Puravankara Ltd Reports Wider Net Loss in Q2 FY26 Despite Revenue Growth

Puravankara Limited announced its financial results for the second quarter of Fiscal Year 2026, reporting a net loss of ₹41.79 crore. This loss is wider than the ₹16.78 crore loss recorded in the corresponding quarter of the previous fiscal year. Despite the increased net loss, the company demonstrated significant top-line growth, with revenue rising by 29.9% year-on-year to ₹644.4 crore from ₹496 crore. Sales for the quarter saw a 4% increase to ₹1,322 crore, achieved on a sales volume of 1.5 million square feet. Customer collections also showed a healthy uptick, growing by 8% to ₹1,047 crore.

However, the company's operational profitability faced pressure, as Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) declined by 7.3% to ₹104.47 crore, and the EBITDA margin fell from 22.7% to 16.2% compared to the prior year's quarter. For the first half of FY26, Puravankara reported a consolidated net loss of ₹111 crore on total revenue of ₹1,201 crore.

Looking ahead, Puravankara has bolstered its future growth prospects by adding over 6.36 million square feet of developable area to its pipeline, with an estimated Gross Development Value (GDV) of ₹9,100 crore. The company's financial position appears stable, with projected cash flows from completed and ongoing projects significantly exceeding its net debt of ₹2,894 crore, indicating a debt cover of over five times.

Impact This financial update presents a mixed picture for investors. The widening net loss is a negative indicator, which might impact investor sentiment and the stock price in the short term. However, the robust revenue growth, solid sales performance, and substantial increase in customer collections suggest strong underlying demand and operational execution. Furthermore, the expansion of the development pipeline signals a positive outlook for future revenue streams. The company's prudent debt management also provides a layer of financial stability. Rating: 6/10

Heading: Difficult Terms EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation): A measure of a company's operating performance before accounting for interest expenses, taxes, and non-cash charges like depreciation and amortization. It is used to assess the profitability of a company's core business operations. EBITDA Margin: Calculated by dividing EBITDA by total revenue, this metric indicates the company's operational profitability as a percentage of its sales. A lower margin suggests less profitability relative to revenue. Sales Volume: The total quantity or area of goods sold during a specific period. In real estate, this refers to the total square footage of properties sold. Average Sales Realisation: The average price per unit of sale achieved. For real estate, it is typically calculated by dividing the total sales value by the sales volume (e.g., price per square foot). Customer Collections: The amount of cash collected from customers during the reporting period, usually representing payments received for property sales, including advances and installments. Net Debt: The total amount of debt a company owes minus its cash and cash equivalents. It represents the company's financial leverage. Net Debt-to-Equity Ratio: This ratio compares a company's total debt to its total shareholders' equity. It is a key indicator of financial leverage, showing how much debt a company is using to finance its assets relative to its equity value. GDV (Gross Development Value): The total projected revenue a property developer expects to generate from selling all units in a development project.