Prestige Estates Projects Ltd Q4 FY25 Earnings Analysis

- FY '26 revenue guidance is expected to be INR10,000 to 12,000 crores from projects completing next year like Prestige Sarjapur with ~30% EBITDA margin. (Page 8) - Launches in FY '26 will include spillover of INR20,000+ crores inventory from FY '25 plus new pipeline projects; clarity on FY '26 launches expected post Q4 FY '25. (Page 5, 7) - Sales volumes sustained at ~2 million sq ft per quarter, expected to continue at this run rate with firm demand and price hikes not affecting liquidation. (Page 15, 16) - Sales in FY '25 were INR10,065 crores with 8 million sq ft sold in 9 months, collections of INR8,910 crores signal healthy cash flow to support growth. (Page 2) - Business development ongoing with INR1,700-1,800 crores invested in land across Mumbai, Goa, Bangalore to fuel future growth. (Page 16) - Strong demand seen in markets like Hyderabad, Mumbai with luxury projects like Nautilus (ticket size INR25 cr+) and mid-income Southern Star (INR1.5-3 cr) contributing to sales pipeline. (Page 10)

- For FY '26, expected revenue from project completions (e.g., Prestige Sarjapur, BKC Sarjapur) is estimated between INR 10,000 to 12,000 crores. - EBITDA margin for these projects is anticipated around 30%. - Free cash flow from the residential business is projected at approximately INR 50,000 crores over 4-5 years (~INR 10,000 crores per year). - Collections expected to grow from INR 13,000 crores to INR 16,000 crores in the current year with multiple launches. - Operating EBITDA for 9 months FY '25 stood at INR 2,342 crores with a 38% margin, indicating strong profitability. - Management is confident of achieving launch and sales targets for FY '25 and is optimistic about sustained demand and cash flows. - No specific EPS guidance given yet; official guidance for FY '26 launches and presales will be shared post-Q4 FY '25.

- Significant capex spent on project approvals: around INR350-400 crores, including INR150-180 crores each on Indirapuram and Nautilus projects (Page 7). - Construction spend averages INR1,500-1,600 crores per quarter, focused on project completions like BKC Sarjapur, Jasdan Classic, Siesta, and Beverly Hills (Page 7). - Business development investments include land purchases worth INR1,700-1,800 crores in Mumbai, Goa, and Bangalore; plans for future launches prioritizing cash flow and right pricing (Pages 16-17). - New launches planned in Goa and Bangalore next quarter, with a focus on completing annuity portfolio before revisiting dividend policy (Pages 6, 9). - No immediate plans to liquidate 4.5% holding in Nexus shares, considered a liquid asset for future capital needs (Page 6).

- No specific new fundraising plans through debt or equity were mentioned for the current quarter. - The company has sufficient funds available currently and is not looking to liquidate its REIT units immediately. - Land acquisitions and business development will be funded either through joint ventures (JV) or outright purchases depending on opportunities. - No additional stake buybacks are planned beyond what has already been executed. - The management indicated a preference to focus on launching and monetizing existing investments to generate liquidity before considering further capital raises. - Dividend policy or shareholder rewards will be reconsidered after completing the annuity portfolio and generating steady cash flows. - Overall, fundraising will be opportunistic and based on the right opportunities rather than immediate plans for fresh equity or debt.

- The launch pipeline includes INR56,000 crores of projects ready and under approval. - An additional INR50,000 crores of projects are in the design stage, expected to come up progressively. - Around INR30,000 crores worth of projects have been applied for or received RERA approval. - Segment-wise RERA filings include: - NCR: INR11,500 crores - Bangalore: INR4,300 crores - Chennai: INR3,000 crores - Hyderabad: INR3,000 crores - Mumbai: INR8,000 crores - Business development investments post-QIP included land acquisitions worth about INR1,700-1,800 crores in Mumbai, Goa, and Bangalore. - Further progress on the NCR (Gurgaon) land bank is under discussion, with expected updates soon.