Prestige Estates' impressive Q1 pre-sales bring comfort; timely launches remain key

Mint

11-07-2025

Prestige Estates Projects Ltd struggled with delayed approvals for new launches for most of FY25.
But the scenario appears to be turning around. In the June quarter (Q1FY26), the real estate developer clocked pre-sales of ₹12,126 crore—its best-ever quarterly performance, up 300% year-on-year and 74% sequentially.
This is in line with the management's guidance of over ₹10,000 crore for the quarter. With this, Prestige has achieved around 45% of its FY26 pre-sales guidance of ₹26,000– ₹27,000 crore.
Also read: Prestige Estates makes room for a better FY26 as approval delays ease
Strong collections, new markets
Collections, too, hit a record ₹4,523 crore, up 55%, the highest in any quarter. The surge was aided by the launch of four residential projects spanning around 14.9 million square feet, up a massive 703% year-on-year.
This includes Prestige's first-ever launch in the National Capital Region (NCR) — The Prestige City, Indirapuram. Geographically, NCR contributed the most at 59%, followed by Bengaluru at 21%, Mumbai at 12%, Hyderabad at 5%, and other cities at 3%.
'Prestige's aggressive diversification strategy has put the company in a sweet spot to tap into the ongoing housing upcycle. In addition to its stronghold in Bengaluru, Hyderabad and Mumbai Metropolitan Region (MMR), the developer is looking to establish a foothold in newer markets such as NCR, Chennai and Pune," Antique Stock Broking said in a 10 July report.
Going forward, timely launches in H2FY26, sustained momentum in existing projects, and traction in new markets like Goa, Chennai, and Pune will be key.
Also read: Fanciful to realistic: How real estate project names have changed
Challenges ahead
The NCR and the MMR, though promising, are intensely competitive markets. Consumer preferences here differ meaningfully from Prestige's southern strongholds.
Getting the product, pricing and positioning right will be crucial. Any misstep could affect absorption and inventory turnover.
Like all developers, Prestige's growth hinges on a steady supply of new projects. Delays in land acquisition, approvals or project closures could hinder momentum and impact the company's re-rating prospects. Over the past year, Prestige Estates stock has fallen 3.6%, outperforming the 12.8% drop in the Nifty Realty index.
Annuity push
Meanwhile, the company's annuity business—though smaller in scale—also saw healthy traction.
Commercial office occupancy stood at 93.7%, with 1.21 million sq. ft. leased in Q1. Retail assets had 98.9% occupancy and robust consumption trends. With projects like Lake Shore Drive in Bengaluru and BKC Towers in Mumbai progressing, this vertical is slowly gaining strategic weight.
A 9 July report by Nuvama Research noted: 'An improving launch trajectory and geographical diversification impel us to increase the NAV premium to 30%, from 20% earlier."
However, the report also cautioned that Prestige's scaling up of annuity assets—spanning offices, retail and hospitality—could increase debt levels, posing a potential risk to balance sheet strength.
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