Prestige Estates Projects , a leading real estate developer, has set its sights on ambitious growth targets for the fiscal year 2026 (FY26). The company's Chairman and Managing Director, Irfan Razack, has expressed confidence in exceeding their pre-sales target of over Rs 25,000 crore for the year.

Strong Q1 Performance Sets the Pace

The company's optimism is buoyed by a robust performance in the quarter ended June, where it achieved sales of Rs 12,126.40 crore. This figure represents nearly half of their annual target, indicating a strong start to the fiscal year.

Substantial Inventory and Development Pipeline

Razack revealed that Prestige Estates currently holds an impressive inventory worth Rs 20,000.00 crore. Additionally, the company has a pipeline with a Gross Development Value of Rs 42,000.00 crore. Combined, this represents a potential stock of Rs 62,000.00 crore, underlining the company's strong position in the market.

Mid-Market Segment Drives Consistent Demand

The company has identified the mid-market segment, comprising properties priced between Rs 1-3 crore, as the consistent driver of demand. This insight into consumer preferences could play a crucial role in Prestige Estates' product strategy and future growth.

Cautious Outlook on Property Prices

While the company's sales targets are ambitious, Razack offered a cautious perspective on property values. He noted that prices have reached a peak and warned against rapid increases that could potentially impact affordability for buyers.

Hospitality Arm IPO on the Horizon

In a significant development for the company, Prestige Estates has received clearance for the draft prospectus of its hospitality arm's Initial Public Offering (IPO). The company expects to complete the offering by mid-September, potentially opening up new avenues for growth and capital.

Positive View on RBI's Monetary Policy

Razack welcomed the recent rate cuts by the Reserve Bank of India (RBI), viewing them as beneficial for homebuyers. He also expressed support for the RBI's decision to maintain the repo rate at 5.50%, suggesting a favorable environment for the real estate sector.

As Prestige Estates Projects aims for new heights in FY26, the company's strong inventory position, robust pipeline, and strategic focus on the mid-market segment appear to be key factors driving its ambitious targets. However, the company's cautious stance on property prices indicates a balanced approach to growth in a dynamic real estate market.

Prestige Estates Projects Ltd , a leading real estate developer, has made significant strides in land acquisition and financial performance during the first quarter of the fiscal year. The company has embarked on an ambitious expansion plan while delivering robust financial results.

Land Acquisition Spree

Prestige Estates Projects has acquired 102 acres of land across four major Indian cities during the April-June quarter. This strategic move aims to develop residential projects with an estimated gross development value of Rs 20,400 crore. The acquisitions include:

• 65 acres in Hyderabad (28 acres in Tellapur and 37 acres in Pulimamidi)
• 27 acres across three locations in Bengaluru
• 3.48 acres in Chennai's Velachery
• 6.3 acres in Mumbai

This land acquisition spree demonstrates the company's commitment to expanding its presence in key real estate markets across India.

Strong Financial Performance

The company has reported impressive financial results for the quarter:

• Net Profit: Consolidated net profit increased by 26% to Rs 292.50 crore, up from Rs 232.60 crore in the previous year.
• Total Income: Rose to Rs 2,468.70 crore from Rs 2,024.50 crore, marking a significant year-on-year growth.
• Sales Bookings: Jumped four-fold to Rs 12,126.40 crore, primarily driven by strong demand for its Ghaziabad housing project. This is a substantial increase from Rs 3,029.50 crore in the same period last year.

Financial Highlights

Future Outlook

Prestige Estates Projects has set an ambitious guidance target of Rs 27,000 crore in sales bookings for the current fiscal year. This target reflects the company's confidence in the real estate market and its ability to capitalize on the growing demand for housing across major Indian cities.

The company's strategic land acquisitions, coupled with its strong financial performance, position it well for future growth in the competitive real estate sector. As Prestige Estates Projects continues to expand its footprint across Bengaluru, Hyderabad, Chennai, and Mumbai, investors and homebuyers alike will be watching closely to see how these ambitious projects unfold in the coming quarters.