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Absence of material launches dents overall performance

Significant guidance miss due to a lack of launch visibility

Operational performance

* PEPL reported a 48%/131% YoY/QoQ increase in pre-sales to INR69.6b (31% below our estimates) due to the absence of guided launches in 4QFY25. For FY25, bookings declined 19% YoY to INR170.2b (15% below our estimate and 29% below the guidance of INR240b).

* In 4QFY25, a significant sales contribution was from Nautilus (34%), followed by Southern Star, Spring Heights, Raintree Park, and Suncrest contributing 20%, 16%, 7%, and 5%, respectively. In FY25, these projects contributed a total of 58% to sales, with Nautilus contributing ~18%.

* In FY25, 45% of the sales came from Bengaluru, followed by 30% from Mumbai, 23% from Hyderabad, and 2% from other markets.

* Post 4QFY25, PEPL has an ongoing inventory of INR201b across Hyderabad, Bengaluru, and Mumbai.

* The company launched 14.03msf during the quarter, spanning four projects: Prestige Suncrest and Prestige Southern Star-Ph 1in Bengaluru, Prestige Nautilus in Mumbai, and Prestige Spring Heights in Hyderabad, with a combined GDV potential of INR161.3b. In FY25, the company launched 26.28msf, primarily across Bengaluru, Mumbai, and Hyderabad, with a combined GDV of INR262.2b.

* Project completions stood at 3.04msf in FY25 across two residential projects in Bengaluru, viz Prestige Primrose Hills Ph-1 and Prestige Waterford.

* Total units sold during the year stood at 5,919.

* Office leasing stood at 4.1msf, with 90% portfolio occupancy. Malls recorded sales of INR22.6b, with 99% retail occupancy.

* In FY25, the Board recommended a final dividend of 1.8/share (18% of face value).

Ongoing and future pipeline

* The GDV of upcoming launches planned for FY26 is at INR421b.

* For under-construction and upcoming offices, capex pending is INR91b, while retail’s pending capex is INR44b.

Cash flow

* PEPL's collections were down 12% YoY to INR14b (40% below our estimates) for 4QFY25 and down 12% YoY to INR96.7b for FY25 (8% below estimates).

* The company has a net debt of INR67b with a debt/equity ratio of 0.42 (vs INR59.6b, with a debt-to-equity ratio of 0.37x as of Dec’24). The average borrowing cost is 10.32%.

Financial performance

* PEPL reported a 29% YoY decline in revenue to INR15.3b (67% below our estimates) for 4QFY25, while revenue was down 7% YoY at INR73.5b for FY25 (29% below estimates).

* EBITDA came in at INR5.4b, down 35% YoY (30% below our estimates), with EBITDA margin standing at 35.4%, down 3pp YoY. For FY25, PEPL reported an EBITDA of INR25.6b, up 2% YoY (8% below estimates), with a margin of 34.8%, up 3pp YoY.

* PEPL reported an adjusted PAT of INR250m, down 82% YoY, with a margin of 1.6%. For FY25, the company reported adj. PAT of INR4.7b, down 34% YoY (42% below estimates).

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