Prestige Estates Reports Mixed Q1 with Strong Revenue but Weaker Profitability
The real estate developer posted a 15.9% yearly sales increase, but profit fell 12.9% as net margins contracted sharply.
Prestige Estates Projects reported a mixed first quarter for FY27. While revenue grew healthily year-on-year, profit declined, leading to a significant squeeze in net profit margins.
Prestige Estates Projects delivered a quarter of contrasting fortunes. While the company's revenue grew healthily compared to last year, its bottom line and profitability metrics came under significant pressure, pointing to a squeeze on earnings.
Revenue for the quarter ended June 2026 rose 15.9% year-on-year to ₹2,675 crore. However, profit after tax (PAT) fell 12.9% to ₹271 crore. This divergence led to a sharp 340 basis point contraction in the net profit margin, which stood at 10.1% for Q1 FY27 compared to 13.5% a year ago. Sequentially, both revenue and profit declined from the previous quarter, which is typical in real estate due to project completion cycles.
The last five quarters reveal a volatile earnings pattern, with profitability fluctuating significantly.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 2,675.1YoY +16% | 4,073.8 | 2,307.3 |
| Profit (₹ Cr) | 271.4YoY -13% | 291.8 | 311.5 |
| Net Profit Margin | 10.1%YoY -25% | 7.2% | 13.5% |
Key Points
- The trailing twelve-month (TTM) net profit margin is 9.7%, slightly below the latest quarter's figure.
- The stock has delivered exceptional long-term returns, with a 187.6% gain over three years, despite being nearly flat over the past year.
- The company trades at a price-to-earnings (P/E) ratio of 40.6, which is at a 23.2% premium to its industry peers.
The immediate challenge for Prestige Estates is to translate its solid top-line growth into more stable and improved profitability in the coming quarters.
Also read
Want this applied to your portfolio?
Talk to a HexaWealth advisor, or sync your mutual fund data for insights tailored to your holdings.