Puravankara swings to ₹25 crore Q1 profit as revenue jumps 62%; margins improve

Puravankara reported a consolidated net profit of ₹25.23 crore for the quarter ended June 30, 2026, compared with a net loss of ₹68.55 crore in the year-ago period, according to the company's exchange filing.

Revenue from operations rose 61.8% year-on-year to ₹848.72 crore from ₹524.40 crore a year earlier. EBITDA increased to ₹188.5 crore from ₹66.7 crore, while the EBITDA margin expanded to 22.22% from 12.73%.

The turnaround was also supported by a significantly higher inventory adjustment during the quarter. The company's financial statement showed a ₹796.15 crore adjustment for inventories of flats, land stock and work-in-progress, compared with ₹283.01 crore a year earlier. This more than offset the impact of higher land purchase costs, which rose to ₹716.33 crore from ₹57.73 crore.

AGM on September 25

The company said its 40th Annual General Meeting for FY26 is scheduled to be held on September 25, 2026, through video conferencing or other audio-visual means, in accordance with applicable Ministry of Corporate Affairs and Securities and Exchange Board of India circulars.

The company said any change in the AGM date will be communicated accordingly.

Income tax proceedings

Puravankara said an Income Tax Department search under Section 132 of the Income Tax Act was conducted in October 2023 at the company, certain group entities and its promoters.

Following the proceedings, the company and certain group entities received assessment orders disallowing certain expenses on the grounds that they were not incurred for business purposes, along with other adjustments.

The potential tax impact from the assessment orders is ₹45.08 crore for assessment years 2016-17 to 2024-25, unchanged from the amount disclosed as of March 31, 2026.

The group said it believes the expenses were incurred in the ordinary course of business for its ongoing real estate development projects. It has filed appeals against the assessment orders and said it is reasonably confident of providing supporting evidence to the authorities.

The company also said it received a notice under the Prohibition of Benami Property Transactions Act, 1988, seeking a response on why benami proceedings should not be initiated and why Puravankara should not be considered the beneficial owner of 43.5 acres of land parcels.

The land has a carrying value of ₹13.20 crore as of June 30, 2026, unchanged from March 31, 2026.

Puravankara said it has filed responses to the notice. Pending resolution of the legal proceedings, no provision has been made for the consequential impact of the assessment orders or notices in the consolidated financial results, based on management's legal assessment of the likely outcome.

Shares of Puravankara ended marginally higher by 0.15% at ₹218.21 apiece on the NSE on Friday. The stock has declined 7.61% over the past month and remains down 9.83% year to date.

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