Prestige Estates Projects reported a 19.4% drop in net profit to ₹235.9 crore for the June quarter. While revenue grew 15.9%, total sales fell by 46% compared to the previous year. Investors may track how the company manages debt and sales volumes in the coming quarters amid fluctuating realizations per square foot.
Prestige Estates Projects Ltd. saw its consolidated net profit decline to ₹235.9 crore for the first quarter of fiscal year 2027, ending June 30, 2026. This marks a 19.4% reduction from the ₹292.5 crore profit recorded in the same period a year ago. The company's performance reflects a complex mix of revenue growth and a contraction in key sales metrics.
Revenue Growth Versus Sales Slump
Although the company reported a 15.9% year-on-year increase in revenue from operations to ₹2,675.1 crore, this top-line performance stood in contrast to its sales bookings. Total sales bookings for the quarter dropped by 46% to ₹6,579.3 crore. The company also saw a 31% year-on-year decline in total sales volume, selling 5.56 million square feet during the quarter.
Profit margins also experienced pressure, with the EBITDA margin falling to 32.1% from 38.7% a year earlier. EBITDA for the quarter stood at ₹859.6 crore, compared to ₹893.8 crore in the previous year. While the company's collections remained resilient, growing 6% to ₹4,802.2 crore, the decrease in average realization per square foot for apartments and villas by 16% to ₹11,193 highlights the shifting dynamics in consumer pricing.
Debt Position and Market Focus
As of the end of the quarter, Prestige Estates reported a net debt of ₹11,915 crore, with a debt-to-equity ratio of 0.69. The average cost of debt remained steady at 9.31%. Managing this debt load alongside ongoing project execution remains a critical factor for the company's financial stability.
Geographically, Hyderabad emerged as the primary contributor to sales, accounting for ₹3,243.1 crore. Bengaluru and Mumbai followed, contributing ₹1,795.3 crore and ₹776.3 crore, respectively. The National Capital Region and Chennai made smaller contributions to the total sales figures.
Investors may continue to track how the company balances its expansion across various regions with the need to maintain profit margins. The primary monitorables for the coming quarters will be the recovery in sales volume, stabilization of realization rates, and the company's ability to keep its debt-to-equity ratio within comfortable limits as it executes its project pipeline.