Prestige Estates Projects Ltd Q1 FY27 Earnings Analysis

- The company expects sales growth of 15% to 20% in FY27, building on a strong base of INR30,000 crores sales in FY26. - Collections are also expected to grow, supported by robust demand and strong execution. - Launches planned for FY27 include projects with GDV of around INR58,000 crores across key cities like Bangalore, Chennai, Mumbai, NCR, and Hyderabad. - Sales momentum is healthy with high sales velocity (~63%) in recent launches contributing substantially to current year sales. - The company aims to maintain disciplined growth with focus on timely execution and calibrated expansion. - Residential sales volumes grew 77% YoY in FY26 to 22.28 million sq ft, expected to grow in line with sales guidance. - The annuity business and rentals are expected to contribute steadily with planned completions by FY28-FY29. - Management is cautiously optimistic, factoring in market and regulatory variables but confident in meeting or exceeding guidance.

- Prestige Estates projects 15% to 20% growth in presales and collections in FY27, building on a strong base of INR30,000 crores presales in FY26. (Pages 3, 5, 6) - Operating cash flow is expected to increase to INR8,500 crores to INR9,000 crores in FY27 from INR7,000 crores in FY26. (Page 11) - EBITDA margins are targeted to stabilize around 25%, with potential to reach closer to 28% once revenue recognition catches up with presales. (Page 15) - PAT showed 113% YoY growth in FY26, indicating improving profitability, supported by strong collections and operational execution. (Page 3) - The management maintains a conservative outlook but sees room for further stepwise growth, with focused launches and improved margins expected to support future earnings expansion. (Pages 11, 15)

- Residential development spend expected at INR 9,000 to 10,000 crores annually going forward. - Capex spend projected at around INR 4,000 to 4,500 crores. - Business development (land acquisition) spend expected to moderate to about INR 4,500 crores next year after a high spend this year on government and corporate land parcels in Hyderabad and Chennai. - Acquired land parcels in Raidurg, Chennai, and others, with payments of about INR 500 crores still pending. - Company is open-minded on monetization strategies such as monetizing commercial portfolio post build and lease, but current focus remains on building and leasing properties first. - Future capital unlock expected via REIT or IPO once capex assets (office, retail, hospitality) are ready. - No large new land acquisitions planned beyond current pipeline to avoid spiking debt-equity ratio beyond 0.75x.

- The company aims to keep its net debt-equity ratio within 0.75x and does not expect a significant rise beyond this level. - Net debt will fluctuate dynamically but remain manageable with cash flows supporting development and business growth. - The company does not anticipate major spikes in debt unless there are large acquisitions. - Future capital unlocking is expected through REIT or IPO of completed capex assets (office, retail, hospitality). - Residential projects are largely self-liquidating, reducing the need for external debt. - Business development capital spend for the next year is budgeted at INR 4,500 crores, lower than the current year's elevated spend. - No explicit mention of imminent equity fundraising; focus is on managing debt prudently and leveraging cash flows for growth.

- As of the latest update, Prestige Estates Projects Limited has added projects with a Gross Development Value (GDV) of over INR 50,000 crores in FY26, strengthening their future pipeline across key cities including Bangalore, Mumbai, NCR, Hyderabad, and Chennai. - The company expects to launch about INR 57,000 crores GDV worth of projects during the current financial year, with approximately INR 9,500 crores already launched (e.g., Prestige Golden Grove in Hyderabad). - Additionally, there is a planned launch of around INR 5,000 crores worth of GDV in the upcoming quarters. - The company’s unrecognized revenue (indicative of pending orders) stands at INR 65,000 crores, representing sold inventory yet to be recognized in the books due to accounting norms. - The orderbook is robust, supported by consistent presales and a strong development pipeline targeting sustained growth.