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Prestige Estates Q4 FY26: Record pre-sales power, with annuity scale-up in motion

Prestige Estates Projects Limited ended FY26 with its strongest ever operating momentum, and the financials finally reflected the scale. For FY26, the company reported revenue of INR 13,195.5 crore, EBITDA of INR 4,219.2 crore and PAT of INR 1,311.9 crore. That translated into YoY growth of 71% in revenue and 113% in PAT, with EBITDA margin at 31.97% and PAT margin at 9.94%.

Q4 FY26 also showed sharp year-on-year growth as revenue rose to INR 4,143.5 crore and PAT to INR 297.2 crore. EBITDA margin in Q4 was 26.91%, lower than the full-year margin, but management commentary suggested that margins remain influenced by the timing of revenue recognition and legacy project economics.

Operationally, FY26 stood out for two numbers that matter most in residential real estate: pre-sales and collections. The company reported residential sales of INR 30,024.5 crore for the year and residential collections of INR 18,514.6 crore. The year also marked a structural shift in geographic mix as Prestige’s first major NCR residential launch, The Prestige City Indirapuram, scaled quickly.

FY26 was a step-change in residential execution and geographic breadth

Prestige’s FY26 residential performance was driven by a large launch slate and strong absorption. The investor presentation shows FY26 launches of 31.84 million sq ft with a launch GDV of INR 27,350.4 crore. Sales from new launches were INR 17,342.2 crore, implying sales velocity of 63%.

The debut in NCR was the headline strategic event of the year. Management stated that The Prestige City Indirapuram generated over INR 9,500 crore of pre-sales in the first year. The geographical sales breakdown in the presentation reinforces this pivot. In FY26, NCR contributed INR 10,015.2 crore of sales value, Bengaluru INR 10,196.9 crore and Mumbai INR 5,960.0 crore. This matters because it reduces single-city dependence while expanding Prestige into a market that has historically been among India’s largest for residential sales.

The company’s own market-share slide puts the opportunity in context. Prestige’s market share is shown between 3% and 9% across key regions, which management highlights as headroom for growth given its pipeline.

Financial summary

Note: Values are converted from INR million in the presentation to INR crore.

Segment view: residential dominates revenue, annuity engine is being built

The FY26 segment table provides a clear snapshot of current earnings composition. Residential remains the principal revenue contributor.

The table highlights a nuance investors often miss when looking only at consolidated margins. Commercial and retail show high EBITDA margins on their current revenue base, but the revenue base itself is relatively small in FY26. The larger story is that Prestige is positioning these segments as annuity assets where the income profile expands as new projects complete and stabilise.

On operations, commercial leasing during FY26 was 4.47 million sq ft, and commercial occupancy is stated at 92%+. Retail occupancy is stated at 99%+, supported by footfalls of about 19.1 million in FY26 and retail GTO of INR 2,567.1 crore.

The annuity ramp is visible, but it needs capital and time

Prestige’s annuity roadmap is best captured in its “exit rentals” projections.

For commercial assets, exit rentals are shown at INR 650.1 crore in FY26 and projected to rise to INR 4,079.6 crore by FY30. For retail, exit rentals are shown at INR 275.4 crore in FY26 and projected to rise to INR 1,175.8 crore by FY30.

The company also disclosed pre-leasing levels for key new office assets: Prestige Lakeshore Drive at about 85%, Prestige 101 BKC at about 70%, Prestige Trade Center Delhi at about 95%, and The Prestige Mumbai at about 10%. In the concall, management clarified that the slower leasing at Mahalaxmi is deliberate, aimed at positioning the asset and not a reflection of weak demand.

This annuity ramp requires sustained capex. The investor presentation shows balance-to-spend (PG share) for commercial capex of INR 10,299.2 crore across ongoing and upcoming projects. Retail balance-to-spend (PG share) is shown at INR 4,831.3 crore. These disclosures help explain why the company’s investing cash flows are deeply negative even when operating cash flows are strong.

Cash flows and leverage: operating strength, investing intensity

The cash flow table shows FY26 net cash from operating activities of INR 7,116.4 crore. However, net investing cash flow is negative INR 11,487.2 crore, driven by construction spend on retail, commercial and hospitality (INR 4,139.7 crore) and investment in land, TDR and related deposits (INR 7,347.4 crore).

As of 31 March 2026, the company reported net debt of INR 10,908.2 crore and a debt equity ratio of 0.65. The average cost of debt was reported at 9.33%. Debt composition was also disclosed, with 49% classified as residential project debt, 32% as office space under construction, 17% as retail and hospitality under construction, and 2% as rental securitisation or operating hospitality loans.

In the concall, management stated a debt-equity cap of 0.75 and indicated they do not expect leverage to spike further in FY27 unless there are large acquisitions. This is relevant because the capex plan remains heavy and the business development program continues.

What management guided for FY27

Management gave explicit growth guidance for FY27: 15% to 20% growth in pre-sales and a similar 15% to 20% growth in collections, while noting that collections are naturally linked to launch momentum and sales.

On spending, management stated that residential construction spend would be around INR 9,000 to 10,000 crore and that capex would be around INR 4,000 to 4,500 crore going forward.

The company also described a large launch pipeline. The presentation lists GDV of upcoming launches at INR 57,828.8 crore. In the concall, management said the company already began FY27 with the Golden Grove launch in Hyderabad and reported early sales of about INR 2,300 crore.

Takeaways

Prestige’s FY26 performance was driven by record residential pre-sales and collections, with an important strategic milestone in NCR through The Prestige City Indirapuram. Financial results strengthened alongside operating momentum, and the company backed its annuity ambitions with detailed rental projections and pre-leasing disclosures.

The next phase hinges on execution and capital discipline. The annuity ramp to FY30 is sizeable, but so is the remaining capex. With net debt at INR 10,908.2 crore and a stated leverage cap of 0.75x, the market will likely track collections growth, project completions and the pace at which new office and retail assets translate into realised rental income.