Prestige Estates Projects Limited (NSE: PRESTIGE) Q3 2026 Earnings Call dated Jan. 30, 2026
Corporate Participants:
Irfan Razack — Chairman and Managing Director
Zayd Noaman — Executive Director
Amit Mor — Chief Financial Officer
Analysts:
Pritesh Sheth — Analyst
Akash Gupta — Analyst
Parikshit Kandpal — Analyst
Karan Khanna — Analyst
Parvez Qazi — Analyst
Yash Gupta — Analyst
Esha Shah — Analyst
Jeet Shah — Analyst
Tarang Agarwal — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Prestige Estates Q3FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to SA Pritesh. Thank you. And over to you sir.
Pritesh Sheth — Analyst
Yeah, thank you. Good afternoon everyone. Apologies for the delay. On behalf of Access Capital, I welcome everyone to the call from the management of Prestigious states. We have Mr. Irfan Razak, Chairman and Managing Director, Mr. Zaid Noman, Executive Director and Mr. Amit Mode, the Chief Financial Officer. I’ll now hand over the call to management for their initial remarks and then we can open the floor for question answer. Thank you.
Irfan Razack — Chairman and Managing Director
Over to you. Good afternoon everyone. I’ll ask Zayd to give his opening remarks and then we’ll continue with questions.
Zayd Noaman — Executive Director
Thank you. Good afternoon everybody and thank you for joining us on today’s earnings call for the third quarter and nine months ending FY26. I’ll begin with a brief overview of our operational and financial performance followed by updates across our residential, office, retail and ESG platforms after which we will open the floor for questions. Q3 and the first nine months of this financial year have been defining periods for the company marked by strong execution, healthy demand, visibility and continued diversification across geographies and asset classes. Starting with our residential business, we recorded three sales of 4184 crores during Q3 reflecting a 39% year on year growth for the nine month period pre sales stood at 22,327 crores.
This is a growth of 122% year on year. Importantly, this is the highest sales ever achieved by the company and exceeds our previous full year peak sales all within just nine months. This year. The performance indicates strong resonance of our portfolio across markets and depth of demand for well located high quality developments. Sales volumes for the quarter stood at 2.99 million square feet, taking cumulative sales for the nine months to 16.95 million square feet. With over 8,500 units sold year to date. Our geographic mix remains well diversified led by Mumbai, Bangalore, Hyderabad and NCR. Providing resilience across market cycles.
Average realizations improved to 14,459 rupees a square foot, up 6% year on year. While our plotted developments continue to see strong traction with realizations increasing by over 30%. Collections remained robust reflecting the quality of sales and disciplined cash flow. We achieved collections of 4,584,548crores in Q3 and 13,283 over the nine month period, the highest collections recorded by the company and higher than full year totals in the past. On the supply side, during Q3 we launched 5.02 million square feet taking total launches for the nine months to 23.83 million square feet with a residential GDV of over 19,600 crores.
Completion during the quarter stood at 4.72 million square feet and 12.71 million square feet for the nine month period reflecting steady progress and disciplined execution across projects. Moving to our commercial office portfolio leasing during Q3 stood at 0.56 million square feet with occupancy across the operating portfolio remaining Strong at over 95%. Exit rentals from the office portfolio for FY26 are expected to be approximately 829 crores with completion of our ongoing pipeline. Office annuity income is projected to scale to around 4000 crores by FY30. We also recently completed Prestige Lakeshore, Prestige Tech Hub and Prestige Capital Square in Bangalore Premium office developments totaling 3.7 million square feet which will shortly begin contributing meaningfully to our annuity income.
Our portfolio continues to perform consistently well. During Q3, mall footfalls stood at 5.2 million and gross turnover grew 14% year on year to 702 crores. Occupancy across malls remains exceptionally strong at over 99%. Exit rentals for FY26 are expected to be around 275 crores and with 14 malls in the pipeline, retail annuity income is projected to scale to approximately 1175 crores by FY30. Turning to the financial performance, revenues for Q3 stood at 3886 crores up 128% year on year with EBITDA at 873 crores and PAT at 245 crores. EBITDA margin for the quarter stood at 22.5%.
For the nine month period revenues were 9052 crores, EBITDA at 3104 crores and PAT at 1015 crores reflecting healthy profitability and operating leverage. EBITDA margins for the nine months to debt 34.3%. It’s also pertinent to note that our unrecognized revenue as of December 31st, 2025 stood at 61,922 crores, providing strong visibility for revenue recognition over the coming few years. Finally, on esg, we continue to make steady progress across environmental, social and governance parameters. Key highlights include India’s first net zero energy operational Mall at Forum South Bangalore, multiple lead IGBC and well certifications across our portfolio, progress under our prestige Green promise with a commitment of 1 million saplings and plantations underway and several national safety awards across residential, commercial and retail projects.
Overall, our performance in Q3 and the first nine months of FY26 reflects the strength of our diversified platform, disciplined capital allocation and focus on execution. We remain confident about sustaining momentum while continuing to scale our annuity portfolio and delivering long term value to all stakeholders. With that, I will now open the floor to questions.
Irfan Razack — Chairman and Managing Director
Thank you Zaire. Well done.
operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of Akash Gupta from Nomura. Please go ahead.
Akash Gupta — Analyst
Hi. Am I audible?
operator
Yes sir. You’re.
Akash Gupta — Analyst
Hi sir. Congratulations on a good performance. My first question is on the margins for this quarter at roughly 22%. What was the reason behind that? And second is also on the cash flows. I think the investment in land, the outflow of cash this year was this quarter was also on the higher side at 27 billion. What was the reason behind that? That’s my first question. The margin reduction was mainly because of the product mix. If you see last quarter we had couple of projects where the margin was slightly higher. In the current quarter there were a couple of projects where the margins were in the single digit.
Basically if you see completed one project during the year called wherein there were legacy customers whom we have sold at, it’s an NCLT takeover. So it was a old rate. So the margin in that block was lower. So that has resulted in a lower margin for the quarter. Okay. And the outflow of cash this quarter on the investment in land at roughly 27 billion that was also on the higher side. So what was the reason behind?
Irfan Razack — Chairman and Managing Director
Yes, yes. So basically this quarter we had couple of good opportunities especially on the 10 bidding and some corporate deals. So one land parcel we had tied up in Hyderabad called the Knowledge park that there we have invested close to thousand crores. Okay. And then in the Chennai market we have picked up one land for 800 crores. So these two were the major contributors. But otherwise the total deployment was close to 2000. Understood. My second question is on the launch pipeline for fourth quarter. And how should we think about your pre sales number in FY27? So it’s fairly certain I think that we we will achieve our FY26 guidance.
How are we thinking about demand and launches? The big launches in FY27. Thank you. Now this current quarter we’ve got three launches coming in Bangalore. One we’ve already done which is Evergreen at the Prestige Rainfall Park. In the pipeline is Eaton park and Fernvale in the Prestige City. Two more components where the approval will come in hand in a couple of days. And then we get Terra and we get launched. This quarter we also have a plotted development called the Prestige Marigold in Bangalore and then Hyderabad. We are very confident of launching two developments. One is the Rock cliff and Banjara hills.
And the second is the Golden Grove. Again that is in Telapur. It’s a very large development. And there again we believe we’ll be able to launch this quarter. So all in all we should cross top line sales in this quarter of about 8,000. This will take us through to 30,000 for the year if not more. Mr. Sir. And how should we think about FY27 and your thoughts on the real estate demand piece? The demand continues. FY27. It’s all work in progress. We have a pipeline. I think it’s too early for us just now to spell out all the projects that are there.
Which of course the list is there. But it’s all working progress in the sense which project this quarter. And I believe that once the product comes to the market it will definitely be sold.
Akash Gupta — Analyst
Understood sir. Thank you so much. Investor. Sir.
operator
Thank you. The next question is from the line of Parikshit Kadbal from HDFC Securities. Please go ahead.
Parikshit Kandpal — Analyst
Yes sir. Hi. Congratulations on a good quarter. So if I look at your numbers for FY26 you will cross or reach 30,000 crores. But the last component, almost one third is coming from NCR. So which is 9000 crores which was a hit product this year. But we start FY27 at least a shortfall of 9000 crores. And to reach or achieve or exceed 30,000 some other products have to contribute. So how does one think in FY27? How do you intend to make up? Because NCR we don’t have much of a pipeline as of now.
Irfan Razack — Chairman and Managing Director
Oh no, there is pipeline. The teams are working on it there is a strategy and we have tied up some land in NCR also. We can’t be just one product wonder in the ncr. They’ve tied up to the last tracts in the Gurgaon region which will spell out as we go along.
Parikshit Kandpal — Analyst
In terms of I don’t see them in the business development pipeline additions how much will be the value of the GDV added in these new projects.
Zayd Noaman — Executive Director
So if you just look at the slide number 26 in our investor presentation that tells you the GDV of new acquisitions that’s totaling to around 40,000 crores. And if you look at existing pipeline that we already have where approvals are nearly finalized and planned for upcoming quarters, we have about 16 projects there of which 1, 2, 3, 4, 5, 6 projects should get launched this quarter. That balance is around about how much. Amit. About 15,000 crores will be there over there as well. So 15 plus you have 40,000 crores.
Parikshit Kandpal — Analyst
You finally touched upon that you have tied up some land parcels.
Amit Mor — Chief Financial Officer
Sir, NCR we already have sector 150 which the legal issue which was there has been cleared and the plan should get approved in a couple of months and apart that will come for the next financial year. That’s why we haven’t planned it for this quarter. But for sure in the next quarter that will come. We’ve got I can’t spell out the other two sectors in Gurgaon which we have finalized. We have a term sheet. We are working on the legal due diligence and that will surely hit in the next financial year. There are something that at the appropriate time it will be announced.
Parikshit Kandpal — Analyst
But in terms of these or how much will be the value of these two projects.
Amit Mor — Chief Financial Officer
If you take that it will be again a bigger if not as big as what you’ve already done in in Indra puram. So the DDU will be more than 10,000.
Parikshit Kandpal — Analyst
Okay. All to put together.
Amit Mor — Chief Financial Officer
More than 10,000.
Parikshit Kandpal — Analyst
Okay. Secondly on commercials I think you have on the television spoken about the commercial assets earlier a few days back. Just wanted an update on the BKC and the Manakshmi assets. So how has been the least traction in these two assets? So what kind of leasing we have already achieved into these two assets?
Amit Mor — Chief Financial Officer
Yeah. So what happens is now in BKC the good news is the construction is underway at a pretty fast pace and we should top out the X tower in BKC by April, May of this year and we should top out the Wise tower by August September in this particular calendar year. And similarly for the Turf tower which is the Mahalakshmu, which is called the Prestige. Both the towers should get topped out by the end of the year, that is December. So we have things are moving at a very, very healthy pace. And then of course after we top off there will be a lot of work in terms of finishing which will take another year.
But having said all that if you ask me on pre leasing I think the teams have worked really well. And in BKC we have commitments, firm commitments with deposit for about 1.4 million square feet of office leasing. Similarly in the turf tower we would have around 400,000 square feet of pre leased commitments. That is for property that is under construction. It’s I would say is a great achievement. Once it’s ready, the demand will be much more because the type of product that we’re going to deliver will be not seen.
Parikshit Kandpal — Analyst
Okay and just lastly on the data center I think you’ve signed some MoU, the Maharashtra government. So any update on that? So so what are you exactly planning to do there and what kind of investments? We should look into the data center.
Zayd Noaman — Executive Director
So that’s a work in progress. The land will be allocated to us. So we’re just waiting for that to be done. Hopefully at the end of this quarter. We should have a further update on that. Thank you.
Parikshit Kandpal — Analyst
But we are looking to do build to suit or will it be an acquisition?
Zayd Noaman — Executive Director
Because it will be a combination because it’s close to 100 acres. So it will be a complete build out and it will be completely master plan. So we’ll be open to doing either or.
Parikshit Kandpal — Analyst
Lastly if I may squeeze in so next year for an FY27. I mean I think in your media interview today you said that we intend to better off FY27. So but are we looking at any growth or you think that 13,000 will be kind of a peak number at least for the mid to near to midtown in terms of resales.
Irfan Razack — Chairman and Managing Director
Now FY27. Now see once we arrive at our number for FY26 we hopefully we are I think more or less sure to cross that 30k mark. We will take stock, we will take fresh guard and I think once you are at the peak, I think we need to evaluate, do all our homework and work out from which market what like you ourselves asked about the NCR market. So we are looking at seeing which market how much can come from. But I believe the 30k market itself, what we are going to reach is going to be pretty high.
We will give a guidance when we come to April in the next quarter when we have Our conference. Maybe we’ll have our guidance also ready. As of today, it’s too early for me to say anything.
Parikshit Kandpal — Analyst
That’s all from Asik. Thank you.
operator
Thank you. The next question is from the line of Karankhanna from Ambed Capital. Please go ahead.
Karan Khanna — Analyst
Yeah, thanks for the opportunity. Just a couple of questions from my side. Firstly, Mr. Razak, you spoke about 30,000 crores of pre sales for SI26. Which effectively means about seven, seven and a half thousand crores in the fourth quarter. If I look at the launch pipeline, so largely all the four projects are in Bangalore. And if I look at the quarterly sustainance sales of about 3200, 3300 crores. Effectively you’re looking at a 50, 60% kind of a sale on the launch of these projects. So if you can provide some color on the health of the Bangalore real estate market.
What’s the sense that you’re getting on ground in terms of footfalls and conversions that should take you comfortably to the 30,000 crore mark.
Zayd Noaman — Executive Director
That’s the reason why I said we will cross it quite comfortably. We just launched in this month the Evergreen at Prestige Raintree park which is a 5000 crore GBV. Out of which this has met with a really, really good response. In the first two weeks itself we have done fairly good sales. I think almost about 1500 to 2000 crores of course will total up as Red Stale stabilize. And I think this quarter on that particular project should do very well. Now we also have the Prestige City two components. Eaton park and Fernvale. Even those. We believe that once the approval comes in hand which is likely to happen this week, I mean early next week and the ra, we should be able to get a fairly decent sellout like this.
50, 60%. And we have a large development in Hyderabad which again is going to contribute very big which is the Golden Grove in Telapur. So all this put together we should cross the line very, very comfortably. There won’t be any struggles. Palm Court in Chennai. Palm Court also just got approved in Chennai. But Chennai market. See now looking at markets, I’ll tell you Bangalore is still pretty very good. It’s fast. Hyderabad is also fairly decent. Chennai is steady, very steady. And it will not give me instant results. But depends on which micro market the demand is still there because of the brand itself.
Karan Khanna — Analyst
Sure, this is helpful. Secondly, on new BD can you provide some color on what IRRs are you penciling in while signing up new business development? And for the 40,000 crores which was signed so far in 9 month FY26. What does the margin look like? And in the last call you mentioned you’re looking to send one large BD in Mumbai. So if you can provide an update on that.
Zayd Noaman — Executive Director
I think to answer this the IRR what we’re expecting on our recently signed projects is in the range of around 28 to 30%. So most of the projects are in that range itself. So if you see a blended rate for our upcoming and our ongoing projects also it’s in that range. So it will be will be maintaining that margin levels.
Karan Khanna — Analyst
And the BD that you’re looking at in Mumbai, is there any update that you are seeing here?
Zayd Noaman — Executive Director
BD is a work in progress. Every day there’s something new that happens. The biggest BD in Mumbai is we already have the land which is the and we cleaned it up and very hopefully the next financial year we launch which is the prestige place which is the entire 4,000 homes which were there have been cleaned up. First is our responsibility to build that 4,041 homes. Second is as soon as the plan and the concepts are almost getting finalized today we are going to have a hotel, we are having office, we are having a retail mall plus 2 1/2 million square feet of residential and I believe that would be a, a number mover and that also will happen in the next financial year.
We also have a large office development which we are going to sell in Bandar that is called the lig which we call it the business day. Even that approval will come in the first quarter of next year in Mumbai. So the BD is many things are happening. Everything can’t be spelled out but there is a lot of traction and there is a lot of opportunity. We like you see now you saw Hyderabad. We bought that 11 acre land in high tech city out of which 3 million square feet will be built. 2 million will be office, 1 million will be residential.
The residential tower will give us at least 2500 crores GDV and I believe that’ll be a luxury tower and that there’s a vacuum for that type of a product. I think that will also meet with a good response.
Karan Khanna — Analyst
Sure, this is helpful. Mr. I’ll come back in the queue. Thank you and all the best.
operator
Thank you. The next question is from the line of Parve Kazi from Nuvama Group. Please go ahead.
Irfan Razack — Chairman and Managing Director
Hi. Thanks for taking my question. My first question is on the dial project at the Delhi airport. Would be great to get a status update about that.
Irfan Razack — Chairman and Managing Director
Yeah. What about the dial project?
Parvez Qazi — Analyst
I mean timelines and how is the leasing timeline?
Irfan Razack — Chairman and Managing Director
Okay, now that’s good news is that teams are really putting a lot of focus. First is the 600,000 square feet of office that we have has been almost all fully leased out and the customers are waiting to move in for their results. And the project itself I would say the completion of the hotel block will be by July of this year.
And of course it’s a very large hotel and a lot of rooms. There will be some simulation times four to five months. We’ve already appointed the general managers for both the hotels that is the St. Regis and the Marriott marquee, the huge convention. So I believe the hotel per se should start trading with a soft launch end of this calendar year. And the office component, we should be able to hand it over to the tenants in April as soon as we get the occupancy certificate. Sure. And second on the housing side I mean you did give a color about the various marketers like Bangalore is still good.
Wanted to get your views on price increase. I mean is there a scope for further price increase or do you think we are more or less near the top? No, I think we’ve topped up on the price. We should not allow the price. You see now what’s happened is what, what what components go into price. It is A, the raw material which is land. B it is a cost of construction and C is the approval cost. These three like it varies from city to city, Mumbai more than the land cost. It is the approval cost because the premiums and the TDR and the other components are pretty huge.
Like in a Hyderabad, in a bank the approval cost is not that high. But then we have to be very very careful on what we commit. And we don’t over commit overpay and overprice the land. Once you pay too high a price of land then in case the market corrects itself or there’s no demand at certain level there is going to be pain. But as of now at the level that we reached I think we according to me more or less peaked out. We should not allow prices to rise more than this. Sure.
Parvez Qazi — Analyst
And one last question for Amit.
For the BD deals that we have already entered what is the pending land capex that needs to be. Thank you.
Amit Mor — Chief Financial Officer
Yeah. Just give me a moment. It’s close to. Close to 1800. Close. Sure. Thanks and all the best.
operator
Thank you. The next question is from the line of Tarang Agarwal from Old Bridge. Please go ahead.
Tarang Agarwal — Analyst
Hello sir. Good evening. A couple of questions from our end. 1 Sir, just to get A sense. How conservative or aggressive are we when it comes to, you know, calibrating our upcoming GDVs and costs associated with it? Typically what are the moving parts, which costs are most vulnerable to? And similarly when it comes to the gdv.
Zayd Noaman — Executive Director
I think we can’t get too aggressive and too optimistic. Whenever we calculate anything, whenever we tie up a deal, we are very conservative. We take the worst case scenario and make any commitment for any land. And in case we believe that it’s just not possible, we just let it go. There’s no ego in doing business as long as it makes sense to the company. As long as there is a confirmed bottom line and as long as we believe that there’s going to be success, we touch it. Otherwise its best thing is to just move away and then live to fight another day.
Tarang Agarwal — Analyst
Okay, and historically you’ve seen an up move in most of your projects where the GDV that you had penciled in at the time of conceiving the project versus the GDV that you actually realized, is that how the trends changed?
Zayd Noaman — Executive Director
That has happened. You see now when we launched Indra Puram before, when we tied up the transaction, we thought we’ll get a GDV of about 8,500 to 9,000 crores. Today we are getting 12,000 plus crores. Of course on the other side, flip side, even construction cost also has gone up. So if we hadn’t got that plus obviously we would have got hit on our bottom line if the construction cost went up. So there’s an insurance. So that’s why we are very conservative. That’s why when we are conservative we have to be careful and conservative. We can’t throw caution to the wind and look only at the volumes.
We have to look at the bottom line.
Tarang Agarwal — Analyst
So second, you know, just to get a sense on your cash deployment going forward, you know, given your CAPEX commitment of about 15,000 crores between your commercial and retail business and given the reasonable visibility that you have on your cash flows, obviously it’s split in fee buckets sold unsold and upcoming and unsold and upcoming will have certain risks associated with it. But basically, and the fact that your commercial portfolio in itself will start generating anywhere between three and a half to 4,000 crores of free cash. So how should we see cash deployment going forward? Because both office as well as retail seem to be at a point where there will be self sustaining reasonable amount of cash flow generation from the resi business.
So how should we see you deploying this cash going forward? And this is not from a year or two perspective. From a slightly longer term horizon.
Zayd Noaman — Executive Director
Right now as you mentioned, we have close to 15,000 crores of capex to be spent of which what we are envisaging, close to 40% will be from debt and 60% from are internal accruals, basically residential and whatever surplus cash flows from our and midday business. So that should, this is how we should be allocating our capital most broadly. If you see whatever we are allocating on, 70% will be on the residential segment and 30% will be on the capex amity business.
Tarang Agarwal — Analyst
Got it. But you know, I mean if I just put the entire business together, Resi and commercial together and just look at the consolidated entity and the underlying characteristics of the RESI business. You know there. Will be a sizable free cash that could, that is likely to get generated. So is there a potential for you to have an alternate line of business? I mean data center is something that’s been spoken of. So is there where we could seal.
Zayd Noaman — Executive Director
Hi. So your question towards what we’ll do with the free cash flow is very simple. I think each line of the business. Is giving us quite good return on capital. So. So we’ll continue to deploy it accordingly. And also yes, to answer your question. Data centers as well is something we’re looking at. But of course I think it’s very nascent right now. And so we have also looked at acquiring these large parcels of land where the requisite power can also be. Provided. To and based on demand we can. Also ramp up the supply. But yeah, we are very agnostic in. How we look at things and if. There are some new alternatives also we’re. Happy to look at it. But as of now in these four to five business lines is where we would feel we can deploy most of our capital.
Tarang Agarwal — Analyst
Last question. Because that seems to be moving a bit slow. And similarly sold out of the GDDI. Time of launch about 87 crores. So how are you looking at Nautilus and an update on Pallavaram?
Zayd Noaman — Executive Director
Thanks. No, no. Pallavaram has according to me performed quite well. They’ve done more than thousand crores worth of sales there. We are just doing excavation and maybe just foundations are going on like I said, like in Bangalore. I can’t compare a Chennai to a Bangalore, Bangalore to a Hyderabad or Hyderabad to a Bombay. All have done in the different spaces. You asked something about Nautilus, what was that?
Tarang Agarwal — Analyst
So Nautilus, I think absorption till date has been in the ballpark of about 4,500 crores that’s about 55% of the GDP. So how are we looking at, I mean are we consciously going slow on the project given that it’s been established, fairly well known. I just wanted to get your sense.
Zayd Noaman — Executive Director
Nothing to go slow about. Construction will go whole hog because there again I think excavation itself will take me a year plus we’ve started it at full speed but still one year more for excavation and then obviously the foundations and everything will happen. In fact on the other side the society building is up, up and about. That’s why my society members are pretty happy. And on the sales front as Nautilus concerned I still have to load some more the slum component and some more fsi all those things. So as we keep loading we’ll get more and more and more inventory to sell.
Just now my sales guys don’t have that inventory and I believe that there’s no question of going slow as and when we can. And as and when we get the approval we’ll keep selling. And the demand, I mean don’t wait for the demand. I don’t keep inventory hoping for a better price. See here always our thing is if the going is good, if there’s a product, the demand for the product, sell it.
Tarang Agarwal — Analyst
Thank you. Thank you sir. All the best.
operator
Thank you. The next question is on the line of Pritesh from Access Capital. Please go ahead.
Pritesh Sheth — Analyst
Yeah, thanks. A couple of questions first on you know we’ve gone a bit aggressive this year on building a pipeline in Hyderabad and Chennai. Some of our peers you know are struggling in those market. I wouldn’t struggle but bit slow in that market in terms of scale up. How should we see our target segment in that market and what according to you is the right fit for individually those market to have a good sales launch? Because I think morning in the interview you said that if project doesn’t sell 30, 50% in the first month of launch, you know then it’s not a successful project.
That’s where we are quite wary of. So what would be our strategy in Hyderabad and Chennai so that we are successful in these two markets as well?
Zayd Noaman — Executive Director
That’s a good question. See in Chennai I can’t hope to have a 50, 60% sale on the first month of launch. I believe there if I am getting a 20% sale in the first one or two months of launch I would say it’s a good project. And another thing is we have not gone aggressive. We didn’t have any inventory at all in that market. So we have picked up 3, 4, very good priced properties. The opportunities did come and now those will start coming in and that start fructifying. And since we’ve been in that market for quite long, I believe there’s that opportunity even in Hyderabad.
Really speaking, our prestige city Hyderabad is more or less getting closed out and sold off. So we needed some large ones. So the golden grove with a 9 million square feet project if launched I think at the right pricing the location is just tremendous. I think it should be a big hit. We’ve just now also tied up another land in Kali. Even that will take me about six to nine months for approval. That also will come in the next financial year. Of course Bangalore. We have a big pipeline. Again I don’t see any reason why we can’t bringing in more and more inventory in Bangalore.
What should be the size in these.
Pritesh Sheth — Analyst
Two markets at peak level? What kind of presales that can we generate from both of these?
Zayd Noaman — Executive Director
The pricing we haven’t yet decided. I wouldn’t want to spell or just hazard any guess on the pricing with.
Pritesh Sheth — Analyst
The pre sales run rate in these two markets on a steady state basis.
Zayd Noaman — Executive Director
No, I think optimist too optimistic. I would say seven and a half thousand in Hyderabad is what I would expect. And Chennai would expect around 4 to 5,000 for the whole finance.
Pritesh Sheth — Analyst
Yeah, yeah, got it. And just one last on the pricing bit, right. I think it gets into a chicken and egg kind of situation. When prices don’t increase, we don’t get rush from the home buyers. So when you say a kind of a flat top out in terms of pricing are you also discounting discarding those gradual price increases that are needed for customers to make those buying decisions rather quickly. So what’s your thought process when you say prices have topped out?
Zayd Noaman — Executive Director
Listen, I don’t think anybody buys a home looking at price getting higher every month or every quarter. That’s not the way a customer looks at it. They look at location, they look at the product, they look at the opportunity, they look at the affordability. When I said top out what I meant was that we have reached at certain levels. I personally wouldn’t want the pricing to go up further and further because it will be counterproductive. The only thing would be that if price does go up obviously it will. It will be correcting itself against inflation.
So that is a thing that happened. We’ve seen it year on year, every two, three years there’s that big high jump. As of now we’ve got that high jump and I think we should be content with what we have. And if you’re able to play within those numbers and the customer also is looking to buy a home and that’s how the customer thinks. It’s not that we’re looking at. I mean I don’t want investors to come in thinking that they’ll buy today, sell tomorrow, make some money. I think that will be an artificial market.
Pritesh Sheth — Analyst
Very clear, sir. Thank you. All the best.
Zayd Noaman — Executive Director
Thank you. Thank you.
operator
Thank you. The next question is from the line of Isha from Access securities. Please go ahead.
Esha Shah — Analyst
Hi for congratulations on a great year. I think most of my questions have been answered. Just one thing, I wanted to understand the corpus that we spend on new acquisitions of BD this year up till now and what is the kind of corpus that we’re expecting for the remainder of the year and if you can throw some color on the corpus for the next financial year as well.
Amit Mor — Chief Financial Officer
Over to you Abit. Yeah, HI. For the nine months we have spent 4700. We had actually guided 4500 but then as we mentioned there were certain good opportunities during the quarter. We have deployed 2,700 crores for the quarter which is on a higher side. Go for the next quarter. What we have allocated is close to. In the next backup call.
Zayd Noaman — Executive Director
If you can. I think so your line is on this one. You can mute it. Yeah. So for Q4 we have allocated close to thousand to 1300 crores so we’ll end up financial year 26 with close to 5500 to 6000 crores of BD spend in financial year 27. Right now what we are budgeting is close to 4000 to 4500 to 5000 is what we are allocating for financial year 27.
Esha Shah — Analyst
Okay, sure. And the next question is on the debt side. So we, I think on the call we spoke about having 40% debt capex, 40% debt coverage. So just wanted to understand what is the kind of debt we are expecting by this year end and also if we are planning on taking on more debt for the next year.
Zayd Noaman — Executive Director
See again debt if you see we have been managing our capex and business development through our operating cash flows itself. The exception being this quarter because of the opportunities going forward. Also we, what we are budgeting is we should be able to manage our operating from the operating cash flows capex spend and the business, whatever debt will take is basically to service the interest and repayment of the loans. So current finance, just to answer that in 26 we don’t expect to go up significantly. It should remain at 0.53 or 0.5. 5 levels itself.
Esha Shah — Analyst
Okay. Okay. And just one last question. Like how we are witnessing a little bit of slowness in micro markets of Chennai or Hyderabad? A, are we seeing any oversupply in those micro markets And B, are we exploring any new micro markets for the coming years? Since we want that kind of growth for the coming years. Is it just the Delhi Mumbai markets that we’re looking at or are we discovering any new micro markets? That’s it. Thanks.
Zayd Noaman — Executive Director
So we’re looking at the Pune market as well apart from the markets that. We are operating in. And hopefully we should have some BD in the. In this new market in the next financial year.
Esha Shah — Analyst
Okay. Okay. Thank you. Thank you for answering that, Sujam.
operator
Thank you. The next question is on the line of Yash Gupta from Asset Koticha family office. Please go ahead.
Yash Gupta — Analyst
Sir. How we are looking at Jijamada project gdv. It’s nearly six months of land clearing and along with that any thoughts on Lunavla? I think it’s more than one and half year. We have talked about any challenges we are facing. I think Lonavala land procurement is almost completed but it will still take a few months more. Once we have a fix on the entire total land then we’ll probably get onto the drawing board and design a product there. On Vida Mata the property is clean. Now the planning is going on. The product mix also has been decided.
So it’s only a matter of fixing the overall product, getting the approvals and moving. That’s it. Earlier we have discussed the GDP of this Giga Mata will be around 20 to 25,000 crores. But now the prices has increased in those market. So any upgrade in those gdv, It’s a. See just not residential there it’s a. It’s a total four and a half million square feet. But out of which two and a half million will be residential. The rest two million will be hotels. That is getting the Waldorf Astoria, the Hilton Convention center. We’re getting a city club resident office of about 500,000 and a million square feet plus retail.
So there will be a lot of capex. We are looking at the inflows coming out from the residential also to take care of the capex here. So far on that particular project there is no debt. Again it’s in partnership. So we are at the moment holding 50% equity there. And partners also have to contribute equally. So we’ll take it. We’ll play it by you as we go along. Okay. When we say free cash flow from residential project is around 50,000 crores. And revenue recognition of 61,000 crores. So whatever investment has gone into this project and any guidance on the residential revenue recognition for FY27.
No, we’ve already said that that’s work in progress. We’ll announce that in April. Okay, sir. So last thing is this Prestish Quantum. Is this Sahar road project? Yes. 1.63 million square feet. Yeah. I think whatever total area, once the approval comes they’ll know. But that’s I think 1.2 to 1 point. Whatever. I don’t know who wrote 1.6. Maybe that is tedious. 1.6 is crypto developable area. Your reasonable days will be that 1.2. Okay, sure. Thank you, sir.
operator
Thank you. The next question is from the line of Jeet from Pinpoint. Please go ahead. Hi, sir.
Jeet Shah — Analyst
Am I audible?
operator
Yes.
Jeet Shah — Analyst
Congratulations on a great quarter. Just want to understand. It seems for this upcoming quarter your Bangalore launches alone will help you meet or beat that 30,000 crore number. So are you still aggressively trying to push those Hyderabad products for this quarter itself? The large project in particular, golden grass.
Irfan Razack — Chairman and Managing Director
No, I think we have to bring in golden growth. It will come. And only thing is we have to keep our fingers crossed that it meets the imagination of our customers. And the demand comes from there.
Jeet Shah — Analyst
Okay, sure. And so secondly for the GJ Amata product, the 2.5 million square feet of residential. Is that on saleable area or carpet? Area
Irfan Razack — Chairman and Managing Director
Carpet.
Jeet Shah — Analyst
Okay, sure. Thank you so much.
operator
Thank you. Ladies and gentlemen. That was the last question. I would now like to hand the conference over to the management for the closing comments.
Irfan Razack — Chairman and Managing Director
Thank you. It’s been an amazing interaction. Anything further there is always available. Amit is available for an interaction. Any clarifications for us at the company, the teams are working hard to produce better and better results. I think we’ve done that over the several quarters. And we do hope the next quarter also will be as good. Thank you so much.
operator
Thank you. On behalf of Access Capital Ltd. That concludes this conference. Thank you for joining us. You may now disconnect your lines.