Prestige Estates Projects Limited (NSE: PRESTIGE) Q1 2026 Earnings Call dated Aug. 06, 2025
Corporate Participants:
Unidentified Speaker
Analysts:
Unidentified Participant
Pritesh Sheth — Analyst
Akash Gupta — Analyst
Puneet Gulati — Analyst
CA Yash Gupta — Analyst
Abhir Pandit — Analyst
Biplab Debbarma — Analyst
Parikshit Kandpal — Analyst
Deepak Gupta — Analyst
Abhinav Sinha — Analyst
Karan Khanna — Analyst
Shivam — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome with the Prestige Estate Q1FY26 earnings conference call hosted by Access Capital Limited. As a reminder, all participant lines will be in the lesson only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need a stand during your conference call, please signal or prefer by pressing Star then zero on attached in phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Pritesh Seth from Access Capital Ltd. Thank you. And over to you sir.
Pritesh Sheth — Analyst
Thank you. Mustang. Good afternoon everyone. Thanks for joining in. We have with us management of Prestige estate Represented by Mr. Irfan Razak, Chairman and Managing Director, Mr. Zaid Noman, Executive Director and Mr. Amit Moore, the Chief Financial Officer. I’ll now hand over the call to the management for the initial comments and then we can start with the Q and A. Over to you sir.
Unidentified Speaker
Thank you, Pritesh. a very good afternoon everybody and thank you for joining in. Today’s call. We’re very pleased to report that Resij has commenced the financial year 26 with its top strongest quarterly performance to date. It’s a clear reflection of the sustained momentum and deep structural demand across our core markets. In the first quarter we achieved a record breaking sales of 12,126 crores growing nearly 300% year on year, setting a new benchmark in our company’s history. We sold 4,718 units across 9.55 million square feet, backed by strong customer demand and high quality launches. Equally encouraging is our highest ever quarterly collections of 4523 crores growing 55% year on year, underscoring the disciplined execution and cash flow stability embedded in our business.
The geographical sales mix this quarter marked a decisive milestone in our evolution as a two lead Pan India player. For the first time, the NCR region contributed the largest share at 59% followed by dying low at 21%, Mumbai at 12% and Hyderabad at 5%. We launched our four new residential projects during the quarter totaling 14.94 million square feet including our maiden launch in NCR, the Prestige City Indirapuram. The response was phenomenal with nearly 80% of the inventory sold at launch, setting the tone for our expansion in North India. On the completion front, we delivered 5.45 million square feet across five residential projects including our first ever project completions in Mumbai which were executed in just three and a half years.
This is a testament to our robust planning, execution, efficiency and commitment to timely delivery. Additionally, we completed the Prestige Turf Tower in Mahalakshmi. Which enabled us to move full steam ahead on the next phase of our marquee project, Deep Prestige Mumbai. On the business development front, we added seven new projects across four geographies. Bangalore, Mumbai, Chennai and Hyderabad. With a combined GDV of over 20,000 crores. Our annual business continued their steady performance. In office, we leased 1.21 million square feet, maintained 94% occupancy and achieved exit rentals of 523 crores. As of Q1FY26, we are on course to achieve exit rental for office in FY26 of 819 crores in retail malls recorded a gross turnover of 590 crores.
With occupancy levels of 99% and exit rentals of 271 crores. The first quarter has laid a solid foundation for the year ahead. The filing of the BRSP for our platform is a strategic step in unlocking value across vertical and setting path for our next growth. Looking ahead, we have a robust pipeline of launches planned across Bangalore, ncr, Mumbai, Hyderabad and Goa. We are confident that the momentum bid this year will carry through the rest of the financial year. Thank you once again for your continued support and belief in prestigious journey. With this, I open the floor for questions and we’ll take them one by one.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask question may press star and one on the Dashtrain telephone. If you wish to remove yourself from question Q, you may press done. N2 participants are requested to use handsets while asking a question. Ladies and gentlemen, wait for a moment while the question give assignments. The first question is from the line of Akash Gupta from Novara. Please go ahead.
Akash Gupta
Hi. Am I audible?
operator
Yes.
Akash Gupta
Hi. Sir. Congratulations on the great performance. My first question is with respect to your pre sale guidance for FY26. Your guidance is close to 260 billion. Do we see an upside risk to the guidance? And with respect to launches, what launches are we looking at in the next two quarters?
Unidentified Speaker
I lost you. What is the question?
Unidentified Speaker
Hi. Am I audible?
Akash Gupta
Yeah. Yeah.
Akash Gupta
So first. My first question is with respect to your pre sale guidance for FY26. Are we seeing an upside risk to that guidance? Considering we have already done 120 billion in the first quarter. And then I wanted to understand on your launch pipeline what launches are we looking at in this quarter and in the next quarter?
Unidentified Speaker
We’ll stick to our original guidance which is between 25 and 77,000 crore. And we’ll see how this quarter performs. And then maybe we can now launches for this quarter in Bangalore. We have the Prestige Greenbrook. It’s a plotted development. We have Prestige system launch. It’s a plotted development. We have also Prestige Autumn deal which is a plotted development. Along with this we are also trying to see whether we can bring the Evergreen at the Prestige Ventree park which is a fairly large development. Again in Lightfield. They just pushing for those approvals which is a process.
It will come and the RA also has to come. But if we are able to get that through even that will be the launch for this quarter that is in Bangalore. In Mumbai they trying to bring in the Prestige Highland park which is dark where we bought the land. And that hopefully will happen in September. And then the other one, which is one which they already have will be the third phase May Flowers of the Prestige City, Indra Puram. Even that will happen in September. These are the launches that we have in the pipeline for this quarter.
Akash Gupta
I see, I see. Got it sir. And sir, on your commercial leasing, particularly for the Bombay portfolio which is the prestige and Prestige 101, we have roughly 9 million square feet, I think of leasable area and we have leased roughly 1.5 million square feet. I wanted to understand like what kind of demand are you seeing this for your BKC commercial portfolio?
Unidentified Speaker
The demand has been extremely good. We’ve already leased 50% of our portfolio in BKCX and that’s a good sign. And because pre leasing in the Mumbai market is non existent now if we have managed to do that and at some great numbers, I think the team has done a wonderful job. But I’ve also told them to go slow because let the product get ready. Product gets ready only in 27, 28. And then we’ll as closer to our product getting ready. We will be pushing more for details because we also want our customers to get the confidence.
Akash Gupta
Got it, Got it. And sir, one final question from my side on the DJ Mata development. So I think we have already done the land clearing and everything. So I just wanted to understand like what kind of product positioning are we looking at here and when are we planning to launch this project?
Unidentified Speaker
It’s a mixed use development. It will have retail, a million square feet of premium and retail. Apart from that we have office of half a million square feet. Then we are having the Hilton plus the Waldorf Astoria and conferencing center. That will be one tower and sitting right on top will be the Waldorf Astoria branded residences. And then we have two towers of residential which Will be for sale.
Akash Gupta
And when are we trying to launch this project?
Unidentified Speaker
This is all work in progress. We need to get our design in place. As we speak the team is working hard on the design. Once the design gets frozen, then it’s approval, then it will be, you know, we have to time the launch properly.
Akash Gupta
Understood, sir. Thank you so much, sir. Best of, sir.
Unidentified Speaker
Thank you.
operator
Thank you. A reminder to all the participants, you may press star N1 to ask question. The next question is from the line of Puneet from hsbc. Please go ahead.
Puneet Gulati
Yeah, thank you so much and congratulations on great performance. My first question is if I look at, you know, the potential salable value and the margin that you’ve given for upcoming projects, it comes to about 52%. Is that broadly how we should think about your newer projects and the new additions as well?
Unidentified Speaker
Is all about opportunity that keeps fluctuating. You’ll be happy with around 35% and 52%.
Unidentified Speaker
Punish is basically because you would have spent on land cost. So the slide you are seeing is the free cash flow slide. So we have already spent on land cost. So we’ll be getting that cash flow. So 52% is the free cash flow you’ll be getting. But the margins will be the into 35,000.
Puneet Gulati
Okay. Margin would still be 35 because that you haven’t spent much on land there so far as I see. Right? I mean it’s a small okay that maybe is not disclosed.
Unidentified Speaker
We go along.
Puneet Gulati
Okay, fair enough. And secondly, if you can also, you know, talk about your new acquisitions which you’ve done almost 20,000 crore worth. Have you paid for that already or. Is this in some bit of balance to pay there?
Unidentified Speaker
Two major ones are on rd. The one in Hyderabad is again rd. Not a significant payout. The values like the one in Chennai. Again we have a land payment plan of which we are paid 100 crores. The balance 300 crores will be paid over a period of time.
Puneet Gulati
So in all consolidated, how much is balance to spend on this land payment? Including maybe the previous business development that you may have done around 500. Sorry, 500?
Unidentified Speaker
Yes, 500 crores.
Puneet Gulati
Okay, that’s helpful. Thank you. And lastly, how do you think about peak debt? Your capex run rate should ideally pick up given that you’re looking at completions for large projects in FY28. So where should we see debt ending for end of 26 or end 27.
Unidentified Speaker
During the quarter? We have almost got a gross inflow of around 5,000 crores to see the team one day the entire year will be spending getting around 18 to 20,000 crores. Obviously we’ll be spending around 8,000 crores on construction and around 4,000 crores on your overhead, landowner payments and all that. So from the operating activity this should have free cash flows of around 7,500 to 8,000. Of this in the investing activity we’ll be deploying close to 3,000 to 3,200 on the capital, the Product India guidance and 4,000 on our business development. So on a full year basis I think so our debt could increase by thousand to thousand two hundred if we don’t do any further monetization plan.
Puneet Gulati
Understood. That’s very helpful. Thank you so much and all the best.
operator
Thank you. The next question is from the line of Yash Gupta from Prestige States. Please go ahead.
CA Yash Gupta
Yeah. Yes, Gupta. Isai. Good afternoon everyone. Referring to slide number 8, we reported the completion of 5 projects in Q1, FY26 with cumulative GDP of around 5000 to 5500 crores. However, as per our slide number 13 the residential revenue recognized during the same quarter standards 1573 crores. Could you please clarify the reason for the virus?
Unidentified Speaker
Again, the revenue recognition is not just based on project completion. It is also based on handover to the client. So we have completed those projects in the current quarter. But the handovers are still happening. So those generally a handover of large projects takes six to nine months. So in next three to four months we should be completing those handovers. And whether it’s.
CA Yash Gupta
And anything on the for the complete year, what revenue we are looking to recognize in the residential business for the complete year. FY26.
Unidentified Speaker
If you see we have under recognized revenue of more than 50,000 crores in the current financial year. Some of the projects in TPC Sarjantpur should get completed and the revenue should start flowing to that. So we expect close to 8 to 10,000 crores of residential revenue to happen in the current quarter.
Unidentified Speaker
Okay. Just referring to the same slide, slide number 24. We are saying that we will book around 57,000 crores of revenue. Could be say next three to four year down the line. So roughly 15,000 to 20,000 crores of revenue every year. And if we compare the same thing with FY25 in which we have just booked 3,000 to 4,000 crore. Is this understanding correct that we are looking to book 15,000 to 20,000 crores of revenue in maybe FY 26, 27, 28 and then thereafter.
Unidentified Speaker
Yes, there will be an increase in revenue recognition as we move forward. So As I mentioned there are 8 to 10,000 increase our revenue guidance for this financial year from the residential segment. Okay. But this will pick up with projects that is completed in financial year 27 and most probably that till 27 my residential revenue contribution should increase to 15 to 16,000 and it will keep increasing year on year.
CA Yash Gupta
And any. Anything on the margins, what like 35% margin, EBITDA margin?
Unidentified Speaker
Yes, on a portfolio level our margins are at.
CA Yash Gupta
Okay, sure. Thank you very much.
operator
Thank you. The next question is from the line of Abhir Pandit from Old Bridge Metro fund. Please go ahead.
Abhir Pandit
Hi sir, are you able to hear me? Hello.
Unidentified Speaker
Yes, we can hear you.
Abhir Pandit
Yes, hi sir, I wanted to understand specifically the fact that sir, going ahead the free cash flow generation from your residential business is going to be a major in a huge amount and is going to outstrip the requirements in the commercial business. And also seeing the fact that the hospitality business is. I mean it’s going for an ipo. So there is going to be a large amount of free cash flow generation. So how do you see the allocation of this free cash flow? Will it be towards land or how are you looking at it?
Unidentified Speaker
As I mentioned just financial year we are budgeting close to seven and a half to 8,000 free cash flows from our operating activities of which around 3200 we are planning to deploy for catra and the balance will be for business because we are selling the stock and we need to refinance the stock by doing more business development. So yes, a significant portion of our capex outflow will be financed from our residential business. But still we’ll be maintaining I would say 60% Inter on accruals and 40% from debt on our capex.
Abhir Pandit
Okay. Okay sir, my second question would be. Sir, since the industry is now looking towards luxury projects in majorly all micro markets. So. And since the real estate cycle is possibly in the third or fourth year how are you looking at the entire real estate cycle?
Unidentified Speaker
It all depends on what you define. And luxury. If it’s all projects above 25 crores, 15 crore or whatever and so and so forth that I would define as luxury, okay. Is a very, very niche market. It’s not that we want to sell this every day to everyone. These buyers are all through and far between and these are all fuxy buyers so we have to target that audience correctly and we don’t have too many of them. So trying to do too many of the luxury project. Okay.
Abhir Pandit
Okay, so last question from my side sir, just an update on the prestige palavam Gardens. It’s been more than a month from launch. So could you give us a status on how the offtake on this project.
Unidentified Speaker
Done Extremely well and it’s still working progress. And this month also we have Ashada in spite of that. Because Chennai is that different market where a lot of superstition and these happen. But then I believe for whatever we’ve done within the month, it’s really picked up well and done extremely well. We’ll report that.
Abhir Pandit
Okay. Okay. Thank you, sir. I’ll come join back in with you.
operator
Thank you. The next question is from the line of Vitala D. Verma from Antique stockbroking. Please go ahead.
Biplab Debbarma
Good afternoon everyone. First question is. On that annuity slide that you have. I just noticed that the commercial portfolio slide 2027, the projected annuity income step up say for FY26 and 27 has changed from what you projected in previous quarter. So my question is, is that delay in any of the projects that were supposed to start operation in FY2627. What was the reason of this shifting of annuity income step up?
Unidentified Speaker
Actually there’s no delay of any of the commercial projects. All are progressing as per plan. What you had mentioned actually in FY26 was projects completed up to Q1 86. So there were three projects basically died project, your lead through dry project and exporters which are planned for completion in the current grant. So those ventures had not come. We have actually devised a presentation and uploaded in the website. So if you please, for entire financial year at. At the end of financial year 26, our exit venture will be 8200.
Biplab Debbarma
In FY26?
Unidentified Speaker
26, the 5200 was basically. For projects completed up to quarter one. After factoring completions in Q2 up to Q4, my exit rental will ramp up to 8200.
Biplab Debbarma
So at the end of FY26, our exit rental will be around 8000 or so. Is that correct? Yes.
Unidentified Speaker
Yes. Yes.
Biplab Debbarma
Okay. Okay. That’s right. Also the projects that you have mentioned. That is we are planning to launch in Q2. What would be the GDP of this project? Launches planned in Q2 total GDU approximately.
Unidentified Speaker
Just a moment. 3,500 excluding the evergreen part. If you include Evergreen as well, it will be 3500.
Biplab Debbarma
Okay. So Evergreen is a big project. 5000 crore GDD project. Okay. Okay, sir. And my final question is on your. You know, increasing footprints in mmr. And I was just passing by GJM at another project accident. You boards are there. It’s. It has Been cleaned up and excellent location. So my question is, see it seems that most of you projects in MMR is with alliance with DB Realty or Bandwar Estate and its promoters. Should we expect new acquisition in the MMR region through other partnership or independent channels? So that is my last question.
Unidentified Speaker
Thank you for the appreciation on the work that’s happening. Firstly, we like to say that we are very agnostic when it comes to the kind of opportunities we look at. We are not tied up with anybody or we don’t have any exclusivity. But we will go on an opportunity to opportunity basis based on the merits of the development. We will look at the opportunities. But I think, I hope that answers your question. But yes, our strategy overall across the country to grow so fast is to work with developers who have land already tied up, have certain level of approval because it makes things easier.
Biplab Debbarma
Okay, sir, all the best.
operator
Thank you. The next question is from the line of Parishik Kanpal from HDSD Securities. Please go ahead.
Parikshit Kandpal
Yeah. Hi Sanji. Congratulations on a great quarter, sir. So my first question is on the Leasing and BKC. So you said that 50% is leased out in tower X. So we had benchmark the rated about 325. So by the time these towers are ready, do you think that we’ll be reaching that rate or what rate you have not been for now.
Unidentified Speaker
No, actually our leaving weight is above 350. So when we completed I think it should go above 400. But right now what we have achieved is above 350. Around 370 is the rate that we have.
Parikshit Kandpal
And the carpet rate will be almost double of this.
Unidentified Speaker
What I’m talking about is super built, not carpet. It can be double. My way of calculating carpet to super built is 0.65.
Parikshit Kandpal
Okay, got it. But great. I mean so 400 is what you are looking to achieve with this and rates will go up higher as you leave further because half of the building is already. So what kind of blended rate do you think by the time it’s ready it should trade at. By the time the building is ready, sir, and the entire leasing is done. What kind of weighted average rate can we expect from this?
Unidentified Speaker
Now. Take it as it comes. We have to see what the market is each time. So at the moment we are pretty happy that we’ve got some good companies who have committed the space. I can’t reveal the names just now but they are top notch companies and that is what gives us the sort.
Parikshit Kandpal
Of courage but kind of mix like is it more financial or it gcc. So what kind of tenants? I mean at least the sector you. Can highlight?
Unidentified Speaker
Basically corporates and then there are also some what we call co working spaces also that have committed the space.
Parikshit Kandpal
Okay, and the second question is on. The prestige business base, so 7,000 crore GDV addition. So is it a commercial project also? What do you want to do here? Just wanted to understand what is the.
Unidentified Speaker
Nature cut starter sale. We are looking at vacuum in the market for smaller offices and we felt it was a great opportunity. Location was good, the high court is coming next door. So there’ll be a lot of these smaller businesses, smaller requirements for smaller offices. So we haven’t done startup for a long time and in Mumbai we haven’t done at all. So we believe this was a good opportunity. So basically what we are making is gala and selling it.
Parikshit Kandpal
And this is in partnership JDA project or like is it entirely our project?
Unidentified Speaker
As of now there is some understanding we have but the company is handling this project totally on their own. But there is some because of the work done by our partners, they will be getting a certain percentage of the profit the top line.
Parikshit Kandpal
Okay, and my other question is basically in this quarter was there any further consolidation of stake between the promoter and the company in this quarter? And if yes, then what was the quantum?
Unidentified Speaker
That’s all the thing of the past. There’s no further changes that are likely to happen or will happen. All the consolidation, what that was needed to be done is already done.
Parikshit Kandpal
Okay, and just the last question on sustainance sales announced with the inventory which we have. So what kind of sustainance sales can we expect on a quarterly basis? Because launches mostly for us have been a significant portion has been. So what kind of sustainance sales come we can expect on a quarterly basis.
Unidentified Speaker
We’Ve guided for 27,000 for the year we’ve done 12,000 but then we have 20,000 inventory with us. So I believe from the inventory that we have, we should be able to sell about 25% of the inventory. But we have to add up new inventory, larger numbers. So at the end of the day with the new launches and the sustainment sales, we should be able to do much more than what we already talked about. But as of now I want to be guarded on this. I want to still stick to my 25 to 27 for the year.
Parikshit Kandpal
Okay, and forest in phase two, you did not mention in the launch is it going to happen in second half? Because this quarter you did not name it.
Unidentified Speaker
Forest phase, we’ve been selling every week after week.
Parikshit Kandpal
Phase Two, sir. And next two towers I was talking about.
Unidentified Speaker
Oh no, we haven’t launched those. You see, my strategy first is since we opened one tower, there are 600 odd units in that tower. We want to clean up the inventory there and then look at the second tower and the third tower. We don’t want to open up everything and make a mess.
Parikshit Kandpal
Okay. But this year it will happen. So second house, like when are you targeting?
Unidentified Speaker
It depends on the velocity. I want to clean up first tower which we opened up and then.
Parikshit Kandpal
Sure, sir. Thank you. And good action on the BD side and good that you added that slide. That has been what we’ve been wanting. But 20,000 is a big number.
Unidentified Speaker
Yeah.
Parikshit Kandpal
Thank you, sir.
Unidentified Speaker
Thank you.
operator
Thank you. The next question is from the line of Deepak from JM Financial. Please go ahead.
Deepak Gupta
Hi, good afternoon. This is Deepak Gupta from JN Mutual Fund. Thank you for taking my question. My question is. My question is related to a question asked by the previous participant with respect to promoter stake into some projects which was planned to be consolidated into the listed entity. Be it projects such as Nautilus and Ocean Task. If you could share an update on that.
Unidentified Speaker
No, there’s no change. It’s the same thing. There’s no, absolutely no change. Promoter has some shares. I mean we did some consolidation. That’s over. That’s the thing of the path. There’s a certain residual share that will remain and that there’s no not going to be any change.
Deepak Gupta
Okay, got it. And secondly, last, you know, about a year and a half back there was a sort of a funding arrangement done with Aria for four projects which were getting carved out. If you could give us an update what’s the status of that arrangement and how is that going to.
Unidentified Speaker
Yeah, we had a platform but we didn’t need the funds or we’ve not drawn out anything.
Deepak Gupta
Understand? Okay, thank you.
operator
Thank you. The next question is from the line of Abhinav Sinha from Jeffries India. Please go ahead.
Abhinav Sinha
Hi sir. On the business development part, great to see the numbers. Can you just talk about what is the payment that we have made for these projects and if anything is pending here.
Unidentified Speaker
Some of them are actually dba. So there not major payment like Tel P note. These are GBA projects. So it’s not a major payments. On this project. What is old land is actually Velacheri and Pulumari. In Velacheri we have paid 100 crores. In Puli Mari, another 70 crores is what we have paid. So total 170 on this and apart from that, other projects as well. We have in the entire quarter 600 crores is what we have paid on the credential.
Abhinav Sinha
Okay, so other project paid 600, although they’re still in JV side.
Unidentified Speaker
On entire total business development, we have paid 650 for the quarter on these projects. Close to 200 crores is what we have paid. 200. 250 crores.
Abhinav Sinha
Okay, got it. And if is there like a GDV addition target or what we can expect given the large budget that you have highlighted for the year.
Unidentified Speaker
This is a work in progress and it’s organic. That’s how the GDV addition happens. We are providing this because we got a lot of feedback that we want more clarity. So whatever has been firmed up, we are highlighting it and adding it as an Excel. Our target remains as an annual target and that’s how we keep adding the gde.
Abhinav Sinha
And that annual target is basically replacement of the year sale. Is that the target or. Yeah. Okay, so secondly on the launch slide, can you just, you know, give us a little detail on where Falcon City and Raintree park are exactly in the approval process? Which stage are they in?
Unidentified Speaker
So Evergreen. Evergreen, we should get approval this quarter. Falcon City should also take maybe another quarter or two at the most to get the approval.
Abhinav Sinha
Okay, so Evergreen, we should get the RERA this quarter and launch and Falcon City, we will apply for RERA next quarter. Okay, got it. And finally on the Mumbai projects which have been added, I was looking at slide 29. So can you detail where are the locations of these three commercial which are upcoming? Sure.
Unidentified Speaker
So Prestige Quantum is in Sahar is an office project in Sahar. Number 10 commercial is at the prestige place. This is part of Jira Matan which is a mixture development. We conceptualize it as the prestige place. So as Mr. Azaz said, office, it will have hospitality. Where we’re getting the Walda Asoria, we’re going to have branded residences by the Walda for sale and as well as for the luxury residential and retail as well. So that is what comprises the preside. So that’s what the commercial is and business bay. This is also in outside bjp.
Abhinav Sinha
Okay, got it. Thanks. And all the best.
operator
Thank you. The next question is from the line of Karan Khanna from Ambit Capital. Please go ahead.
Karan Khanna
Thanks for the opportunity. Just a couple of questions from my end. Firstly, if I look at slide number 22, your upcoming launches, most of this is largely skewed in Bangalore for the rest of the year. Given all the news flow that we’re hearing around job cuts in the IT sector and the larger, you know, feedback that we get from channel partners about pricing sort of pressure in the Bangalore market where rate hikes are becoming more of a challenge. How do you see this in terms of, you know, the overall market trends and more importantly, what’s the on ground change that you’re getting as far as, you know, price hikes that you’re being able to take in your current project?
Unidentified Speaker
The last two quarters, I think the market has performed very well. It’s a stable market. Bangalore has always been a stable market and given the higher realizations, there has been good demand and absorption. Most of the project, whatever we’ve launched in Bangalore has sold extremely well. Right. From plots to apartments. Southern Star has sold well, is gone for entry part in the past it sold well. We’ve launched Valima Estate. It sold well. So we don’t see anything on ground where what you’re saying has any credibility. So I would say that things are good and they’re very positive on the market and it’s been very resilient as well. So I think this segment we’re very confident about and we have high conviction.
Karan Khanna
Sure. And second question, if I look at Slide 23, you know, the GDV of new acquisitions done during quarter one, FY26, what kind of IRRs are you penciling in in terms of new acquisitions that you’re doing this quarter? And more importantly, how have you seen the IRR trending over last two or three years in all, the new project acquisition that you’ve done?
Unidentified Speaker
Generally we benchmark a business developing with a gross margin of 30 to 35%. So even the acquisitions we have done in Q1 will be in that.
Karan Khanna
Sure. And then lastly, in terms of, you know, given the success that you’ve seen in NCR in Indrapuram, how should one think about your future launches? I understand you’re looking at FY27 launches for sector 150 Noida and also to KG Mark. But are there, you know, possibilities for you to sort of front end the launches in FY26? In place of FY27.
Unidentified Speaker
We are working on adding up a new opportunity. So I think this year, by the end of this financial year we have. Some new opportunities and we will. More.
Karan Khanna
I’ll come back in the thanks for the update.
operator
Thank you. The next question is from the line of Pritesh Sage from Access Capital. Please go ahead.
Pritesh Sheth
Yeah, just a couple of questions on Hyderabad and Chennai Marketing. Hyderabad Presidency after that initial success project has now gone into sustainance and little slower than our usual standards. I think we last quarter did around 500, 600 odd crore of sale combined from city as well as I think Spring Heights. So how are you reading Hyderabad as a market currently? Any such a reason why? You know we are a little bit slow on monetizing the PPC Hyderabad inventory and also Chennai. Your experience with this first project and since you are expanding your pipeline there. In general, what would be your expectation. Of annual contribution from Chennai as a. Market Once we build this pipeline, Chennai has done well.
Unidentified Speaker
Chennai has done well. So also Hyderabad. You’re talking about Spring Heights Prestige. Spring Heights. We did what we did without the cec. There were pent up demand from our existing customers. But then the thing is I think both projects have done well. Keep doing well. We ourselves are not pushing the sales too hard or not promoting it. Because we also want the price to go up a bit. There’s no sense in selling it off very cheap. So we’ve increased the price, we’ve kept it there. The momentum is quite good. We just finished excavation. There’s a long way to go.
And I believe both these projects have performed well. And you asked the question what will be the contribution of Chennai annually when we get our act together fully? I believe we should get 5000 crores from Chennai. And I think we’ll get that once we have at least half a dozen projects moving out of which we’ve got two more in the pipeline.
Pritesh Sheth
Sure. And just on prescript city, Hyderabad. No. Any specific reason why it has gone a bit slow after that initial rush.
Unidentified Speaker
So it is, I think every month sales are happening. We increase the price also there. And the inventory that we hold is very small. And I think as we go along, see there’s a momentum and push that happens. And I’ve sold 75% of the inventory already. The balance really need not be pushed because the project is still only halfway stage.
Karan Khanna
Got it. Got it. That’s very helpful. And that’s it from my side. Thank you. All the best.
operator
Thank you. The next question is from the line of ABHIK from Old Bridge Mutual fund. Please go ahead.
Abhir Pandit
Hi. Thank you. Sir, my query relates to your execution that you have done. I believe you have done two major projects in Mumbai in the span of three and a half years. Right from launch to handover. This execution speed is truly remarkable. But just now trying to understand since the breadth of your operations is now increasing to a great extent how are you managing the execution risks given the scaling up of your operations? And specifically this is Relation with Bangalore. Since we have heard from our peers that launches or approvals related to launches have been facing an issue recently.
Unidentified Speaker
Approval issues will be there till time Memorial. There will be some changes in the law. There will be some changes in the people who come inside. But I think the code is very much the same in Bangalore. Yes, there was some hiccup. I think we should not cry about it. That also goes on. There was some issue based on some charges and other things. And the developers got a favorable order. We won the battle, lost the war. So now the government says without any charges, how do I sanction plan? We also need money. So that is going on.
Abhir Pandit
It’s what progress. But approvals will happen. I don’t see any reason why it shouldn’t happen. And you said to us about the execution.
Unidentified Speaker
Yes, yes. Execution risk is always there. So that’s why we at Prestige engage the best in class contractors with the proven track record. And we build relationships with all contractors. You see it’s just not the civil. Along with that is mep vertical transportation. It is doors, windows, all of it. So since we have that relationship and we have got proven people with proven track record who delivered to us again and again project to project. So we deal with them so it’s easier and we’re able to extract out good work out of them. So that’s how we able to execute faster.
And most importantly there’s a process, there’s a team that is on the job. And whatever project that we’ve taken up, the speed will never be sacrificed. Of course now with all cash flows being tied up and kept so there’s no problem on cash flows. Also the money has to be spent for the project as quickly as possible.
Abhir Pandit
Okay sir, that’s all from us. Thank you.
operator
Thank you. The next question is from the line of Akash Gupta from Nomora. Please go ahead.
Akash Gupta
Hi sir. Thank you for taking up my follow up question. Sir, so there has been news around job losses. And then there is another news of. This Trump tariffs impacting India in macro. I just wanted to know your thoughts around the resilience of the Indian real estate demand. So I just wanted to know your views on it. And also if you could give some data around footfalls and conversions. Has that changed on a year over year basis or are you seeing that improvement?
Unidentified Speaker
See now the macro environment keeps changing every day something or the other new keeps happening. Now that doesn’t mean to say that we should not stop, we should stop building or not do business. Because everywhere there is that thing now job Losses have happened and these jobs are actually people who. This came up in our board also yesterday. We had a discussion and these are the jobs that were lost are people who actually were the non technical staff. Whatever it is. But then the end of the day we need to see more jobs are created.
And it’s not good news that jobs are lost. We have to. We have to be sort of alert towards that. And of course tariffs. I don’t know how it will affect us. As of today I don’t see tariffs affecting the Indian real estate in any which way. I believe it will be working in our favor rather than against us.
Akash Gupta
Got it, sir. Thank you so much.
operator
Thank you. The next question is from the line of Yash Gupta from Prestige States. Please go ahead.
CA Yash Gupta
Yash Gupta this side from Ashikotecha family office. Sir, referring to slide number 28. The prestige city Mumbai. We are showing 90% ownership. I think we have some partner in BKC and Malachi both. The project for around 50%.
Unidentified Speaker
The prestige Mumbai. Prestige Mumbai is. Is it North Village or Prestige Mumbai?
CA Yash Gupta
The Race Coast Road commercial tower.
Unidentified Speaker
There’s owners who had interest in that development. So it’s because of that 90%. But if you see whatever is available in here that 100% belongs to Prestige 5050 as you mentioned.
CA Yash Gupta
Okay. And same thing for the BKC also.
Unidentified Speaker
BKC also it is 100%. Yes, BK.
CA Yash Gupta
Okay. And one question on the Jardine Classic. Recently we have completed that building and we got the OC also. What the revenue we have booked in this current quarter Q1 FY26 and what revenue we are expected to book in maybe next quarter or throughout the year from the Zband Classic only.
Unidentified Speaker
The entire project should get handled over by FY26 in Q1. Just three handovers which were done. So that’s nothing major. But in the current financial year whatever we have sold which is close to 950 crore should get recognized as revenue.
CA Yash Gupta
If I’m not wrong, the project is of 1700 crores. GGB it is 1500.
Unidentified Speaker
We have a stock of around 450.
CA Yash Gupta
Okay. Okay. Sure. Thank you. Thank you very much.
operator
Thank you. The next question is from the line of Shivam and individual investor. Please go ahead.
Shivam
Hello. Yeah. Am I audible?
Unidentified Speaker
Yes.
Shivam
Yeah. Sir, I just wanted to refer to the slide number 19 that we have given a figure of free cash flows ongoing and completed would be around like 20,000 crores. And up to coming is 30,000 crores. Correct?
Unidentified Speaker
Yeah.
Shivam
So I just wanted to ask that due to this accounting policy when do we see that reflecting in our books this ongoing plus completed numbers and any timeline on the upcoming one.
Unidentified Speaker
Free cash flows is basically amounts that we’ll be collecting from our ongoing and upcoming projects. So this is basically the cash flow that company will get once the projects are completed and whatever use are from the customers collected. And after deducting whatever cost we need to incur on construction and land. So this is around close to 50,000 crores is what we are guiding that once our purchase ongoing and upcoming purchase of company will get 50,000 crores of free cash flows. Now on the revenue recognition we have close to 57,000 crores of revenue to be recognized on sales already made.
These revenue will be recognized when the project is completed and handed over which will happen over a period of three. To four years. And upcoming. You had mentioned the timeline if you see the slide. We have actually mentioned basically expected launch date. Also the financial year in which the projects will get launched.
Shivam
Yeah, yeah, the projects will be launched. But it comes into our accounting only when it gets completed. So any timeline that when. When we are seeing the major chunk of our PNB getting increased like any time and if any fiscal year which you are seeing.
Unidentified Speaker
So for all again for ongoing projects, if you see we have given a timeline when the projects are deployed completed and you can say a six month period within which the revenue recognition will happen for the ongoing projects. For upcoming projects say from you can say three to four years is the time period when we’re required to complete the project. For example, if you are planning for launching a project in 26, the revenue recognition will happen by financial year.
Shivam
Trustee. Okay sir. And ROE slide also you have given for the quarter one FY 2526 the ROE annualized is coming at around 31.96%. So do we plan to maintain this in the coming four to five years? The x 31.96% the ROE.
Unidentified Speaker
Yes, you are talking on the segment, right?
Shivam
Yeah, yeah, yeah. The residential office retained services. The different segments that you. I am talking about residential.
Unidentified Speaker
Yes, it will be in that range. Again it will be dependent on how much revenue we recognize in a particular quarter. So revenue recognition is high and consequently the profitability is also a higher number. The ROE numbers will improve. So right now capital employed includes capital employed on ongoing as well as upcoming project. But revenue recognition is happening only for completed. So there’s a mismatch in that aspect. But it will be in that range. Just to give a ballpark number, my ROE numbers on the residential will be in that range.
Shivam
Okay sir. And My next question would be to Iran sir that do we have any plans to increase our promoter stake in the company? Because yesterday I was in the DLF score call. So Mr. Akash was saying that people were hyping about their Mumbai launch and when that good news came the Stock went down by 2, 3%. So he was also like that. He also doesn’t understand how the market scenario works. So given the current valuation of our stock prices. So this advancer wants to increase the promoter stake.
Unidentified Speaker
I don’t think that I want to work the market. We will die. Want the market to handle itself the way it is at the moment. Promoter stake is 61%. I will keep it at that. I don’t see any reason whether the promoter should sell or buy at the moment. And we’ll see how things go. Of course we do believe in our own company own stock. At some point of time. If you say buy up the whole stock and become an unlisted company with a separate story.
Shivam
Okay. And so can you talk a bit about the sentiment in the commercial real estate market right now? Because in an interview like past three to like three, four months back you said that investing in the commercial real estate is a very good opportunity right now in India. So can you talk about, talk something about the current sentiment in the commercial real estate of India?
Unidentified Speaker
Commercial real estate. The number of players are building commercial real estate are very few. So the inventory that’s coming up today, it’s all nice, it’s fresh, it is good. Even prestige is producing some of the best commercial assets across the country. And there is opportunity there. And we still will be, you know, we are now waiting and working hard to complete whatever we started which will happen by 28th. And I think at that particular time I think our exit rentals will go up to about more than 3,000 plus crores, maybe 3,500 crores. And it’s commercial real estate.
The demand has still strong and goes unabated. There’s no risk or there’s no sort of hurry that we have vacant spaces and things. I would accept putting a disclaimer in a Hyderabad market. There is a slight oversupply. That too again in high tech city there’s no way, no availability. In the other peripheral areas there is availability but then that also will get paid up at a price.
Shivam
And so any plan of bringing a reit, plan of wheat REIT listing because.
Unidentified Speaker
I’ve been saying this, there will be a read for retail as well as for commercial when we reach the critical mass which is three to four years down the line.
Shivam
Okay okay so you are waiting for the reaching to the critical market we.
Unidentified Speaker
Are we have to get into a certain critical mass in terms of overall square footage both in commercial as well as in detail then only comes in.
Shivam
Okay okay okay thank you so much.
operator
Thank you thank you ladies and gentlemen as that was the last question I now hand the conference over to the management for the closing comments. Over to you sir.
Unidentified Speaker
Thank you so much everybody. It’s been quite exhilarating and we had some really good questions this time. The management as well as the entire team is always working hard to provide shareholder return and to give the best and I think the company is keeping up to their targets and will keep up to their targets and they are all on the job all the time. Thank you again for active participation.
operator
Thank you on behalf of Access Capital Ltd. That concludes this conference thank you for joining us and you may now disconnect your lines. Thank you.