Synopsis: Prestige Estates plans to scale up annuity income, targeting office rentals of Rs 3,300 crore by FY28 and Rs 4,000 crore by FY30, from its Rs 828 crore in FY26 which is a 383 percent growth in rentals. The company currently operates 9.41 million sq ft of office space.
Prestige Estates Projects Limited has been pushing itself toward becoming a dominant annuity led real estate developer that currently has an objective of scaling its office rental income in the coming five years. The company is backed by strong leasing demand and a substantial development pipeline, this Bengaluru based company has positioned itself to enhance its cash flows system while maintaining financial discipline as well.
With a market cap of Rs 69,647 Crore, On Tuesday Prestige Estates Projects Ltd saw its stock hit an intraday high of Rs 1622.80 which is 1.1 percent higher than the previous close of Rs 1604.65. Additionally, The company’s stock has given a compounded return of 51 percent in the last 3 years
Part of Prestige Estates’ ambitious target is to grow office rental income to Rs 3,300 crore by FY28 and Rs 4,000 crore by FY30, from the expected exit rentals of FY26 that is Rs 828 crore. As of now, the company operates 9.41 million square feet of office space, while an additional 38 million square feet is still under development, which could take the office portfolio to around 47 million square feet in the future.
Beyond offices, Prestige Estates has also been strengthening its annuity platform across retail and hospitality, which further diversifies its income sources. Retail rental income is projected to be around Rs 275 crore for FY26, while by FY30 it is expected to be around 1092 crore, this includes the support coming from operations across five malls that will have a combined leasable area of 1.87 million square feet. It has 12 malls in pipeline with a sizable area of nearly 12 million sq feet.
Meanwhile, the hospitality segment is coming up as a key growth engine of the company, as the rental income is expected to grow at a 53 percent CAGR over 3 years, which could be a cumulative income of around Rs 2,510 crore when the company expands its hospitality footprint toward 50 million square feet over time.
This strategy has allowed Prestige to self-fund and calibrate growth while also preserving its balance sheet with strength. The Managing Director of the company- Irfan Razack has stated that the company remains committed to its long term value creation without causing any compromise to its financial prudence.
The expansion plans are well-timed, given the supportive office market environment in India. Leasing activity across the top seven cities have touched 71.5 million square feet, marking a 6 percent year on year increase, while the fourth quarter of the calendar year recorded an all-time high absorption of 20.6 million square feet, up 20 percent from the previous quarter.
Bengaluru, which is Prestige Estates’ home market, saw its peak with 8.1 million square feet as of the latest quarter, followed by Delhi NCr’s 4.2 million square feet. These numbers reflect the sustained demand for Grade A office spaces in the city.
Business & Financial Overview
Incorporated in 1997, Prestige Estate Projects Ltd is a Bengaluru based real estate developer with a diversified presence across residential, office, retail, hospitality, property management, and warehousing, the company operates across 12 major cities in the country.
The company currently has completed 310 projects with 202 million square feet and has 65 projects on going with 126 million square feet. Apart from that they also have 65 projects upcoming with 73 million square feet. This data includes Residential, commercial and retail projects as well. The Gross Development Value of the company’s upcoming projects stands at a whooping total of Rs 44,823 Crore.
In Q2FY26, the company saw a YoY revenue growth of 5.5 percent, going from Rs 2,304 Cr in Q2FY25 to Rs 2,432 Cr in Q2FY26, while the QoQ went up by 5.4 percent from Rs 2,307 Cr in Q1FY26.
Prestige Estates reported its best-ever first half, with sales of Rs 1,81,437 million and collections of Rs 87,356 million, as H1FY26 sales surpassed the entire FY25 full-year sales.
When breaking down the half yearly numbers, the residential space contributed about 81, the office gave 9.4 percent, the rental space gave 3.6 percent and the rest 7.4 percent came from the services provided by the company, such as Property Management, Interior services, construction contracting and others.Apart from these the company also has unrecognised revenue of Rs 60568 Crores.
In the half yearly numbers 45 percent sales came from NCR, 27 percent came from Bengaluru and 16 percent came from Mumbai, and the rest from others. The YoY Net Profits growth is at 94 percent, going from Rs 235 Cr in Q2FY25 to Rs 457 Cr in Q2FY26, while the QoQ growth stood at 46 percent from Rs 312 Cr in Q1FY26.
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