Prestige Estates Projects Ltd. has set a goal to achieve property sales worth Rs 27,000 crore in the current fiscal year, representing a 59% increase from the previous year, demonstrating its optimism about housing demand.
Bengaluru-based Prestige Estates Projects saw its sales bookings fall by 19% year-over-year to Rs 17,023 crore in the 2024-25 fiscal year, primarily due to delays in obtaining regulatory approvals needed to launch new projects.
The company had initially projected Rs 24,000 crore in sales bookings for the last fiscal year but fell significantly short of that target.
During a conference call with analysts, Prestige Estates Chairman Irfan Razack mentioned that the company has adopted a cautious approach with a pre-sales target of Rs 27,000 crore for the current fiscal year.
“So the strategy is I would rather under-promise and over-deliver,” Razack told analysts, as per the call transcript uploaded on the stock exchanges.
“…see, now what has happened is we had kept a target of Rs 24,000 crore for FY25, which, of course, we fell short of. But I think this first quarter itself will give us some Rs 12,000-13,000 crore. So I believe we should cross Rs 25,000 crore, maybe Rs 27,000 crore… But I think let’s take Rs 27,000 crore and go along for the year,” Razack said.
He stated that the company currently holds inventories valued at Rs 20,000 crore across its ongoing projects and has a robust pipeline of new projects worth Rs 42,000 crore planned for the current fiscal year.
Prestige Estates Executive Director Zyad Noaman explained that the fall in pre-sales numbers last fiscal year was “largely due to the deferred launches.”
“However, this was offset by strong pricing power; average realization for residential apartments, villas, and commercial products rose 36 percent year-on-year to Rs 14,113 per square foot, while plotted development saw a 50 percent year-on-year increase,” said Noaman.
Looking ahead, he said the company has entered FY26 with renewed momentum.
“Q1 has already seen a strong start with the launch of The Prestige City Indirapuram, a marquee township development in NCR with a GDV (gross development value) of Rs 9,000 crore, of which we have already sold over Rs 6,500 crore,” Noaman said.
According to its investor presentation, Prestige Estates plans to launch multiple residential projects across key cities this fiscal year, aiming for projected revenues exceeding Rs 42,000 crore as it seeks to expand its business and capitalize on strong consumer demand.
The company intends to introduce up to 25 residential developments, covering a total of 44.8 million square feet of developable area, with an estimated Gross Development Value (GDV) of Rs 42,120 crore.
The company has scheduled these upcoming projects in Bengaluru, Chennai, Hyderabad, Mumbai, Delhi-NCR, and Goa.
In the 2024-25 financial year, the company launched fewer projects due to delays in regulatory approvals.
In the previous fiscal year, Prestige Estates launched 26.28 million square feet of projects, with a total Gross Development Value of approximately Rs 26,222.8 crore.
In terms of financial results, Prestige Estates’ net profit declined significantly to Rs 467.5 crore in the last fiscal year, down from Rs 1,374.1 crore in the previous year.
Total income also decreased to Rs 7,735.5 crore during the same period, compared to Rs 9,425.3 crore in the 2023-24 fiscal year.
To date, the Prestige Group has completed over 300 projects and is actively developing numerous properties across major states.
