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Puravankara Arm Secures Rs 5.09 Bn Bengaluru Luxury Project LoA

2025-12-16

Puravankara has announced that its wholly owned subsidiary, Starworth Infrastructure & Construction (SICL), has received a Letter of Acceptance (LoA) valued at Rs 5.09 billion for a large-scale luxury residential project in Bengaluru. The contract reinforces the group’s construction portfolio and underlines its continued presence in the city’s premium housing segment.

The LoA has been awarded by One Bangalore Luxury Projects LLP and pertains to the execution of Varnam Phase 1 of the One Bangalore Luxury Project, located in Devanahalli in Bengaluru Rural District. The scope of work includes turnkey civil construction, finishing works, mechanical, electrical and plumbing (MEP) services, as well as external development activities. The project is scheduled to be executed over a period of 36 months.

The order adds to Puravankara’s growing project pipeline through its construction arm, strengthening operational visibility at a time when the company is balancing expansion with financial pressures. Starworth Infrastructure & Construction Ltd has been playing a key role in executing large and complex developments for the group, particularly in the premium and luxury residential segments.

The development comes against the backdrop of a mixed financial performance reported by Puravankara in the recent quarter. In Q2 FY26, the company posted a consolidated net loss of Rs 410.79 million, compared with a loss of Rs 160.78 million in the corresponding quarter of the previous year. Despite the widening loss, revenue from operations rose sharply by 29.9 per cent year-on-year to Rs 6.44 billion, reflecting strong project execution and sales momentum.

However, operating profitability came under pressure during the quarter. EBITDA declined 7.3 per cent to Rs 1.04 billion, while the EBITDA margin contracted to 16.2 per cent, down from 22.7 per cent in the same period last year. The new LoA is expected to provide execution-led revenue visibility over the medium term, supporting Puravankara’s construction and development strategy in Bengaluru’s evolving real estate market.

News source: CNBC TV18

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