Prestige Estates' strong H1 puts it on course to top FY26 guidance

Realty major Prestige Estates' record H1 sales and strong Q2 demand boost investor confidence as brokerages expect it to exceed its FY26 sales guidance

The stock of real estate major Prestige Estates Projects was among the top gainers in the BSE 200 index, rising 4.4 per cent after the company indicated healthy growth in its pre-quarter update for the July–September quarter (Q2) of 2025–26 (FY26).

 

While Q2 sales were robust, the first half (H1) of FY26 saw presales or bookings exceed those of 2024–25. The strong bookings trend is expected to support the stock, which, along with its real estate peers, has sharply underperformed the broader markets and benchmarks over the past year. The stock is down 15 per cent during this period.

 

The company recorded sales of just over ₹6,000 crore, up 50 per cent year-on-year (Y-o-Y), driven by demand across markets and segments. By volume, sales rose 47 per cent Y-o-Y to 4.42 million square feet (msf), with 2,069 units sold. Realisations in Q2 were steady at ₹14,906 per square foot, an 8 per cent Y-o-Y increase. 

For H1FY26, sales hit a record ₹18,143 crore, a 157 per cent Y-o-Y rise. Volumes stood at 13.96 msf, with 6,788 units sold. The average realisation for apartments was ₹13,769 per square foot, up 6 per cent Y-o-Y.

 

Nomura noted that the better-than-expected performance was driven by one additional plotted development launch towards the end of the quarter, which had not been factored in earlier estimates. The company launched Crystal Lawns with a gross development value of ₹530 crore, and reported stronger-than-expected sustenance sales of roughly ₹4,000 crore. 

 

Analyst Akash Gupta of Nomura said that sustenance sales — sales of existing inventory rather than new launches — have emerged as a key trend, reflected in the pre-quarter updates of Sobha, Lodha Developers (formerly Macrotech), and now Prestige. This, he added, highlights the strength of housing demand. Nomura has a ‘buy’ rating on Prestige, calling it its top pick in the real estate space, with a target price of ₹1,900 per share.

 

Among key markets, Delhi–National Capital Region contributed the most, accounting for 45 per cent of total sales. Bengaluru contributed 27 per cent, while Mumbai’s share stood at 16 per cent, driven by the Prestige Nautilus project.

 

The company has guided for 46 per cent presales growth in FY26, targeting ₹25,000–27,000 crore, supported by a launch pipeline of ₹43,500 crore. With 69 per cent of the annual target already achieved in H1FY26, brokerages expect Prestige to meet its full-year guidance.

 

In the commercial portfolio, the office segment reported a high occupancy rate of 93.4 per cent, with gross leasing of 2.3 msf in the second quarter of FY26 — expected to translate into strong rentals by year-end. The retail segment saw a 9 per cent Y-o-Y growth, with a gross turnover of ₹620 crore and occupancy of around 99 per cent.

 

According to HDFC Securities, Prestige is well-positioned to consolidate its market leadership, backed by a strong brand, a diversified pan-Indian footprint, and its ability to capitalise on the current real estate upcycle. Analysts led by Parikshit D Kandpal said the company has superior growth prospects in its residential portfolio and is poised for multifold annuity growth. They have maintained a ‘buy’ rating with a target price of ₹2,060 per share.