Bengaluru-based real estate developer Prestige Estates Projects reported a 19.35% year-on-year decline in consolidated net profit to ₹235.90 crore for Q1 FY27, compared with ₹292.50 crore in the corresponding quarter last year. According to latest reports from Business Standard, the company's revenue from operations reached ₹2,675.10 crore, representing a 15.94% YoY increase from ₹2,307.30 crore in the previous year. However, EBITDA declined 10% YoY to ₹591.40 crore with margins narrowing to 31.75% from 38.02% in the year-ago period, primarily driven by increased contractor and land costs that significantly impacted profitability.
In a significant development, Prestige Estates announced a strategic partnership to develop a residential project in Thane during the quarter, as reported by Business Standard. The upcoming project is spread across 14.6 acres with development potential of over 5 million square feet, with the company expecting a total revenue of ₹6,000 crore from this project. Chairman & Managing Director Irfan Razack stated that this project marks another significant milestone in the company's continued expansion in the Mumbai Metropolitan Region, noting that Thane has emerged as one of the region's most dynamic residential markets driven by robust infrastructure development and sustained housing demand. Prestige Group has delivered 316 projects spanning 212 million sq ft and maintains a pipeline of 135 projects across 227 million sq ft.
Despite profit challenges, Prestige Estates demonstrated robust sales momentum with Q1 FY27 bookings worth ₹66 billion, as highlighted by ICICI Securities research report dated July 30, 2026. The company achieved FY26 gross sales bookings worth ₹300 billion and remains confident of achieving 15-20% sales bookings growth for FY27, supported by ₹573 billion of new launches. ICICI Securities projects ₹350 billion sales bookings for FY27E and ₹380 billion for FY28E, with any approval delays being the key risk while demand remains robust. The brokerage maintains a BUY rating with a revised target price of ₹1,910 (earlier ₹1,806), accounting for project additions.
The company's residential pre-sales performance showed significant year-on-year decline, with Prestige Estates recording ₹6,579.3 crore in Q1 FY27, down 46% YoY from the previous year's strong performance. According to CNBC TV18, sales volume stood at 5.56 million square feet, declining 31% YoY, with the company selling 3,337 units compared to 4,718 units in Q1 FY26. The average realisation for apartments and villas was ₹11,193 per square foot, down 16% YoY, while plotted developments achieved ₹8,043 per square foot, up 10% YoY. Prestige Group's share of sales stood at ₹6,126.6 crore, declining 43% from the year-ago period. As per Nomura, the decline was primarily due to the high base from last year when The Prestige City Indirapuram in Ghaziabad, NCR was launched.
The company maintained strong business development momentum by acquiring three projects in Mumbai worth ₹178 billion during the quarter, as highlighted by Nomura. Prestige Estates launched three residential projects with a combined gross development value (GDV) of ₹120 billion: Prestige Golden Grove, Hyderabad (14.30 million square feet), Prestige Gardenia Estates Phase II, Bengaluru (0.48 million square feet; plotted development), and Prestige Forest Hills @ TPC Mulund Phase II, Mumbai (2.45 million square feet), launched on the last day of the quarter. Collections stood at around ₹48 billion, up 6% year-on-year, while total collections increased 7% YoY to ₹55.6 billion.
The company's financial position showed mixed indicators with the average cost of debt standing at 9.31% and debt-to-equity ratio at 0.69. Net debt stood at ₹11,915 crore as of the quarter end, increasing from ₹109 billion at the end of FY26. Construction expenses rose 20% year-on-year to ₹40.7 billion, resulting in operating cash flow of ₹14.9 billion, down 20% year-on-year. Shares of Prestige Estates Projects Limited ended at ₹1,661.00, down by ₹22.00, or 1.31%, on the BSE following the results announcement. Nomura maintained its Buy rating and target price of ₹1,900, noting that cumulative business development and annuity investments increased 24% year-on-year to ₹22 billion, leading to negative free cash flow of ₹7 billion.
