Prestige Estates Projects Limited has outlined a calibrated capital expenditure (capex) strategy for FY26–FY27, aligned with construction progress, project launches and cash flow visibility, according to its Q3 & 9M FY26 investor presentation.
The company stated that capex deployment during FY26 remains focused on ongoing residential construction, completion of commercial office projects and phased development of retail assets. Capital allocation is being prioritised toward projects that are either nearing completion or demonstrate strong sales and leasing traction.
As of December 2025, Prestige Estates had over 42 million square feet of residential projects under execution, which account for a significant portion of near-term construction spend. These projects are spread across key markets such as Bengaluru, Hyderabad and Chennai, where demand visibility remains strong. Construction timelines are being aligned with collections to ensure efficient cash utilisation.
In the commercial segment, the company continues to invest in office projects totalling approximately 9.6 million square feet under development, which are expected to be completed in phases over the medium term. These projects form part of Prestige’s long-term annuity income strategy, with capex planned in line with leasing demand and completion schedules.
Retail capex remains selective, with ongoing construction across five shopping mall projects adding nearly 6 million square feet of future leasable area. The company indicated that retail development spending is being phased to align with market absorption, tenant interest and operational readiness.
Prestige Estates highlighted that its capex planning is supported by strong liquidity and steady cash flows, enabling it to fund construction activity without putting pressure on the balance sheet. Residential collections, along with recurring annuity income from office and retail assets, continue to support capital expenditure requirements.
The company reiterated that it remains committed to disciplined capital allocation, avoiding aggressive expansion while focusing on timely execution and return optimisation. Land acquisitions and new investments are being evaluated carefully to ensure alignment with long-term demand trends and financial stability.
With a strong pipeline of ongoing and upcoming projects, Prestige Estates expects its capex strategy to support sustainable growth while maintaining balance sheet strength through FY26 and FY27.
Also Read: Annuity Income Gains Share in Prestige Estates’ Revenue Mix in FY26
