Puravankara shares rallied 12.98% to Rs 240.14 during Tuesday’s trading session after the real estate developer reported a strong turnaround in its fourth-quarter earnings and robust revenue growth.

The company posted a consolidated net profit of Rs 114.2 crore in Q4FY26, compared with a net loss of Rs 85.5 crore in the corresponding quarter last year, marking a sharp recovery in profitability.

Revenue from operations surged 177% year-on-year to Rs 1,502 crore in the March quarter, against Rs 542 crore reported in the same period last year.

According to the company’s investor presentation, Puravankara delivered strong operational and financial performance during FY26. Total revenue for the financial year stood at Rs 3,846 crore, registering an 84% increase from Rs 2,093 crore in FY25. The company also returned to profitability with a PAT of Rs 58 crore in FY26, compared with a loss of Rs 186 crore in the previous fiscal.

Sales volume during FY26 rose 28% year-on-year to 7.25 million square feet, up from 5.67 million square feet in FY25. Average realisation improved 21% YoY to Rs 10,213 per square foot, while EBITDA margin expanded to 21% from 18% a year ago.

The stock has climbed nearly 15% over the past week, taking the company’s market capitalisation to around Rs 5,053 crore. Its 52-week high stands at Rs 338.95.
According to Trendlyne data, the stock’s RSI (14) stands at 51.2, indicating neutral momentum. An RSI below 30 is generally considered oversold, while a reading above 70 signals overbought territory. The stock is currently trading above seven out of eight key simple moving averages (SMAs), although it remains below its 200-day SMA, suggesting a mixed long-term technical trend.Shareholding data for the March 2026 quarter showed a marginal reduction in institutional holdings. Foreign Institutional Investors (FIIs) trimmed their stake from 17.18% to 16.73%, while mutual fund holdings declined slightly from 0.09% to 0.08%.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

The Indian IT sector has been through a prolonged phase of underperformance, and according to Dhananjay Sinha from Systematix Group, the recent interest in the space appears more tactical than structural. Over the past 12 to 18 months, the sector has seen significant derating amid concerns over US outsourcing policies and weaker earnings guidance from companies.

As he notes, “That has been the past.” At the same time, market leadership that had shifted towards banking stocks is now showing signs of fatigue as investor conviction weakens. He points out that “People might be now shifting back to IT to some extent,” but adds that this is likely to be a defensive move rather than a fundamental turnaround in the sector’s outlook.

On the macroeconomic front, rising crude oil prices are once again becoming a key inflation driver. With oil hovering at elevated levels, concerns around under-recoveries and pass-through effects are building. Sinha highlights that “At $100 we have seen that crude has actually been hovering around there,” and warns that government price adjustments remain insufficient. He adds that “We think that that is very inadequate,” indicating that further fuel price increases may be needed. The broader implication, he suggests, is that inflationary pressures are likely to persist, with “There will be pass through of higher energy prices on inflation,” and WPI inflation potentially rising beyond current expectations.

Turning to monetary policy, Sinha believes the Reserve Bank of India is facing a narrowing policy corridor. He observes that the central bank may initially overlook inflation spikes, but discomfort will rise if inflation crosses key thresholds. “The RBI will actually try to look through the initial surge,” he says, but cautions that “They will actually get more uncomfortable is when it starts going beyond 5%.” In his view, real interest rates could turn negative if inflation stays elevated, which would eventually force the RBI to consider rate hikes. He also flags currency pressure as an additional constraint, noting that “We do anticipate the rupee actually weakening quite sharply,” while RBI’s capacity for intervention may be diminishing.

On the broader macro narrative, Sinha challenges the long-held “Goldilocks” view of the Indian economy. He argues that rising energy-driven inflation will gradually feed into production costs, consumption, and corporate earnings. As he puts it, “We think that with an increase in cost inflation because of the elevated energy prices…” and this will impact “the overall spending power.” The result, he suggests, is a shift away from the idea of strong growth with low inflation toward a more difficult environment of slower growth and higher inflation. “There will be a slow growth and higher inflation,” he says, adding that “That is what we think as a stagflationary situation.”

Overall, the commentary paints a picture of a market and macro environment in transition, where sector rotation is being driven more by defensive positioning, while inflation, currency dynamics, and policy constraints increasingly dominate the outlook.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy. I Agree

Discover more from Thailand Business News

Subscribe now to keep reading and get access to the full archive.

Advertisement

Continue reading