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Prestige Estates Projects has reported approximately INR 65,000 crore in unrecognised revenue, reflecting robust residential sales recorded over the past three financial years under its existing revenue recognition policy. The Bengaluru-based developer achieved record pre-sales of INR 30,024 crore in FY2025-26, a 76% increase over the previous year, and is targeting sales bookings of INR 35,000–36,000 crore in the current financial year. Chairman Irfan Razack said the company is evaluating a shift from the completion method to the percentage-of-completion method for recognising revenue, subject to discussions with auditors. With a launch pipeline valued at around INR 58,000 crore and continued demand for housing, the developer expects stronger business performance, although project launches will remain dependent on statutory approvals.
Prestige Estates Projects has accumulated around INR 65,000 crore in unrecognised revenue following record housing sales over the past three financial years, according to Chairman Irfan Razack. The Bengaluru-based real estate developer disclosed the figure during the past week, noting that the revenue remains unrecognised because the company follows the completion method of accounting, under which income is recorded only after a project is completed and handed over to customers.
The company recorded its highest-ever annual sales bookings of INR 30,024 crore during FY2025-26, representing a 76% increase over the previous financial year. Razack said the strong pre-sales performance had contributed significantly to the build-up of unrecognised revenue on the company's books. He described the figure as substantial and indicated that it reflected the strength of the developer's residential business across major markets.
Prestige Estates is currently in discussions with its auditors regarding a possible transition to the percentage-of-completion method of revenue recognition. Under this approach, revenue would be recognised progressively as construction advances rather than only upon project completion. Any change in the accounting methodology would affect the timing of revenue and profit recognition in future financial statements but would not alter the underlying value of projects sold.
Looking ahead, the company expects another year of strong operational performance. Razack said Prestige Estates is targeting pre-sales of INR 35,000–36,000 crore during FY2026-27, supported by sustained housing demand despite global economic uncertainties, including geopolitical tensions in West Asia. He added that the company has identified a launch pipeline of projects with a combined sales potential of around INR 58,000 crore across major Indian cities. However, the actual volume of launches during the year will depend on the receipt of necessary government approvals.
During the previous financial year, Prestige Estates launched projects covering approximately 32 million sq ft, with an estimated sales booking potential of INR 27,350 crore. The company also reported a more than two-fold increase in net profit to INR 1,195.5 crore in FY2025-26, compared with INR 467.5 crore in the preceding year, while total income rose to INR 13,195.5 crore from INR 7,735.5 crore.
Prestige Estates Projects has delivered 313 developments spanning about 206 million sq ft since inception and currently has a pipeline of 128 projects covering nearly 195 million sq ft. The developer has an established presence across India's major property markets and operates in the residential, commercial and hospitality segments, with future growth expected to be supported by its ongoing project pipeline and planned launches.
Source - PTI
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