1. At a Glance – The Prestige Paradox
Prestige Estates is what happens when scale meets complexity and leverage tags along uninvited.
Market cap of ₹62,620 Cr, stock chilling at ₹1,454, down 18% in 3 months, while quarterly sales casually explode 134% YoY like nothing happened.
Q3 FY26 delivered:
- Revenue: ₹3,873 Cr
- PAT: ₹245 Cr
- OPM: 22%
- Debt: ₹14,510 Cr
- ROE: 3.48% (yes, read that again)
Prestige is selling homes at lightning speed, launching 40+ mn sqft, collecting billions, yet returns look like they’re stuck in traffic on Outer Ring Road, Bengaluru.
So the big question — is this a cash machine with patience issues or a balance-sheet gym bro skipping leg day?
Let’s open the files.
2. Introduction – When Size Becomes Both Superpower and Problem
Prestige is not a builder.
Prestige is a real estate ecosystem disguised as a company.
Residential towers, office parks, malls, hotels, property management, warehouses, JVs, subsidiaries, SPVs, escrow accounts — if Excel had feelings, it would cry.
Founded long before Instagram made real estate influencers famous, Prestige today operates across 12+ Indian cities, with 300+ projects delivered and 25 mn sqft completed in FY24 alone.
But here’s the twist:
Despite blockbuster sales numbers, return ratios remain stubbornly mediocre, and working capital has ballooned to 274 days.
So yes, Prestige is big.
But big companies don’t get a free pass — they get audited harder.
3. Business Model – WTF Do They Even Do?
Explaining Prestige to a lazy investor:
“They build everything, everywhere, all at once — and finance it with confidence.”
Segments:
- Residential (65% revenue): Apartments, villas, townships
- Services (12%): Property management cash cow
- Hospitality (10%): Hotels bleeding today, branding tomorrow
- Office (4%): Commercial leasing & sales
- Retail (3%): Malls = long-term annuity
- Others (6%): Because why not
Residential pays the bills.
Commercial & retail build annuities.
Hospitality builds prestige (pun intended).
But capital intensity is the boss fight here.
4. Financials Overview – Numbers That Flex and Numbers That Sulk
Q3 FY26 Financial Comparison (₹ Cr)
| Metric | Latest Qtr (Dec’25) | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 3,873 | 1,654 | 2,432 | 134% | 59% |
| EBITDA | 860 | 583 | 910 | 47% | -5% |
| PAT | 245 | 32 | 457 | 665% | -46% |
| EPS (₹) | 5.17 | 0.41 | 9.99 | NA | NA |
Annualised EPS (Q3 rule):
Average of Q1–Q3 EPS × 4 ≈ ₹22.5, matching TTM.
Commentary:
Revenue sprinting. Margins wobbling. Profits volatile.
Classic real estate P&L — feast, famine, repeat.
5. Valuation Discussion – Expensive or Just Complicated?
P/E Method
- CMP: ₹1,454
- EPS (TTM): ₹22.5
- P/E: ~64.5×
Industry median ~30×.
Prestige is priced like a growth god, but
