Prestige profit falls 12.87% as costs outpace revenue growth
QoQ margin recovered 6.47 percentage points, but other income was 41.07% of pre-tax profit; the results were filed after market close.
Filed 29 Jul 2026, 19:56 IST · after market close · Prestige Estates Projects Ltd (PRESTIGE)
Key takeaways
- Consolidated operating margin fell 6.61 percentage points YoY to 32.13% as expenses grew 28.44% against 15.94% revenue growth.
- Net profit declined 12.87% YoY to Rs 271.4 cr despite the tax rate falling 3.19 percentage points to 25.79%.
- QoQ operating margin recovered 6.47 percentage points, but other income contributed 41.07% of pre-tax profit.
Price around the results
Revenue growth did not translate into earnings growth
Consolidated revenue rose 15.94% YoY, but expenses grew 28.44%, leaving operating profit down 3.83%. Higher interest expense, up 8.99%, and depreciation up 4.39% added to the pressure, taking pre-tax profit down 16.62%. Net profit fell 12.87% to Rs 271.4 cr.
QoQ margin rebound came with a profit-quality caveat
Sequentially, revenue fell 34.33%, but expenses fell faster at 40.05%, lifting operating margin by 6.47 percentage points to 32.13%. The tax rate also fell 3.50 percentage points QoQ, while interest expense declined 2.61%. Other income accounted for 41.07% of pre-tax profit, making the reported profit less dependent on operating earnings alone.
Margin recovered from Q4 but remains below last year
Operating margin improved from 25.66% in Q4FY26 to 32.13%, after falling to 22.21% in Q3FY26 from 37.41% in Q2FY26 and 38.74% in Q1FY26. It therefore recovered across the last two quarters but remains 6.61 percentage points below the year-ago level. Among 37 Consumer Discretionary peers that have reported, Prestige's margin was 16.44 percentage points above the 15.69% median.
The market response will come after the late filing
The company filed its consolidated results after market close, so the stock had not yet responded to this quarter's numbers. Across the last eight result reactions, the stock rose four times and fell four times, with a median absolute move of 2.38%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,675 cr | ₹4,074 cr | -34.33% | +15.94% |
| Other income | ₹150 cr | ₹35 cr | +334.10% | +3.66% |
| Expenses | ₹1,816 cr | ₹3,028 cr | -40.05% | +28.44% |
| Operating profit | ₹860 cr | ₹1,046 cr | -17.78% | -3.83% |
| Operating margin (%) | 32.13% | 25.66% | — | — |
| Interest | ₹418 cr | ₹430 cr | -2.61% | +8.99% |
| Depreciation | ₹226 cr | ₹238 cr | -5.09% | +4.39% |
| Profit before tax | ₹366 cr | ₹413 cr | -11.39% | -16.62% |
| Tax | ₹94 cr | ₹121 cr | -22.00% | -25.81% |
| Net profit | ₹271 cr | ₹292 cr | -6.99% | -12.87% |
| EPS (₹) | ₹5.48 | ₹5.81 | -5.68% | -19.29% |
Operating margin of 32.13% compares with a Consumer Discretionary sector median of 15.69% across 37 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 32.13% after the QoQ recovery.
- Whether interest expense stays below Rs 418.4 cr.
- Whether other income's 41.07% share of pre-tax profit declines.