Detailed Narrative
FY26 Performance Highlights and Growth
Prestige Estates delivered its highest ever annual sales of over INR30,000 crores in FY26, marking a robust 76% year-on-year growth. Sales volumes also increased significantly by 77% year-on-year to 22.28 million square feet. The company's collections crossed INR18,500 crores, reflecting a strong 53% year-on-year growth, demonstrating effective execution and demand. For the full year, revenue stood at INR13,196 crores, a 71% increase year-on-year, with PAT growing 113% to INR1,312 crores.
Strategic Project Launches and Pipeline Expansion
In FY26, Prestige Estates launched over 31 million square feet of projects with a Gross Development Value (GDV) of approximately INR27,000 crores. These launches achieved a high sales velocity of 63%, contributing INR17,300 crores to FY26 sales. The company also added projects with a GDV of over INR50,000 crores to its future pipeline. For FY27, the total launch pipeline, including existing inventory, is projected at almost INR58,000 crores, with INR14,000 crores GDV planned for Q1 FY27, including the already successful Prestige Golden Grove in Hyderabad (INR9,500 crores GDV project, with INR2,300 crores sales achieved so far).
Annuity Business Resilience and Hospitality Performance
The annuity business continued to demonstrate resilience, with the portfolio maintaining healthy occupancy levels of 92%, supported by sustained leasing demand from GCCs, tech companies, and domestic corporates. The retail portfolio achieved near full occupancy of 99% with strong consumption-led growth. The hospitality segment recorded a top-line of INR1,050 crores and an EBITDA of INR440 crores (at the hotel level) for the full year FY26, indicating a steady operational performance.
Capital Allocation and Debt Management
The company's operating cash flow for FY26 was approximately INR7,100 crores, a 15% year-on-year increase. For FY27, the projected business development spend (land acquisition) is INR4,500 crores, with development spend (construction) estimated at INR9,000-10,000 crores, and overall capex around INR4,000-4,500 crores. While there was a slight spike in the debt-equity level in Q4 FY26 due to land acquisitions (e.g., INR600-650 crores for Raidurg, INR800 crores for Ramco, INR350-400 crores for TVS), management aims to keep the debt-equity ratio within a cap of 0.75x.
EBITDA Margin Dynamics and Future Outlook
The reported EBITDA margin for FY26 was 32%, with current financials showing 22%. Management clarified that on a stabilized business, the margin is 25%, with the difference attributed to a 5-6% lag in revenue recognition versus presales and lower margins from legacy Mumbai projects. They expect the margin to reach 28% once presales and revenue recognition align. The demand environment remains healthy across cities, with no pushback on higher ticket size apartments, and NRI sales contributing 5-8% (INR1,500 crores) of overall sales.
Key Project Updates and Approvals
The Delhi hotels (St. Regis, Marriott Marquis) and office (600,000+ sq ft) are expected to be ready, with the office in two months and hotels trading after Diwali. Approvals for recently acquired land parcels in Chennai (Ramco, TVS) are anticipated within 6-8 months. The master plan for the Noida Bougainvillea project is approved, with building plan approvals and launch expected next quarter. The Jijamata Nagar project in Mumbai is also progressing, with a better scheme in the works and further updates expected next quarter.