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Prestige Estates Among Top 3 Real Estate Stock Picks for FY26 by Axis Securities

Published: June 04, 2025 | Category: Real Estate
Prestige Estates Among Top 3 Real Estate Stock Picks for FY26 by Axis Securities

Axis Securities remains constructive on the real estate sector heading into FY26, despite a muted Q4FY25 impacted by election-related delays and slow approvals. “Most companies have revised their FY26E launch guidance to incorporate spill-over launches,” the brokerage noted.

Strong demand in premium housing and robust absorption trends continue to support a positive outlook, with companies guiding for 25–30% growth in bookings. Axis has reaffirmed ‘buy’ calls on select names, citing visibility on launches, solid pipelines, and execution strength. Here are the brokerage's top conviction ideas:

Prestige Estates Projects

Prestige Estates reported pre-sales of Rs 6,957 crore in Q4FY25, marking a 48% YoY jump, aided by large end-of-quarter launches like Prestige Southern Star and Spring Heights. Though FY25 pre-sales of Rs 17,000 crore missed its earlier Rs 24,000 crore guidance, they were in line with Axis Securities’ post-Q3 expectations. The company now guides for Rs 27,000 crore in FY26 pre-sales, including Rs 12,000 crore in Q1. Its annuity business remained robust, with 90% office and 99% retail occupancy, and rental income poised to rise significantly by FY29.

SignatureGlobal India

SignatureGlobal clocked Rs 1,620 crore in Q4FY25 pre-sales, down 42% QoQ due to delayed launches, but still exceeded FY25 guidance with Rs 10,290 crore in total pre-sales. It launched Rs 13,800 crore worth of projects in FY25 and targets Rs 17,000 crore in FY26, focusing on key markets like SPR, Dwarka Expressway, and Sohna Corridor. With FY25 collections rising 41% YoY to Rs 4,380 crore and net debt reduced to Rs 880 crore, Axis Securities highlights the company’s strong cash flow discipline and premium housing momentum.

Arvind Smartspaces

Arvind reported Rs 1,271 crore in pre-sales for FY25, missing its growth guidance due to unexecuted launches. However, it has lined up Rs 4,000 crore worth of launches for FY26 across Bengaluru, Gujarat, and MMR. Projects like Aqua City and The Park achieved near-total bookings at launch, supporting strong momentum. Axis Securities notes Arvind’s asset-light model, high referral-driven sales, and business development capex of Rs 1,000 crore, expected to unlock Rs 5,000 crore in topline potential in the coming year.

In conclusion, the real estate sector is poised for significant growth in FY26, driven by strong demand and robust company performance. Investors looking to capitalize on this trend should consider the top picks recommended by Axis Securities.

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Frequently Asked Questions

1. What factors are driving the positive outlook for the real estate sector in FY26?
The positive outlook for the real estate sector in FY26 is driven by strong demand in premium housing, robust absorption trends, and companies guiding for 25–30% growth in bookings. Despite a muted Q4FY25, most companies have revised their FY26E launch guidance to incorporate spill-over launches.
2. What are the key highlights of Prestige Estates' performance in Q4FY25?
Prestige Estates reported pre-sales of Rs 6,957 crore in Q4FY25, marking a 48% YoY jump, aided by large end-of-quarter launches like Prestige Southern Star and Spring Heights. The company now guides for Rs 27,000 crore in FY26 pre-sales, including Rs 12,000 crore in Q1. Its annuity business remains robust, with 90% office and 99% retail occupancy.
3. How did SignatureGlobal Indi
perform in Q4FY25? A: SignatureGlobal clocked Rs 1,620 crore in Q4FY25 pre-sales, down 42% Qo
4. due to delayed launches, but still exceeded FY25 guidance with Rs 10,290 crore in total pre-sales. It launched Rs 13,800 crore worth of projects in FY25 and targets Rs 17,000 crore in FY26, focusing on key markets like SPR, Dwarka Expressway, and Sohna Corridor.
5. Why did Arvind Smartspaces miss its growth guidance in FY25?
Arvind Smartspaces missed its growth guidance in FY25 due to unexecuted launches. However, it has lined up Rs 4,000 crore worth of launches for FY26 across Bengaluru, Gujarat, and MMR. Projects like Aqua City and The Park achieved near-total bookings at launch, supporting strong momentum.
6. What are the key recommendations from Axis Securities for the real estate sector in FY26?
Axis Securities has reaffirmed ‘buy’ calls on select names in the real estate sector, citing visibility on launches, solid pipelines, and execution strength. The top picks include Prestige Estates, SignatureGlobal India, and Arvind Smartspaces, all of which are expected to perform well in FY26.