Ladies and gentlemen, good day and welcome to the Q1 FY 2027 earnings conference call for Puravankara Limited. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star and zero on a touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Savita Singh. Thank you, and over to you, ma'am.
Thank you, Avirath. Good morning, everyone. I, Savita Singh, on behalf of Dolat Capital, welcome you all to the Q1 FY 2027 earnings conference call of Puravankara Limited. I would like to thank the management for giving us this opportunity to host the call. For this call's management team, we have with us Mr. Ashish Puravankara, Managing Director, Mr. Mallanna Sasalu, CEO South, Mr. Rajat Rastogi , CEO West and Commercial Assets, and Mr. Neeraj Gautam, CFO. I now hand over the call to the management team for the opening remarks. Over to you, sir.
Good morning everyone. I am Neeraj Gautam, CFO of Puravankara Limited, and I welcome you to Puravankara Limited's earnings conference call to discuss our performance for the first quarter of financial year 2027. Our financial results, investor presentation, and press release have been filed with stock exchanges and are available on the company's website as well. Before I begin, I would like to remind everyone that some of the statements made during today's call may be forward-looking in nature. Please refer to the applicable disclaimers in our investor presentation. I regret a little bit of disconnect on the technical glitch. I repeat once again, if there is any idea we would like to take away from Q1, it is that Puravankara has entered FY 2027 with a stronger operating rhythm. Pre-sales and collections grew, realization improved, deliveries accelerated, and financial performance moved in the right direction.
At the same time, we invested selectively in future growth and enhanced our capital recycling agenda. The quarter therefore represents more than a set of higher numbers. It reflects better alignment between sales, execution, cash flow, and financial outcomes. I will speak a bit about the economy. India remains one of the few large economies where domestic demand and investment provide a meaningful buffer against global volatility. Consumption, public infrastructure, services, and manufacturing continues to support activity, even as geopolitical tensions, energy prices, and weather-related risks warrant resilience. In August, the Reserve Bank of India retained its neutral stance, maintained the repo rate at 5.25%, and projected FY 2027 GDP growth of 6.7% and CPI inflation of 5.0%.
For real estate, this is not a stretch similar, it is something equally valuable at this stage of the cycle, a more sustainable planning environment for home buyers, developers, and the lenders.
Coming to our operational performance for the quarter. Against the industry backdrop, Puravankara delivered pre-sales of INR 1,439 crores, an increase of 28% year-over-year. Sales volume grew 9% to 1.36 million square feet, while average realization rose 18% to INR 10,589 per square foot. This balance matters. It shows that growth was not dependent on a single lever. We sold more space and achieved higher value, supported by quality of our locations, product positioning, and mix. Collections grew even faster, rising 40% to INR 1,199 crores. We also handed over 745 homes, representing 0.95 million square feet. These are important markers of operating quality. Pre-sales created the order book, collections turned that order book into liquidity, and handovers converted construction progress into completed homes and recognized financial performance.
Our focus is to preserve this operating chain, maintain sales velocity without compromising price discipline, keep construction moving, collect on schedule, and deliver with consistency. When those elements reinforce one another, growth becomes more predictable, customer confidence deepens, and the economics of business improves. Coming to our financial performance. The stronger operating rhythm is visible in our financial results. The total income increased 63% year-over-year to INR 877 crores, primarily supported by higher handovers. EBITDA margin expanded to 25% from 15% in Q1 FY 2026. The profit after tax was positive INR 25 crores compared with a loss of INR 69 crores in the corresponding quarter last year. One quarter does not define an earnings trajectory, particularly in a business where revenue recognition depends on completion, handovers, and project mix. The significance of Q1 lies in the direction of travel and the operating ingredients behind it.
Higher sales, stronger collections and more deliveries, and better profitability. We will continue to assess performance across this complete set of indicators rather than through any one single reported number. Coming to our balances and capital allocation. As on 30th June 2026, our net debt stood at INR 2,836 crores, and net debt equity was 1.57 x. Gross debt declined by INR 74 crores during the quarter. Cash and bank balances were INR 1,106 crores, and our average cost of debt was 11.12%. These figures keep balanced decisions firmly at the center of our priorities. We are clear about the work ahead. Leases and the cost of borrowing remain active management priorities. The principal levers are operational, and we are addressing them directly.
Our approach has four parts: grow collection, fund construction to project move toward delivery, refinance where there is a clear economic benefit, and recycle capital from mature or non-core assets. We will also evaluate new opportunities through the lens of upfront cash commitment, project-level cash flows, and return on capital. The proposed Purva Zentech transition illustrates capital recycling in action during the quarter. We entered into a definitive agreement with ICICI Prudential AMC at an enterprise value of approximately INR 625 crores, subject to customary adjustments and closing conditions. Upon completion, the transition is expected to release capital and enhance our financial flexibility, allowing us to direct resources towards the areas where we see the strong, established current value. Coming to our growth pipeline and business development.
During the quarter, we added four opportunities across Bengaluru, spanning approximately 41.93 acres with development potential of 4.23 million square feet, with estimated GDV of INR 5,200 crores. The additions include Joint Development Agreements at Sarjapur and Doddagubbi, together with land acquisition at Sanna Ammanikere in the North Bengaluru Airport Corridor and Mandur in East Bengaluru. Each strengthens our presence in the micro market and meaningful infrastructure employment for the general demand rise. The GDV structure also gives us capital-efficient route to participate in that growth. Now, how we are looking ahead. We reiterate our FY 2027 principal guidance of INR 11,200 crores. Q1 establishes the base, but delivery will depend on the sequencing of launches, the timely receipt of approvals, and consistent execution across the remaining quarters. Our confidence is anchored in the identified launch pipeline, available inventory, and the depth of demand in our core markets.
We intend to pursue the guidance without compromising pricing discipline and our capital allocation standards. Our agenda for the rest of FY 2027 is therefore to stay forward, translate the pipeline into launches, translate pre-sale into collections, translate construction into handover, and translate operating progress into stronger cash flows and balance sheet efficiency. Puravankara has the brand, market presence, and development capability to build at scale. The task now is to make that growth increasingly valuable. Our ambition is not merely to sell more, it is to convert growth into cash earning and deliver good returns for the all stakeholders. Thank you for joining us today. With that, we are now open for all for questions. Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to unmute themselves to ask me a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Deepak Purswani from Svan Investments. Please go ahead.
Yeah. Hi, good morning, team. Congratulations for good financial performance. Just wanted to take on the couple of things. Firstly, in the cash flow statement, there is a line item, land payment to the extent of INR 574 crores. While I do understand there has been some business development in Q1, but just wanted to get the sense from the year perspective, how should we see this line item going ahead?
See, as far as this land payment is concerned, as I mentioned in my opening call, we have completed four acquisitions during the quarter, which is the Bengaluru, which is about 43 acres and 4.23 million square feet of development of the GDV of INR 5,200 crores. As you noticed that we have not increased any gross debt for that. The cash and cash equivalent which is lying on the 31st March 2026, we have utilized the money and this amount has been paid to completing these four acquisitions during the quarter. Going forward, as I mentioned and I think the rest of our colleagues will mention, that we will be strategically acquiring land banks.
Okay. But from the outflow perspective, how should we see this amount for the already committed land and any future acquisition?
No. All I am saying is that whatever the land commitment has done, whether we need money for the development of those lands, whatever land we have acquired, there is no amount remains unpaid towards acquisition of land. All the acquisition has been fully paid as far as land cost is concerned. However, the money which we require for development of those land and that will be done as a cost of construction and development loan and not as a land payment per se. However, if we choose to do any reacquisition which is beneficial for the company, then there will be some land payment.
Okay. Secondly, just wanted to take it out of the ICICI Prudential transaction. Since now this transition has been terminated now, how should we see cash flow coming in and should we expect the land debt coming down to the extent of INR 500 crores with this transition and going ahead?
That transition as we have given update to the stock exchanges, we have signed the definitive agreement with ICICI Prudential, and we are in the process of completing the customary conditions precedent of the transaction, and we are expecting that this should happen during this month. As soon as that we complete, the consideration mentioned will be received and the debt about INR 250 crore debt sitting on that particular asset, that will be repaid all of the proceeds of it and the balance cash flow, we will see deliberately where to deploy, whether we should reduce the debt, whether we invest in the whenever not to increase any debt and any business development issue and where we or we can use as a money as a working capital.
Which is the most optimum for the business needs. Accordingly, we will take the decision on that.
Okay. At least 250 or so, which was lying in SI, that will go away from our books.
That is part of that effect.
That's over. Okay. Coming to the launch pipeline, I think few of the projects, that is Westend, Hennur Road, and Cityspire, Windward, Kochi, these are being now pushed to Q2 FY 2027. Just wanted to get a sense. Was there any approval-related issue, or if you can just share your perspective on these projects?
Yeah. Westend, [Murali Nair]. Westend is we already got the RERA approval and we have launched the project, and we have received good number of EOIs on that project. Hennur Road, because of what is going on in Karnataka at this point of time, in terms of the change in power, change in the ministries, and change in officers has led to a little bit of delay in getting the approvals. Now, I think we have the clarity with all the ministries that have already been sworn in, ministers being sworn in, and I think this week onwards that we should be having a little bit more clarity. In Cityspire in Windward, it's just the last step, only the RERA approval is pending. So we are quite confident that it's going to be launched in this quarter as well.
So there is no anxiety in terms of the launches. It's just a little bit of delay. As far as the business is concerned, we will make sure that there are no impediments for getting the approvals or for the launch.
Okay. There are some other large project which are expected to be launched in the coming quarter, like Purva Grand Hills, Balagere, Malleswaram, and Kanakapura in Bangalore, and then Windward 3 in Kochi. If you can share your perspective, where we are in terms of the launch pipeline there. Is everything is on track and approval process is on track? If you can share your perspective on that one.
They are all on track. In fact, they are ahead of the curve at this point of time. The only challenge was, as I said, that there were some delays from the government side in having the meetings and concluding the approvals. Otherwise, all the projects that you mentioned, that is the Grand Hills and Balagere and Hennur Road and Windward 3. Windward 3, I already spoke about that it is already in the last step, that is the RERA approval is pending, and maybe this week we should be able to get that. All projects are in line, and there is nothing to worry about.
Okay. On the Mumbai portfolio front, similarly, if you can share your perspective in terms of the timeline of the project that is Miami, Deccan, Apna Ghar, and Chembur project. Are we on track in terms of launching or where we are in the approval process at the current juncture?
Rajat is there.
Hi, Rajat.
Yeah. Hi, good morning. Miami, we got the RERA. We have already issued RERA in the month of June, so I think Miami is already on for sale. Pali Hill, we have received 100% vacation now, so we will apply for RERA by end of September, and subsequently, we will be looking at a launch in between October and November. So that is also on track. Apna Ghar 3 is sent for approvals, and so is Estrella. So we will be looking at a launch in quarter four. So all the four projects that we have planned are absolutely on track, and we should have these launches between quarter three and quarter four.
Okay. Finally, just wanted to double check on the guidance front. On the pre-sale guidance of INR 11,200 crore and debt reduction of INR 700 crore. How we are seeing this internally, and how are we seeing the demand environment in each of the major micro market that is Bangalore and Mumbai at current interest? If you can share your perspective, please.
Yeah. We gave the guidance at INR 11,200 crore, and we have just spent one quarter so far and maybe another month after that. So we continue to hold the same numbers because, as I said, the pro launches that did not happen in first quarter have moved to the second quarter, maybe one or two projects. Otherwise, everything is on track, and we should be able to reach the numbers that the guidance report has given.
What about the debt reduction of INR 700 crore which we were targeting at the beginning of the year?
Our guidance remains hold. If you look at the Q1, though we have added four new projects, despite that, we have reduced the gross debt by INR 74 crore and we hold our guidance. We have just finished the Q1, and we hold our guidance as a debt reduction as well.
On this issue, it's a little bit dynamic. Basically, what happens is that there will always be opportunities for us to put money on. It's just versus opportunities that we are pursuing. The cash flows are quite strong, but the opportunities to pursue versus reduction of the debt. From time to time, I think that we will evaluate that. But at this point of time, as Neeraj said, we continue to hold the line that we will reduce the debt by INR 700 crores.
Okay. Finally, if you can share your perspective on the demand environment in major micro market that is Bangalore and Mumbai region.
I'll just talk about the south side. So far, we've not seen any kind of slowdown or anything like that. Business is steady. As I always keep saying that this will not be your 2024, 2025 kind of growth that what we are seeing. But for the listed players, for the products which are well-priced, and the products which are well-designed and which reaches customers, and they are all doing very well. So we have not seen any slowdown, whether in sustenance or the projects that we have launched so far.
I agree with Mallanna. I think so is the situation in Mumbai and Pune. I think the top branded players continue to gain larger market share. I think that's evident from the numbers of our quarter. I think all the price points are doing well at this point of time. In fact, our project, Purva Miami in Breach Candy, has received a lot of encouraging response from the ultra-luxury segment as well. From an overall holistic point of view, I think the demand remains sustained. We see that, in fact, the demand is going to go up further in the festival period, the way it is going right now. I think the branded players will continue to gain a larger market share with regards to their products and pricing.
Okay. Thank you, and wish you all the best, team.
Thank you.
Thank you. Participants, in order to ask a question, you have to press star and one at this time. The next question is from the line of Akshay, an individual investor. Please go ahead. Akshay, your line has been unmuted. Please go ahead with your question.
Hello? Hello. Am I audible?
Go ahead.
Yeah. Sir, my question was regarding the margins. What margins are we targeting for the next two years? Also, if you could provide the split between the redevelopment projects, the new developments that we are doing, and the joint ventures that we are in.
As we reported, EBITDA margin this quarter, 25%, and we continue to hold the margin guidance between 25%-30% at the overall portfolio level. Depending upon the product mix between the product project or the JDA project and on outright land project, the development project margins are slightly different depending upon the nature of the product. However, upon overall basis, on a weighted average basis, we continue to hold the EBITDA margin of 30%, in the range of 30%. So a 25%-30% range.
Okay. Also, I wanted to know the pre-sales guidance, if you could provide that.
We have, as I think Rajat has mentioned in the last quarter as well, in this quarter that Mallanna has reiterated, we continue to hold guidance of INR 11,200 crores of the sales for the financial year FY 2027.
Okay. Okay, sir. That says enough. Thank you.
Thank you.
Thank you. The next question is from the line of Varun Kothari from White Knight Advisors. Please go ahead.
Hi, sir. Thank you for the opportunity. I was just curious to know, how are we planning to reduce the debt in next three years?
Yeah. This is a question that comes quite regularly. It is a question of, as I was saying in a previous question, that it is a question of pursuing the opportunities versus reducing the debt. If you really look at what has happened in the last one and a half or two years, we have reached a portfolio size of around INR 68,500 crore. That is because of the investments that we are making. The free cash flow, either we can invest into the available opportunities, the best opportunities available, or we can reduce the debt. We are quite comfortable with the debt position we have. In fact, we have given a detailed report on how the debt has been put together. It has been deployed against the portfolio size and against the business.
We do not have any such guidance towards saying that we are going to become zero debt in the next two years or three years. We think that the debt is important part of the business. As we grow, this money will be required.
Fair enough. That answers my question. My next question is, will we be able to achieve our pre-sales guidelines of more than INR 11,000 crore this year?
Yes. I think we have given that guidance, and so far we are holding that line because we have just spent one quarter and the quarter is that whatever as per our AOP plans that internally we have had, and we have met that. We continue to hold that line.
Yes. Okay. Thank you. That will be all.
Thank you.
Thank you. Before we take the next question, we would like to remind participants that you must press star and one to ask a question. The next question is from the line of Rahul Shah from Eternal Capital. Please go ahead.
Yes. Hi. Thank you so much for the opportunity, sir, and congratulations on a good set of numbers and the consistent performance through quarter on quarter. Just wanted to get an idea. What is the contribution from the Estrella projects for this quarter? If I could just know the number on that front, and then I will take my second question.
Estrella.
Yeah.
Okay, Neeraj, you want to go ahead?
Yeah, Mallanna go ahead. I do not remember the exact number, so I will take it.
Okay. Estrella in the quarter contributed close to around INR 200 crore overall as a gross sales number. I think at portfolio level, we have done almost around INR 800 crore sales since launch.
Got it, sir. What was the highest revenue contributor, gross sales contributor from a project point of view? If you could just note down the top three, that would be really helpful.
That would be the top three projects.
If you look at South, Northern Lights and Provident Equinox, and if I go for the rest, it is Estrella.
In fact, Estrella, we got the number. It is INR 272 crore. Sorry.
No, that is right.
Oh, that is right.
Entire gross commercial number.
INR 200 crores.
INR 200 crores. That is right.
Just to clarify, the INR 250 is INR 272, right?
No, what I am saying is, if you look at our investor presentation, slide number nine, that during this quarter, contribution from the West and commercial business is INR 393 crores. That includes INR 200 crores sales from Estrella. That number maybe is not available with me hence Rajat has confirmed the number INR 200 crores from Estrella, but that is part of overall INR 393 crores, which came from our West and commercial business. Our South business contributed INR 1,046 crores, and thereby total sales for the quarter we achieved INR 1,439 crores.
Okay, noted. Perfect. If I bring this please one more in. Just wanted to understand, are we in line with the project launch timeline for this year, and are we expecting any delays because of the rising costs or anything? How are you looking at it?
I think project launch is not a function of rising cost. Even one of the other participant also asked this question, whether we will be able to meet our guidance or not of INR 11,200 crores. All we are saying is we are not giving guidance just as a number. We are giving guidance as a project-wise. If you go to our slide number 16 of our investor presentation, we have given project-wise guidance. How many projects we are going to launch in South, how many projects we are going to launch in West, and each project is being tracked meticulously by both of our business leaders, both our CEOs. Some of the projects we have already received approval like earlier Mallanna has mentioned for Cityspire in Kochi and Westend in Bangalore.
We have already received the, Westend has received RERA also, and Cityspire received all the approvals, so we are just awaiting RERA. Similarly, for West, Rajat has confirmed that Miami have already received the RERA, and we are waiting to launch this project. Hence, we would like to reiterate that our guidance is well thought through, project by project breakup is meticulously being tracked, and hence we are confident we are going to achieve these numbers.
In addition to that, the launches that with the guidance that we have given is around INR 27,300 crores. What may happen in the real world is that some projects may be coming in Q2 may go to Q3 may go to Q4, and some may even split even otherwise, that we have got another INR 10,000 crores of sustenance projects that are going on across the country. With all of that put together, and it is we have passed through this number, and the guidance has been given on that basis.
Noted, sir. Thank you so much. That actually clarifies a lot. All the best to you.
Thank you.
Thank you. Ladies and gentlemen, in order to ask a question, you may press star and one at this time. The next question is from the line of Akshay, an individual investor. Please go ahead.
Yeah, hi, sir. Thanks for the opportunity. I just wanted to know, are we planning any new commercial projects in coming years apart from the two that we have already?
Yeah, I think we are scheduled to start a new commercial project for a recently acquired land at Hebbal in Bangalore. Hopefully, by end of Q4, we will start construction at the site. That's going to be approximately 1.3 million square feet.
Okay. Second thing I wanted to know, are we looking at any new opportunities in the Mumbai region, like going more deep into this area?
Yeah, obviously we are expanding quite aggressively in the Mumbai region. If you look at our Mumbai landscape now, I think we have almost INR 25,000 crores of GDV value spread across all price points from South Bombay to Thane to even Dombivli for that matter. We continue to grow across our redevelopment portfolio and also looking at opportunities in JDAs and even in profit development for that matter. So we're very bullish about the Mumbai market, not only from the fact that we're getting great response, but also from the fact that from the redevelopment story, I think today we continue to get the best assets to evaluate. I think basis that when they meet our strategy guidelines, we enter those assets. So you will see lot of traction coming in the redevelopment space in Mumbai in the next coming quarters.
Oh, okay. Good. Thank you so much. That was helpful.
Thank you. The next question is from the line of Deepak Purswani from Svan Investments. Please go out.
Yeah. Thank you for the follow-up opportunity. Just wanted to check it out on Purva Aerocity project. If you can just please update on the commercial development of this project of 2.2 million square feet. I think we are in the process of getting the OC approval for this project. And what is the lease status at this point of time, and what is the expected lease for this project?
I am glad to share that Aerocity will receive the OC in the month of May. The project has already received. We have got OC for 1.3 million square feet. The balance 9 lakh square feet, we have not started construction, which we will start in a phased manner over a period of time. I am sure we are getting lot of good response from GCCs and other large players. We have been filling RFPs. We have ridden RFPs to close to approximately around 2.5 million per square feet now. We have not been able to lease per se, but I think we have a very good traction right now for the coming quarters to lease a substantial area in Aerocity.
What is the expected lease rate we are anticipating?
We should be getting somewhere around, I know I am between INR 60 and INR 65.
Okay. What about the phase two? I mean, when should we expect remaining phase of 0.9 million square feet to get handover?
Okay. As a part of the strategy, we would like to start phase two once we have leased out at least 70%-80% of phase one, which I think can happen in the next two quarters. We already have approved plans for the next phase. It is just a matter of first important for us to lease 70%, 80% of this asset and then go for phase two.
Okay. Secondly, any thoughts on the monetization of this asset, or we will look to hold this asset, or how should we see from a future perspective?
See, if you see the location of this asset is right at the future growth center of Bangalore. We look at this asset as an overall larger landscape for us in North Bangalore. Right now, I think for us the focus is to lease this asset, get good clients, top-notch MNCs and GCCs over here, and probably at the right time, probably we will look at monetizing if that is required.
Okay. Thank you, Ashish.
Thank you. The next question is from the line of Rohit Joshi, an individual investor. Please go ahead.
Hello.
Go ahead, Rohit.
Thank you for giving me the possibility. Sir, actually in the last call also, you hinted a bit on that you are entering into this interest in senior living space. Just wanted to get an update on that.
Yeah. I don't think, Rohit, we have spoken about senior living as of now. What I remember what Rajat mentioned that he's continue to evaluate that for the new commercial business lines, like data center, warehousing, et cetera. If a good opportunity comes, we are into that business. We are open to explore it. But I don't think we have said that we are starting or we are doing something about senior living at this point of time.
Okay. Got it, sir. And sir, apart from senior living also, what other geographies are you looking to expand by quarter state?
Other geography, probably Rajat can answer. We are exploring besides the south and the west. We are also exploring good opportunity in the NCR. Probably Rajat can elaborate that.
Okay. Over to sir.
Yeah. I think we are evaluating the growth possibilities in NCR market. More focused on Noida as a NCR market right now. We see great potential in the market for branded players like Puravankara. So we are hopeful that in next coming quarter, we should be able to at least get some traction in terms of the land development in Noida market.
Okay, sir. Thank you so much for that.
Thank you. Participants who wish to ask questions may press star and one at this time. Ladies and gentlemen, to ask a question, you may press star and one now. Participants who wish to ask questions may press star and one at this time. Ladies and gentlemen, in order to ask a question, you may press star and one now. As there are no further questions from the participants, I would now like to hand the conference over to the management for closing comments.
Thank you, everybody, for joining today's call. I hope me and my team have been able to answer all your questions. Besides that, if you have any further questions, please write to us. Me and my colleagues will be available to reply and answer all your questions. Thank you so much.
Thank you. On behalf of Dolat Capital Market Private Limited, that concludes this conference. Thank you for joining us and you may now disconnect the lines.
Thank you.