Prestige Estates Projects: Quick Note

Research evidence excerpt

Prestige Estates Projects: Quick Note

Global Markets Research

Prestige Estates Projects PREG.INx PEPL IN 30 July 2026

EQUITY: PROPERTY

Rating1QFY27: Non-event PL, strong BD/collections, net debt up q-q Remains Buy

Target price INR 1,900 RemainsQuick Note

Closing pricePrestigeEstatesannounced1QFY27resultson29July,withacallscheduledfor30July 29 July 2026 INR 1,673

at3.30pmIST.Overallkeytakeawaysare:1)strongBDatINR178bn,allinMumbaiin

1QFY27;2)PLwasanon-event,withEBITDAdown4%y-yduetolowermargins;3)

constructionexpenseandinvestmentstowardslandandannuityexceededcollections, Research Analysts

leadingtonetdebtgrowingfromINR109bnatend-FY26toINR119bn(netdebt/equityat India Property0.69xin1QFY27);and4)weexpectprojectlaunchmomentumtosignificantlyimprove

Akash Gupta - NFASLthroughtheyear.WemaintainourBuyratingandTPofINR1,900.Thestockcurrently akash.gupta3@nomura.com

tradesatparwithitsresidentialNAVof36%(vsourtargetof70%). + 91 22 40374043

Belowareourkeytakeaways:

• PL: 1QFY26 revenue at INR27bn grew +16% y-y but EBITDA was down 4% y-y as

low-margin projects got recognized in the quarter. In addition, we believe marketing

expenses for current projects are also pressuring margins. Margins for the residential

projects, however, improved q-q. Revenue/EBITDA were 31%/26% below Bloomberg

consensus estimates.

• Presales: Prestige achieved pre-sales of INR65.8bn in 1QFY27 (-46% y-y, -15% q-q;

vs our estimate of INR62bn). The decline was primarily due to the high base from last

year when The Prestige City Indirapuram in Ghaziabad, NCR was launched. Average

realization in 1QFY27 was INR11,193/sf for flats and INR8,043/sf for plotted

developments.

• Launches: The company launched three residential projects with total GDV of

INR120bn during the quarter: