Puravankara Jumps over 2% After Starworth Secures ₹272 Crore Residential EPC Contract
Puravankara Limited's share price climbed nearly 8% on 19 June trading session to ₹301.25, following the announcement that its wholly-owned subsidiary, Starworth Infrastructure & Construction, had secured an engineering, procurement and construction (EPC) contract for the residential project “TRU AQUAPOLIS” in Varthur, Bengaluru.
The good news rekindled investor sentiment and represented a dramatic turnaround from an earlier seven-day run of losses. As of 1.20 pm Puravankara is trading at ₹285.75 gaining 2.07%.
EPC Deal Details and Its Role in Puravankara’s Growth Strategy
The Letter of Intent refers to civil and finishing works contracted by Tru Dwellings Private Limited for the new TRU AQUAPOLIS development, valued at approximately ₹272 crore. Significantly, the deal is domestic in nature and involves no related-party transactions, cementing the credentials of Starworth in tech-driven EPC services. For Puravankara, this EPC contract reinforces strategic diversification away from its conventional real estate development business model, underlining its focus on vertical integration through subsidiary Starworth.
Puravankara Financial Performance and Growth Outlook
Puravankara has been projected to witness strong pre-sales momentum in FY26 and FY27, driven by a robust pipeline of new project launches. While the company's FY25 performance faced some pressure due to approval-related delays, expectations remain high for a recovery in sales and launch activity over the coming quarters.
In FY25, Puravankara reported robust operational performance, with pre-sales reaching ₹5,006 crore and a total sales volume of 5.67 million square feet. The company achieved a sales realisation of ₹8,830 per square foot, marking a 10% year-on-year increase. Collections during the period stood at ₹3,937 crore, reflecting a 9% rise compared to the previous fiscal year. These operational metrics highlight a solid recovery in demand and cash flow.
Puravankara’s Upcoming Projects and Long-Term Growth Strategy
Alongside this EPC contract, Puravankara recently formed a JV with KVN Property Holdings LLP to develop 24.59 acres in North Bengaluru’s KIADB Hardware Park, targeting over ₹3,300 crore in Gross Development Value (GDV) and 3.48 million sq ft of saleable space
The company also anticipates receiving occupancy certificates in FY26 for its flagship developments like Atmosphere, Oakshire, and Capella (all located in Bengaluru) and Adora De Goa, which amount to circa 3.95 million sq ft and ₹3,200 crore GDV.
Puravankara Share Price Movement and Investor Sentiment
After a 10-month correction phase after June 2024, Puravankara's stock picked up pace in May, gaining around 14%, and continued to gain in June. In a three-year time frame, the share has gained around 255%, and in five years almost 620%, showcasing its growth in the mid-segment real sector.
The ₹272 crore Starworth deal serves as a catalyst, highlighting the subsidiary's execution strength and solidifying investor confidence. Through its strong pre-sales, JV pipeline, and visible sustainable project, Puravankara is poised for consistent growth.
Be that as it may, delivery timelines and larger market demand continue to be of essence. Project execution, receipt of occupancy certificates, and conversion of pre-sales into revenue balance will determine the company's journey and validate future bullish bets.
Outlook and Strategic Takeaways for Puravankara
Puravankara's share price rebound showcases a timely reaction to a high-value EPC order and back-up fundamentals. As market observers track FY26-27 developments, the ability of the company to implement its JV and EPC strategies could well determine its future trajectory. Ongoing emphasis on execution and demand patterns will be critical to maintaining investor faith.
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