Prestige Estates Projects Ltd (PEPL), one of India’s leading real estate developers, reported a strong operational performance in Q2FY26, driven by robust sales momentum and healthy collections. The announcement spurred optimism among analysts and investors, sending the company’s shares up by as much as 6.7% to an intraday high of ₹1,615.50 on the BSE, outperforming broader market indices on 9th September.
Nuvama Institutional Equities maintained its ‘Buy’ rating on the stock, slightly revising its target price to ₹1,966 from ₹2,009, reflecting a valuation rollover to Q2FY28E. Analysts noted a near-term moderation in new project launches despite the strong underlying fundamentals. Pre-sales for Q2FY26 reached ₹6,020 crore, a 50% increase year-on-year, though sequentially down 50% from the exceptional Q1FY26 performance. The quarter included four new project launches totaling 3.9 million sq ft, with a gross development value (GDV) of ₹3,970 crore.
For H1FY26, Prestige Estates’ pre-sales stood at ₹18,140 crore, up 2.6 times year-on-year, already surpassing the full-year FY25 figures. Project launches during the half-year increased 1.9 times Y-o-Y to 18.8 million sq ft, with a combined GDV of ₹17,600 crore. Bengaluru contributed the largest share at 40%, followed by Mumbai (22%), NCR (18%), Hyderabad (11%), and Chennai (7%).
Operational performance reflected strong collections, which increased 54% Y-o-Y in both Q2 and H1FY26, totaling ₹4,210 crore and ₹8,730 crore respectively, marking record half-year figures. Price realizations also improved, with apartment, villa, and commercial property prices rising 8% Y-o-Y to ₹14,906 per sq ft. Plotted developments witnessed a sharper increase of 43% Y-o-Y to ₹9,510 per sq ft.
The company’s flagship projects also performed well. Nearly 60% of units in the Prestige Nautilus project in Mumbai (GDV ₹4,400 crore) were sold, generating ₹8,300 crore in pre-sales, alongside ₹1,500 crore in collections from its maiden NCR project within months of launch. The company’s annuity portfolio remained strong, with office leasing reaching 2.3 million sq ft in Q2 and 3.5 million sq ft in H1FY26, maintaining occupancy at 93.4% and exit rentals totaling ₹820 crore. Retail properties recorded 4.8 million footfalls, 99% occupancy, and exit rentals of ₹270 crore.
Analysts highlighted that Q2 pre-sales exceeded expectations, with the late-quarter launch of Crystal Lawns (GDV ₹530 crore) and strong sustenance sales driving higher numbers. Nomura noted that the company had already achieved 69% of its FY26 pre-sales guidance of ₹25,000–27,000 crore and could potentially reach ₹29,000 crore, supported by a robust launch pipeline and strong existing inventory sales.
The analysts remain positive about Prestige Estates’ prospects, citing Bengaluru as a key driver of volume growth. The company’s well-diversified geographical presence, improving price realizations, and healthy pipeline of new launches are expected to support long-term growth. Nomura continues to rate the stock as a ‘Buy’ with a sum-of-the-parts (SOTP)-based target of ₹1,900, identifying it as a top pick in the real estate sector.
With its strong sales performance, expanding launches, and high-quality operational execution, Prestige Estates is consolidating its position as a leading player in India’s residential and commercial real estate markets, demonstrating resilience and investor confidence amid market fluctuations.
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