Prestige Estates Projects Ltd closed FY26 with record pre-sales of Rs 30,024 crore, a 76 per cent jump from the year before that pushed the Bengaluru-based developer to second place among India’s listed realty firms. The headline number, however, sits on a Rs 65,000 crore pile of unrecognised revenue that the company has not yet booked, Chairman and Managing Director Irfan Razack told PTI. That gap exists because Prestige follows the completion method of accounting, recognising revenue only when a project is fully built. Razack said the company is now in talks with its auditors about switching to the percentage of completion method, a change that would pull a large portion of that Rs 65,000 crore onto the income statement.
Razack framed FY26 as a year of record operational milestones and pointed to a Rs 58,000 crore launch pipeline already lined up for the current fiscal. The auditor conversation is the less visible but more consequential piece of the story.
Razack’s Rs 65,000 Crore Pile and the FY26 Record
The Rs 65,000 crore of unrecognised revenue has built up over the last three financial years on the strength of housing sales, Razack said in the PTI interview. The backlog sits on Prestige’s books alongside total income of Rs 13,195.5 crore for FY26, up from Rs 7,735.5 crore in the preceding year. Prestige follows the completion method of revenue recognition, a treatment that holds the Rs 65,000 crore outside the income statement until each project is fully built and handed over.
The FY26 pre-sales figure is what Prestige collects from buyers at the point of agreement, before construction is finished. The 76 per cent year-on-year jump made FY26 the strongest year in the company’s history by that measure. Pre-sales in the fourth quarter alone rose 10 per cent to Rs 7,697 crore, according to a separate operational update filed with the exchanges.
Prestige crossed 200 million square feet of completed development across 300 projects during the year, according to management on the Q4 FY26 earnings call. The group has now delivered 313 projects spanning 206 million sq ft, with a pipeline of 128 projects across another 195 million sq ft. The company develops housing, commercial office complexes, shopping malls and hospitality assets. Razack said housing demand continues to be strong despite global economic uncertainties linked to the West Asia conflict.
Why the Revenue Hasn’t Hit the Books Yet
We have got about Rs 65,000 crore of unrecognised revenue in the book. It is not a small amount.
The comment came in a PTI interview published on June 28, 2026, where Razack also explained that Prestige follows the completion method of revenue recognition, booking income only when a project is fully built and handed over to buyers. Under that approach, money collected during construction sits as an advance on the balance sheet rather than as reported income.
That treatment creates the Rs 65,000 crore gap between bookings and reported revenue. Razack said the company is now in discussion with its auditors about moving to the percentage of completion method, which recognises revenue in proportion to construction progress rather than at the finish line. The shift would not change the underlying cash flow of the business but would front-load reported revenue into the years when construction is happening. For FY26, the difference is stark: total income of Rs 13,195.5 crore against pre-sales of Rs 30,024 crore. Razack did not give a timeline for when the change would take effect.
The FY26 Numbers in Full
The income statement for FY26 showed the strongest profit growth in recent memory. Net profit jumped to Rs 1,195.5 crore from Rs 467.5 crore in FY25, more than doubling year on year.
Total income for the year rose to Rs 13,195.5 crore from Rs 7,735.5 crore in FY25. On the Q4 FY26 earnings call, management reported full-year revenues of INR 13,196 crore, a 71 per cent year-on-year increase. EBITDA stood at INR 4,219 crores, up 43 per cent, while collections from customers crossed INR 18,500 crores, a 53 per cent jump. PAT margin for the year came in at 9.9 per cent with EBITDA margin at 72 per cent.
The Q4 FY26 numbers showed the same trajectory. Sales volumes grew 77 per cent year-on-year to 22.28 million square feet. Launches during the year totalled over 31 million square feet with a gross development value of approximately INR 27,000 crores. Launch velocity was high: 63 per cent of what was launched during the year was sold in the same year, contributing INR 17,300 crores in FY26 sales.
Razack on the earnings call pointed to one project as a stand-out: the maiden NCR launch, which drew over INR 9,500 crores in sales from a single project. The group’s hospitality vertical posted a top line of INR 1,050 crores and EBITDA close to INR 400 crores after corporate overheads. The Delhi hotel project, combining a St. Regis, a Marriott Marquis and office space, is targeted for a grand opening around Diwali. Beyond residential, the annuity portfolio ran at 92 per cent occupancy, with retail at near full 99 per cent occupancy.
- FY26 pre-sales: Rs 30,024 crore, up 76 per cent from Rs 17,023 crore in FY25
- Unrecognised revenue backlog: about Rs 65,000 crore, built up over three financial years
- FY26 total income: Rs 13,195.5 crore, up from Rs 7,735.5 crore in FY25
- FY26 net profit: Rs 1,195.5 crore, up from Rs 467.5 crore in FY25
- FY26 collections: INR 18,500 crores, up 53 per cent year-on-year
Where Prestige Sits in India’s Listed Builder Race
Prestige’s FY26 pre-sales moved the company up to second place among India’s 28 listed realty firms, behind only Godrej Properties at Rs 34,171 crore, according to data compiled from investor presentations. The top five builders contributed nearly 60 per cent of the Rs 1.95 trillion in combined pre-sales logged by those 28 companies in FY26. Industry-wide pre-sales rose 17 per cent from over Rs 1.66 trillion in the previous fiscal. Prestige’s jump from Rs 17,023 crore in FY25 to Rs 30,024 crore in FY26 was the steepest among the top five. Lodha Developers, DLF and Signature Global occupied the third, fourth and fifth positions.
Six of the 28 listed firms saw a decline in pre-sales during FY26, according to the same data set. Property consultants cited price appreciation and luxury launches as the main drivers of the 17 per cent growth in industry-wide pre-sales.
| Company | FY26 Pre-Sales | FY25 Pre-Sales | Headquartered |
|---|---|---|---|
| Godrej Properties | Rs 34,171 crore | Rs 29,444 crore | Mumbai |
| Prestige Estates | Rs 30,024 crore | Rs 17,023 crore | Bengaluru |
| Lodha Developers | Rs 20,530 crore | Rs 17,630 crore | Mumbai |
| DLF | Rs 20,143 crore | Rs 21,223 crore | Gurugram |
| Signature Global | Rs 8,250 crore | Rs 10,290 crore | Gurugram |
The Pipeline and the FY27 Math
For the current fiscal, Prestige has laid out a launch pipeline worth around Rs 58,000 crore across major cities, Razack said, though the final tally depends on government approvals. The company is targeting Rs 35,000-36,000 crore of pre-sales in FY27, a step up from the Rs 30,024 crore achieved in FY26. Razack told the Q4 earnings call that growth of 15-20 per cent is the working assumption for both pre-sales and collections going forward. Collections in FY26 hit INR 18,500 crores, up 53 per cent year-on-year.
On the business development side, Prestige added projects with a gross development value of over INR 50,000 crores in FY26, spanning Bangalore, Mumbai, NCR, Hyderabad and Chennai. Razack said business development spend for FY27 is allocated at Rs 4,500 crores.
The first major launch of FY27 came in Hyderabad: Prestige Golden Grove in Tellapur, an INR 9,500 crores project that drew an ‘overwhelming response.’ Two months into the new fiscal, the project alone had clocked Rs 2,300 crores in sales. The company also spent close to Rs 650 crores in Q4 on the final instalment for a Raigad land parcel acquired earlier. Business development spend is set to normalise after a year of heavier land acquisitions.
Razack said the company has closed FY26 on a strong note with steady momentum through the year and a good finish in Q4. He expects sales bookings and new launches to be better than FY26 levels, citing continued housing demand. The company’s guidance of 15-20 per cent growth in pre-sales and collections sits within that broader expectation, and Razack flagged INR 10,000 crores of construction spend and INR 4,000-4,500 crores of capital expenditure as the going-forward run rate on the Q4 FY26 earnings call.
What Changes if the Auditor Signs Off
The accounting method change, if approved by Prestige’s auditors, would mark a significant departure from how the company has reported revenue for decades. The completion method has been the default for Indian real estate developers since the sector began reporting in a comparable format.
Under the percentage of completion method, revenue is recognised in proportion to construction progress rather than at project handover. The shift would not change the underlying cash flow of the business but would front-load reported revenue into the years when construction is happening. For Prestige, that would mean reclassifying a significant portion of the Rs 65,000 crore backlog from advances to recognised revenue over the construction period. Razack did not commit to a timeline for the transition.
Razack’s framing of the FY27 outlook assumes the current accounting method remains in place. A switch mid-year would reset the base for reported revenue and complicate year-on-year comparisons. The auditor discussion is the most open-ended element of the FY27 outlook.
Frequently Asked Questions
What were Prestige Estates’ FY26 pre-sales?
Prestige Estates Projects Ltd posted record pre-sales of Rs 30,024 crore in FY26, up 76 per cent from Rs 17,023 crore in FY25, according to data compiled from investor presentations.
How much unrecognised revenue does Prestige hold?
Chairman Irfan Razack told PTI the company has about Rs 65,000 crore of unrecognised revenue on its books, built up over the last three financial years of housing sales.
What is the percentage of completion method?
The percentage of completion method recognises revenue in proportion to construction progress, rather than waiting until a project is fully built and handed over. Prestige currently uses the completion method and is in talks with its auditors about switching.
What is Prestige’s FY27 sales target?
Razack said the company is targeting Rs 35,000-36,000 crore of pre-sales in FY27. On the Q4 FY26 earnings call, he guided for 15-20 per cent growth in both pre-sales and collections.
Where does Prestige rank among listed Indian realty firms?
Prestige moved up to second place among India’s 28 listed realty firms in FY26, behind only Godrej Properties at Rs 34,171 crore in pre-sales.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Figures cited are accurate as of the publication date and sourced from PTI, Business Standard and Prestige Estates’ Q4 FY26 earnings call. Readers should consult a qualified financial professional before making any investment decisions related to Prestige Estates Projects Ltd or any other security mentioned in this article.
