Prestige Estates Projects Limited: A Stellar Half-Year Performance in FY26

Prestige Estates Projects Limited, a prominent Indian real estate developer, has reported an outstanding financial and operational performance for the second quarter and first half of fiscal year 2026. The company's results underscore robust demand across its key markets and the success of its strategic initiatives. For H1 FY26, Prestige Estates recorded a total revenue of 5,166.5 Crore, marking a significant 16.15% increase year-on-year. The company's EBITDA for the period stood at 2,231.1 Crore, up 30.52% from the previous year, with an impressive EBITDA margin of 43.18%. Profit After Tax (PAT) surged by 42.13% to 769.8 Crore, reflecting a PAT margin of 14.90%.

In Q2 FY26 alone, the company's revenue reached 2,697.8 Crore, an 11.3% increase year-on-year. EBITDA for the quarter was 1,175.9 Crore, growing by 56.64% with a margin of 43.59%. PAT for Q2 nearly doubled, rising by 95.14% to 457.8 Crore, with a PAT margin of 16.97%. These figures highlight the company's strong operational efficiency and profitability.

Operational Excellence and Market Leadership

Prestige Estates achieved record-breaking sales of 18,143.7 Crore in H1 FY26, a remarkable 157% year-on-year growth that surpassed its entire FY25 sales within just six months. This was driven by a sales volume of 13.96 million square feet across 6,788 units. In Q2 FY26, sales stood at 6,017.3 Crore, with 4.42 million square feet sold across 2,069 units. Average realizations for apartments saw an 8% increase year-on-year to 14,906 per square foot in Q2, while plots experienced a sharp 43% increase to 9,510 per square foot.

Collections remained robust, reaching 8,735.6 Crore in H1 FY26, a 55% increase over the previous year. Q2 collections were 4,212.8 Crore, up 54% year-on-year. The company's performance reflects a balanced geographic mix, with Bengaluru, NCR, and Mumbai contributing over 80% of sales in Q2. Notably, the NCR portfolio alone accounted for 45% of half-yearly sales, demonstrating successful expansion beyond its home markets.

Prestige Estates also achieved a significant milestone, completing over 200 million square feet of developable area across 310 projects since its inception. This underscores the company's scale, consistency, and legacy in the real estate sector.

Strategic Initiatives and Future Outlook

The company is actively pursuing several strategic initiatives to fuel future growth. In Q2, five new residential projects were added, contributing to a total business development of 3,300 Crore in H1 FY26 across Bengaluru, Hyderabad, Mumbai, and Chennai. Key launches in H1 FY26 included Mayflower at The Prestige City Indirapuram, Prestige Autumn Leaves, Prestige Greenbrook, and Prestige Crystal Lawns in Bengaluru, totaling 1,881 million square feet with a Gross Development Value (GDV) of 17,592.2 Crore.

On the commercial front, Prestige Estates recorded gross leasing of 2.3 million square feet in Q2, with a healthy portfolio occupancy of 93.42%. FY26 exit rentals for the office segment are projected at 820 Crore. The retail segment also performed strongly, with a gross turnover of 623.6 Crore in Q2, up 9% year-on-year, and footfalls reaching 4.8 million. Retail portfolio occupancy remained high at 99%, with FY26 exit rentals estimated at 275 Crore.

Prestige Estates is also diversifying its portfolio. It renovated and reopened the former Oakwood Premier Prestige as the Marriott Executive Apartments in September 2025. A leasehold agreement was signed with Bengaluru Airport City Limited for a world-class convention center, luxury hotel, retail, and office space. The company acquired 11 acres in Hi-tech City, Hyderabad, for office and residential development and increased its economic interest in Forum Falcon City to 100%.

Management is also exploring new growth avenues, including data center development, viewing it as a significant opportunity for capex-driven returns, potentially through REIT exits. This strategic foresight positions Prestige Estates to capitalize on emerging sector trends.

Sustainable Growth and Investor Confidence

Prestige Estates Projects Limited continues to demonstrate strong financial discipline and a commitment to sustainable growth. The company maintains excellent developer gradings (CRISIL DA 1+ 'Excellent' and ICRA A+ 'Stable') and is certified as a 'Great Place to Work'. Its ESG achievements are notable, including a 5-Star GRESB rating and various LEED and IGBC certifications for its projects. Management has guided for sustainable residential margins of 28-30% and expects net debt levels to remain within 0.5 in the next two to three years, supported by a planned hospitality IPO.

The company's focus on timely project delivery, prudent capital allocation, and expanding its footprint across key growth markets reinforces investor confidence. With a healthy launch pipeline and strategic diversification, Prestige Estates is well-positioned to sustain its growth trajectory through the remainder of the year and beyond.