Puravankara sells ₹625.94 cr Zentech; Q1 presales up 28%
Asset sale strengthens balance sheet as developer logs record collections and adds ₹5,200 cr GDV in land.
— 2 earlier stories on Puravankara Ltd. →What's new
- Agreed to sell Purva Zentech to ICICI Prudential AMC for ₹625.94 cr enterprise value.
- Q1FY27 presales rose 28% to ₹1,439 cr, collections up 40% to ₹1,199 cr.
- Added four land deals with cumulative GDV of ₹5,200 cr during the quarter.
Why this matters
The asset sale and strong operating numbers give Puravankara options: it can cut its 2.48x debt/equity or fund more land buys. At a trailing P/E of 79, the open question is whether that growth translates into margins.
What we're watching
- How the ₹625.94 cr sale proceeds are deployed (debt reduction vs. new land).
- Whether the FY27 sales guidance of ₹11,200 cr is achievable given Q1 run-rate.
- Impact on consolidated leverage, currently at 2.48x debt/equity.
The full read
Puravankara is turning a commercial asset into cash at a time when its core housing business is firing on all cylinders. That is substantial. The sale of Purva Zentech to ICICI Prudential AMC for ₹625.94 crore removes a non-core asset worth 11.8% of market cap. Meanwhile, Q1 presales hit ₹1,439 crore, up 28% year on year, and collections surged 40% to ₹1,199 crore as average price realisation improved 18% to ₹10,589 per sq ft. The company also added four land parcels with a combined GDV of ₹5,200 crore in the same quarter. Managing Director Ashish Puravankara says the firm is on track for its ₹11,200 crore full-year sales target. The asset sale gives the balance sheet options: it can cut debt, currently at 2.48x equity, or tap new land. Either way, this is a developer monetising legacy assets while chasing growth. The next test is whether that growth delivers margin improvement.
Questions answered
- Why did Puravankara sell Purva Zentech?
- The sale monetises a non-core commercial asset worth 11.8% of market cap, freeing up cash for the company's core residential business.
- What is the consideration structure?
- Of the ₹625.94 cr enterprise value, ₹145 cr will come from selling SPV shares, with the rest realised through balance-sheet adjustments.
- How did Q1 operations perform?
- Presales rose 28% YoY to ₹1,439 cr, collections surged 40% to ₹1,199 cr, and average price realisation improved 18% to ₹10,589 per sq ft.
- What land additions were made in Q1?
- The company completed four land transactions during the quarter with a cumulative gross development value of ₹5,200 cr.
- Is the FY27 sales guidance of ₹11,200 cr still achievable?
- Yes, according to MD Ashish Puravankara, the Q1 results put the firm on track to achieve that target.
- How will the sale proceeds impact the balance sheet?
- The proceeds can be used to reduce debt (currently 2.48x equity) or fund further land acquisitions, improving financial flexibility.
Puravankara Ltd.
Latest quarter · Mar 2026
Strength & growth
Story so far
All notes on PURVA →- 13 Jul 2026 · 12:01 PM IST Puravankara sells ₹625.94 cr Zentech; Q1 presales up 28%
- 14d ago Puravankara adds ₹1,000 cr GDV JDA in Sarjapur; Q1 pipeline hits ₹5,200 cr
- 26d ago Puravankara buys 9.73-acre Bengaluru plot with ₹800 cr GDV potential