Prestige Estates Projects delivered pre-sales of ₹72.25 billion in Q2FY27, significantly beating Nomura's estimate of ₹60 billion despite a "significantly volatile macro backdrop." The company's pre-sales rose 20% year-on-year and 10% quarter-on-quarter, with the beat primarily attributed to "higher than expected sustenance sales." Average realization in Q2FY27 stood at ₹12,375 per square foot, while collections reached ₹53 billion, up 26% year-on-year. Nomura maintained its FY27 pre-sales estimate of ₹350 billion, up 17% year-on-year, and expects launch momentum to "significantly improve into the year." Of the ₹570 billion in total planned launches for FY27, the company has launched only around ₹160 billion so far.
Prestige Estates Projects Limited reported consolidated revenue of ₹2,835.6 crore for Q1 FY27, representing a 14.86% year-on-year increase from ₹2,468.7 crore in Q1 FY26. However, revenue declined 31.56% quarter-on-quarter from ₹4,143.5 crore in Q4 FY26. Consolidated net profit decreased by 12.87% YoY to ₹271.4 crore compared to ₹311.5 crore in the same quarter last year, and also fell 6.99% QoQ from ₹291.8 crore in Q4 FY26. Basic earnings per share stood at ₹5.48 as against ₹6.79 recorded in Q1 FY26. The company's shares were trading at ₹1,470.50, up 2.87% from the previous close of ₹1,429.50, with a market capitalization of ₹63,406 crore.
The company demonstrated strong geographic diversification with Bengaluru contributing 41% to half-yearly sales, followed by Hyderabad (32%), Mumbai (12%), and Chennai (8%). For H1FY27, total sales volume stood at 11.88 million square feet across 7,247 units. The strong performance reflects the company's ability to capitalize on housing demand across multiple markets, with Chairman and Managing Director Irfan Razack highlighting that "Our residential business continues to see healthy demand. What is particularly encouraging is the response to our new launches, a couple of which were introduced towards the end of the quarter but nevertheless saw good sales traction. Sustenance sales have also remained strong, reinforcing our view that underlying demand for housing continues to be healthy."
The company launched three residential projects during Q2 with a combined gross development value of ₹40.2 billion: Prestige Palm Court in Chennai spanning 1.99 million square feet, Garden Breeze at TPC in Bengaluru spanning 1.23 million square feet, and Prestige Parklane in Bengaluru spanning 2.69 million square feet. Completions during the quarter totaled 4.27 million square feet across three projects in Bengaluru. Across all business verticals, Prestige Estates launched or commenced construction on nine projects during the quarter, covering a combined developable area of 10.09 million square feet. A significant development was the announcement of a ₹30,000 million investment by CPP Investments in Prestige Hospitality Ventures Limited for an approximately 27% stake. This capital infusion comprises ₹950 crore in secondary share sales to Prestige Estates and ₹2,050 crore in primary equity infusion into PHVL. The transaction received approval from the Competition Commission of India in October 2026, with Chairman Irfan Razack stating that the partnership would help execute the hospitality development pipeline and expand the company's presence in the sector.
Last month, Prestige Estates announced the ₹30,000 million strategic investment by CPP Investments in Prestige Hospitality Ventures Ltd for an approximately 27% stake. The investment is expected to support the expansion of the hospitality business, including the development of its planned portfolio and pursuit of future growth opportunities. Chairman and Managing Director Irfan Razack stated that the partnership would help execute the hospitality development pipeline and expand the company's presence in the sector. The hospitality business recorded an occupancy rate of 70% and average room rates (ARRs) of ₹15,143 during the half-year, with construction beginning on two hotel projects adding 313 keys across 0.77 million square feet. Looking ahead, the company has flagged a large launch pipeline across Bengaluru, Mumbai, NCR, Chennai and Hyderabad over the next two quarters. In September 2026, the company launched Prestige Parklane in North Bengaluru covering 11.91 acres with a gross development value of ₹1,750 crore.
The office portfolio demonstrated strong leasing activity with gross leasing of 1.7 million square feet in H1FY27. As of September 2026, exit rentals for the commercial portfolio stood at ₹8.5 billion, compared with ₹6.5 billion at the end of FY26. The company also completed Prestige Trade Center in NCR, with a total development area of 0.8 million square feet. Retail operations showed robust consumer traction, with gross turnover (GTO) across malls reaching ₹7.2 billion in Q2FY27, representing 10% year-on-year growth. Footfalls totaled 5.2 million during the quarter, and occupancy rates held steady at 99%, with exit rentals for the retail portfolio standing at ₹2.8 billion as of September 2026. Among the eight real estate players that have provided operational updates so far, Q2FY27 has turned out to be the third-strongest quarter over the past 10 quarters, highlighting "the resilience of the sector," according to Nomura.
