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Launch momentum drives solid operating and financial outcomes Operational performance

• Presales: 1QFY26 presales grew 300% YoY/74% QoQ to INR121.3b (in line with our est.), aided by stellar launches in NCR, Bengaluru, and Chennai.
• Geographical contribution: In FY25, 59% of total sales were contributed by NCR, followed by 21% from Bengaluru, 12% from Mumbai, 5% from Hyderabad, and 3% from other markets.
• Launches: During the quarter, PEPL launched four residential projects, totaling 14.94msf (GDV INR136b), featuring a mix of plotted developments and integrated townships that cater to diverse homebuyer segments.
• Mulberry and Oakwood (Indirapuram) in NCR – 9.64msf
• Gardenia Estates (Plotted) in Bengaluru – 1.06msf
• Pallavaram Gardens in Chennai – 4.24msf
• Business development: The company acquired 102 acres of land with a GDV of INR204b in 1QFY26 across Hyderabad, Bengaluru, Chennai, and Mumbai.
• Completions: PEPL has completed five residential projects spanning 5.45msf, marking its first-ever project completions in Mumbai and strengthening its footprint in key urban centers. Additionally, the company has completed and handed over the Prestige Turf Tower in Mahalaxmi, Mumbai, comprising a total developable area of 0.64msf. This tower serves as the rehabilitation component for the marquee development, The Prestige, Mumbai.
• Post 1QFY26, PEPL has an ongoing inventory of INR207b across Hyderabad, Bengaluru, and Mumbai.
• A total of 4,718 units were sold during 1QFY26, representing ~80% of units sold during FY25.
• Office: Total leased area in 1Q was 1.21msf. Occupancy remained robust at 93.7%. Exit rentals for 1QFY26 amounted to INR5.2b and guided in FY26 stands at INR8.2b.
• Retail: Gross turnover across malls stood at INR5.9b. Occupancy remained strong at 98.9%. Exit rentals for the period stood at INR2.2b.
• Upcoming launches worth GDV of INR299b are planned for the rest of FY26.
• For under-construction and upcoming office projects, pending capex is INR107b, while retail projects have pending capex of INR43b.
• Collections rose 57% YoY to INR42.3b (8% above our estimate) for 1QFY26.
• In 1QFY26, net debt was INR68b, with a net debt-to-equity ratio of 0.42x (vs. INR67b with a net debt/equity ratio of 0.42x as of Mar’25). The average borrowing cost stands at 10.14%.
• P&L: 1Q revenue grew 24% YoY/51% QoQ to INR23.1b (in line). EBITDA came in at INR8.9b, up 12% YoY/65% QoQ (60% above our estimate), with an EBITDA margin of 39%. The margin expansion was aided by the recognition of high-margin projects – Siesta and Jasdan Classic in Mumbai. Adjusted PAT of INR2.9b was up 26% YoY, with a margin of 13% (50% above estimates).

Key highlights from the management commentary

• Prestige launched ~15msf with GDV of INR136b in 1QFY26 across NCR, Bengaluru, and Chennai.
• FY26 presales guidance is INR270b, with 45% achieved so far; INR299b GDV launches lined up for the rest of the year.
• Bengaluru, MMR, and NCR will see six plotted launches in 2Q-3Q; INR100-150b of additional projects ready if needed.
• INR500b worth of new projects are under planning and will be added to the pipeline in the coming quarters.
• 1QFY26 saw acquisition of seven JDA projects (102 acres, GDV INR204b) across four cities; INR5b land spend pending.
• Revenue recognition lagged completions; FY26 residential revenue guided at INR80-100b with EBITDA margin of 30-35%.

Valuation and view

• As the company advances its growth trajectory in both residential and commercial segments and unlocks value from its hospitality segment, we believe the stock is set for further re-rating. Reiterate BUY with a revised TP of INR2,000, indicating a 25% upside potential.

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