Its pre-sales grew by 20 per cent over the year-ago period and 10 per cent sequentially to ₹7,225 crore. This was owing to three new projects launched in the quarter.
The three projects with a developable area of 5.91 million square feet have a gross development value (GDV) of ₹4,020 crore. Collections also remained strong at ₹5,294 crore during the quarter, taking the H1FY27 total to ₹10,096 crore. This reflects healthy customer demand and strong execution across projects.
In addition to residential, the company is well placed in its annuity or office portfolio as well as retail (mall) business with healthy occupancies and consumption growth.
The stock (₹1,469), which shed about 14 per cent over the last three months, is currently trading at 26 times its FY28 earnings estimates.
During the quarter, Prestige launched 10.1 million square feet of projects across segments.
This includes three residential projects in Bengaluru and Chennai (5.91 million square feet), three commercial projects spanning 2 million square feet across Chennai and Kochi, one mall in Chennai (1.4 million square feet and two hotel assets with 313 keys — 0.8 million square feet), one each in Chennai and Sakleshpur (Karnataka).
Overall, H1FY27 launches stand at 30.3 million square feet, of which 23.1 million square feet are residential projects with a GDV of ₹16,200 crore.
Nomura Research believes that the launch momentum of Prestige Estates will significantly improve in FY27 as the company has launched only ₹16,000 crore worth of projects compared to its planned launch pipeline of ₹57,000 crore. Akash Gupta of Nomura has maintained the FY27 pre-sales estimate of ₹35,000 crore for the company and this translates into a growth of 17 per cent year-on-year (Y-o-Y).
The health of listed organised players is robust. The brokerage estimates that of the eight players who provided operational updates till now, Q2FY27 has turned out to be the third-strongest quarter over the past 10 quarters. The brokerage has a ‘buy’ rating with a target price of ₹1,900.
In the commercial (office) segment, gross leasing was 1.7 million square feet in Q2FY27 and 3.2 million square feet in the first half of FY27.
Leasing in FY26 stood at 4.5 million square feet. In the retail segment, consumption in malls in Q2FY27 was ₹720 crore (up 10 per cent Y-o-Y) with 5.2 million footfalls and 99 per cent occupancy levels.
While the office segment ended with exit rentals of ₹840 crore at the end of Q2FY27, the metric for retail portfolio stood at ₹280 crore.
The occupancy levels for the hospitality (hotels) segment on an average stood at 70 per cent in the first half of FY27.
The expansion pipeline for the hospitality segment got a boost recently when the Canadian Pension Plan Investments (CPPI) infused ₹3,000 crore for a 27 per cent stake in Prestige Hospitality Ventures.
Proceeds from the sale are expected to be utilised for growth capital, debt reduction and operational expenses.
Nuvama Research is positive on the company given improving launch trajectory and geographical diversification. The brokerage has retained ‘buy’ rating with a target price of ₹2,058 and has factored in the 27 per cent stake sale in its hospitality arm to CPP Investments.
 "Prestige Estates | Image: Company's LinkedIn Profile")