Puravankara shares rise 5% on fresh order win
Puravankara shares rose 5% to Rs 227 during trdae today against the previous close of Rs 216.50. Market cap of the firm stood at Rs 5191.21 crore. Later, the stock ended 1.11% higher at Rs 218.90.
- Aug 21, 2026,
- Updated Aug 21, 2026 4:54 PM IST
Shares of Puravankara Ltd jumped nearly 5% on Friday after the real estate firm's 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.
Puravankara shares rose 5% to Rs 227 during trdae today against the previous close of Rs 216.50. Market cap of the firm stood at Rs 5191.21 crore. Later, the stock ended 1.11% higher at Rs 218.90.
The value of the contract is Rs 175 crore, Puravankara said. The project 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.
Puravankara reported a sharp improvement in its financial performance for the June quarter, turning profitable on a consolidated basis despite a significant increase in inventory-related adjustments and land acquisition costs.
The real estate developer reported a consolidated net profit of Rs 25.23 crore in Q1 FY27, compared with a net loss of Rs 68.55 crore in the same quarter last year. The turnaround was supported by strong revenue growth and a significant improvement in operating profitability.
Revenue from operations rose 61.8% year-on-year to Rs 848.72 crore compared with Rs 524.40 crore in Q1 FY26. Operating performance also strengthened considerably. EBITDA increased to Rs 188.5 crore from Rs 66.7 crore a year earlier, while the EBITDA margin expanded to 22.22% from 12.73%, reflecting stronger operating leverage during the quarter.
However, the company's financial statements showed a substantial increase in inventory adjustments. The adjustment relating to flats, land stock and work-in-progress stood at Rs 796.15 crore during the quarter compared with Rs 283.01 crore in the year-ago period.
At the same time, land purchase costs surged to Rs 716.33 crore from just Rs 57.73 crore a year earlier, indicating significantly higher investment in land and development inventory during the quarter.
Puravankara clarifies contract-related concerns
The company also clarified that the contract in question does not involve any interest of its promoter, promoter group or group companies in the awarding entity. Puravankara further stated that the contract does not qualify as a related-party transaction.
Overall, the Q1 performance marked a significant turnaround for Puravankara, with strong revenue growth and improved margins helping the company move back into profit. However, the sharp increase in inventory adjustments and land acquisition costs will remain key factors to monitor as the company continues to expand its development pipeline.
Shares of Puravankara Ltd jumped nearly 5% on Friday after the real estate firm's 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.
Puravankara shares rose 5% to Rs 227 during trdae today against the previous close of Rs 216.50. Market cap of the firm stood at Rs 5191.21 crore. Later, the stock ended 1.11% higher at Rs 218.90.
The value of the contract is Rs 175 crore, Puravankara said. The project 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.
Puravankara reported a sharp improvement in its financial performance for the June quarter, turning profitable on a consolidated basis despite a significant increase in inventory-related adjustments and land acquisition costs.
The real estate developer reported a consolidated net profit of Rs 25.23 crore in Q1 FY27, compared with a net loss of Rs 68.55 crore in the same quarter last year. The turnaround was supported by strong revenue growth and a significant improvement in operating profitability.
Revenue from operations rose 61.8% year-on-year to Rs 848.72 crore compared with Rs 524.40 crore in Q1 FY26. Operating performance also strengthened considerably. EBITDA increased to Rs 188.5 crore from Rs 66.7 crore a year earlier, while the EBITDA margin expanded to 22.22% from 12.73%, reflecting stronger operating leverage during the quarter.
However, the company's financial statements showed a substantial increase in inventory adjustments. The adjustment relating to flats, land stock and work-in-progress stood at Rs 796.15 crore during the quarter compared with Rs 283.01 crore in the year-ago period.
At the same time, land purchase costs surged to Rs 716.33 crore from just Rs 57.73 crore a year earlier, indicating significantly higher investment in land and development inventory during the quarter.
Puravankara clarifies contract-related concerns
The company also clarified that the contract in question does not involve any interest of its promoter, promoter group or group companies in the awarding entity. Puravankara further stated that the contract does not qualify as a related-party transaction.
Overall, the Q1 performance marked a significant turnaround for Puravankara, with strong revenue growth and improved margins helping the company move back into profit. However, the sharp increase in inventory adjustments and land acquisition costs will remain key factors to monitor as the company continues to expand its development pipeline.