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Healthy quarter; Launch heavy 2HFY27

Prestige Estate Projects Ltd (PEPL) reported pre-sales growth of 20% YoY to INR 72.3bn, along with healthy collections of INR53bn; improved 26% YoY in Q2FY27. PEPL has delivered healthy pre-sales CAGR of 32% over FY23–26, led by new launches, entry into new markets, and premiumization. Supported by a healthy launch pipeline (~40msf with potential GDV of INR466bn) across key market including Bengaluru, Chennai, Mumbai, NCR and Hyderabad and unsold inventory of INR 213bn+, we expect pre-sales to clock 10-15% CAGR over FY26–29E. Further, given the strong OCF generation and comfortable balance sheet position, PEPL should be able to comfortably fund BD and capex. Maintain ‘BUY’ rating and DCF-derived NAV with SOTP-based TP of INR 1,800/share.

~2% YoY EBITDA growth:

Operationally, PEPL reported EBITDA of INR 9.3bn vs. INR 9.1bn in Q2FY26, with OPM increasing sharply by ~750bps YoY to 45%. For H1, the EBITDA stood at INR 17.9bn (declined by 1% YoY), with OPM at 37.7%. Consolidated revenues de-grew by ~15% YoY to INR 20.6bn. H1 revenue stood at INR 47.4bn, flat YoY. PAT decreased to INR 2.2bn vs INR 4.3bn in Q2FY26. Net debt increased by INR 2.1bn QoQ to INR 121.2bn due to a land acquisition Sector 109, Gurugram (~17 acres) with potential GDV of INR 56bn.

Healthy pre-sales in Q2; led by strong sustenance sales:

PEPL pre-sales increased by 20% YoY (10% QoQ) to INR 72.3bn (5.8 msf sold where PEPL share at 5.3 msf). H1FY27 pre-sales stood at INR138 bn, down ~24% YoY, due to higher base in H1FY26 from Indirapuram project’s bookings. In Q2, Prestige launched 3 residential projects such as Palm Court in Chennai, Garden Breeze TPC and Parklane in Bengaluru, which contributed ~INR21bn (29%) to Q2 pre-sales. The new launches contributed INR 66.2bn (~48%) to the presales in H1. Average price realization stood at INR12,372psf (down by 9% YoY) in Q2FY27. Office portfolio’s gross leasing stood at 1.7 msf with FY27’s exit rental at INR 8.4bn in H1. While retail portfolio’s gross turnover grew 10% YoY to INR 7.2bn with FY27’s exit rentals at INR 2.8n as of H1FY27. The collections increased by 26% YoY to INR 52.9bn. Annuity income during the quarter stood at INR 2.4bn, up 11% YoY. PEPL’s unrecognised revenue stood at INR 756bn, with Bengaluru accounting for the largest share (44%). On the cost side, construction costs stood at INR 25bn, while the upcoming commercial capex (PEPL share) stood at INR 60.8bn.

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SEBI Registration number is INH000000933