Puravankara Shares Jump After Subsidiary Wins ₹272-Crore Contract in Bengaluru

Puravankara Limited saw its stock surge by nearly 8% today after one of its subsidiaries landed a big construction deal worth ₹272 crore. The contract, secured by Starworth Infrastructure and Construction—Puravankara’s fully owned EPC arm—is for a residential project in Varthur, a rapidly growing area in Bengaluru.

The win not only gave a boost to investor confidence but also brought the spotlight back to one of India’s well-known real estate companies.

What the Deal Is All About

Starworth bagged a Letter of Intent (LoI) from Tru Dwellings Private Limited to take on civil and finishing work for a new housing project named TRU Aquapolis. This project will be developed in Varthur, a key tech corridor suburb.

The scope of work includes major construction and finishing aspects of the residential complex, highlighting Starworth’s role as more than just a backend partner—it’s actively building Puravankara’s future.

A Good Day at the Stock Market

The news clearly excited investors. Puravankara shares shot up to an intraday high of ₹301.25 before settling slightly lower by market close. It was a welcome change, especially since the stock had been under pressure for much of the past month.

The surge also led to a spike in trading volumes, placing the stock among the top movers for the day on both the NSE and BSE.

What This Means for Starworth and Puravankara

This contract win is more than just a financial milestone. It marks a major step forward for Starworth, Puravankara’s construction-focused subsidiary. Known for its efficient execution and tech-enabled processes, Starworth is quietly becoming a key player in the group’s growth strategy.

The ₹272-crore deal helps expand its portfolio and strengthens Puravankara’s footprint in Bengaluru’s busy housing market.

The Bigger Picture: Where Puravankara Stands Now

The company ended FY25 on a strong note, with some impressive numbers:

• Pre-sales hit ₹5,006 crore

• Over 5.6 million sq. ft. of space sold

• Realization improved to ₹8,830 per sq. ft., up 10% from last year

• Cash collections reached ₹3,937 crore

Although some projects faced delays due to regulatory bottlenecks, the company appears to be getting back on track.

Puravankara also recently signed a joint venture with KVN Property Holdings to develop over 24 acres in North Bengaluru’s Hardware Park. This massive project is expected to generate around ₹3,300 crore in revenue, covering nearly 3.5 million sq. ft. of built-up area.

Meanwhile, the company is gearing up to receive occupancy certificates for several ongoing projects across Bengaluru and Goa, totaling about ₹3,200 crore in value.

A Look at the Stock’s Journey

Puravankara’s stock has been on a rollercoaster ride over the past few years. It’s gained over 250% in the last three years and an eye-popping 620% over five years. However, 2024 brought a correction that dragged the stock down for several months.

The tide began to turn in May, when the stock rebounded nearly 14%. Today’s announcement added fresh momentum to that recovery.

Why This News Matters

This contract is a solid win for Puravankara on multiple fronts. It boosts its construction arm’s order book, builds investor trust, and reinforces the group’s reputation as a reliable real estate and construction player. Importantly, it also gives the market a clearer picture of the company’s future revenue streams.

Execution will be key now—how smoothly and efficiently Starworth delivers this project could shape how investors view the group in the months ahead.