Prestige Estates Projects continued to draw positive commentary from brokerages after reporting record annual sales and collections for FY26, with Axis Securities reiterating its Buy recommendation and maintaining a target price of Rs 1,830, implying a 32% upside. The brokerage said Prestige remains well positioned for sustained growth, backed by a robust launch pipeline, expanding annuity portfolio and improving cash flow visibility.
Prestige reported FY26 pre-sales of over Rs 30,000 crore, marking a 76% year-on-year jump, while collections rose 53% to more than Rs 18,500 crore. The company also reported a strong Q4 performance, with revenue surging 166% year-on-year to Rs 4,074 crore. EBITDA stood at Rs 1,045 crore, while net profit came in at Rs 292 crore.
Axis said the company has successfully diversified beyond its traditional Bengaluru-focused business, with meaningful traction now visible across NCR, Mumbai and Hyderabad.
What's Driving The Growth?
One of the key drivers for optimism remains the company's FY27 launch pipeline, estimated at nearly Rs 68,000 crore gross development value. The brokerage highlighted recently launched projects such as Prestige Golden Grove in Hyderabad, which reportedly recorded sales of around Rs 2,300 crore shortly after launch. The note also pointed to Prestige's growing annuity business as an increasingly important long-term earnings driver. Office occupancy remained healthy at 92%, while retail occupancy stood at 99%, supporting stable recurring cash flows.
Leasing momentum in projects such as BKC and Mahalaxmi in Mumbai also remained strong, aided by demand from global capability centres and large corporates. Axis further noted that the company added projects worth over Rs 50,000 crore in gross development value during FY26 and currently has unrecognised revenue of nearly Rs 65,000 crore, providing medium-term earnings visibility.
However, the brokerage also flagged risks, including delays in project approvals, rising debt due to land acquisitions and challenges in sustaining growth momentum outside core geographies.
Management, meanwhile, maintained guidance for 15-20% growth in both pre-sales and collections in FY27, despite a high base, while reiterating confidence in housing demand across key IT-led markets.
Prestige Estate shares closed the Monday trading session 0.54% higher at Rs 1,396. The stock has fallen 2.97% over one year. The benchmark Nifty 50 has fallen 3.88% in teh same time period.
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