Analyst Concall
No impact from IT sector layoffs, says Prestige Estates
This story was originally published at 18:50 IST on 6 August 2025
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--Prestige Estates: On course to clock INR 8.2 bln in office rentals in FY26
--CONTEXT: Prestige Estates mgmt's comments in post-earnings analyst concall
--Prestige Estates: Have leased out 50% of portfolio in Bandra Kurla Complex
--Prestige Estates: Prestige 101 BKC (X) in Mumbai to be completed by FY28
--Prestige Estates: Seeing good offtake in Prestige Pallavaram Gardens
--Prestige Estates: All commercial projects progressing as planned
--Prestige Estates: Expect approval for Prestige Evergreen in Q2
--Prestige Estates: Bengaluru market stable, has done well in last 2 qtrs
By Shakshi Jain and Sunil Raghu
NEW DELHI/AHMEDABAD – Prestige Estates Projects Ltd. Wednesday said it has so far not seen a negative impact on real estate demand in Bengaluru from the recent job cuts in the information technology sector. IT services major Tata Consultancy Services Ltd. late last month announced a 2% cut in its workforce, which has triggered concerns about other players in the industry following suit. IT employees in Bengaluru are a major driver of housing demand in the city.
"First, you see the last two quarters, I think the market has performed very well. It's a stable market. Bangalore has always been a stable market... Most of the projects, whatever we launched in Bangalore, have sold extremely well, right from plots to apartments... So, I would say that things are good and we're very positive on the market," a top executive from Prestige Estates said at a post-earnings conference call Wednesday.
The company plans to launch at least three plotted development projects in Bengaluru in the ongoing quarter. "Along with this, we're also trying to see whether we can bring the Evergreen to Prestige Raintree Park, which is a fairly large development again in Whitefield," the company's management said, adding that this approval is expected to come within the ongoing quarter. The gross development value of Evergreen @ Raintree Park is 49.75 billion, according to the company's investor presentation.
On the impact of tariffs imposed by the US, the executive said: "As of today, I don't see tariffs affecting the Indian real estate (sector) in any which way. I believe it will be working in our favour rather than against us."
Prestige Estates Tuesday reported a nearly 26% on-year rise in its consolidated net profit to INR 2.93 billion for the June quarter. The growth in net profit, the first after six consecutive quarters of year-on-year decline, was aided by a substantial deferred tax-related benefit of INR 1.33 billion. The realty major's consolidated revenue grew almost 24% on year to INR 23.07 billion in Apr-Jun.
The first quarter has laid a solid foundation for the year, the company management said, adding that it is confident the momentum will carry through the rest of the financial year. Prestige Estates is on course to clock INR 8.19 billion in exit office rentals this financial year, the management said. All the ongoing commercial projects of the company are progressing as planned, the management said.
Prestige Estates presently has 44 ongoing projects in the residential segment, 13 in the commercial category, and 2 projects in the retail segment, the company said in a presentation to investors. The company also has 35 projects upcoming in the housing segment, and 11 each in the commercial and retail portfolios.
PROJECT UPDATES
On the company's ongoing projects, the management said the Prestige Pallavaram Gardens project in Chennai, which was launched in the June quarter, is garnering good response from property buyers. On the commercial side, the completion of Prestige 101 BKC (X) in Mumbai is expected by 2027-28 (Apr-Mar). The company has already leased out 50% of this portfolio.
The management said no further stake consolidation by promoters is likely in the company. "That (stake consolidation by promoters) is all a thing of the past. No further changes are likely to happen. All the consolidation, whatever it was, needed to be done, is already done." Promoters of the company presently have a 61% stake in the company.
Wednesday, shares of the company ended at INR 1,604.60 on the National Stock Exchange, down 0.3% from the previous close. End
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