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Puravankara’s pre-sales growth of 6% YoY to Rs11.2bn in Q1FY26 was better than expected. Amid lack of significant launches during the quarter, the company’s ability to manage growth from sustenance sales is comforting. Recent NGT relief in Maharashtra provides confidence on launches in the West which, along with new projects in Bengaluru and Kochi, would drive strong 36% pre-sales CAGR during FY25-27E. Progress on new business development (Rs64bn in YTDFY26) is encouraging and asset-light in nature, which keeps leverage under check vis-à-vis improving the launch pipeline. More deals are expected ahead which would lead to growth continuity over the medium term. We maintain BUY on the stock with TP of Rs400.

Sluggish pre-sales, albeit better than expected; share of West on the rise

Puravankara’s Q1FY26 pre-sales at Rs11.2bn (up 6% YoY) are better than expected. While YoY growth looks sluggish, it has come largely from sustenance sales, which is comforting. The sales value increased 58% YoY primarily due to new launch of ‘Purva Panorama’ in Thane, while velocity of sustenance sales in the South was maintained, with 13% increase in realization. Share of the West has increased to 24% in Q1FY26 (vs 15% in FY25). Collections declined 11% YoY to Rs8.6bn in Q1FY26.

BD progressing well with focus on West; net debt declines sequentially

During Q1FY26, Puravankara announced new project addition in North Bengaluru (via a JV), offering potential GDV of over Rs33bn. Further, in Jul-25, it secured two new projects (asset-light) with combined GDV potential of Rs31bn in MMR and East Bengaluru. We expect more deal closures in the West in coming quarters which would provide even better geographic diversification as well as medium-term growth visibility. On the other hand, adjusted net debt has declined by Rs1.2bn QoQ. The company’s recent BD via the asset-light route would keep the company on the growth track vis-à-vis keeping leverage under check.

Launch pipeline remains healthy

On the back of the strong launch pipeline for FY26, including the much-awaited launches in Mumbai (planned during H2FY26), we maintain pre-sales CAGR of 36% during FY25- 27E, to Rs93bn. Further, on the back of progression in construction activity as well as inflows from new pre-sales during the year, we expect collections at Rs46bn/Rs63bn in FY26E/27E (26% CAGR in FY25-27E; high base).

We maintain BUY

We value the residential business at 6x embedded EV/EBITDA (EV of Rs106bn) and commercial business on 8.5% cap-rate (EV of Rs22bn). At net debt of Rs35bn (on Mar26E), we keep our SoTP-based target price unchanged at Rs400 and maintain BUY on the stock. At CMP, the stock is trading at 30% discount to the residential business NAV

Q1FY26 operational performance

Delivers 6% YoY pre-sales growth; largely sustenance sales

• Puravankara clocked Rs11.2bn pre-sales (up 6% YoY) during Q1FY26 which is better than expected (Emkay: Rs10bn).
• While the YoY growth looks sluggish, it was largely from sustenance sales – which is positive.
• Collections declined 11% YoY to Rs8.6bn in Q1FY26.
• The company remains on track to complete 2.2msf of commercial projects in FY26. New business development During Q1FY26, Puravankara announced new project addition in North Bengaluru (JV), with potential GDV of >Rs33bn. Post Q1FY26, it secured two new projects (asset-light), offering combined GDV potential of Rs31bn:
• MMR: Selected as the preferred developer for redeveloping 8 residential societies in Chembur which have combined GDV potential of ~Rs21bn.
• Bengaluru: Entered a JD of a 5.5-acre land parcel in East Bengaluru which offers GDV of ~Rs10bn. Our view on operational performance
• Although the pre-sales growth is sluggish, it is due to no meaningful launches during the quarter. Hence, ability to manage 6% YoY growth from sustenance sales is positive.
• The company has lined up a strong set of launches (8.5msf to be open for sale in FY26), with higher focus on the West which would drive strong pre-sales growth in coming quarters (we expect 36% pre-sales CAGR in FY25-27E).
• We find the consistency in Puravankara’s focus on diversification meaningful to the West which is reflected in the strong business development in the region. Also, being able to secure redevelopment projects in MMR at scale reflects the company’s growing brand recall in the micro-market.
• Project additions have been asset-light in nature which keeps leverage under check visà-vis improving the launch pipeline. More deals are expected in coming quarters which would lead to continuity of growth over the medium term

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