. ft. as the company prioritizes timely delivery to trigger revenue recognition.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Launch Pipeline | ~₹6,000 crores in Q4 FY26 | Driven by 4 projects in South and key launches in Andheri and Thane. |
| Sales Conversion | 20-25% of new launches | Management expects strong absorption of new inventory alongside ₹1,100cr+ sustenance sales. |
| Debt Repayment | ₹682 crores (Next 12 Months) | Scheduled repayments to be funded via internal accruals and increased collections. |
| Commercial Annuity | ~₹200 crores | Target rental income once Aerocity and Zentech are fully occupied post-March 2026. |
Risks & Constraints
| Risk | Context |
|---|---|
| Regulatory Delays | Past changes in setback rules in South India delayed launches by 6-8 months; management notes this is now largely mitigated. |
| Leverage Levels | Gross debt remains high at ₹4,500 crores due to aggressive business development; servicing is currently linked to project performance to protect cash flows. |
| Execution Risk | A heavy launch pipeline (one per month across regions) requires precise execution and timely approvals to maintain cash flow momentum. |
Q&A Highlights
Mumbai Launch Pipeline
- Question: What is the update on Mumbai launches for Q4 and beyond? (Deepak Purswani)
- Answer: Andheri Lokhandwala RERA is received, launching in Feb. Thane (2 towers) launching late Feb/Early March. Pali Hill launch expected by March/April and Breach Candy (Miami) in Q1 FY27 (Rajat Rastogi).
Growth Strategy & Debt
- Question: How will the company manage debt given the high interest costs? (Rajiv Rupani)
- Answer: Debt increased to fund a portfolio that grew from ₹15,000 crores to ₹50,000 crores. As projects move from “investment” to “production” phase, exponential cash flows from sales will naturally deleverage the balance sheet (Ashish Puravankara/Mallanna Sasalu).
Commercial Leasing
- Question: What is the status of Aerocity and Zentech? (Harsh Pathak)
- Answer: Zentech is partially leased to IKEA; Aerocity is in final discussions with marquee GCC tenants. Both expect OCs by end of March 2026 (Rajat Rastogi).
Key Takeaway
Puravankara Limited delivered a strong Q3 FY26, characterized by a 230% surge in total income to ₹1,104 crores and a return to profitability with a PAT of ₹58 crores. The company achieved its highest-ever quarterly collection of ₹1,140 crores, reflecting robust execution and a shift toward premium realizations (₹9,500/sq. ft.). Strategically, the firm has pivoted toward rapid growth, expanding its total portfolio GDV to over ₹50,000 crores through aggressive acquisitions in Mumbai redevelopment and Bengaluru joint ventures. Management has committed to a dense launch pipeline of ~₹6,000 crores for Q4 FY26, aiming to launch a new project almost every month across the South and West regions. While gross debt remains elevated due to these land investments, the anticipated scale-up in sales and upcoming annuity income of ₹200 crores from commercial assets are expected to stabilize the capital structure. Moving forward, the company’s ability to navigate regulatory approvals and maintain 20-25% absorption rates on new launches will be critical for sustaining this momentum.
Want more insights like this?
Subscribe to get deep dives delivered to your inbox.
More Earnings Summaries
Explore more Q3 FY26 earnings call analyses: