Prestige's margin jumps 12.82 points, but profit falls 43.99%
Consolidated operating profit rose 1.79% year on year despite lower revenue, but higher interest and tax costs reduced net profit.
Filed 05 Nov 2026, 20:52 IST · after market close · Prestige Estates Projects Ltd (PRESTIGE)
Key takeaways
- Consolidated operating profit rose 1.79% year on year even as revenue fell 15.28%, because expenses declined 25.48%.
- Operating margin expanded 7.54 percentage points year on year to 44.95%, its third straight quarterly increase.
- Net profit fell 43.99% year on year as interest expense rose 25.21%, while other income contributed 44.95% of pre-tax profit.
Price around the results
Lower expenses offset the revenue contraction
Prestige Estates' consolidated revenue declined 15.28% year on year and 22.99% sequentially, but operating profit still rose 1.79% year on year and 7.74% sequentially. Expenses fell faster than revenue, declining 25.48% year on year and 37.53% sequentially. This drove operating margin up 7.54 percentage points year on year and 12.82 percentage points sequentially.
Higher financing costs limited profit conversion
Interest expense rose 25.21% year on year and 15.25% sequentially, while depreciation increased 11.34% year on year. Pre-tax profit therefore fell 37.64% year on year despite the higher operating profit. Other income was 44.95% of pre-tax profit, making reported profit quality an important consideration.
Margin has risen for three straight quarters
Operating margin improved from 22.21% in Q3FY26 to 25.66% in Q4FY26, 32.13% in Q1FY27 and 44.95% in Q2FY27. The margin was 33.39 percentage points above the 11.56% median for the 262 Consumer Discretionary peers that had reported the quarter. The higher margin did not translate into net profit growth because interest costs and the tax rate increased.
No immediate market reaction after the late filing
The consolidated results were filed after market close, so there was no market reaction at the time of reporting. After the last eight results, the stock rose four times and fell four times, with a median absolute move of 2.38%, indicating a mixed and generally contained historical response.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,060 cr | ₹2,675 cr | -22.99% | -15.28% |
| Other income | ₹164 cr | ₹150 cr | +8.99% | -41.09% |
| Expenses | ₹1,134 cr | ₹1,816 cr | -37.53% | -25.48% |
| Operating profit | ₹926 cr | ₹860 cr | +7.74% | +1.79% |
| Operating margin (%) | 44.95% | 32.13% | — | — |
| Interest | ₹482 cr | ₹418 cr | +15.25% | +25.21% |
| Depreciation | ₹243 cr | ₹226 cr | +7.84% | +11.34% |
| Profit before tax | ₹364 cr | ₹366 cr | -0.41% | -37.64% |
| Tax | ₹108 cr | ₹94 cr | +14.53% | -14.69% |
| Net profit | ₹256 cr | ₹271 cr | -5.60% | -43.99% |
| EPS (₹) | ₹5.20 | ₹5.48 | -5.11% | -47.95% |
Operating margin of 44.95% compares with a Consumer Discretionary sector median of 11.56% across 262 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 44.95% after its third straight quarterly increase.
- Whether interest expense growth moderates from 25.21% year on year.
- Whether other income remains near 44.95% of pre-tax profit.