Prestige Estates Projects Ltd clocked pre-sales or bookings of ₹6,017 crore in the September quarter (Q2FY26), up 50% year-on-year, aided by the launch of four projects.
These were: a new phase in The Prestige City Indirapuram located in National Capital Region (NCR) and three plotted development projects with gross development value or revenue potential of around ₹3,970 crore. Plotted developments are projects where developers divide big pieces of land into smaller plots and sell them.
Naturally, Prestige’s Q2FY26 pre-sales have dropped sequentially, given that Q1 bookings were impressive. But investors can hardly complain as the H1FY26 pre-sales at ₹18,144 crore were Prestige’s best H1 so far. In fact, H1FY26 pre-sales have already surpassed those of FY25. Consequently, collections surged 54% year-on-year, the company said in its operational update.
The average realization for apartments rose 6% year-on-year in H1FY26 to ₹13,769 per square foot, while plots averaged ₹8,425 per square foot, up 17% year-on-year. In this backdrop, Prestige should easily surpass its FY26 pre-sales guidance of ₹25,000-27,000 crore and may cross ₹30,000 crore, aided by a launch pipeline of ₹43,500 crore, said HDFC Securities’ 9 October report.
As for geographical diversification, pre-sales were led by NCR (45%), Bengaluru (27%), Mumbai (16% led by the success of its flagship Prestige Nautilus project) and Hyderabad (7%) in H1FY26.
“Prestige’s H1 sales distribution reflects a notable shift, underscoring its expanding national presence. With significant launches from Bengaluru in H2, the city’s share is expected to rise,” pointed out Antique Stock Broking. Chennai and Pune are the other new markets where Prestige is looking to expand its presence.
Its annuity business also seems to be in good stead. Gross leasing in the office segment stood at around 3.5 million square feet in H1FY26 and occupancy was healthy at around 93.4%. FY26 exit rental is projected at around ₹820 crore.
The retail portfolio saw occupancy of 99% with exit rentals expected to be around ₹270 crore. These factors have cushioned the stock from a steep downside, even as concerns linger around future residential sales in Bengaluru being hurt by layoffs in the IT sector.
Prestige Estates’ shares are down almost 2% so far in 2025 versus the 14% drop in the Nifty Realty index. Despite robust collections, its Q1FY26 net debt-to-equity ratio was 0.42x. Given aggressive capital expenditure on ongoing and upcoming projects, keeping debt under check is crucial.
