Financial Performance
Prestige Estates reported a robust financial performance for the full year ending March 31, 2026. Total revenue stood at ₹13,196 Cr, registering a growth of 71% year-on-year. EBITDA for the period reached ₹4,219 Cr, up 43% from the previous year, while Profit After Tax (PAT) surged by 113% to ₹1,312 Cr.
The company maintained an EBITDA margin of 32%, though management noted a temporary lag in margin recognition compared to sales velocity due to accounting systems and legacy project completions in Mumbai. Operating cash flows remained strong at approximately ₹7,100 Cr, reflecting disciplined execution and collection efficiency.
Operational Milestones and Segment Growth
- Sales volumes grew 77% year-on-year to 22.28 million square feet during FY26.
- Collections for the year crossed ₹18,500 Cr, reflecting a strong 53% growth compared to the previous fiscal.
- Annuity portfolio maintained a healthy occupancy level of 92%, driven by demand from Global Capability Centres (GCCs).
- The retail segment demonstrated near-full occupancy at 99%, supported by strong consumption-led growth across assets.
- Geographic diversification strategy is yielding results, with Bangalore, NCR, and Mumbai contributing significantly to the sales mix.
Management Outlook and Future Guidance
Looking ahead, the management has provided a growth guidance of 15% to 20% for presales and collections in FY27, acknowledging the high base established in the current year. The company plans to deploy approximately ₹10,000 Cr on residential development and ₹4,000 Cr to ₹4,500 Cr on capital expenditures. To fuel this growth, Prestige Estates added projects with a Gross Development Value (GDV) of over ₹50,000 Cr during FY26.
Management emphasized a strategy of building and leasing out commercial assets before exploring monetization options through a potential REIT or IPO to unlock capital.
Sector Dynamics and Strategic Focus
Our performance was well-diversified geographically with Bangalore, NCR and Mumbai continuing to contribute meaningfully to overall sales. Importantly, we also continue to see healthy realization growth across both apartments and plotted developments.
What to Watch
- Progress on the Noida master plan approval and the subsequent launch of the Bougainvillea project.
- Timing of the Grand Opening for the Delhi Aerocity hospitality and office project expected around Diwali.
- Execution and sales velocity of the ₹58,000 Cr GDV launch pipeline scheduled for the next 12 months.
- Management of debt-equity levels, which are currently capped at a peak of 0.75x.
