PRESTIGE Q3 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹3,886 Cr
verified against source
Revenue YoY
128%
reported change
EBITDA
₹873 Cr
latest reported figure
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record provenance
Actual signal trajectory
Where this quarter sits.
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What the record says.
Prestige Estates delivered an exceptional Q3 FY26 with pre-sales of ₹4,184 crore (+39% YoY), the highest quarterly sales ever, driven by strong demand across Mumbai, Bangalore, Hyderabad, and NCR markets. The company is on track to cross ₹30,000 crore in annual pre-sales for FY26, with collections also at record highs of ₹4,584 crore for the quarter. Financial performance showed revenue of ₹3,886 crore (+128% YoY) with EBITDA margin of 22.5%, though down sequentially due to product mix (legacy Ciesta project with lower margins). The commercial office portfolio remains robust with 95%+ occupancy, and three premium office developments (3.7 mn sq ft) have been completed. Unrecognized revenue of ₹61,922 crore provides strong revenue visibility. Land acquisition was aggressive with ₹2,700 crore deployed in Q3 for Hyderabad Knowledge Park and Chennai parcels. For FY27, management targets pre-sales growth through new launches in Bangalore, Hyderabad (Golden Grove), and Mumbai, though specific guidance deferred to April. Key risks include pricing peaking in major markets and slower-than-expected absorption in Chennai/NCR markets.
Colored figures show movement against the previous available record.
Guidance to track
- Management expressed confidence in crossing the ₹30,000 crore annual pre-sales milestone for FY26, with Q4 expected to contribute approximately ₹7,500-8,000 crore from planned launches in Bangalore (Evergreen, Eton Park, Fernale), Hyderabad (Golden Grove), and Chennai (Palm Court).
- The company allocated ₹1,000-1,300 crore for business development in Q4 FY26, taking full-year BD deployment to approximately ₹5,500-6,000 crore, above the initial guidance of ₹4,500 crore due to opportunistic land acquisitions.
- For FY27, the company budgets ₹4,000-5,000 crore for business development, deploying approximately 70% in residential and 30% in commercial/retail segments, with 40% of capex funded through debt.
- With three recently completed premium office developments totaling 3.7 million sq ft (Prestige Lakeshore Drive, Prestige Tech Hub, Prestige Capital Square), office annual income is projected to scale to approximately ₹4,000 crore by FY30 from current exit rentals of ₹829 crore in FY26.
Risks flagged
- Q3 EBITDA margin declined to 22.5% versus prior quarters due to lower-margin legacy projects (Ciesta NCT takeover with old rates). Management acknowledged this product mix impact, though maintained 28-30% IRR expectations on newly signed BD projects.
- Analyst raised concern that approximately one-third of FY26 pre-sales (~₹9,000 crore) came from NCR (Indirapuram), creating a potential shortfall in FY27 before new land acquisitions (Sector 150 legal clearance, two Ganga gram parcels) come online. Management acknowledged the risk but did not provide specific FY27 targets.
- Analyst questioned whether Prestige is over-extending in Chennai/Hyderabad where peers struggle. Nautilus project has achieved only 55% GDV absorption (~₹4,500 crore of ~₹8,000 crore) over extended timeline. Management defended slower Chennai absorption (20% sellout in 1-2 months considered good) but did not address competitive dynamics.
- Q3 BD spend of ₹2,700 crore (total FY26: ~₹5,500-6,000 crore) was above guidance due to opportunistic acquisitions including Hyderabad Knowledge Park (~₹2,000 crore) and Chennai land (₹800 crore). With prices 'peaked out' per management, there is risk of lower-than-expected IRRs if construction costs continue rising or market softens before project monetization.
Key quotes
- We have topped up on the price. We should not allow price. What's happened is what components go into price? It is land, construction cost, and approval cost. At the level that we reached, I think we've according to me more or less peaked out.
- We are very conservative. We take the worst-case scenario and make any commitment for any land. In case we believe that it's just not possible, we just let it go. There's no ego in doing business.
- I don't think anybody buys a home looking at price getting higher every month or every quarter. They look at location, they look at the product, they look at the opportunity, they look at the affordability. I wouldn't want investors to come in thinking they'll buy today, sell tomorrow, make some money. I think that would be an artificial market.
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