Prestige Estates Shatters Records with INR 30,000 Crore in Annual Presales, Revenue Surges 71%

Prestige Estates Projects Ltd (BOM:533274) reported a landmark financial year, capping off Q4 2026 with record annual presales of INR 30,000 crore — the highest in its history. The Bengaluru-based developer saw consolidated revenue jump 71% year-over-year, driven by robust demand across residential and commercial segments, as well as a strong contribution from its hospitality vertical.

The company’s hospitality division posted revenue of INR 1,050 crore for the full year, with EBITDA of roughly INR 440 crore at the segment level — reflecting healthy margins in a sector still recovering from pandemic-era disruptions. Management emphasized the discipline in capital allocation, noting net gearing stood at 0.65x and reaffirmed a target of keeping leverage below 0.75x even as it scales up new projects.

A standout highlight of the quarter was the launch of Prestige Golden Grove in Hyderabad, which generated INR 2,300 crore in sales alone. The success of that project, along with consistent demand in Bengaluru and Mumbai’s BKC and Mahalaxmi corridors, underscored the breadth of Prestige’s geographic and product diversification. Rental rates in BKC remained robust at around INR 360 per square foot, while the company signed approximately 400,000 square feet of premium leases at Mahalaxmi — a deliberate strategy to capture high-quality tenants in a landmark location.

For the upcoming fiscal year, management guided for a 15%–20% increase in both presales and collections, contingent on timely project launches and execution. The company plans to fund future capital requirements largely through operating cash flows and new launches, avoiding any sharp increase in debt unless large-scale acquisition opportunities arise.

Industry analysts view Prestige’s performance as a bellwether for India’s top-tier real estate market, where demand has remained resilient despite rising interest rates and global headwinds. The company’s ability to maintain a net gearing ratio of 0.65x while delivering record sales reflects a careful balance between growth and financial prudence — a model that investors are likely to watch closely as the sector enters a new cycle.

This article first appeared on GuruFocus. For the complete transcript of the earnings call, please refer to the full earnings call transcript.