Prestige Group aims 59% growth in FY26 sales bookings at Rs 27,000 crore

Business Standard

21 hours ago

Prestige Estates Projects Ltd has set a target to sell properties worth Rs 27,000 crore this fiscal year, an increase of 59 per cent from the previous year, as it remains bullish on housing demand.
Bengaluru-based Prestige Estates Projects' sales bookings declined 19 per cent annually to Rs 17,023 crore in the 2024-25 fiscal year on delays in regulatory approvals to launch its projects.
The company had given a sales bookings guidance of Rs 24,000 crore for the last fiscal year, but it missed the target by a huge margin.
In a conference call with analysts, Prestige Estates Chairman Irfan Razack said the company has set a conservative pre-sales target of Rs 27,000 crore for the current fiscal year.
"So the strategy is I would rather under-promise and over-deliver," Razack told analysts, as per the call transcript uploaded on the stock exchanges.
"...see, now what has happened is we had kept a target of Rs 24,000 crore for FY25, which of course, we fell short of. But I think this first quarter itself will give us some Rs 12,000-13,000 crore. So I believe we should cross Rs 25,000 crore, maybe Rs 27,000 crore... But I think let's take Rs 27,000 crore and go along for the year," Razack said.
He said the company has inventories of Rs 20,000 crore in its ongoing projects and has a strong launch pipeline of projects worth Rs 42,000 crore for the current fiscal year.
Prestige Estates Executive Director Zyad Noaman explained that the fall in pre-sales number last fiscal year was "largely due to the deferred launches".
"However, this was offset by strong pricing power, average realisation for residential apartments, villas and commercial products rose 36 per cent year-on-year to Rs 14,113 per square foot, while plotted development saw a 50 per cent year-on-year increase," said Noaman.
Looking ahead, he said the company has entered FY26 with renewed momentum.
"Q1 has already seen a strong start with the launch of The Prestige City Indirapuram, a marquee township development in NCR with a GDV (gross development value) of Rs 9,000 crore, of which we have already sold over Rs 6,500 crore," Noaman said.
According to its investors presentation, Prestige Estates will launch multiple housing projects across major cities this fiscal year with an estimated revenue of more than Rs 42,000 crore, as it looks to expand business to capitalise on strong consumer demand.
The company plans to launch as many as 25 residential projects this financial year having 44.8 million sq ft of developable area with an estimated GDV of Rs 42,120 crore.
These projects are lined up in Bengaluru, Chennai, Hyderabad, Mumbai, Delhi-NCR and Goa.
During the 2024-25 financial year, the company launched lesser projects due to delays in regulatory approvals.
Prestige Estates launched 26.28 million sq ft during the last fiscal year, primarily with a combined Gross Development Value of Rs 26,222.8 crore.
On the financial performance front, Prestige Estates net profit fell sharply to Rs 467.5 crore in the previous fiscal year from Rs 1,374.1 crore in the preceding year.
Total income, too, declined to Rs 7,735.5 crore in the last fiscal year from Rs 9,425.3 crore in the 2023-24 fiscal year.
Prestige Group has developed more than 300 projects so far and is constructing a large number of properties across major states.