Prestige Estates Q2 Sales Surge 50%: Nomura Names It Top Pick
Prestige Estates reports a 50% YoY sales jump in Q2, achieving 69% of FY26 guidance in just two quarters. Nomura reaffirms its 'Buy' rating and projects presales closer to Rs 29,000 crore.
Prestige EstatesReal EstateNomuraSales GrowthStock MarketReal EstateOct 09, 2025
International brokerage firm Nomura, in its latest note, called this a “beat” quarter and reaffirmed Prestige Estates as its top pick in the real estate sector, with a ‘Buy’ rating and a target price of Rs 1,900 per share, indicating an upside of around 21% from current levels. The brokerage expects the company to outperform its FY26 guidance of Rs 25,000-27,000 crore, projecting presales closer to Rs 29,000 crore and possibly higher.
In Q2FY26, Prestige sold 4.42 million square feet of space, translating into 2,069 units, with average realisation for apartments rising 8% YoY to Rs 14,906 per sq ft. Plotted developments performed even better, clocking a 43% rise in realisation to Rs 9,510 per sq ft. Collections were equally strong at Rs 4,212.8 crore, up 54% YoY, taking the H1 collections to Rs 8,735.6 crore, a 55% jump compared to the previous year. The company also reported balanced growth across markets from its home base Bengaluru to new frontiers like NCR and Mumbai.
In just two quarters, Prestige has achieved 69% of its FY26 presales guidance. Nomura’s analysis suggested the company could easily exceed its target owing to a robust launch pipeline of over Rs 2,00,000 crore and strong “sustenance sales” from its existing inventory. The company’s chairman and managing director, Irfan Razack, in an official statement, said, “What makes this performance even more gratifying is the contribution from multiple geographies. Bengaluru, NCR, and Mumbai have all delivered exceptionally well. We remain focused on consolidating this growth through timely delivery, prudent financial management, and a pipeline of projects that continue to set benchmarks in the industry.”
While new launches created buzz, what’s keeping Prestige ahead of peers is sustained sales and consistent buying from ongoing inventory. Nomura pegged sustenance sales in Q2 at Rs 4,000 crore, versus its estimate of Rs 3,000 crore. This mirrors a broader theme in India’s property market where top developers like Sobha and Lodha also reported strong numbers from existing projects despite muted launches. For Prestige, it indicated a strong demand base and brand recall that converts ready inventory into recurring cash flow, as per Nomura.
Prestige’s strength doesn’t end with residential. The company reported gross leasing of 2.3 million sq ft in its commercial portfolio during Q2FY26, maintaining a healthy 93.4% occupancy, and guided for exit rentals of Rs 800 crore for FY26. In retail, turnover stood at Rs 600 crore in Q2FY26, up 9% YoY, with occupancy at 99% and exit rentals of Rs 270 crore for the full year. These segments, while smaller in topline share, add a layer of predictable cash flows that complement the lumpy nature of residential revenues.
In Q1FY26, Prestige reported a net profit of Rs 311.5 crore, slightly higher than Rs 307 crore in the same quarter last year, on a revenue of Rs 2,468.7 crore. The company has been gradually improving its operating leverage as projects move from launch to delivery. Nomura expects operating performance to strengthen through FY26, supported by high collection efficiency and cost control. The stock closed at Rs 1,514 on October 8, 2025, and currently trades at a 25% premium to its NAV, which still leaves room compared to peers trading between 0–100% premium.
The Mumbai flagship, Prestige Nautilus, has been a notable success and a clear luxury proof point. The company cited strong early absorption. Prestige Estates placed Nautilus among the drivers of the quarter’s performance. Nomura and the company both point to significant GDV sold at Nautilus, indicating demand for premium product in selective micro-markets, as per the company’s operations update.
The township in NCR, The Prestige City, Indirapuram, materially shifted the group’s geographic mix. The company reported large launches and strong take-up in NCR during the quarter. If this market sustains, the group’s revenue mix will shift meaningfully toward the NCR corridor, which has implications for pricing, delivery timelines, and future launches, as per the company.
Prestige’s biggest near-term risks lie in execution and macro sensitivity. Any slowdown in the IT sector could hurt absorption in Bengaluru, and project handover timelines remain key for revenue recognition. Nomura, while bullish, flagged these as potential hurdles that could affect the pace of target achievement. Input costs and regulatory delays are the other usual suspects. However, Prestige’s wide geographical spread and balanced project mix give it a cushion most developers don’t enjoy, as per Nomura.
With Rs 29,900 crore worth of launches planned for the remaining three quarters of FY26, Prestige’s target to hit or exceed Rs 29,000 crore in full-year presales doesn’t look far-fetched. Nomura’s projections already suggested the company could beat guidance by 10–27%, depending on conversion rates. The company has repeatedly flagged approvals as the key operational risk. Permits, buyer acceptance, and practical completion remain a concern.
Frequently Asked Questions
What was Prestige Estates' Q2 sales performance?
Prestige Estates reported sales of Rs 6,017.3 crore in Q2FY26, marking a 50% year-on-year increase.
What is Nomura's rating and target price for Prestige Estates?
Nomura has reaffirmed Prestige Estates as its top pick in the real estate sector with a 'Buy' rating and a target price of Rs 1,900 per share, indicating an upside of around 21% from current levels.
What are the key growth drivers for Prestige Estates?
Key growth drivers for Prestige Estates include sustained sales from ongoing inventory, strong performance in new markets like NCR and Mumbai, and robust commercial and retail segments.
What are the potential risks for Prestige Estates?
Potential risks for Prestige Estates include execution delays, macroeconomic factors, IT sector slowdown, input costs, and regulatory delays.
What is Prestige Estates' guidance for FY26?
Prestige Estates has guided for presales of Rs 25,000-27,000 crore in FY26, but Nomura projects presales closer to Rs 29,000 crore.
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