Prestige Estates: Top Real Estate Stock Pick for FY26 by Axis Securities

Axis Securities has identified Prestige Estates as one of the top three real estate stock picks for FY26, citing strong demand in premium housing and robust absorption trends.

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Prestige Estates: Top Real Estate Stock Pick for FY26 by Axis Securities

Real Estate News: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 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.

Overall, the real estate sector is poised for significant growth, driven by strong demand and a robust pipeline of projects. Investors are advised to consider these top picks for FY26, as they demonstrate the necessary execution strength and financial discipline to navigate the market effectively.

Frequently Asked Questions

What are the key factors driving the real estate sector in FY26?

The key factors driving the real estate sector in FY26 include strong demand in premium housing, robust absorption trends, and a solid pipeline of new projects. Companies are also focusing on financial discipline and execution strength.

What is Prestige Estates' guidance for FY26 pre-sales?

Prestige Estates guides for Rs 27,000 crore in FY26 pre-sales, including Rs 12,000 crore in Q1. The company's annuity business remains robust, with 90% office and 99% retail occupancy.

What is SignatureGlobal's target for FY26 launches?

SignatureGlobal targets Rs 17,000 crore in FY26 launches, focusing on key markets like SPR, Dwarka Expressway, and Sohna Corridor. The company has demonstrated strong cash flow discipline and premium housing momentum.

What is Arvind Smartspaces' strategy for FY26?

Arvind Smartspaces has lined up Rs 4,000 crore worth of launches for FY26 across Bengaluru, Gujarat, and MMR. The company's asset-light model and high referral-driven sales are expected to unlock significant topline potential.

What is Axis Securities' outlook on the real estate sector?

Axis Securities remains constructive on the real estate sector heading into FY26, citing strong demand, robust absorption trends, and solid execution strength among leading companies.