Prestige Estates Projects Limited ($PRESTIGE)

Ladies and gentlemen, good day, and welcome to the Prestige Estates Q4 FY '26 Earnings Conference Call hosted by Axis Capital Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Pritesh Sheth from Axis Capital Limited. Thank you, and over to you, sir.

Thank you, Sagar. Good afternoon, everyone, and thanks for joining the call. From the management of Prestige Estates, we have Mr. Irfan Razack, Chairman and Managing Director; Mr. Zayd Noaman, Executive Director; and Mr. Amit Mor, the Chief Financial Officer. I'll now hand over the call to the management for their opening remarks. Thank you, and over to you.

Hey, everyone, and thank you for joining us today for the earnings call of Prestige Estates Projects for the fourth quarter and financial year ended March 31, 2026. As you know, this year has been an important year for the company, marked by its strong operational momentum across all our verticals, be it residential, commercial, retail and hospitality. It also marks several important firsts for us as a company. We launched our maiden residential project in the NCR market, which received a resounding response, translating into sales of over INR 9,500 crores from a single project alone. We also achieved our first major residential completion in Mumbai during the year, showcasing the continued strength of our execution capabilities across the regions. During the year, we also crossed the milestone of having completed 200 million square feet across 300 projects since inception. Also during the year and most importantly, we delivered our highest ever annual sales of over INR 30,000 crores, reflecting a growth of over 76% year-on-year, supported by robust launches across key geographies, healthy demand conditions and disciplined execution and strong collections. For the full year, sales volumes grew 77% year-on-year to 22.28 million square feet, while collections crossed INR 18,500 crores, reflecting a strong 53% year-on-year growth. We also launched over 31 million square feet during the year with a launch GDV of approximately INR 27,000 crores, demonstrating the scale and depth of our development pipeline. These launches witnessed a high sales velocity of 63%, contributing to INR 17,300 crores in FY '26 sales itself. Our performance was well diversified geographically with Bangalore, NCR and Mumbai continuing to contribute meaningfully to overall sales. Importantly, we also continue to see healthy realization growth across both apartments and plotted developments. Beyond residential, our annuity business continued to demonstrate resilience and stability. Our portfolio maintained healthy occupancy levels of 92%, supported by sustained leasing demand from GCCs, tech companies and domestic corporates. Our retail portfolio continued to perform exceptionally well as well with near full occupancy of 99%, healthy footfalls and strong consumption-led growth across assets. Hospitality segment also delivered a steady operational performance during the year. On the business development front, we added projects with a GDV of over INR 50,000 crores in FY '26, further strengthening our future pipeline across Bangalore, Mumbai, NCR, Hyderabad and Chennai, positioning us well for sustained long-term growth. Coming to our financial performance. For the full year, revenue stood at INR 13,196 crores, registering a growth of 71% year-on-year. EBITDA stood at INR 4,219 crores, up 43% year-on-year, while PAT stood at INR 1,312 crores, reflecting a strong growth of 113% year-on-year. EBITDA margin for the year stood at 32%, while PAT margin stood at 9.9%. During FY '26, we also generated a healthy operating cash flow of approximately INR 7,100 crores, a strong 15% year-on-year increase, reflecting the underlying strength of our business and collection profile. We have exciting project launches coming up across Bangalore, Chennai, Mumbai, NCR and Hyderabad during the financial year with a GDV of almost INR 58,000 crores in addition to our inventory of INR 19,000 crores. We already began FY '27 with a massive launch in Prestige Golden Grove in Hyderabad, Tellapur, which is a INR 9,500 crore project, which met an overwhelming response. Overall, we remain focused on disciplined growth, calibrated expansion and timely execution, strengthening our annuity portfolio, while continuing to create long-term value for all our stakeholders. With that, I will now open the floor for questions. Thank you.

[Operator Instructions] Your first question comes from the line of Puneet from HSBC.

Congratulations on great performance. My first question is, if you can give some color on what you're seeing currently in last 1 month in terms of the demand environment and the business development environment?

So the quarter started with a bang for us. We launched a project in Hyderabad, Prestige Golden Grove in Tellapur, where we've done some significant sales, INR 2,300 crores of sales over there. And I think that's a fantastic result. Overall, I think the momentum has been very healthy across cities as well, and we feel this momentum will continue.

Okay. And similarly, on the business development side, any change in competitive intensity, land pricing, et cetera?

I think things remain the way they are. Things don't change immediately overnight. We have seen wherever we have taken up transactions, we've maintained whatever is feasible for the company and will match feasibility.

Understood. And secondly, if you can talk a bit about the hospitality part of your business. What was the revenue, EBITDA that you've made during the year in this quarter?

Puneet, in the hospitality vertical, we touched a top line of INR 1,050 crores and EBITDA of close to INR 400 crores after deducting even the corporate overheads. So at the hotel, if you see at the hospitality level EBITDA, it is close to INR 440 crores for the entire financial year.

Okay. And what is the progress on completion of your key hotels in Delhi and any change in...

Delhi hotel, actually, the office should be ready in the next 2 months, hopefully. But otherwise, the teams are working hard, and we should have a grand opening sometime before or after Diwali.

Both the hotels?

Yes, yes. It's one box, it's one project. So it's both, the St. Regis as well as the Marriott Marquis as well as the office, about 600,000-plus square feet. All that will be ready, and we should start trading the hotel after Diwali.

Understood. And just on the financial side, we've noticed, on the Q4 perspective, we put the CapEx run rate, and the residential spends run rates have gone up. Should we think of that as a new run rate? Or do you think there were some one-offs in the fourth quarter?

So that will be the going forward spend, Puneet. You can say INR 10,000 crores on the development -- INR 9,000 crores, INR 10,000 crores will be spent on the development business side. And on the CapEx side, we'll be around INR 4,000 crores to INR 4,500 crores.

Your next question comes from the line of Pritesh Sheth.

Firstly, congrats on a good year. If you can help us with the guidance for next year in terms of the key parameters, presales, collections, that would be helpful. Yes, that's my first question.

Yes. See, we've actually done some phenomenal sales this current year. We've gone up from INR 17,000 to INR 30,000 crores. That's almost 100% jump from the last year. And even the collections have done -- the maximum collections we have ever done in the company is INR 18,000 crores. And now going forward, the base is very high, very large. But I do believe that there is more scope, more room for growth, and the teams are focused. So I believe that we should look at a growth between 15% to 20%.

And on the collections front, since we had a good year last year, so what should be the ballpark growth rate there?

Of course, in the same, similar 15% to 20% growth should be there. But again, it's a function of launches and function of sales. But I do believe that this is what we should and will achieve unless something drastic happens. But as of now, I think that's the plan.

Sure. And just to clarify, on the business development, if I hear you correctly, you said INR 9,000 crores to INR 10,000 crores business development spend from here on?

No, development business, I meant on the construction side. Residential side, we will be spending INR 9,000 crores to INR 10,000 crores. On the business development, see, if you see what has happened in the current financial year, the business development spend is on the higher side, which is basically because there were some government and corporate lands which were available, which we have acquired. So basically 1 parcel in Hyderabad, and we have acquired 3 parcels of land in Chennai. So the whatever capital deployed on business development, this financial, is on the higher side. Now for the next year, we expect what we have allocated right now is INR 4,500 crores for the business development.

INR 4,500 crores. Okay. Got it. And just to clarify again, this INR 2,600 crores that we spent in Q4 was only for the acquisitions we did in this quarter, or something from the previous quarter also slipped over to this quarter and hence, we had this higher number?

Some portion is of the previous quarter also. For example, the Raidurg land what we acquired in the previous quarter, one installment, the final installment and the registration was falling due in the current quarter. So we paid that amount in the quarter, close to INR 600 crores -- INR 650 crores what we have paid just on that one.

Sure. Got it, got it. On the commercial side, while I think we have made a good progress in leasing the BKC asset, which is 70% pre-leased now, if I understand that correctly, the Mahalaxmi -- the Prestige Mahalaxmi is still 10%. Is it a kind of deliberate strategy to hold on to those leases, or our rental expectations are something which probably right now market is not considering and hence, we are a little slow on that leasing?

No, no, it's a deliberate strategy to delay that leasing in the Mahalaxmi because Mahalaxmi will be a product which will not be -- which has not been seen and which can't be seen in the near future. So we are being a little slow. Having said that, I think we have committed something like about 400,000 square feet even there to some top-notch clients at some great rentals. It will happen. But then we are not in any desperation or any hurry because it's still a long way to go for us to complete the project.

[Operator Instructions] Your next question comes from the line of Kunal Lakhan with CLSA.

Firstly, on the next year's launch pipeline, right, if you can give some color on in terms of like what could be the GDV of the new launches that you are targeting for '27? And on the key launches, right, which will contribute to '27, where are we on the approval side or development plan side?

Yes, sure. So on the BD front, we added about INR 50,000 crores of our pipeline across the company. This year as well, we will also continue to add projects to the kitty. But in terms of upcoming launches, for this quarter, we have about 3 to 4 projects, which we will launch, around INR 5,000 crores of GDV. That is Gardenia Phase 2 in Bangalore, Palm Court in Chennai and Forest Hills in Mumbai. That should give you around INR 5,000 crores in GDV. The balance total is about INR 57,000 crores of GDV for the rest of the year, is what we expect to launch.

Just to add that, Kunal, we have already launched Golden Grove. So INR 9,500 crores is already launched. And apart from that balance INR 5,000 crores...

INR 5,000 crores is expected to be launched. Kunal, are you able to hear us?

Hello?

Kunal sir, does that answer your question? As there is no response from the line of current participant, we'll move on to our next question. Our next question comes from the line of Abhinav Sinha with Jefferies.

Sir, a couple of questions. So firstly, on the lease business, what are the rentals you have received in BKC? And also secondly, in Bangalore, how are the rentals trending right now?

How are the rentals in BKC and the rentals in Bangalore?

Rentals in BKC are pretty strong. And I think, today, it's around INR 360 mark.

Okay. And Bangalore?

Bangalore depends on which location. See, Bangalore also, the rentals can be anywhere between INR 60 to INR 130, which is outer, and CBD will be around INR 200 plus.

And how are they trending considering we have a large pipeline now opening up in FY '27. So are you still seeing growth on a Y-o-Y basis, or rentals are flat now for the last few months?

There is growth. In fact, there is no space that we have, which is ready. And so that is a good, positive thing for us. And I believe that as and when space gets ready, we are also looking at some -- few preleases, which I can't tell you to whom. But on the Outer Ring Road, there's something exciting happening where we are putting up the Phase 2 of Lakeshore Drive, and we are doing the signature tower of Lakeshore Drive. There's some good discussions happening with some big clients to take almost all the space. So it's quite positive.

The second question on the balance sheet side, with about 0.65x net gearing, are you comfortable with the current level, or you would like to bring this down?

It's work in progress. Ultimately, net-net is when our -- all our CapEx assets are ready, whether it's office or retail or hospitality, there will be a REIT or an IPO, and that will help us unlock capital. And in the residential side, we really don't need any debt as such because it's all self-liquidating. Only at some point, we are buying some big tracts of land, there will be a requirement for capital. But that -- moment the project is launched, we'll start cashing out. So it's all -- see, there's no hard rule on how it's done, but then at the same time, I think whatever we've done is pretty comfortable and I would say, pretty easy considering the amount of work that we are doing.

Okay. Sir, and finally, on the launch pipeline question, I think which Kunal was also asking. For some of the large projects which we have in Chennai and the remaining pipeline in Hyderabad, what should be the time line for those?

Sure. We've just bought land, that is the Ramco land. We've just bought. The planning is done. Now it will go in for approval. Similarly, we bought the TVS land, which again will go for approval. So it will take 6 to 8 months for these approvals to come. Now there's a brand-new dispensation, which is talking all positive things. So hopefully, it will not take too long, and we should be able to launch quickly.

The next question comes from the line of Parikshit Kandpal with HDFC Securities.

Congratulations on a decent quarter. Sir, just one clarification first. So this Prestige 101, so you have leased out 70%. So it includes both the Tower X and Y, right?

Which one? What did you say?

Sir, you have said Prestige 101...

Okay. Today, we only talked about X. We said we'll complete X, and then we'll talk about Y because Y also has the additional hotel also. So we want to do it properly. So today, the leasing is -- we are only talking about the X tower. Though all towers are getting ready, of course, X will get ready faster than Y. It's all work in progress.

Okay. Second question is, sir, now we have started seeing momentum on the construction on the commercial side. So do you think is it the right time to look at some strategic investor to come in and probably dilute some stake in the commercial portfolio and raise some capital for growth or CapEx, so which may alleviate some issue around that...

Not just now, not there.

So do you think...

The game plan has got a good goal. I think we'll be working towards that goal.

So is there any time line? Or I mean, are you open to offshore or you're not -- I mean, you will first build out and then only look at doing some kind of monetization there?

We have an open mind, but the idea is now to build out and lease it, and then do whatever.

Okay. Build and lease, and then do whatever you want to do. Okay. Sure, sir. And third thing, sir, just on the Mumbai portfolio. So now we see that there is -- whatever GDV is left now. So we are not seeing any major project -- new project coming up beyond the sustenance, I think only the commercial is coming up. So how is the business development pipeline building out in Mumbai? Because it has been a good contributor last year. So how -- in next 2 years, how do you think this will build out? And I also see that you have added Lonavala as well in the land bank. So what is that project?

No, no, no. See, the thing is there's a big pipeline for business development in Mumbai. Actually, we go slow. At the same time, there's a lot of opportunity. We've got the biggest one, which is called the Prestige Place, which is in Worli, where the Jijamata Nagar, where we've done the plans, everything else, even that will come into the market. We have tied up something in Borivali. We've tied up something in Thane. And then, of course, we have office, which is about 1 million-plus square feet in, what's that, near the airport, Sahar Airport. So it's quite a lot of things that are there. There's no question about not being there. There's a big pipeline. And we are -- we play -- we are very conservative. We are very measured in what we take. There's no sense in going full speed ahead.

So within the presales, now from Mumbai, how much you are targeting this year? I mean you have done INR 6,000 crores last year. So what would be internally you'd be targeting from Mumbai in this year?

Mumbai has done INR 6,000 crores. As I said, we are looking at a growth of 15%, 20%. If we get more, it will be great.

[Operator Instructions] Your next question comes from the line of Akash Gupta from Nomura.

Congratulations on a good set of numbers. So my first question is on the Mahalaxmi asset. Has there been any delay by 1 year of completion from FY '28 to FY '29? And if that's the case, we are not seeing any change in the exit rental estimate. So that's my first question. What's the update on that front?

No, no, there's no delay at all. We are all on track. Everything, whatever we have now, right from the day 1, we've been consistent. There's no delay.

Understood. Sir, my second question is on...

It was calendar year when we planned to finish it in 2028. So maybe it moved from FY '28 to FY '29, but it's the same calendar year.

Understood. Sir, my second question is on the Jijamata Nagar project. I thought we were expecting it in FY '27, but now it's moved to FY '28. So is there no chance of it moving again to FY '27? What's the thought on that front?

I think it could happen. You see it's all a question of timing. It's a question of getting the approval. We have done the plan. But regulatory stuff, till the regulatory stuff gets done. Otherwise, the plan is clear. It's a flat plan today, and I think it's only about approvals.

Understood. Understood. And sir, just how should we look at the peak net debt or peak net debt to equity? And just thought on operating cash flows? And what's your peak net debt to equity? Or is there any hurdle that we don't want to cross from a peak net debt perspective?

See, again, this quarter, we have seen a slight spike in the debt-equity level because of what we mentioned, that we had acquired a couple of land parcels. Now all those land parcels, what we have acquired, we are looking at launching in the current financial year. So there will be a lot of capital which will get unlocked. So in the current financial year, we don't see the debt-equity spiking further. So we have kept a cap of 0.75x, okay? We don't believe that we should reach the 0.75x as well.

No, no. And plus, what happens is we can't look at it quarter-on-quarter. We have to look at it holistically. Now Chennai, we spent INR 800 crores for Ramco, another INR 350 crores or INR 400 crores on TVS. So a lot of money has gone in. And then something in Aram Nagar in Mumbai. So all these investments have been made, and they will get cashed out eventually.

Overall operating cash flow also has been quite healthy. So current financial year, we have done INR 7,000 crores of operating cash flow, and the growth, what we are predicting 15% to 20%, should result in the coming financial year, the operating cash flow of INR 8,500 crores to INR 9,000 crores. So we don't see any further spike unless we do some large acquisition.

Understood. And sir, my final question is on the EBITDA margin front. In the fourth quarter, we have recorded roughly 26%. Eventually, we expect this number to go to 30%. So by when should we expect that number to start coming in? Because I think now in FY '27, our FY '22, '23 projects should start getting completed, right?

See, I agree that whatever we have done in '22 is getting recorded in the current financial year and maybe whatever we have done in '23 will be recorded in the financial year '27. But what has happened [indiscernible] also in the last couple of years quite far. So we had clocked INR 10,000 crores of sales in FY '22, and that is what we have recorded, close to INR 9,000 crores, INR 9,500 crores on the residential front in FY '26. But my residential presales number is now INR 30,000 crores. So just to give a number, my approximate overhead, including my salary cost, my advertisement, marketing spend and all that, it's close to INR 1,000 crores. On a INR 10,000 crores, it is 10% overhead rate. But on a INR 30,000 crores, it's just 3%. So there's a gap of 5%, 6%, which is just because of the lag in our revenue recognition versus the presales. So till the time my revenue recognition does not catch up with the presales number, you will see some difference in the reported number versus the actual EBITDA numbers.

The next question comes from the line of Kunal Lakhan with CLSA.

So just following up on my question in terms of like if you look at the launches of INR 57,000 crores and say, last year, I think almost 60%, 65% came -- of sales came from our new launches, our new launches were almost 60%, 65% sold. If you just kind of do the same math and [indiscernible] crores of subsequent sales, we should be able to be on the higher side of the guidance or maybe possibly even surpass the guidance that we are giving for '27. Would that be -- would that not be a fair assumption?

I believe that is a fair assumption. But at the same time, we want to be conservative in how we approach this. Of course, we will make the best efforts to exceed our guidance, but we will, at bare minimum, meet the guidance of 15%, 20%.

The INR 7,000 crores of GDV that we got to launch this financial year. We've already launched INR 9,500 crores this quarter, and we have planned to launch another INR 5,000 crores worth of projects, which would give us about INR 14,000 crores of GDV for this quarter. So all of this depends on the regulatory environment. Hopefully, all being in our favor, this can happen.

Sure, sure. Also on the demand side of things, right? I mean when we look at FY '27, a lot of launches are Bangalore and Hyderabad heavy centric, right? How should we look at in terms of like the demand environment in these markets? Are you considering like the narrative that's going on, on the IT side of things, tech side of things in terms of hiring as well as job cuts, how should we look at the -- what are you sensing on the demand side? Like are you seeing some slowdown in the decision-making, some impact on footfall conversion?

I mean it's been very healthy so far. Our sales have been consistent month-on-month across different geographies. And the base customer, I mean, ex-Mumbai has been the IT customer. So I would say, yes, they have accepted the higher pricing and the larger ticket price forms as what it was compared to 2 years back. But we've also been very cognizant of what the appetite is, and we've also been designing products as such not to exceed a certain ticket price. So as long as we're selling within that region, I think sales will be very healthy. And the mix to mid-income is always evergreen. So we haven't seen any sign of slowdown.

Okay. Just a follow-up on that. Are you alluding towards some push...

Sorry, we're not able to hear you clearly.

Kunal, sir, we have lost your audio once again. Sir, we had lost your audio once again.

Sorry, can you hear me now?

Yes.

Tes. So I was just asking that are you alluding towards there is some pressure or pushback on the higher ticket size apartments in these markets?

In fact, there's no pushback at all. The demand is the same. There's no pushback at all.

Okay. Sure. And lastly, on the Jijamata Nagar launch, right, the STP-related issue, is it sorted? Or -- and what could be the contingency on this if this prolongs?

I can say it's all will be done. So we are coming up with a much better scheme. It's only work in progress. In the next quarter, we'll be very, very sure where we are. And then I think maybe in the next call, we'll be able to tell you something very positive.

Your next question comes from the line of [ Biplab ] from Emkay Global.

Congratulations on the excellent year. So first question is more of a clarification on the net debt issue. I didn't understand. So sir, are you saying that there would be moderation in the -- or the net debt number won't go up in absolute terms and it will stay at INR 11,000 crore level? Or you are referring that debt equity ratio will stay at the same level?

See we are not saying that it will remain at the same level, but it will remain within 0.75 debt equity level. will be applied maybe INR 1,000, INR 1,500 -- will go up and go down.

It's dynamic.

It is dynamic so I think it will remain within 0.75 level. We have cash flows which will sustain our development business as well as cash flow for business development and the reliance on debt will be minimal.

Okay. And on the rental assets that you are developing in BKC, Mahalaxmi and [ Dyal ]. So by when do you expect them to generate rental -- full-fledged rental, I mean, say, 70% occupancy and generating rental in these 3 assets?

Properties get ready. So all we look at financial year '28 or '29.

Okay. So by '29, if the -- I mean, you mentioned about the property getting ready. Do you expect them to be fully leased and generating rental full-pledged?

Yes, yes. There's no doubt.

Okay. Okay. And final question is on the Noida project, Bougainvillea. Is it at the same level that it was earlier or there is some progress because we keep on reading news that there is some Supreme Court order, things are moving in that sports city sector.

Now finally, there's some positive move on that. The master plan has been approved. So now we can go and get our building plans approved and we'll be ready for launch in the next quarter.

The next question comes from the line of Parvez Qazi with Nuvama Group.

So my first question is containing two question. In NCR, we also have added another project, Prestige Meadows, 3.8 million square feet. So just wanted to get some more color on it. Is this our Gurugram project and we expect to launch this in FY '27?

Yes, we do. The plan is to launch it this year.

And this is the Sector 92, if I'm not wrong?

You're right.

Second question is in Q4, what was the contribution of [indiscernible]?

Sorry. In Q4, what was the contribution of launches?

Launches to our pre sale? So what percentage of our Q4 pre sales came from the projects that we launched in the same quarter?

The entire financial it was 60%. Maybe I’ll share that data point with you.

I’ll take the data offline. Lastly, of the INR 50-odd thousand crore of GDV addition that we did in FY '26, what is the payment which is still to be made for those projects added.

Whatever we have added on the business development, the balance all those land we have fully paid. The one we acquired in [indiscernible] and the 2 land parcels in Chennai, the balance to -- paid close to INR 500 crores.

The next question comes from the line of Gaurav Khandelwal with JPMorgan.

I just wanted to ask if you're seeing any issues in construction in terms of raw material availability, labor issues across your different project sites, geographies owing to the West Asia conflict? That's my first question.

See, more than the West Asia conflict, we had election in the Northeast in India. So about 1 month, all our labor had gone for elections and voting and all that. Now the good news is they have started coming back. And I think by first week of June, we'll be fully labor. Yes, now on the commodity front and on the availability of materials, it's only to be seen. As of today, there is no shortage. But if things go really bad, then there is something for us to get concerned about. As of today, I think availability is there, but the pricing is definitely going to go up.

Got it. But in this case, sir, do we then think that this quarter as in 1Q FY '27, the constructions would be a bit on the slower side?

No, no, we have to make up because we've got best-in-class contractors like L&T and Kalpataru. they will definitely ramp up better and make sure that they don't lose time. So our endeavor always will be -- our focus will be to see that we are on the ball on that, and I don't think we should have any concern.

Got it. That's very clear. My other question is if you could just give us some sense of how many of your customers are NRI customers? And I know this is still early to ask, but are you seeing any potential shift in demand from the Middle East to India property markets?

Now, that we can't really weigh but we always had a small percentage of NRI customers and they keep buying. It's not that everybody in Middle East will come and start buying share. That's not going to happen. But it's only a matter of time.

But at least in terms of, let's say, year-on-year trend or sequential trends, are you seeing the interest from that small NRI cohort, is that still the same or moving up or moving down?

That is very sentiment driven. We consistently do some NRI sales every year, and that number is around the same. I think mindset of NRI is very different to our primary buyer, which is resident in India and who are immediate consumers. I think we need to take cognizance of that. Sometimes these things happen when the geopolitical crisis can change sentiment, but that only gives a very small blip in the numbers, change in the numbers.

Got it. And if I can just confirm, how much would the NRI constitute in form of sales like 10% of the total sales or something around that ZIP code?

It's about 5% to 8% of our overall sales. That's about INR 1,500 crores.

The next question comes from the line of Akash Gupta with Nomura.

Sir, my question was more on the strategic front and like a time line from a 3- to 4-year perspective. Currently, we are looking at INR 35,000 crores of presales, which would be roughly 4% to 5% market share. In like 5 years, would it be okay to estimate Prestige taking 10% market share, which would be like roughly a INR 70,000 crores, INR 80,000 crores presales. The question is, is that a reasonable assumption?

It's a reasonable assumption and with the market, everything being the same. We take it step by step, but I don't want to jump too high. As of today, we are looking at this number. And then I think there is room for growth and suddenly the growth may come. But also you need to have the bandwidth to manage that. See bandwidth in the same type supply, the overall construction ability, all those things also you have to handle. Today I’ve got 65,000 crores worth of unrecognized records revenue in my books. Where the product is sold and not coming to my books because it's just sold and it's not coming to the books because of the accounting system. That's INR 65,000 crores.

Understood. And sir, my second question is on this, again, in 2 to 3 years' time with all the AI thing happening and this IT slowdown happening, obviously, we are not seeing a slowdown in footfall right now. But then in 2 to 3 years' time, do you think there are other industries, GCCs, et cetera, that are offsetting that sluggishness in the IT demand, which other sectors are offsetting it? And like especially in a city like Bangalore, how are you seeing that mix changing in 2 to 3 years time?

There is demand on GCC that are picking up space. And then if you say AI, AI also needs space, AI data centers space. And then AI and data centers, the type of job creation will happen will be a different type of job creation. So it’s every one-man business will lead to the other.

We take our next question coming from the line of Yash Gupta Asit Koticha Family Office.

Sir, first question on EBITDA margin. As you have said that our revenue recognition to pick up to the pre-sales number. But I think the gap will always be there. So do you think our reported EBITDA margin will always be 25% only rather than 30%?

It will be in the range of 25% only. Because the catch up will take some time. So on our -- if the catch up doesn’t happen, it will be in the range of 25%.

But sir, do you think like in 2021 we have some legacy project which is a low margin project. So once those projects are over. So in next FY '27 we will be going to have some better margin?

That’s why I mentioned 25%. Yes. Because in financial year '26 we have reported growth to 21%, 22% EBITDA margin. The drop on 25% was mainly because of whatever legacy project which we had acquired in Mumbai. Okay. Whatever had been already sold by the developer which we had to honor those prices. So the margins on those sales were actually very low. So there was a different margin. On top of it, as I mentioned earlier, overhead also have contributed to those margins. So current financials is 22% but on a stabilized business 25%. And when the [indiscernible] and my revenue recognition is more or less a similar number then it will be close to 28%.

Okay. My second question is on the completion basis we have complete -- we are projected to complete 20 plus residential project in FY '27. How much revenue will going to recognize in FY '27?

Revenue recognition is within the range of INR 12,000 to INR 13,000 on the residential side.

And this quarter, we have added this Prestige Kohinoor as Prestige Quantum commercial in Mumbai. Can you throw some light on both this project?

This is Prestige Kohinoor, right?

Prestige Quantum in commercial? Speaker 13 Prestige Quantum is 1 million square feet in Sahar as Prestige Kohinoor is a project on [indiscernible] road flyover.

Ladies and gentlemen, we take that as the last question for today. I now hand the conference over to the management for closing comments.

Thank you so much for your faith and believe repose in us. I think the team is very dedicated and we are all very focused on achieving some good results for this coming year and also creating some good delight for our investors and our customers. So thank you very much, and have a good year.

Thank you. On behalf of Axis Capital Limited, that concludes this conference. Thank you, everyone, for joining us, and you may now disconnect your lines.