Thirty-seven-year-old Yeshwant Kumar, a senior product manager with a global technology major in Bengaluru, has been house hunting to accommodate his growing family for the past two months. “We are expecting the arrival of our second child in December and want to move away from the two-bedroom flat that we bought six years ago. Given the city’s notorious traffic, we wanted to be in and around Bannerghatta road in South Bengaluru due to its proximity to our workplace.’’

After multiple weekends of house hunting, Kumar says he is close to finalising a villa at Purva Sparkling Springs, a project by Puravankara, and explains why he is likely to finally settle on it. “The construction quality and the attention to detail felt superior to what others in the area were offering. I like the ‘no footwear zone’ where a walkway has been designed so that one can walk barefoot on stones, pebbles, river sand, water and grass to simulate closeness to nature,’’ he says.

Turning the tide

It has been the successful wooing of customers like Kumar that has resulted in the Bengaluru-headquartered realty player scripting a turnaround story. In the just concluded first quarter of the FY25, the company registered a profit of nearly ₹15 crore on a revenue of ₹676 crore compared to losses of about ₹7 crore in the preceding quarter.

Markets have been noticing the turnaround in fortunes and this has been reflected in its share price. To be sure, the markets have been largely buoyant overall in the last 12 months. However, Puravankara’s shares have nearly quadrupled compared to the broader sectoral BSE realty index, which has gone up by 82 per cent in the same period.

This change in fortunes is attributed to the renewed focus of the group on better planning, seamless execution and timely project completion apart from entering newer markets and segments.

Abhishek Kapoor, Group CEO, Puravankara Ltd, credits the company’s success and market recognition to its emphasis on timely execution.

Increasingly, Puravankara has balanced its residential segment growth with greater investment in the lucrative commercial segment of the realty market. “We’ve also shifted to a modular approach in our business planning,” adds Kapoor. This means the company has focused on breaking up larger projects into phases with extended timelines rather than handling them all at once. This phased growth approach has provided greater flexibility for the company, allowing for adjustments in plans as needed and more effective inventory management. The modular business not only enhances project management but also mitigates financial risk, claims the chief executive.

The company had previously faced challenges with financing large projects based on sales forecasts, often requiring significant borrowing. “This change means we no longer need to borrow funds based on projected sales for entire projects,” claims Kapoor. The phased approach helps maintain a healthier cash flow and minimises financial risk.

Puravankara has been a late entrant to the commercial segment, but is now focusing on high-potential commercial projects that complement its residential developments.

By balancing residential and commercial investments, Puravankara aims to diversify its portfolio and create a steady stream of revenue. “Although we may have been late to the game and missed some opportunities, it’s never too late. Our goal is to gradually and steadily scale our platform as we move forward.”

The company has several commercial projects currently under development, including one on Kanakpura Road with 0.76 million square feet, Purva Aerocity on Bengaluru Airport Road with 2 million sq ft, a project in Dabolim, Goa and another in Rajendranagar, Hyderabad.

In total, these projects encompass approximately 3 million sq ft, with around 2 million sq ft expected to be completed by June next year. The developments will feature a mix of office spaces and retail areas.

Expansion plans

The company is currently active in nine cities including Bengaluru, Chennai, Hyderabad, Mumbai and Pune for residential developments. “You cannot build one of the largest real estate companies in the country by focusing on a single region. However, to have aspirations of becoming a national player, we must enter other markets like NCR and expand beyond our current location,” admits Kapoor.

This year, Puravankara intends to cumulatively build out around 17.25 million sq ft. For commercial projects, it is targeting Bengaluru, Chennai, Pune and Mumbai. The company says it will approach other markets, such as Goa and Coimbatore, opportunistically even as it continues to maintain a strong presence in Kochi.

Kapoor says, “We are committed to building our strength over time, similar to developing fitness and muscle — while it takes time, the results are lasting.” Markets will be closely watching.