Q2 FY27 results analysis · November 05, 2026
Prestige Estates Projects Ltd Q2 FY27 Results Analysis: PAT Plunges 48%, Pre-Sales Grow 20%
−47.9%PAT year on year, Rs. 224.10 Cr
Source: Quarterly results filing (BSE)
Quick summary
Prestige Estates Projects Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 2,060.20 Cr (-15.28% YoY) and PAT growth of -47.92% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 05, 2026 |
|---|---|
| Revenue (Q2) | Rs. 2,060.20 Cr (-15.28% YoY) |
| PAT (Q2) | Rs. 224.10 Cr (-47.92% YoY) |
| EBITDA margin | 48.96% (+537 bps YoY) |
| EPS (Q2) | Rs. 5.20 (-47.95% YoY) |
Quarter Snapshot
Q2 FY27 was a recognition-timing trough: revenue fell 15.28% YoY and PAT to owners fell 47.92% (−24.74% on the MTM-cleaned base), while pre-sales grew 20% YoY to Rs.7,225 crore and H1 collections rose 15.57%. The key pressure points are operating cash flow at Rs.1,310.7 crore for H1 versus the Rs.8,500-9,000 crore FY27 target and a deepening inventory build, offset partly by the CPPIB first tranche (Rs.1,500 crore) completed post-period and leverage inside the 0.75x cap. Meeting FY27 pre-sales guidance requires H2 pre-sales of ~1.74-1.87x the year-ago half against a >Rs.40,000 crore GDV launch pipeline.
Q2 FY27 Expectations vs Results
| Driver | What happened | Verdict |
|---|---|---|
| "in-line to ahead on the quarter's own flow, but against a high base" | Revenue −15.28% YoY but pre-sales +20% YoY | Partially |
| H1 pre-sales −23.91% vs record base; Q2 at top of the 15–20% band | Exactly that: H1 −23.91%, Q2 +20% | Played out |
| Margins "compressing at the margin on steel… the dominant margin variable remains internal" | Company-basis margin rose YoY (43.59%→48.96%); no steel quantification in the filing | Partially |
| Cost of debt stable in Q2; Oct 7 repo hike lands Q3 | Filing silent on cost of debt at Sep 30, 2026 | Not observable |
| CPPIB "resolved into a staged private transaction (IPO shelved)" | DRHP withdrawn Sep 2026; first tranche (Rs.950 crore secondary + Rs.550 crore CCPS) completed Oct 2026; HFS classification booked | Played out |
| Office leasing a tailwind | Filing silent (single segment); retail GTO +10%, 99% occupancy — office) in the filing | Not observable |
| Leverage inside 0.75x; OCF vs Rs.8,500–9,000 crore | 0.688x — inside cap; CFO Rs.1,310.7 crore — far behind target pace | Partially |
| Residential recognition Rs.11,000–12,000 crore; PCM question open | H1 consolidated revenue Rs.4,735.3 crore; residential split and any PCM update absent from the filing — remains open for the call | Not observable |
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Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| FY27 pre-sales growth 15–20% (Rs.34,528–36,029 crore vs FY26's Rs.30,024.5 crore) | Q4 FY26 earnings call ("conservative target") | Q2 pre-sales +20% YoY (Rs.7,225 crore); H1 Rs.13,804.3 crore, −23.91% YoY; implied H2 need Rs.20,723.9–22,225.1 crore (~1.74x H2 FY26) | Stretch |
| FY27 residential revenue recognition Rs.11,000–12,000 crore (revised down from Rs.12,000–13,000 crore) | Q1 FY27 earnings call | Consolidated H1 revenue Rs.4,735.3 crore; residential-only split not disclosed (single reportable segment) | Too Early |
| EBITDA margin stabilizing ~25% (→28% on catch-up) | Q4 FY26 call: "It will be in the range of 25% only. Because the catch up will take some time." | Company-basis margin 48.96% of total income this quarter; series 22.47–48.96% over five quarters — recognition-timing volatile, not a clean test | On Track |
| FY27 operating cash flow Rs.8,500–9,000 crore | Q4 FY26 call ("barring any large acquisitions") | H1 FY27 CFO Rs.1,310.7 crore (15.4% of the low end; H1 FY26 Rs.1,833.6 crore) — pace | Missed |
| D/E within 0.75x | Management commitment on earnings calls | Derived net debt/total equity 0.688x at Sep 30, 2026 | Met |
| Net debt to ~0.5x / ~Rs.7,300 crore in 2–3 years | Q2 FY26 call — explicitly tied to the hospitality IPO | Net debt Rs.11,825.4 crore (derived) vs Rs.11,915 crore company-disclosed at Jun 30; IPO DRHP withdrawn Sep 25, 2026; CPPIB tranches 2–3 (Rs.750 crore + Rs.750 crore) pending | Too Early |
| Margin drag from "low-margin legacy projects in Mumbai"; 25% is the stabilized level | Q3 FY26/Q4 FY26 calls | Company-basis margin 48.96% (vol 22.47–48.96%); no quantified legacy-Mumbai drag in the filing | Too Early |
| H2 FY27 launch pipeline of over Rs.40,000 crore GDV supports the ramp | Operational update, Oct 13, 2026 | Required H2 pre-sales Rs.20,723.9–22,225.1 crore — execution pending | Too Early |
| H1 collections momentum supports cash flow | Operational update, Oct 13, 2026 (Rs.10,096.3 crore, +15.57%) | But CFO fell 28.5% YoY to Rs.1,310.7 crore | Contradicted at the cash-flow line this half |
| Overheads gap narrows as recognition catches up ("5-6% gap") | Q1 FY27 call commentary | Contractor cost 83.92% of revenue vs 54.25% yr-ago, offset by deeper inventory build | Too Early |
Key Numbers, Quarter by Quarter
| Metric | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q2 FY27 | H1 FY27 |
|---|---|---|---|---|---|
| Pre-sales (Rs. cr) | 6,017 | 4,184 | 7,697.3 | 7,225 | 13,804.3 |
| YoY % | +50 | +39 | +11 | +20 | −23.91 |
| Collections (Rs. cr) | 4,213 | 4,548 | 5,231.4 | 5,294.1 | 10,096.3 (+15.57%) |
| Completions (mn sft) | — | — | — | 5.07 | 9.44 |
Key Investment Insights
Key Positives
- Q2 FY27 pre-sales grew 20% YoY to Rs.7,225 crore (5.84 mn sq ft, 3,910 units), at the top of management's 15-20% FY27 growth band
- H1 FY27 collections rose 15.57% YoY to Rs.10,096.3 crore
- H2 FY27 launch pipeline of over Rs.40,000 crore GDV
- Net debt/equity of 0.688x is inside management's 0.75x cap; net debt Rs.11,825.4 crore
- CPPIB first tranche completed post-period: Rs.950 crore secondary sale plus Rs.550 crore CCPS, with up to Rs.3,000 crore total committed into PHVL
- Retail annuity GTO of Rs.721 crore, +10% YoY, at 99% occupancy
- Company-basis EBITDA rose 6.67% QoQ to Rs.1,088.1 crore
Risk Factors
- Revenue from operations fell 15.28% YoY and 22.99% QoQ to Rs.2,060.2 crore
- PAT to owners fell 47.92% YoY to Rs.224.1 crore (−24.74% against the MTM-cleaned base); EPS Rs.5.20 vs Rs.9.99
- H1 FY27 CFO of Rs.1,310.7 crore is down 28.5% YoY and only 15.4% of the low end of the Rs.8,500-9,000 crore FY27 target; H2 needs ~Rs.7,189-7,689 crore
- Finance costs rose 25.22% YoY to Rs.482.2 crore; effective tax rate rose ~797 bps YoY to 29.65% with a 91.46% cash tax rate
- Inventory build of Rs.(2,804.1) crore in Q2, Rs.915.3 crore deeper YoY; inventories up Rs.561.6 crore since March
- NCI share of consolidated PAT rose to 12.53% from 5.93% a year ago; auditor Emphasis of Matter on Rs.923 mn claims and FY25 income-tax search show cause notices
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