Puravankara Faces Significant Financial Challenges Amid Declining Performance Metrics

Puravankara, a midcap player in the realty sector, has recently undergone a financial trend adjustment reflecting significant challenges in its performance metrics. The company reported a substantial decline in key financial indicators for the quarter ending March 2025. Notably, the profit before tax (PBT) registered at Rs -132.94 crore, marking a drastic fall compared to the previous four-quarter average. Similarly, the profit after tax (PAT) plummeted to Rs -85.82 crore, indicating a severe downturn.
The company's net sales also experienced a decline, recorded at Rs 541.57 crore, down by 9.4% from the previous four-quarter average. Additionally, the interest expense for the nine-month period rose to Rs 435.72 crore, reflecting a growth of 24.26%. The return on capital employed (ROCE) hit a low of 5.64%, while the debt-equity ratio reached a concerning 2.50 times, the highest in recent history.

In terms of market performance, Puravankara's stock has faced notable volatility. Over the past week, it has declined by 7.90%, contrasting with a modest gain in the Sensex. Year-to-date, the stock has fallen by 36.16%, while over the past year, it has decreased by 39.42%. However, the company has shown resilience over longer periods, with a remarkable 515.32% increase over the last five years, significantly outperforming the Sensex during the same timeframe.