Synopsis: Puravankara shares surged 9% after the company reported a return to profitability in Q3 FY26, posting a Rs 58 crore profit after five consecutive weak quarters. Strong execution, improved handovers, robust revenue growth, and healthy collections signalled a turnaround, boosting investor confidence in its recovery trajectory.
The shares of this company, which is in the business of development and sale of real estate. Projects in metro cities like Bengaluru, Hyderabad, Chennai, Kolkata, Mumbai, Pune and Goa had their shares in momentum after the company reported a robust Q3 by becoming profitable after 5 quarters.
With the market cap of Rs 6,544 crore, the shares of Puravankara Ltd have jumped about 9% and reached a high at Rs 282.70, compared to their previous day’s closing price of Rs 255.55. The shares have given a return of more than 230% over the last 5 years.
The revenue from operations for the company stood at Rs 1,069 crore when compared to Rs 318 crore in Q3 FY25, growing by about 236 per cent on a YoY basis and on a QoQ basis growing by 66 per cent from Rs 644 crore in Q2 FY26
The PAT jumped on a YoY basis when you compare the Q3 FY26 profit at Rs 58 crore to the Rs 93 crore loss in Q3 FY25 and on a QoQ basis has grown from the Rs 43 crore loss in Q2 FY26.
Operational performance
Puravankara’s Q3 FY26 result announced is an indicator of turnaround, as the last two quarters were not very good. The company announced a PAT of 58 crores, compared with a loss of 94 crores last year, due to its sharp YoY growth in revenues, at 231% YoY, at a total revenue of Rs 1,104 crore. The turnaround was mainly due to improved execution and handover, compared with earlier delays in regulatory compliance due to eKhata and changes in bylaws.
Operationally, there was a significant improvement in execution, with 1,116 homes delivered in Q3 and 2,446 homes delivered over 9M FY26, thereby supporting revenue recognition and stability in cash flows. Customer collections grew by 22% YoY in Q3, and operating cash flows resulted in a surplus of Rs 755 crore over 9M FY26, thereby indicating strength. Pre-sales growth was steady, indicating sustained customer demand in key urban markets.
Going ahead, the company has been able to add to its development pipeline by including an additional 12.7 million sq. ft. with an estimated GDV of Rs 13,900 crore. Though the apparent turnaround seems structurally supported by better execution and cash flows, sustaining this would require a similar pace in execution, regulatory environments, and market absorption in core markets like Mumbai and Bengaluru.
Management commentary:
Commenting on the performance, Ashish Puravankara, Managing Director, Puravankara Limited, said: “The return to profitability in Q3 reflects the underlying strength of our business and the momentum we are building across execution, sales and cash flows. Improved realisations and timely project deliveries have translated into strong revenue growth and a meaningful recovery in profitability.
The strong performance in Q3 has materially offset the impact of the earlier loss-making quarters, marking a clear inflection point in our earnings trajectory. With healthy balance collections and surplus visibility from ongoing projects, we are well-positioned to support disciplined growth while continuing to strengthen our balance sheet.
The expansion of our development pipeline reinforces our long-term growth visibility in high-demand urban micro-markets. Going forward, our focus remains on calibrated launches, execution-led delivery and consistent cash flow generation, while maintaining a disciplined approach to capital allocation and portfolio expansion.”
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