Prestige Estates Among Top 3 Real Estate Stock Picks for FY26 by Axis Securities
Axis Securities remains optimistic about the real estate sector for FY26, despite a sluggish Q4FY25. The brokerage has identified Prestige Estates, SignatureGlobal India, and Arvind Smartspaces as top stock picks, citing strong demand and robust growth prospects.
Real EstateStock PicksAxis SecuritiesPrestige EstatesSignatureglobal IndiaReal EstateJun 04, 2025
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.
Frequently Asked Questions
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.
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.
How did SignatureGlobal India perform in Q4FY25?
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.
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.
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.
Related News Articles
Nagpur Townships Inspected by State-Appointed Panel, Issues Persist
A state-appointed panel inspected several townships in Nagpur, Maharashtra, but issues related to water supply, irrigation clearance, and inspection delays remain unresolved.
Indian Real Estate Market Sees Stabilization in Q3 2024
Residential housing sales dip 11% across top 7 cities, while office demand soars 31% in Q3 2024
Real Estate Sector Sees Record Equity Investment Since 2018: CBRE
Leading the charge were Mumbai, Bengaluru, and Chennai, which collectively accounted for 66 per cent of the equity inflows in Q3 2024, drawing USD 2.5 billion in investments.
Pune Real Estate Market: Property Registrations Down by 33% Year-on-Year, Stamp Duty Collections Dip by 14%
Pune's real estate market has seen a significant downturn, with property registrations declining by 33% year-on-year and stamp duty collections dropping by 14%. The market has also experienced a 26% decline in registrations between May to August compared
Clifford Chance Provides Legal Counsel for ROIC's Strategic Acquisition by Blackstone
Clifford Chance has advised Retail Opportunity Investments Corp (ROIC) on its strategic acquisition by Blackstone Real Estate Partners X, with the aggregate transaction value amounting to US$4 billion.
BRS' Kavitha Stands Firm Against Telangana Government's Musi River Real Estate Project
Kavitha of the Bharat Rashtra Sena (BRS) party has vowed to continue exposing the Telangana government's controversial Musi River real estate project. She emphasized that BRS is firmly against the initiative.