Prestige Estates Reports Strong Operational Efficiency Amid Rising Interest Expenses and Inventory Challenges

Prestige Estates Projects has recently undergone a financial trend adjustment, reflecting a notable improvement in its performance metrics for the quarter ending September 2025. The company reported its highest operating profit to interest ratio at 2.36 times, indicating strong operational efficiency. Additionally, net sales reached Rs 2,431.70 crore, while PBDIT stood at Rs 909.80 crore, both marking significant achievements for the firm. Profit before tax, excluding other income, was recorded at Rs 317.90 crore, and the profit after tax reached Rs 430.30 crore, with earnings per share at Rs 9.99.
However, challenges remain for Prestige Estates. The interest expense over the last six months has grown to Rs 769.00 crore, reflecting a 21.83% increase. Furthermore, the inventory turnover ratio is at a low of 0.22 times, and the debtors turnover ratio is also low at 4.28 times. Non-operating income constitutes 45.57% of profit before tax, indicating reliance on income sources outside of core operations.

In terms of market performance, Prestige Estates has shown resilience, particularly over longer periods. Over the past three years, the stock has surged by 267.90%, significantly outperforming the Sensex, which rose by 36.90% in the same timeframe. Over five years, the stock has increased by an impressive 552.91%, compared to the Sensex's 93.33% gain. This performance underscores the company's recovery and growth trajectory within the realty sector.