Prestige Estates share zooms 7% on robust Q2 sales; Analysts retain 'Buy'

Real estate major Prestige Estates Projects (PEPL) posted a strong operational performance in Q2FY26, aided by robust sales momentum and healthy collections, fueling optimism among analysts.

 

On the bourses, Prestige Estates shares rallied as much as 6.7 per cent to an intraday high of ₹1,615.50. Around 9:30 AM, the stock was trading 5.1 per cent higher at ₹1,591.10, outperforming the BSE Sensex, which was up 0.2 per cent at 81,939.85.

 

Nuvama Institutional Equities maintained its ‘Buy’ rating on the stock, while slightly trimming its target price to ₹1,966 from ₹2,009, reflecting a valuation rollover to Q2FY28E. 

 

The brokerage highlighted a near-term moderation in launches despite strong fundamentals, with pre-sales rising 50 per cent Y-o-Y to ₹6,020 crore in Q2FY26. The quarter included four new project launches spanning 3.9 million sq ft (GDV ₹3,970 crore), though sequentially pre-sales fell 50 per cent Q-o-Q, following an exceptional Q1FY26.

 

 

Prestige Estates’ H1FY26 pre-sales stood at ₹18,140 crore, up 2.6x Y-o-Y, already surpassing the full-year FY25 figure. Launches during the half-year also jumped 1.9x Y-o-Y to 18.8 msf with GDV of ₹17,600 crore. Bengaluru remained the largest contributor (40 per cent), followed by Mumbai (22 per cent), NCR (18 per cent), Hyderabad (11 per cent), and Chennai (7 per cent).

 

The company sold nearly 60 per cent of its Prestige Nautilus project in Mumbai (₹4,400 crore) and generated ₹8,300 crore in pre-sales along with ₹1,500 crore in collections from its maiden NCR project within months of launch. Operationally, collections jumped 54 per cent Y-o-Y in both Q2 and H1FY26, totaling ₹4,210 crore and ₹8,730 crore, marking record half-year collections. Price realizations improved too, with apartment, villa, and commercial property prices up 8 per cent Y-o-Y to ₹14,906/sq ft, and plotted developments surging 43 per cent Y-o-Y to ₹9,510/sq ft.

 

Prestige Estates’ annuity portfolio also remained strong. Office leasing reached 2.3 msf in Q2 and 3.5 msf in H1FY26, with occupancy at 93.4 per cent and exit rentals at ₹820 crore. Retail performance saw footfalls hit 4.8 million, 99 per cent occupancy, and exit rentals of ₹270 crore.

 

Adding further confidence, Nomura highlighted that Prestige Estates’ Q2 pre-sales of ₹6,000 crore exceeded its estimate of ₹4,700 crore, driven by the late-quarter launch of Crystal Lawns (GDV ₹530 crore) and stronger-than-expected sustenance sales (~₹4,000 crore vs ~₹3,000 crore estimate). The brokerage noted that Prestige Estates has already achieved 69 per cent of FY26E pre-sales guidance (₹25,000 crore-27,000 crore) and could potentially reach ₹29,000 crore, thanks to a robust launch pipeline and strong existing inventory sales. Thus, Nomura analysts maintained a ‘Buy’ rating and a SOTP-based target of ₹1,900, citing the stock as a top pick in the real estate sector.

 

That said, analysts remain upbeat, noting that Bengaluru can still drive volume growth, while the company’s well-diversified geographical presence, improving realisations, and strong launch pipeline support its long-term prospects.