Prestige Estates Projects Limited profit falls 44% as revenue drops

Prestige Estates Projects Limited reported consolidated net profit of Rs 256.2 crore for the quarter ended 30 September 2026, 44% below Rs 457.4 crore a year earlier, as revenue from operations declined 15% to Rs 2,060.2 crore. The board approved the unaudited results on 5 November 2026.

What did Prestige Estates report for the September 2026 quarter?

Prestige Estates reported lower quarterly revenue, total income and consolidated profit than both the September 2025 quarter and the preceding June 2026 quarter. Revenue from operations was Rs 2,060.2 crore, versus Rs 2,431.7 crore a year earlier and Rs 2,675.1 crore in the June 2026 quarter. Other income was Rs 162 crore, compared with Rs 266.1 crore in September 2025.

Profit before tax was Rs 364.2 crore, down from Rs 584 crore in the year-earlier quarter and marginally below Rs 365.7 crore in June 2026. Profit attributable to owners of the parent was Rs 224.1 crore, compared with Rs 430.3 crore in September 2025 and Rs 235.9 crore in June 2026. Basic and diluted earnings per share were Rs 5.20, against Rs 9.99 a year earlier; the filing says quarterly and year-to-date per-share figures are not annualised.

Why did Prestige Estates' September-quarter profit fall?

Prestige Estates' profit fell as total income decreased by more than total expenses on a year-on-year basis. Total income declined by Rs 475.6 crore to Rs 2,222.2 crore from Rs 2,697.8 crore, while total expenses decreased by Rs 265.9 crore to Rs 1,859.7 crore. Consequently, profit before exceptional items fell to Rs 362.5 crore from Rs 572.2 crore, with no exceptional items reported for either quarter.

The share of profit from joint ventures and associates was Rs 1.7 crore in the September 2026 quarter, compared with Rs 11.8 crore a year earlier; it had been a Rs 10.3 crore share of loss in June 2026. Tax expense was Rs 108 crore, versus Rs 126.6 crore in September 2025. Current tax increased to Rs 333.1 crore from Rs 242.3 crore, while deferred tax was a Rs 225.1 crore credit, compared with a Rs 115.7 crore credit.

How did Prestige Estates perform in the first half of 2026-27?

Prestige Estates' revenue for the six months ended 30 September 2026 was broadly unchanged, while consolidated net profit declined 31% year on year. Revenue from operations was Rs 4,735.3 crore, compared with Rs 4,739 crore in the six months ended 30 September 2025. Net profit was Rs 527.6 crore, down from Rs 768.9 crore.

First-half profit before tax declined by Rs 292.7 crore to Rs 729.9 crore. The group recorded a Rs 8.6 crore share of loss from joint ventures and associates, compared with a Rs 4.7 crore loss in the prior-year period. Finance costs were Rs 900.6 crore, up from Rs 769 crore, while depreciation and amortisation rose to Rs 469.1 crore from Rs 434.8 crore.

Net cash generated from operating activities was Rs 1,310.7 crore for the six-month period, compared with Rs 1,833.6 crore a year earlier. Inventories increased by Rs 5,627.7 crore, versus an increase of Rs 3,803.9 crore in the comparable period. Investing activities used Rs 1,496.8 crore, while financing activities generated Rs 474.7 crore after Rs 3,135 crore of loans availed and Rs 1,629 crore of loan repayments.

What changed in Prestige Estates' balance sheet and hospitality transaction?

Prestige Estates' consolidated assets rose to Rs 83,665 crore at 30 September 2026 from Rs 73,368 crore at 31 March 2026. Inventories increased to Rs 45,867.7 crore from Rs 40,251.9 crore, while cash and cash equivalents decreased to Rs 987.3 crore from Rs 1,556 crore. Total borrowings were Rs 14,439.2 crore, including Rs 4,744.1 crore of non-current borrowings and Rs 9,695.1 crore of current borrowings.

The September balance sheet classified Rs 6,063.8 crore of assets and Rs 3,645.2 crore of related liabilities as held for sale. This followed September 2026 agreements under which CPP Investment Board Private Holdings (4) Inc. agreed to invest up to Rs 3,000 crore in Prestige Hospitality Ventures Limited, subject to the agreements' terms and conditions. In October 2026, the first tranche closed with Rs 950 crore paid for shares acquired from Prestige Estates and Rs 550 crore subscribed to compulsorily convertible preference shares issued by Prestige Hospitality Ventures Limited.

What unresolved matters did Prestige Estates disclose?

Prestige Estates disclosed gross receivables of Rs 92.3 crore, including transferable development rights, from a land-owner company under a joint development agreement. The land-owner company was ordered to be wound up during the year ended 31 March 2017, and the proceedings remain pending adjudication. Management said it expects to recover the gross dues based on its rights under the agreement, project development status and an escrow arrangement.

Prestige Estates also said an income-tax search was conducted during the year ended 31 March 2025 on the company and certain group entities. It received show-cause notices in October 2026 and filed responses with the authority. Management said the company and relevant group entities had complied with the law and did not expect a further liability on final assessment.

Conclusion

The September-quarter results show that Prestige Estates' revenue decline of Rs 371.5 crore from a year earlier was accompanied by a Rs 201.2 crore reduction in consolidated net profit. Across the first half, revenue was nearly flat at Rs 4,735.3 crore, while profit before tax fell by Rs 292.7 crore and operating cash generation declined by Rs 522.9 crore.

The next disclosed development is execution of the remaining up-to-Rs 3,000 crore investment agreement involving Prestige Hospitality Ventures Limited, after the Rs 1,500 crore first tranche completed in October 2026. The final assessment of the October 2026 income-tax notices and the pending adjudication involving Rs 92.3 crore of gross receivables also remain matters to watch.