Prestige Estates Q1 Profit Jumps 26% in FY26: Is the Stock Still a Buy Amid Mixed Technical Signals?
Prestige Estates Projects Ltd, one of India's leading real estate developers, drew significant investor attention after reporting a sharp 26% year-on-year increase in net profit for Q1 FY26. The company posted a consolidated net profit of ₹292.5 crore for the June quarter, up from ₹232.6 crore in the corresponding period last year, according to its latest financial disclosure. This rise in profit was largely attributed to a strong surge in housing demand and robust revenue from its flagship residential projects, especially in Ghaziabad.
Strong Revenue Growth and Pre-Sales Surge
Total income for the quarter rose to ₹2,468.7 crore, compared to ₹2,024.5 crore in Q1 FY25. Notably, pre-sales skyrocketed fourfold to ₹12,126.4 crore from ₹3,029.5 crore in the same period a year ago. This phenomenal growth was led by Prestige’s highly successful Ghaziabad project, reflecting the growing consumer appetite for premium real estate in India’s key urban markets.
As of March 2025, Prestige Estates had successfully completed 302 projects, spanning across 193 million square feet. The company’s pipeline remains strong, with 130 ongoing and upcoming projects spread over 203 million square feet, reinforcing its position as a dominant player in the mid-cap realty space listed on the Nifty 500.
Analyst Ratings and Target Price Outlook
According to Trendlyne, the average target price for Prestige Estates share stands at ₹1,787, suggesting an 11% potential upside from its current levels. Out of the 19 analysts covering the stock, the majority have maintained a ‘Buy’ recommendation, driven by solid earnings growth and project visibility.
Despite the recent dip, market watchers believe the fundamentals of Prestige Estates remain strong. The steady expansion into emerging residential hubs, coupled with continued demand from end-users and investors alike, supports a long-term bullish view.
Prestige Estates Share Price Performance
On Tuesday, Prestige Estates stock closed 1.4% lower at ₹1,609.3 on the BSE, underperforming the broader market where the Sensex declined 0.38%. So far in 2025, the stock is down approximately 3%. However, this minor dip does little to overshadow its impressive rally over the past two years, where it surged nearly 180%, significantly outperforming the sector and broader indices.
Currently, Prestige Estates holds a market capitalisation of ₹69,319 crore, making it one of the most valuable real estate developers in India’s listed space. The decline in 2025 so far can be attributed more to profit booking and sector rotation rather than any fundamental weakness.
Technical Chart Analysis: Signals Mixed
From a technical standpoint, Prestige Estates’ RSI stands at 42.1, indicating the stock is neither overbought nor oversold. However, the MACD reading of 5.9 is below its signal line and center line, a bearish signal that could limit short-term upside momentum.
On the moving average front, the stock is trading above its 100-day, 150-day, and 200-day SMAs, which suggests a long-term bullish trend. However, it is below its 5-day, 10-day, 20-day, 30-day, and 50-day SMAs, indicating weakness in the short term. Investors might expect some consolidation or minor correction before a potential breakout.
Demand Momentum and Project Pipeline Support Long-Term Bull Case
The Indian real estate sector continues to enjoy tailwinds from strong urban housing demand, favorable demographics, and improving affordability due to stable interest rates. Prestige Estates has been strategically expanding into high-demand zones such as Ghaziabad, Bangalore, and Hyderabad.
With the Ghaziabad project being the key growth catalyst this quarter, the company's ability to deliver timely and high-quality projects will likely sustain sales momentum. Their deep pipeline of projects ensures continued earnings visibility over the next 2-3 years, making it an attractive bet for long-term investors.
Should You Buy Prestige Estates Stock Now?
While the short-term technicals remain mixed, the overall fundamentals of Prestige Estates Projects Ltd remain robust. The stock offers a reasonable entry point for long-term investors seeking exposure to India’s booming residential real estate segment. Given the 11% upside forecast by analysts and the company’s proven execution capability, this realty stock might be a strong addition to a mid-cap portfolio.
However, investors should watch for further clarity in the upcoming quarters, particularly with regard to new launches, cash flow stability, and execution timelines for its large project pipeline.
Conclusion: Resilient Fundamentals Amid Market Volatility
Prestige Estates has delivered yet another strong quarterly performance, supported by solid earnings, record pre-sales, and a deep project pipeline. While short-term market volatility and technical indicators may signal caution, the long-term growth story remains intact. As India’s housing market remains robust and urban migration fuels demand, Prestige Estates could continue to benefit from these secular trends.
With analyst confidence intact and an upside potential of over 10%, Prestige Estates shares deserve attention from investors who are looking to ride the next leg of growth in India’s mid-cap realty sector.
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