Real estate developer Puravankara Ltd. delivered exceptional results in the second quarter of FY27, with pre-sales jumping 62% year-on-year to ₹2,136 crore compared to ₹1,322 crore in the corresponding period last year. According to the regulatory filing, the company's sales area expanded by 22% to 1.83 million square feet, while average price realisation demonstrated significant improvement, rising 32% to ₹11,651 per square foot compared with ₹8,814 per square foot a year earlier. The robust performance was driven by better demand for residential properties across the company's portfolio. On a sequential basis, pre-sales increased from ₹1,439 crore in Q1 FY27, while collections rose from ₹1,199 crore. This takes the company's H1 FY27 pre-sales to ₹3,575 crore and collections to ₹2,500 crore.
The company significantly expanded its development portfolio during Q2FY27, adding projects with an estimated gross development value (GDV) of ₹8,900 crore. As reported by ETRealty, additions during the first half of FY27 reached ₹14,100 crore, with the company adding 10.74 million square feet of potential developable area across Bengaluru, Mumbai and Greater Noida. Key additions included a 7.83-acre land parcel in southeast Bengaluru with potential GDV of over ₹1,100 crore, redevelopment rights for three residential societies in Goregaon West, Mumbai with estimated GDV of ₹2,600 crore, and a 13.44-acre land parcel in Greater Noida with GDV potential of ₹5,200 crore. The Q2 additions also included a 7.83-acre joint development project in South-East Bengaluru with 0.89 million sq ft of development potential and GDV of over ₹1,100 crore, and redevelopment rights for three residential societies spread across 4.68 acres in Goregaon West, offering around 1.05 million sq ft of development potential and estimated GDV of ₹2,600 crore.
During the quarter, Puravankara launched three projects - Westend and Equinox 6 in Bengaluru, and Miami in Mumbai - with a combined developable area of 1 million square feet. According to the regulatory filing, including a phase launch at Emerald Bay in Pune during the June quarter, total developable area launched during the first half of FY27 stood at 1.13 million square feet. The company completed 0.41 million square feet at One Park Avenue in Mumbai during the September quarter, taking total project completions in H1FY27 to 2.13 million square feet. Handovers during the quarter included 977 homes spanning 0.97 million square feet, with cumulative handovers for the first half of FY27 at 1,722 homes across 1.92 million square feet. The company also completed the sale of its commercial asset, Purva Zentech, for an enterprise value of ₹625.94 crore.
Customer collections increased significantly by 24% year-on-year to ₹1,301 crore from ₹1,047 crore, demonstrating strong customer confidence and payment discipline. The company's focus on scaling business while maintaining pricing discipline continues to yield positive results. Ashish Puravankara, Managing Director of Puravankara, emphasized the company's strategic focus, stating "Our focus is on scaling the business while maintaining discipline in pricing, capital deployment and execution." A divergence between sales growth and collection growth highlights a shift in revenue quality, with while pre-sales surged 62%, collections grew only 24%. However, the 32% jump in average price realisation to ₹11,651 per sq ft suggests that the company is successfully selling higher-value inventory or launching premium projects, which typically have longer collection cycles compared to affordable housing. Following the business update announcement, shares gained as much as 2% to make an intraday high of ₹215.1, though they later gave up gains and were trading 0.4% lower at ₹209. The stock has declined 13% so far this year.
