Prestige Estates Projects Limited Q2 Profit Falls 44% to Rs 256 Crore

Prestige Estates Projects Limited reported a 44% year-on-year decline in consolidated profit after tax to Rs 256.2 crore in Q2 FY27, even as residential sales rose 20% to Rs 7,225 crore and quarterly collections increased 26%. The results show lower reported income alongside continued sales and execution activity.

What did Prestige Estates report for Q2 FY27?

Prestige Estates reported consolidated profit after tax of Rs 256.2 crore for the quarter ended September 30, 2026, against Rs 457.4 crore in Q2 FY26. Consolidated revenue from operations declined 15.3% year-on-year to Rs 2,060.2 crore from Rs 2,431.7 crore.

Consolidated total income fell 17.6% to Rs 2,222.2 crore from Rs 2,697.8 crore a year earlier. Total expenses declined 12.5% to Rs 1,859.7 crore from Rs 2,126 crore, according to the quarterly disclosures. The company did not specify a single reason for the decline in consolidated profit in the information provided.

Operating indicators presented in the results showed a different trend. EBITDA increased 1.8% year-on-year to Rs 926 crore from Rs 910 crore, while the EBITDA margin improved to 45% from 37%. This indicates that the operating margin measure strengthened despite the year-on-year decline in revenue from operations.

How did residential sales and collections perform?

Prestige Estates recorded residential sales of Rs 7,225 crore in Q2 FY27, up 20% from the corresponding quarter of the previous year. The Prestige Group's share of these sales was Rs 6,668.6 crore, representing 31% year-on-year growth.

The company sold 3,910 units during the quarter, covering 5.84 million square feet. Area sold increased 32% year-on-year, indicating that the reported sales growth was accompanied by higher transaction volumes.

Collections increased 26% to Rs 5,294.1 crore. The Prestige Group's share of collections stood at Rs 4,738.2 crore, up 22% year-on-year. Collections are a relevant operating indicator for property developers because they reflect cash receipts from customers under project payment schedules.

Average apartment and villa realisation was Rs 12,529 per square foot, down 16% year-on-year. Average realisation for plotted developments was Rs 8,490 per square foot, down 11%. The combination of higher area sold and lower average realisations is an important part of the quarter's sales profile.

What projects did Prestige Estates launch and complete?

Prestige Estates launched or commenced construction on nine projects across its residential, commercial, retail and hospitality businesses during Q2 FY27. These projects had a combined developable area of 10.09 million square feet.

The company completed 5.07 million square feet in the quarter. This took total completions in the first half of FY27 to 9.44 million square feet. Project launches, construction starts and completions are central to the company's ability to convert sales into revenue over time.

For the first half, pre-sales reached Rs 13,804 crore, up 20% year-on-year. Prestige Estates said this was tracking toward its raised full-year pre-sales target of Rs 36,000 crore. That target provides a disclosed benchmark for investors assessing sales momentum over the remainder of FY27.

Real estate developers often report sales before recognising the full accounting revenue from those transactions. As a result, quarterly pre-sales, collections and construction progress can move differently from revenue and profit reported in the same period.

How did the retail and hospitality businesses perform?

Prestige Estates' retail portfolio reported occupancy of 99% in Q2 FY27. Gross turnover increased 10% year-on-year to Rs 721 crore during the quarter and rose 20% to Rs 1,458 crore in the first half.

Mall footfalls were 5.2 million in Q2 FY27 and 10.4 million in the first half. The occupancy and turnover figures provide operating context for the group's retail assets alongside the residential business, which generated the reported sales figures.

The hospitality portfolio reported an average room rate of Rs 15,801 and occupancy of 71% during the quarter. Revenue per available room was Rs 11,251. These metrics measure hotel pricing and utilisation, rather than property sales or consolidated revenue recognition.

The diversified portfolio means investors monitor more than consolidated profit alone. Residential booking activity, customer collections, retail occupancy, mall footfalls and hotel operating measures each describe different parts of Prestige Estates' business operations.

Why do the Q2 numbers matter for investors?

The Q2 FY27 results show a contrast between lower reported consolidated income and profit, and higher residential sales and collections. Revenue from operations fell 15.3% and consolidated profit after tax fell 44%, while residential sales increased 20% and collections rose 26%.

The improvement in EBITDA margin to 45% from 37% is another relevant operating data point. However, the provided disclosures do not establish whether this margin movement will persist in future quarters, and it should be viewed alongside the decline in quarterly revenue and profit.

For investors, the Rs 36,000 crore annual pre-sales target is a key disclosed reference point. The company has reported Rs 13,804 crore in H1 FY27 pre-sales, while project execution will remain relevant because 9.44 million square feet was completed in the first half and nine projects were launched or started in the September quarter.

No share-price movement or valuation data was disclosed with the results. The immediate market relevance of the update is therefore centred on the financial decline, the strength of bookings and collections, and the relationship between sales growth, execution and future reported financial performance.

Conclusion

Prestige Estates delivered stronger residential sales volumes, collections and operating measures in retail and hospitality during Q2 FY27, but its consolidated revenue and profit were lower than a year earlier. The quarter highlights the difference between customer sales activity and the income and profit recognised in a specific reporting period.

The next disclosed milestone is progress toward the company's Rs 36,000 crore FY27 pre-sales target. Investors will also watch whether collections remain strong, whether the nine newly launched or commenced projects advance as planned, and how sales realisations develop after their year-on-year decline in Q2.