Bengaluru, India – Real estate major Prestige Estates Projects Ltd. has disclosed a substantial Rs 65,000 crore in unrecognised revenue on its books, a figure attributed to its current accounting practice. The company's Chairman, Irfan Razack, confirmed this significant sum, highlighting the impact of their revenue recognition method.
Prestige Estates currently employs the 'completion method' for revenue recognition, meaning income is only officially recorded once a project reaches full completion. This approach contrasts with others, such as the 'percentage of completion method,' which allows revenue to be recognised progressively as work progresses.
Exploring a Shift in Accounting
Razack indicated that the Bengaluru-based developer is actively engaging in discussions with its auditors regarding a potential transition to the percentage of completion method. Such a change would allow the company to recognise revenue earlier in the project lifecycle, potentially altering its reported financial statements.
Record Sales and Strong Growth
Despite the large volume of unrecognised revenue, Prestige Estates has demonstrated robust operational performance. In the fiscal year 2025-26, the company achieved record sales bookings totaling Rs 30,024 crore, marking a substantial 76 percent increase compared to the previous fiscal year.
Buoyed by sustained demand in the housing sector, the firm anticipates continued growth. For the current financial year (2026-27), Prestige Estates has set an ambitious target for sales bookings, aiming for Rs 35,000-36,000 crore. This optimistic outlook is further supported by a robust launch pipeline valued at approximately Rs 58,000 crore across various major cities, though actual project launches remain contingent on regulatory approvals.
Financial Performance Highlights
The company's strong performance extended to its bottom line in 2025-26, with net profit more than doubling to Rs 1,195.5 crore, up from Rs 467.5 crore in the preceding year. Total income also saw a significant rise, reaching Rs 13,195.5 crore from Rs 7,735.5 crore.
As one of India’s prominent real estate developers, Prestige Estates boasts a diverse portfolio spanning residential, commercial, and hospitality projects across major urban centers. The group has successfully delivered 313 projects covering 206 million square feet and currently has 128 projects, totaling 195 million square feet, in its pipeline.