Prestige Estates: Delhi NCR Emerges As A Growth Driver In FY26 But Can It Rival Bangalore?

Synopsis: Prestige Estates just delivered a record year, but the real story lies beneath the surface. A new growth engine is emerging, quietly reshaping the company’s future. While one market continues to anchor stability, another is rising fast. The big question now is whether this shift is temporary, or the start of something bigger.

Prestige Estates ended FY26 with its strongest ever sales performance, but the more interesting story is how the growth mix changed during the year. Bengaluru remained the company’s largest market for the full year, yet NCR moved from being an emerging geography to a major sales engine. That shift matters because it shows Prestige is no longer depending on one city alone for scale. Still, the bigger question is whether NCR has simply had one exceptional year or whether it can genuinely stand alongside Bengaluru as a long-term growth pillar.

The latest filings suggest both markets are now critical, but they are playing different roles. The Q4 FY26 update shows Prestige recorded its highest ever annual sales at Rs. 30,024.5 crore, up 76 percent year-on-year, with sales volume of 22.28 million square feet and highest ever collections of Rs. 18,514.6 crore. Bengaluru contributed 34 percent of FY26 sales, while NCR was close behind at 33 percent. 

NCR Became The Breakout Story In FY26

Even so, the biggest surprise in FY26 was clearly NCR. In 9MFY26, NCR contributed Rs. 8,973.5 crore in sales, or 40 percent of total sales mix, ahead of Bengaluru’s 26 percent. The biggest contributor in 9M FY26 was The Prestige City Indirapuram, and the data also shows that Mulberry, Oakwood, and Mayflower at The Prestige City Indirapuram alone accounted for 11.57 million square feet of launch area during the year. This was not a small side market contribution. It was one of the biggest reasons Prestige was able to cross its previous peak sales within just nine months.

What makes NCR especially important is that it changed the geography of Prestige’s growth. Earlier, the company was seen primarily through the lens of Bengaluru and then Mumbai. In FY26, NCR became large enough to almost match Bengaluru for the full year. That gave Prestige a much broader sales base and reduced the risk of relying too heavily on one market cycle. Management also sounded confident that this was not a one-project story. In the Q3FY26 concall, when analysts asked how Prestige would replace the large FY26 NCR contribution, management said there was still a pipeline, that teams were working on it, and that the company had tied up two large land tracks in the Gurgaon region.

Bengaluru Still Looks Like The Core Market

Prestige’s management commentary in the Q3 FY26 earnings call makes it clear that Bengaluru remains the market it trusts most for launch-led growth. Management said Bengaluru was still “pretty busy,” “very good,” and “fast,” and pointed to strong early response for Evergreen at Prestige Raintree Park. Within two weeks of launch, the project had already seen sales of about Rs. 1,500 crore to Rs. 2,000 crore. Management also expected Eaton Park, Fernvale, to launch in Q4FY26, showing how deep the company’s Bengaluru pipeline remained even after a strong first nine months.

The Q4 update backed that up with numbers. During the quarter, all four launches were in Bengaluru, with a total launch area of 8.00 million square feet and estimated GDV of Rs. 7,731.4 crore. These included Evergreen at Prestige Raintree Park at 4.76 million square feet and Rs. 5,000 crore GDV, Prestige Marigold Phase II at 1.26 million square feet and Rs. 1,020.7 crore GDV, Fernvale at The Prestige City at 0.79 million square feet and Rs. 675.1 crore GDV, and Eaton Park at The Prestige City at 1.18 million square feet and Rs. 1,035.5 crore GDV. When one city can absorb this kind of launch pipeline in a single quarter, it shows why Bengaluru is still the anchor market.

Bengaluru’s strength is not only in residential sales. Prestige also delivered major office completions there. The company had recently completed Prestige Lakeshore Drive, Prestige Tech Hub, and Prestige Capital Square, together totaling 3.7 million square feet, and said these assets were largely leased and expected to support annuity income. In Q4, Lakeshore Drive Phase I and Prestige Capital Square were included among the 5.51 million square feet delivered in the quarter. This matters because Bengaluru is not just a booking market for Prestige. It is also the city where the company is visibly strengthening its office-led cash flow platform.

Can NCR Really Rival Bengaluru?

This is where the answer becomes more nuanced. NCR can rival Bengaluru in scale during certain years, especially when a large township or cluster launch clicks. The problem is that Prestige’s own filings still show Bengaluru as the more repeatable engine. In the first nine months, NCR was driven heavily by one big platform, Indirapuram. By Q4, NCR’s mix had dropped to 14 percent, while Bengaluru rose to 56 percent. That does not weaken the NCR story, but it does suggest the market is still more launch-sensitive for Prestige, while Bengaluru has both broader inventory depth and faster near-term replenishment.

Management did outline the next leg for NCR. In the earnings call, it said Sector 150 (Prestige Bougainvillea Gardens) had moved past legal issues and approvals were expected in the next financial year. It also said two Gurgaon land deals were under term sheet and legal due diligence, and that all three projects together could represent more than Rs. 10,000 crore of GDV. That is meaningful, and it shows NCR has a second chapter. But those projects were still at the work-in-progress stage at the time of the call. Bengaluru, by contrast, already had projects launched, approved, or close to market. So the difference is not opportunity. It is visibility and execution readiness.

The Broader Platform Gives Prestige More Support

Another reason Bengaluru still appears stronger is that Prestige’s non-residential platform is also adding momentum there. In Q3, office leasing stood at 0.56 million square feet with occupancy above 95 percent, while the office portfolio’s exit rentals for FY26 were expected at around Rs. 829 crore. Retail occupancy stayed above 99 percent, mall footfalls in Q3 were 5.2 million, and gross turnover grew 14 percent year-on-year to Rs. 702 crore. By Q4, office leasing was 0.40 million square feet, including 0.26 million square feet of pre-leasing in ongoing projects, while retail gross turnover reached Rs. 652 crore with 4.5 million footfalls. These annuity-linked businesses do not answer the NCR versus Bengaluru question directly, but they do show that Prestige’s platform has more depth in its core southern markets, especially Bengaluru.

The financial backdrop was also solid. Q3 revenue rose 128.84 percent year-on-year to Rs. 3,885.5 crore, while 9M FY26 revenue stood at Rs. 9,052 crore, EBITDA at Rs. 3,104 crore, and PAT at Rs. 1,014.7 crore. Management also highlighted unrecognized revenue of Rs. 61,922 crore as of December 31, 2025, which provides visibility for future recognition. In other words, Prestige is entering the next phase with strong sales, strong collections, a large launch pipeline, and a growing annuity base. That gives it room to let NCR grow without needing NCR alone to carry the full story every year.

Verdict

Delhi NCR clearly emerged as a major growth driver for Prestige Estates in FY26. Without Indirapuram and the wider NCR push, the company’s record sales year would have looked very different. So NCR is no longer an experimental market for Prestige. It is already important. But based on the latest data, Bengaluru still looks harder to replace. It has a deeper residential pipeline, faster launch visibility, stronger office completions, and a more rounded annuity base. NCR can rival Bengaluru in bursts and may do so again if the next pipeline lands well. For now, though, Bengaluru remains the more dependable engine, while NCR is the high-impact challenger.

That may be the best outcome for Prestige. Bengaluru can support execution and annuity growth, while NCR can deliver bursts of volume when township launches click. FY27 should show whether Prestige can turn that mix into a durable two-engine growth model over time.

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