Prestige Group Reports 82% YoY Drop in Q4 FY25 Net Profit to ₹25 Crore

Prestige Group reported a sharp year-on-year decline in its consolidated net profit for the fourth quarter of the financial year 2024-25. According to a regulatory filing, the company posted a net profit of ₹25 crore for the quarter ending March 2025, marking an 82% drop from ₹140 crore in the same period of the previous year.

The company's total income for Q4 FY25 stood at ₹1,589.3 crore, compared to ₹2,232.5 crore in Q4 FY24. The decline in revenue and profitability reflects broader challenges in the real estate market and the company’s evolving project cycle dynamics.

For the full financial year, Prestige Estates Projects Limited registered a consolidated net profit of ₹467.5 crore, down 66% from ₹1,374.1 crore reported in FY24. Annual revenue also declined to ₹7,735.5 crore from ₹9,425.3 crore in the previous fiscal year.

The company's management has not provided detailed commentary on the profit decline, but analysts attribute the fall to delays in project completions, lower collections from ongoing developments, and increased input costs during the year.

Despite the drop in financial performance, the company continued to expand its development pipeline. One of the notable developments during FY25 was the announcement of a major commercial office project in Mumbai. On May 28, 2025, Prestige Estates entered into a joint development agreement with Valor Group to develop an office complex in Andheri East, Mumbai.

The proposed commercial project will be built on a 21,978.22 square metre parcel of land and will have approximately 1.5 million square feet of leasable space. The total estimated Gross Development Value (GDV) of the project is ₹4,500 crore. Prestige and Valor will each hold a 50% economic stake in the project. The development will be carried out through a Special Purpose Vehicle (SPV), into which Prestige will infuse ₹504 crore.

In a separate strategic move, Prestige Hospitality Ventures Limited (PHVL), a wholly-owned subsidiary of the company, filed its Draft Red Herring Prospectus with the Securities and Exchange Board of India (SEBI) in April 2025. The proposed Initial Public Offering (IPO) includes an offer-for-sale of equity shares worth up to ₹1,000 crore and a fresh issue of equity shares aggregating up to ₹1,700 crore.

PHVL manages the hospitality arm of the Prestige Group, and the IPO is expected to strengthen its balance sheet and support future growth in the hotel and serviced apartments segment. The proceeds from the fresh issue are likely to be used to reduce debt, invest in new hospitality assets, and enhance existing properties.

While the real estate market in India has shown signs of recovery in segments like mid-income housing and logistics, developers in the commercial and luxury residential sectors have faced pressures due to oversupply and longer gestation periods. For Prestige, the combination of declining earnings and new capital-intensive projects could impact near-term cash flows, though the company appears to be positioning itself for long-term value creation.

Prestige Group remains one of India’s leading real estate developers with a presence across residential, commercial, retail, hospitality, and mixed-use segments. As of FY25, the group has delivered over 250 projects, covering more than 140 million square feet of developable area, and continues to maintain a robust land bank in key Indian cities.

Image source- prestigeconstructions.com