Are Puravankara latest results good or bad?

Puravankara's latest financial results for Q2 FY26 reveal a complex picture of operational performance overshadowed by significant debt burdens. The company reported net sales of ₹644.20 crores, reflecting a notable sequential growth of 22.85% and a year-on-year increase of 30.00%. This growth indicates improved project execution and revenue recognition. However, despite these gains, Puravankara faced a net loss of ₹41.79 crores, which represents a substantial reduction in losses compared to the previous quarter, but still highlights ongoing financial challenges.
The operating profit, excluding other income, reached ₹104.05 crores, marking a sequential improvement from ₹66.69 crores in Q1 FY26. The operating margin also expanded to 16.15%, up from 12.72% in the prior quarter, suggesting enhanced operational efficiency. However, the company's interest expenses surged to ₹168.58 crores, consuming a significant portion of revenue and resulting in a pre-tax loss of ₹56.65 crores. This interest burden, representing 26.17% of total revenue, underscores the critical challenge of managing high debt levels.

Overall, while Puravankara demonstrated operational resilience with revenue growth and improved margins, the persistent losses and high interest costs indicate a challenging financial environment. The company saw an adjustment in its evaluation, reflecting these underlying operational trends and financial pressures. The ongoing structural issues, particularly related to debt, remain a significant concern for future profitability and cash flow stability.