Revenue and Profitability Trends
Prestige Estates' net sales have exhibited variability, peaking at ₹8,315 crore in March 2023 before moderating to ₹7,349 crore in March 2025. The company experienced a notable dip in sales in fiscal 2022, reflecting sectoral or market challenges, but rebounded in subsequent years. Operating profit margins, excluding other income, improved steadily from 24.0% in 2022 to 34.8% in 2025, indicating enhanced operational efficiency despite revenue fluctuations.
Operating profit (PBDIT) excluding other income rose from ₹1,533 crore in 2022 to ₹2,559 crore in 2025, underscoring a strengthening core business. However, other income, which was significantly elevated at ₹1,548 crore in 2024, declined to ₹386 crore in 2025, impacting overall operating profit. Consequently, the operating profit including other income peaked at ₹4,047 crore in 2024 but settled at ₹2,945 crore in 2025.
Profit before tax showed a similar pattern, reaching ₹2,111 crore in 2024 before easing to ₹799 crore in 2025. The consolidated net profit followed suit, with a high of ₹1,374 crore in 2024 and a reduction to ₹468 crore in 2025. Earnings per share (EPS) mirrored these trends, declining from ₹34.28 in 2024 to ₹10.85 in 2025, reflecting the profit contraction.
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Balance Sheet and Asset Growth
The company’s total assets have expanded significantly, from ₹24,768 crore in 2021 to ₹57,854 crore in 2025, reflecting aggressive growth and asset accumulation. Shareholders’ funds have more than doubled in this period, rising from ₹8,001 crore to ₹15,423 crore, supported by reserves that surged from ₹6,274 crore to nearly ₹15,000 crore.
Long-term borrowings have fluctuated, peaking at ₹6,218 crore in 2020 before moderating to ₹4,313 crore in 2025. Short-term borrowings, however, increased substantially to ₹6,287 crore in 2025 from ₹1,569 crore in 2021, indicating a shift in the company’s debt profile. Total debt stood at ₹10,600 crore in 2025, up from ₹3,983 crore in 2021, signalling increased leverage to support expansion.
Inventories have grown markedly, reaching ₹31,883 crore in 2025 from ₹9,581 crore in 2021, consistent with the company’s real estate development activities. Cash and bank balances remained robust, around ₹2,393 crore in 2025, supporting liquidity needs. Net current assets improved to ₹8,760 crore in 2025, reflecting better working capital management compared to prior years.
Cash Flow and Operational Efficiency
Cash flow from operating activities has shown volatility, with ₹130 crore generated in 2025 compared to ₹1,297 crore in 2024 and a peak of ₹2,226 crore in 2020. Investing activities consistently reflected cash outflows, indicative of ongoing capital expenditure and project investments, with ₹1,348 crore spent in 2025. Financing activities provided inflows of ₹959 crore in 2025, supporting the company’s funding requirements.
Net cash outflow was ₹258 crore in 2025, a reversal from inflows in previous years, highlighting the challenges in cash generation amid expansion. Despite this, the closing cash balance remained healthy at ₹2,009 crore in 2025, ensuring operational resilience.
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Summary of Historical Performance
Over the past six years, Prestige Estates has experienced a mixed performance characterised by revenue fluctuations, improving operating margins, and significant asset growth. The company’s profitability peaked in fiscal 2024 but faced a notable decline in 2025, influenced by reduced other income and higher interest costs. The balance sheet reflects a strategic expansion with increased borrowings and inventory build-up, typical of a growing real estate enterprise.
While cash flow generation has been uneven, the company maintains a solid liquidity position. Earnings per share and net profit margins have shown volatility, underscoring the cyclical nature of the real estate sector and the impact of market conditions on financial outcomes. Overall, Prestige Estates’ historical performance reveals a firm in expansion mode, balancing growth ambitions with operational challenges.
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