Shares of Puravankara jumped nearly 5% on Friday, August 21, after its wholly-owned subsidiary, Starworth Infrastructure & Construction Ltd. (SICL), received a Letter of Intent (LOI) from Red Connect Private Ltd. for civil and structural works for the construction of a Ritz-Carlton project at MRC Nagar in Chennai. According to reports from CNBC TV18, the contract is valued at ₹175 crore, excluding GST, and is expected to be executed over a period of 32 months. The order has been awarded by Red Connect, a domestic entity, and covers the execution of civil and structural works for the Ritz-Carlton project in MRC Nagar, Chennai. The ₹175 crore order represents approximately 16.7% of Puravankara's average quarterly revenue of ₹1046.22 crore, as reported by The Economic Times. Following the announcement, shares were trading at ₹217.10, up 1.28% from the previous close as of 1:06 pm on August 25.
The contract win comes alongside Puravankara's impressive financial turnaround in the June quarter. As reported by CNBC TV18, the company reported a consolidated net profit of ₹25.23 crore for the June quarter, compared with a net loss of ₹68.55 crore in the year-ago period. Revenue from operations rose 61.8% year-on-year to ₹848.72 crore from ₹524.40 crore. The company's Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased to ₹188.5 crore from ₹66.7 crore, while the EBITDA margin expanded to 22.22% from 12.73% a year earlier. According to The Economic Times, the company demonstrated strong margin expansion in Q1FY27, with Operating Profit Margin (OPM) rising to 22.22% compared to 20.05% in Q4FY26, despite revenue declining sequentially from ₹1541 crore to ₹877.10 crore.
In a significant development, Puravankara has entered into a joint development agreement (JDA) for a 7.83-acre land parcel in South-East Bengaluru, with an estimated gross development value (GDV) of ₹1,100 crore. As reported by The Economic Times, the project has a saleable area of approximately 0.89 million square feet and will be developed as a residential community. According to the company's regulatory filing, the residential project will have an estimated saleable area of approximately 0.89 million square feet. The project is strategically located in South-East Bengaluru, close to the Electronic City employment corridor, with access to Hosa Road and Hosur Road. The micro-market is also connected through Namma Metro's operational Yellow Line, and has emerged as an established residential catchment for professionals working in Electronic City and nearby employment hubs. This marks the company's fifth land transaction in Bengaluru for FY27, bringing their cumulative FY27 business development to around 49.76 acres, approximately ₹6,300 crore in potential GDV, and about 5.12 million square feet of saleable area.
With this latest acquisition, Puravankara continues to strengthen its position in the real estate market with a robust portfolio of land holdings and ongoing projects nationwide. As reported by The Economic Times, the company has completed 97 projects totalling 59 million sq ft across nine cities including Bengaluru, Chennai, Hyderabad, Coimbatore, Mangaluru, Kochi, Mumbai, Pune, and Goa. The company's total land bank stands at 40 million sq ft, with ongoing projects adding up to 35.14 million sq ft. This comprehensive portfolio provides Puravankara with significant development potential and market presence across major Indian cities. The company's strategic focus on employment-led corridors in South-East Bengaluru, combined with its established presence in other key markets, positions it well for continued growth in the real estate sector.
According to CNBC TV18, shares of Puravankara surged 4.9% to an intraday high of ₹227.34 following the order win announcement and were trading at ₹220.20, up 1.76% as of 1.37 pm. Following the latest land deal announcement, shares were trading at ₹217.10, up 1.28% from the previous close as of 1:06 pm on August 25. The stock has declined nearly 9% so far this year and more than 23% over the last 12 months. Puravankara emphasized that the contract does not involve any interest of its promoter, promoter group or group companies in the awarding entity and does not fall under related-party transactions. Historical stock returns show mixed performance with +128.14% over 5 years, but recent performance has been challenging with -23.63% over the last 12 months. The company also reported pre-sales of ₹1,439 crore in Q1FY27, up 28% year-on-year, with 20.48 million square feet of planned launches across southern and western Indian markets, having an approximate GDV of ₹27,300 crore.
