Prestige Estates Projects Ltd (NSE:PRESTIGE)

Q1 2027 Prestige Estates Projects Ltd Earnings Call Transcript

Jul 30, 2026 / 10:59 AM GMT

Release Date Price: ₹1594.8 (-4.67%)

Transcript

Key Points

Positve

Prestige Estates Projects Ltd (BOM:533274) reported a strong start to FY27 with residential pre-sales of Rs 6,579 crores and robust customer collections of Rs 4,802 crores, reflecting healthy demand.
The company successfully launched four projects with a combined GDV of approximately Rs 12,000 crores, including the well-received Prestige Golden Grove in Hyderabad, which achieved 60% sales of its GDV.
The annuity portfolio performed well, with office gross leasing of 1.5 million square feet, including the full pre-leasing of Prestige JRC Signature Towers to a leading banking institution, and retail turnover growing 18% year-on-year.
Management remains confident in achieving its 15-20% pre-sales growth guidance for the year, backed by a strong launch pipeline of approximately Rs 45,000 crores across key markets like Bangalore, Mumbai, NCR, and Chennai.
The company expanded its footprint in Mumbai with three new micro-market acquisitions (Thane, Borivali, and Vasova), including a large clean-land project in Thane with a potential GDV of Rs 9,000 crores, and is actively exploring entry into Pune.
Management expects to generate free cash flows of Rs 8,500-9,000 crores for the year, which should be sufficient to cover capex and business development spends, limiting any significant increase in net debt.
The hospitality portfolio is performing well with a 41% EBITDA margin, and the company is exploring multiple monetization options, including a potential IPO or private equity transaction, which could further deleverage the balance sheet.

Negative

Reported EBITDA declined 4% year-over-year due to lower revenue recognition from fewer project completions in the quarter, while fixed costs remained elevated, putting pressure on reported margins.
Project completion timelines have been impacted by labor shortages during elections in Assam and West Bengal, causing a delay of about a month in some deliveries, and two commercial projects (Head Zone and GRC) have been pushed back by a few months.
Geopolitical tensions and rising commodity prices have increased construction costs, which could impact expenses in the near term.
The company's net debt increased to Rs 11,900 crores (from Rs 10,900 crores in March) due to land acquisitions and higher borrowings, with management expecting only a marginal reduction or a possible increase of up to Rs 1,500 crores this year.
Several key launches, particularly in Bangalore, were delayed due to slower-than-expected government approvals, pushing their launch timelines to Q2 or Q3 and creating uncertainty in the launch calendar.
Average realizations for apartments fell to Rs 11,193 per square foot, primarily due to a higher sales mix from Hyderabad (49% of sales), which has lower price points compared to other markets.
The company's corporate guarantees have doubled to Rs 11,000 crores, raising concerns about contingent liabilities, although management clarified that much of this is for consolidated SPV debt.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

PREG.NS - Prestige Estates Projects Ltd
Q1 2027 Prestige Estates Projects Ltd Earnings Call
Jul 30, 2026 / NTS GMT

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Presentation
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Unidentified_1 [1]
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Ladies and gentlemen, good day and welcome to the prestigious Q1 FY27 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes.

Should you need assistance during the conference call, please signal an operator by pressing then 0 on your touchstone phone. Please note that this conference is being recorded.

I now hand over the conference to Mr. Pratish.

Pradesh State from Access Capital.

Thank you and over to you sir.

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Unidentified_2 [2]
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