Pranav Constructions IPO

Strengths · 9

• 01Profit has grown every year, from Rs 39.62 crore in FY2024 to Rs 62.25 crore in FY2025 and Rs 71.32 crore in FY2026.
• 02Sales have grown strongly, from Rs 449.75 crore in FY2024 to Rs 638.24 crore in FY2025 and Rs 763.93 crore in FY2026.
• 03EBITDA has more than doubled in two years, from Rs 59.73 crore in FY2024 to Rs 130.83 crore in FY2026.
• 04Return on net worth is high at 47.17%, with RoCE of 24.83% and a PAT margin of 9.78%.
• 05The issue is priced moderately at about 19.59 times earnings on an EPS of Rs 6.33.
• 06The redevelopment model is capital efficient. The company signs agreements with housing societies instead of buying costly Mumbai land upfront.
• 07The project pipeline is large and visible, with 65 projects covering about 5.01 million square feet, of which 20 are under construction and 17 upcoming.
• 08It has a long record, having been set up in 2003 and doing redevelopment work since 2012, and handles tendering through to post-construction with its own teams.
• 09Net worth grew from Rs 88.37 crore in FY2024 to Rs 246.70 crore in FY2026, and Rs 91.50 crore of the issue money will repay borrowings.

Risks · 9

• 01Borrowing has risen steadily and is now higher than the own funds. It went from Rs 99.34 crore in FY2024 to Rs 196.50 crore in FY2025 and Rs 258.44 crore in FY2026, against a net worth of Rs 246.70 crore.
• 02Profit is growing slower than sales. In FY2026 income rose 20% but profit after tax rose only 15%, so the margin has come down a little.
• 03Redevelopment depends on many approvals. Government and statutory clearances, extra FSI and the consent of society members can each hold up a project for a long time.
• 04The company has to pay society members for alternate accommodation and hardship while the new building comes up. Rs 145.72 crore of the issue money is set aside for redevelopment expenses of this kind, which is cash going out well before any flat is sold.
• 05The whole business is in one market, the Greater Mumbai region with a focus on the Western Suburbs. Any slowdown, policy change or rule change in that one market affects everything.
• 06A part of the money is for acquiring future redevelopment projects along with general corporate purposes, and no specific project has been named.
• 07This is a fresh issue combined with an offer for sale, so a part of the money goes to the selling shareholders and not to the company.
• 08Promoter holding falls from 63.35% to 48.54% after the issue, which leaves the promoters below a half share.
• 09Real estate demand moves with interest rates. A rise in home loan rates slows bookings and delays cash coming in.

Pranav Constructions Limited was started in July 2003 and became a public limited company in July 2024. It is a real estate company that works only on redevelopment projects in the Municipal Corporation of Greater Mumbai region, with most of its work in the Western Suburbs.

Redevelopment means pulling down an old housing society building and constructing a new one in its place. The society members get new flats, and the developer earns from the extra flats it is allowed to build and sell. The company signs redevelopment agreements directly with co-operative housing societies, which means it does not have to buy expensive land first. It builds homes in three segments, which it calls Economical, Mid and Mass, and Aspirational.

As on 31 March 2026 its portfolio had 65 redevelopment projects across the Greater Mumbai region, made up of 28 completed projects, 20 under construction and 17 upcoming, adding up to a total developable area of about 5.01 million square feet. It handles the work in house across the stages of a project, covering tendering, pre-construction, construction and post-construction. It has been doing redevelopment work since 2012. As on 31 March 2026 it had 198 permanent employees.

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