Prestige Estates shares decline as annual sales fall short of management guidance

Prestige Estates Projects Ltd., the Bengaluru-based real estate developer’s sales in financial year 2025 were lower than what the management had earlier envisaged.

The company’s sales for the full year fell 19% to ₹17,023 crore, which fell short of their guidance, which ranged between ₹24,000 crore to ₹25,000 crore, as highlighted by Prestige Estates’ Chairman and Managing Director Irfan Razack, in an interaction with CNBC-TV18 on January 31 this year. 

Back then, Razack had highlighted that there are five projects that Prestige is currently awaiting approval for, and if that happens, the company will meet its guidance for the full year.
The fall in annual sales, along with a 38% drop in sales volume to 12.58 million square feet, was attributed to deferred launches due to delays in approvals.

Prestige Estates reported a 48% year-on-year increase in residential sales between January and March 2025, at ₹6,957 crore. Sales volume also saw a 9% increase to 4.49 million square feet, with 2,301 units sold.

Collections for the full year added up to ₹12,084 crore, a 1% increase over FY24. “FY25 brought with it a mix of achievements and challenges,” Razack said in the company’s exchange filing. “Despite delays in project approvals that deferred a few key launches into the next fiscal, the final quarter saw strong traction in sales and an encouraging uptick in realization.”

Average realisation in the fourth quarter for apartments, villas, and commercial properties rose significantly, reaching ₹15,524 per square foot, a 25% (YoY) increase. Plot sale realization also saw a substantial 27% increase, reaching ₹6,975 per square foot.

Bengaluru contributed 45% to the company’s sales, followed by Mumbai (30%), Hyderabad (23%), and other markets (2%).

Prestige Estates launched 14.03 million square feet in Q4, spanning four projects with a combined Gross Development Value (GDV) potential of ₹16,133 crore. For the entire year, the company launched 26.28 million square feet, primarily across Bengaluru, Mumbai, and Hyderabad, with a combined GDV of ₹26,222 crore.

The company’s office portfolio maintained strong occupancy levels at over 90%, and the retail malls recorded a Gross Turnover (GTO) of ₹2,264 crore during FY25, with total footfalls reaching 18 million. Portfolio-wide occupancy for retail remained high at 99%.