Prestige Estates Projects Limited — Q3 FY26 earnings call

Call held 30 Jan 2026

Management summary

Prestige Estates reported a strong Q3 and 9M FY26, with record presales of INR4,184 crores and INR22,327 crores respectively, driven by robust launches and healthy demand. Collections also reached an all-time high. While Q3 margins were impacted by product mix, the company maintains strong occupancy in its commercial and retail portfolios and has a significant unrecognized revenue providing future visibility. The company is actively expanding its land bank, with substantial investments in Hyderabad and Chennai, and has a strong launch pipeline for Q4 FY26 and FY27 across key markets.

Highlights

  • Q3 FY26 presales of INR4,184 crores, reflecting 39% YoY growth.

  • 9M FY26 presales stood at INR22,327 crores, a 122% YoY growth, exceeding previous full-year peak sales.

  • Q3 FY26 collections of INR4,548 crores, and 9M FY26 collections of INR13,283 crores, highest ever.

  • Unrecognized revenue as of Dec 31, 2025, stood at INR61,922 crores, providing strong visibility.

  • Commercial office occupancy remained strong at over 95%, and mall occupancy at over 99%.

Concerns

  • Q3 FY26 EBITDA margin at 22.5% was lower due to product mix, with some projects having single-digit margins.

  • High cash outflow for land investment in Q3 at INR2,700 crores, including INR1,000 crores for Knowledge Park (Hyderabad) and INR800 crores for Chennai.

Key financials

2 periods

Q3 FY26

  • Revenue
    ₹3,886 Cr
    YoY +128%
  • EBITDA
    ₹873 Cr
  • PAT
    ₹245 Cr
  • EBITDA Margin
    22.5%

9M FY26

  • Revenue
    ₹9,052 Cr
  • EBITDA
    ₹3,104 Cr
  • PAT
    ₹1,015 Cr
  • EBITDA Margin
    34.3%

What they filed

Q1 FY27: revenue up 16.0%, net profit down 13.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue2,304 1,654 1,528 2,307 2,432 +6%3,873 +134%4,074 +167%2,675 +16%
EBITDA620 583 529 877 910 +47%860 +48%1,010 +91%849 −3%
Net profit235 32 43 312 457 +94%245 +666%292 +579%271 −13%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹22,327 Cr

as of 2025-12-31 quantified

122% YoY

Inflow this quarter

₹4,184 Cr

Composition

  • Mumbai (geography)
  • Bangalore (geography)
  • Hyderabad (geography)
  • NCR (geography)

Pipeline

other

Launch pipeline for Q4 FY26 includes Bangalore (Evergreen, Eaton Park, Fernvale, Prestige Marigold) and Hyderabad (Rock Cliff, Golden Grove). NCR pipeline includes Sector 150 and two large Gurgaon tracks.

Q3 and 9M FY26 saw record presales and collections, driven by strong execution and healthy demand across diversified geographies and asset classes. The company has a robust launch pipeline for Q4 FY26 and FY27, with significant unrecognized revenue providing strong visibility.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹2,700 Cr this quarter · ₹5,500 Cr (FY26) planned 40% debt and 60% from internal accruals (residential and annuity business surplus cash flows) for total capex of INR15,000 crores.
    • Land acquisition in Hyderabad (Knowledge Park) ₹1,000 Cr
    • Land acquisition in Chennai ₹800 Cr
    So basically, this quarter, we had a couple of good opportunities, especially on the bidding and some corporate deals. So one land parcel we had tied up in Hyderabad called the Knowledge Park. There we have invested close to INR1,000 crores, okay? And then in the Chennai market, we have picked up one land for INR800 crores. So these two are the major contributors. But otherwise, the total deployment was close to INR2,700 crores. ... Right now, as you mentioned, we have close to INR15,000 crores of capex to be spent, okay, of which what we are envisaging close to 40% will be from debt and 60% from our internal accruals, basically residential and whatever surplus cash flows from our annuity business.
  • Debt Debt disclosed
    See, again, debt, if you see, we have been managing our capex and business development through our operating cash flows itself, the exception being this quarter because of the opportunities. Going forward also, we what we are budgeting is we should be able to manage from the operating cash flows, capex spend and the business. Whatever debt our operating we'll take is basically to service the interest and repayment of the loans. So current just to answer that in '26, we don't expect to go up significantly. It should remain at 0.5 -- 0.55...

Guidance & targets

Volume

  • Q4 FY26 Sales Volume · Q4 FY26 · High confidence INR8,000 crores
    So all in all, we should cross top line sales in this quarter of about INR8,000 crores, which will take us through to INR30,000 crores for the year, if not more.

    — Irfan Razack

  • FY26 Presales Volume · FY26 · High confidence INR30,000 crores

    — Irfan Razack

  • Hyderabad Presales Volume · FY · Medium confidence INR7,500 crores
    No, I think too optimistic, I would say INR7,500 crores in Hyderabad is what I would expect.

    — Irfan Razack

  • Chennai Presales Volume · FY · Medium confidence INR4,000-5,000 crores
    And Chennai would expect around INR4,000 crores to INR5,000 crores for the whole financial year.

    — Irfan Razack

Annuity Income

  • Office Annuity Income Annuity Income · FY26 · High confidence INR829 crores
    Exit rentals from the office portfolio for FY '26 are expected to be approximately INR829 crores.

    — Zayd Noaman

  • Office Annuity Income Annuity Income · FY30 · High confidence INR4,000 crores
    With completion of our ongoing pipeline, office annuity income is projected to scale to around INR4,000 crores by FY '30.

    — Zayd Noaman

  • Retail Annuity Income Annuity Income · FY26 · High confidence INR275 crores
    Exit rentals for FY '26 are expected to be around INR275 crores and with 14 malls in the pipeline, retail annuity income is projected to scale to approximately INR1,175 crores by FY '30.

    — Zayd Noaman

  • Retail Annuity Income Annuity Income · FY30 · High confidence INR1,175 crores

    — Zayd Noaman

Capex

  • BD Spend Capex · FY26 · High confidence INR5,500-6,000 crores
    So, for the Q4, we have allocated close to INR1,000 crores to INR1,300 crores. So we'll end up financial year '26 with close to INR5,500 crores to INR6,000 crores of BD spend.

    — Amit Mor

  • BD Spend Capex · FY27 · High confidence INR4,500-5,000 crores
    In financial year '27, right now, what we are budgeting is close to INR4,500 crores to INR5,000 crores what we are allocating for financial year '27.

    — Amit Mor

Debt

  • Debt Level Debt · FY26 End · Medium confidence 0.5-0.55
    So current just to answer that in '26, we don't expect to go up significantly. It should remain at 0.5 -- 0.55...

    — Amit Mor

GDV

  • NCR Gurgaon Land Parcels GDV GDV · Next financial year · Medium confidence >INR10,000 crores
    If you take that, it will be again a bigger, if not as big as what we've already done in Indirapuram. So the deal will be more than INR10,000, all three put together.

    — Irfan Razack

Project Milestone

  • DIAL Hotel Block Completion Project Milestone · This year · High confidence July
    And the project itself, I would say the completion of the hotel block will be by July of this year.

    — Irfan Razack

  • DIAL Office Component Handover Project Milestone · As soon as OC · High confidence April
    And the office component, we should be able to hand it over to the tenants in April as soon as we get the occupancy certificate.

    — Irfan Razack

What to watch in Q4 FY26

FY26 Presales Achievement

Next quarter (after FY26 results)
Current INR22,327 crores (9M FY26)
Target Cross INR30,000 crores

Why it matters

Verifies the company's ability to meet its ambitious full-year presales target, a key indicator of demand and execution.

So all in all, we should cross top line sales in this quarter of about INR8,000 crores, which will take us through to INR30,000 crores for the year, if not more.

Risks & concerns

  • Market Correction/Overpricing in Land Acquisition

    medium

    Management is cautious about overpaying for land, stating that if the market corrects, it could lead to pain. They aim to be conservative in land acquisition to avoid this.

    Management acknowledged

  • Lower Margins due to Product Mix

    medium

    Q3 margins were lower (22.5%) due to specific projects with single-digit margins (e.g., Prestige Siesta), indicating variability in project profitability.

    Management acknowledged

  • Pricing 'Peaked Out' Limiting Price-led Growth

    medium

    Management believes pricing has 'peaked out' and doesn't want it to go up further to avoid being 'counterproductive' or creating an 'artificial market,' which could imply limited room for price-led growth.

    Management acknowledged

  • Slower Sales Pace in Chennai Market

    low

    Management acknowledges that Chennai sales are 'steady, very steady' and won't give 'instant results' like Bangalore, with a 20% sellout in the first 1-2 months considered good.

    Management acknowledged

Q&A highlights

7 direct
Q3 FY26 Margins and Land Investment Outflow Direct
The margin reduction was mainly because of the product mix. If you see last quarter, we had a couple of projects where the margin was slightly higher. In the current quarter, there were a couple of projects where the margins were in the single digit. ... this quarter, we had a couple of good opportunities, especially on the bidding and some corporate deals. So one land parcel we had tied up in Hyderabad called the Knowledge Park. There we have invested close to INR1,000 crores, okay? And then in the Chennai market, we have picked up one land for INR800 crores. So these two are the major contributors. But otherwise, the total deployment was close to INR2,700 crores.

Clarified the reasons for lower Q3 margins and detailed the significant land acquisition investments made during the quarter.

Asked by Akash Gupta

Q4 Launch Pipeline and FY27 Presales Outlook Direct
Now this current quarter, we've got three launches coming in Bangalore. One we've already done, which is Evergreen at the Prestige Raintree Park. ... We also have a plotted development called the Prestige Marigold in Bangalore. And then Hyderabad, we are very confident of launching two developments. ... So all in all, we should cross top line sales in this quarter of about INR8,000 crores, which will take us through to INR30,000 crores for the year, if not more. ... For FY '27, it's all work-in-progress. We have a pipeline. I think it's too early for us just now to spell out the -- all the projects that are there, which -- of course, the list is there, but it's all work-in-progress in the sense which project in this quarter.

Provided specific details on Q4 launches across Bangalore and Hyderabad, setting an ambitious Q4 sales target, and indicated a strong but unquantified pipeline for FY27.

Asked by Akash Gupta

NCR Pipeline and GDV Contribution for FY27 Direct
NCR, we already have Sector 150, which the legal issue, which was there, has been cleared and the plan should get approved in a couple of months. And that will come for the next financial year. ... We've got I can't spell out the other two sectors in Gurgaon, which we have finalized. ... If you take that, it will be again a bigger, if not as big as what we've already done in Indirapuram. So the deal will be more than INR10,000, all three put together.

Confirmed a significant NCR pipeline for FY27, including specific projects and a substantial GDV expectation, addressing concerns about future contributions from the region.

Asked by Parikshit Kandpal

Commercial Asset Leasing Traction (BKC, Mahalaxmi) Direct
in BKC, ... we should top out the X tower in BKC by April, May of this year. And we should top out the Ys tower by August, September in this particular calendar year. ... in BKC, we have commitments, firm commitments with deposit for about 1.4 million square feet of office leasing. Similarly, in the Turf Tower, we would have around 400,000 square feet of pre-leased commitments.

Provided concrete pre-leasing numbers for key commercial projects under construction in Mumbai, indicating strong demand and future annuity income.

Asked by Parikshit Kandpal

Data Center Project Update Partial
Yes. So that's a work-in-progress. The land will be allocated to us. So we're just waiting for that to be done. Hopefully, at the end of this quarter, we should have a further update on that. ... It will be a combination because it's close to 100 acres. So it will be a complete build-out and it will be completely master plan. So we'll be open to doing either or...

Gave an update on the data center project, indicating it's still in the land allocation phase but with a large potential scale and flexible development approach.

Asked by Parikshit Kandpal

Aggressiveness in GDV/Cost Calibration Direct
No, no. I think we can't get too aggressive and too optimistic. Whenever we calculate anything, whenever we tie up a deal, we are very conservative. We take the worst-case scenario and make any commitment for any land. ... You see now when we launched Indirapuram before when we tied up the transaction, we thought we'll get a GDV of about INR8,500 crores to INR9,000 crores. Today, we are getting INR12,000-plus crores.

Highlighted management's conservative approach to project valuation and land acquisition, citing a past project where actual GDV significantly exceeded initial estimates.

Asked by Tarang Agrawal

Pricing Strategy and 'Peaked Out' Comment Direct
Listen, I don't think anybody buys a home looking at price getting higher every month or every quarter. That's not the way a customer looks at it. They look at location, they look at the product, they look at the affordability. When I say top out, what I meant was that we have reached at certain levels. ... I personally wouldn't want the pricing to go up further and further because it will be counterproductive. ... I don't want investors to come in, thinking that they'll buy today, sell tomorrow, make some money. I think that will be an artificial market.

Clarified the company's stance on pricing, indicating a preference for stable, sustainable demand driven by end-users rather than speculative price increases, which could limit future price-led growth.

Asked by Pritesh Sheth

Hyderabad and Chennai Market Strategy Direct
See, in Chennai, I can't hope to have a 50%, 60% sale on the first month of launch. I believe there, if I am getting a 20% sale in the first 1 or 2 months of launch, I would say it's a good project. And another thing is we have not gotten aggressive. We didn't have any inventory at all in that market.

Provided insights into the company's realistic expectations and strategy for the Chennai market, acknowledging its slower pace compared to Bangalore.

Asked by Pritesh Sheth

3 min read 7 chapters

Detailed narrative

Record-Breaking Presales and Collections Drive Strong Performance

Prestige Estates achieved its highest ever presales and collections in Q3 and 9M FY26. Q3 FY26 presales grew 39% year-on-year to INR4,184 crores, while 9M FY26 presales surged 122% year-on-year to INR22,327 crores, surpassing previous full-year records. Collections were equally robust, with INR4,548 crores in Q3 and INR13,283 crores in 9M FY26, also marking new highs. This performance was supported by strong sales volumes of 2.99 million square feet in Q3 and 16.95 million square feet in 9M FY26, with average realizations improving 6% year-on-year to INR14,459 per square foot.

Strategic Land Bank Expansion and Capital Deployment

The company made significant investments in land acquisition during Q3, deploying INR2,700 crores. This included INR1,000 crores for Knowledge Park in Hyderabad and INR800 crores for a land parcel in Chennai, contributing to a total Business Development (BD) spend of INR4,700 crores in 9M FY26. Management projects total BD spend for FY26 to be INR5,500-6,000 crores and for FY27 to be INR4,500-5,000 crores. The total capex to be spent across all projects is estimated at INR15,000 crores, with a funding mix of 40% debt and 60% internal accruals, and new projects are expected to yield an IRR of 20-30%.

Robust Launch Pipeline for Q4 FY26 and FY27

Prestige Estates has a strong launch pipeline, with 5.02 million square feet launched in Q3 and 23.83 million square feet in 9M FY26, representing a residential Gross Development Value (GDV) of over INR19,600 crores. For Q4 FY26, the company plans launches in Bangalore (Evergreen, Eaton Park, Fernvale, Prestige Marigold) and Hyderabad (Rock Cliff, Golden Grove), aiming to achieve INR8,000 crores in sales for the quarter and cross INR30,000 crores for the full FY26. The NCR region also has a significant pipeline, including Sector 150 and two large Gurgaon land parcels with a combined GDV expected to exceed INR10,000 crores, anticipated to launch in FY27.

Growing Annuity Income from Commercial and Retail Assets

The commercial office portfolio maintained strong occupancy at over 95%, with exit rentals for FY26 expected to be approximately INR829 crores, projected to scale to INR4,000 crores by FY30. Retail assets also performed well, with Q3 mall footfall at 5.2 million and gross turnover growing 14% year-on-year to INR702 crores, maintaining over 99% occupancy. Retail annuity income is projected to reach INR1,175 crores by FY30, supported by 14 malls in the pipeline, indicating sustained growth in recurring revenue streams.

Progress on DIAL Project and Mumbai Developments

The Delhi Airport (DIAL) project is progressing, with 0.6 million square feet of office space almost fully leased out. The hotel block is expected to be topped out by July of this year, with a soft launch by the end of the calendar year, and the office component is slated for handover in April upon receiving occupancy certificate. In Mumbai, the Prestige Place (Jijamata) project, a large development comprising 4,000 homes, a hotel, office, and retail mall, is in planning stages, with 2.5 million square feet allocated for residential, signaling future growth in the region.

Conservative Pricing and Differentiated Market Strategy

Management emphasized a conservative approach to pricing and land acquisition, avoiding overpayment and overpricing to mitigate market correction risks. While acknowledging that pricing has 'peaked out' at certain levels, they believe demand is driven by location, product, and affordability rather than speculative price increases, aiming for a stable, end-user driven market. They noted varying market dynamics, with Bangalore being 'pretty busy,' Hyderabad 'fairly decent,' and Chennai 'steady, very steady,' where a 20% sellout in the first 1-2 months is considered a good project, reflecting a tailored market strategy.

Q3 Margin Impact and Strong Unrecognized Revenue Visibility

The EBITDA margin for Q3 FY26 stood at 22.5%, which was lower than the 9M average of 34.3%. This was primarily attributed to a product mix that included projects with single-digit margins, such as Prestige Siesta, an NCLT takeover. Despite this, the company's unrecognized revenue as of December 31, 2025, was substantial at INR61,922 crores. This significant backlog provides strong revenue recognition visibility and financial stability for the coming years, underpinning future profitability.

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