Puravankara Limited – New ₹144.45 Cr Contract for ‘Nature’s Nest’ Project

Date: 29 April 2026
Source: Letter of Intent disclosed to BSE & NSE

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Key Highlights

• Subsidiary involved: Starworth Infrastructure & Construction Ltd. (SICL), wholly‑owned by Puravankara.
• Client: NPS Developers (domestic entity).
• Project: ‘Nature’s Nest’ – residential development, Survey No. 54/4, Chinnagenahalli, Doddabanahalli, Bangalore, Karnataka‑560049.
• Scope: Civil, structural, waterproofing, finishes and allied works.
• Contract value: ₹144.45 crore (ex‑GST & labour cess).
• Execution period: 28 months.
• Transaction nature: Item‑rate contract, non‑related‑party, no promoter interest.

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Financial Implications

• Revenue uplift: The contract will contribute ~₹144 cr to SICL’s turnover over the next 2‑3 years, enhancing the group’s top‑line growth.
• Margin considerations: Item‑rate contracts typically allow cost pass‑through, but material price volatility (steel, cement) could pressure margins.
• Cash‑flow impact: Progress payments tied to milestones will improve operating cash‑flows during the execution window.

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Strategic Significance

• Geographic focus: Strengthens Puravankara’s presence in Bangalore, a high‑growth residential market.
• Capacity utilization: Utilises SICL’s construction capabilities, supporting economies of scale.
• Pipeline diversification: Adds a large, standalone project to the order book, reducing reliance on existing developments.

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Regulatory & Compliance

• The disclosure complies with SEBI Regulation 30 and Schedule III requirements.
• No related‑party or promoter interest, mitigating governance concerns.

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Risks & Opportunities

Risk	Mitigation / Opportunity
Execution risk – potential delays or cost overruns.	Strong project management, fixed‑price clauses where feasible.
Material price inflation – could erode margins.	Item‑rate structure allows cost adjustments; hedging strategies.
Regulatory changes – construction‑related norms.	Ongoing compliance monitoring; ISO 9001 certification supports quality.
Market demand – Bangalore residential demand remains robust.	Opportunity to capture premium pricing and future ancillary projects.

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Outlook

• Short‑term: Quarterly earnings may see a modest uplift as project mobilization expenses begin.
• Medium‑term (2‑3 years): Recognised revenue from the contract will bolster earnings, supporting the company’s growth targets.
• Long‑term: Successful execution could enhance Puravankara’s reputation, leading to additional contracts in the region.

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Investors should monitor project progress updates, cost trends in construction inputs, and any revisions to the execution timeline.