Target: ₹1,623
CMP: ₹1,318.15
Prestige Estates Projects’ expansion is driven by a diverse portfolio, covering residential, office, retail and hospitality segments.
In 9MFY26, pre-sales surged 122 per cent year on year, surpassing the previous full-year peak, driven primarily by a strong 40 per cent contribution from the NCR region. Quarterly sales volumes stood at 2.9 million sq ft, with over 8,500 units sold YTD, alongside a 6 per cent increase in average realisations.
Revenue for Q3 grew 128 per cent, driven by strong project completions. However, EBITDA margin for the quarter stood at 22.5 per cent (vs. 34.3 per cent for 9M), with Q3 compression attributable to product mix. The management has raised its FY26 pre-sales guidance to over ₹30,000 crore, having already achieved ₹22,327 crore in the first nine months, keeping it firmly on track to meet its FY26 guidance.
A strong Q4 launch pipeline across key markets such as Bengaluru, Hyderabad and Chennai, coupled with unrecognised revenue of ₹61,922 crore, provides healthy visibility on future bookings and revenue realisation. However, margins continue to face pressure due to an adverse product mix and elevated business development spending. Despite these near-term challenges, current valuations appear reasonable. Hence, we upgrade our rating to Buy, with a revised target price of ₹1,623, based on FY28E NAV.