Puravankara Limited Plans To Expand Into Delhi-NCR Market in FY26
Puravankara Limited, a major player in the Indian real estate sector headquartered in Bengaluru, is poised for a significant strategic expansion into the Delhi-NCR market in the next financial year. According to Abhishek Kapoor, the Group CEO, the company is gearing up to penetrate this high-potential market with an asset-light model, signalling a strategic shift in its approachThe company has already established a presence in the NCR region by setting up an office and deploying a dedicated team to facilitate this expansion.
Puravankara’s planned foray into Delhi-NCR is part of a broader expansion strategy. For the ongoing financial year, the company has ambitious targets, including the launch of projects totaling 17.25 million square feet. This includes 4.56 million square feet in new phases of existing projects, alongside new developments. Specifically, Puravankara is set to execute seven projects with a combined area of 9.33 million square feet, Provident Housing will oversee three projects spanning 3.28 million square feet, and Purva Land will manage a plotted development project covering 0.09 million square feet. These projects are strategically located in key cities such as Bengaluru, Coimbatore, Kochi, Pune, Mumbai, and Chennai, with notable developments in Mumbai's Lokhandwala and Thane areas, planned for a phased launch.
The company's financial performance for the first quarter of FY25 reflects a significant turnaround. Puravankara Limited reported a net consolidated profit after tax of ₹14.78 crore for the April-June period of the ongoing financial year, marking a substantial improvement from a loss of ₹17.86 crore during the same quarter last year. This financial rebound is accompanied by a remarkable growth in net consolidated total income, which surged by 101% year-on-year to ₹675.55 crore for the quarter ended June 30, 2024. This growth is attributed to higher unit deliveries, with revenue recognition climbing to ₹676 crore due to the delivery of 929 units, representing a 108% increase over the previous year.
Despite facing flat sales bookings of ₹1,128 crore for the quarter due to delayed launches, the company achieved a 6% year-on-year increase in average price realization, reaching ₹8,746 per square foot. This growth in average price realization is indicative of the company's successful pricing strategy amidst market conditions. Additionally, quarterly collections saw a 39% increase year-on-year, reaching ₹965 crore, compared to ₹696 crore in the same period last year.
Looking ahead, Mr. Kapoor expressed optimism about the anticipated growth in average price realization per square foot, projecting an industry average increase of approximately 9% for the ongoing fiscal year. This anticipated growth is expected to vary based on project specifics, market dynamics, and micro-market conditions. Puravankara’s entry into the Delhi-NCR market, coupled with its strong financial performance and diverse project pipeline, underscores the company’s commitment to expanding its footprint and enhancing value for stakeholders.
Puravankara's strategic move into the NCR market with an asset-light model highlights its adaptive and forward-thinking approach in a competitive real estate landscape. This proactive approach, alongside a commitment to maintaining high standards of performance and value creation, sets a strong foundation for future success in the dynamic real estate market.
Image source- puravankara.com
