The management reveals that NCR was essentially a market test, and the overwhelming success (INR6,500 crores sales from a single project) has triggered aggressive expansion plans.

“Actually, that's why we were trying to test out this market and the market has really welcomed us that shows there's a huge amount of potential here. We are currently, concurrently evaluating a lot of deals that have come to us. And very soon, we should be able to lock in a few deals, a sensible ones.”

— Irfan Razack (Chairman & Managing Director)

This represents a significant shift in management communication strategy, suggesting either heightened market uncertainty or a deliberate attempt to reset investor expectations.

“No, this time, we want to be conservative. We've got also INR20,000 crores worth of inventory. So the strategy is I'd rather under-promise and over-deliver.”

— Irfan Razack (Chairman & Managing Director)

The company demonstrates exceptional pricing power with 36% residential price increases and 50% increases in plotted development, while maintaining strong absorption rates.

“However, this was offset by strong pricing power, average realization for residential apartments, villas and commercial products rose 36% year-on-year to INR14,113 per square foot, while plotted development saw a 50% year-on-year increase. We believe that the pricing environment is good.”

— Irfan Razack (Chairman & Managing Director)

The management reveals that completing structural simplification would cost upwards of INR800 crores, which they consider too expensive currently. This suggests cash flow prioritization toward growth investments rather than corporate restructuring.

“Now acquiring the balance 24% also will require significant sum of outflows, which will put pressure on our cash flows and impact even our debt profile. So considering the cash outflow impact on the stake acquisitions, I don't think so in the current year, we are planning any further acquisitions. If you take benchmark of INR500 crores, it will be Nautilus and other projects.”

— Irfan Razack (Chairman & Managing Director)

Mumbai overtaking Bangalore in sales represents a fundamental shift in the company's geographic revenue base. Combined with faster delivery timelines (3.5 years vs. industry standard of 5-6 years in Mumbai), this indicates execution advantages that could drive market share gains.

“It's also worth highlighting that in this quarter, our sales in Mumbai overtook Bangalore, a significant milestone that underlines the success of our geographic diversification strategy. So it generally takes about 4 years or 48 months to do any real estate project. But depending on the nature of the project and scale, sometimes it could go up by a year or 2 over there.”

— Irfan Razack (Chairman & Managing Director)

The management's confidence in approval resolution suggests they have developed better regulatory management capabilities or have received unofficial clearances.

“..”Yes, I think we've got a grip on our approvals, and they have started falling in place. What we have said earlier also when we give the launches planned in the GDV slide, most of these projects are in the final or penultimate stage of their approval.”

— Irfan Razack (Chairman & Managing Director)

The company maintains disciplined acquisition criteria requiring 30-35% EBITDA margins and self-funding projects, even in a competitive market.

“ And at the same time, we have a very balanced approach at looking at new acquisitions, where we believe that the project should fund itself. So we are not very aggressive in the way we price our acquisitions. So over there, we look at an EBITDA margin of 30% to 35%, and based on this, we look at acquiring these assets.”

— Irfan Razack (Chairman & Managing Director)

The NCR region's 59% contribution to sales is a massive strategic shift, demonstrating successful geographical diversification. Management's decision to maintain, not raise, its full-year guidance despite this blowout quarter could be viewed as conservative.

“In the first quarter, we achieved a record-breaking sales of Rs.12,126 crores, growing nearly 300% year-on-year, setting a new benchmark in our company's history. [The geographical sales mix this quarter marks a decisive milestone in our evolution as a truly pan-India player. For the first time, the NCR region contributed the largest share at 59%, followed by Bangalore at 21%, Mumbai at 12%, and Hyderabad at 5%.] We launched our four new residential projects during the quarter totaling 14.94 million square feet, including our maiden launch in NCR, The Prestige City Indirapuram. The response was phenomenal, with nearly 80% of the inventory sold at launch, setting the tone for our expansion in North India.”

— Zaid Noaman, Executive Director

Achieving lease rates of Rs.350-370/sqft (vs. a Rs.325 benchmark) for a project still years from completion indicates exceptionally strong demand for premium office space. The strategy to slow leasing aims to maximize future rental income.

“Our leasing rate is above Rs.350. By the time we complete it, I think it should go above Rs.400. But right now, what we've achieved is about Rs.350. Around Rs.370 is the rate that we have. The corporate rate will be almost double of this. […] So what I'm talking about is super built, not carpet.”

— Irfan Razack, Chairman & Managing Director

Provides a clear forecast that despite robust operating cash flows, significant investment in construction and new land will lead to an increase in net debt, a key input for financial models and balance sheet analysis.

“If you see our cash flow during the quarter, we have almost got a gross inflow of around Rs.5,000 crores. If you see the same run rate, the entire year we should be getting around Rs.18,000 to Rs.20,000 crores, of which we will be spending around Rs.8,000 crores on construction and around Rs.2,000 crores on your overheads, land owner payments and all that. So from the operating activity, we should have free cash flows of around Rs.7,500 to Rs.8,000 crores. Of which in the investing activity, we will be deploying close to Rs.3,200 crores on the capex for the full year guidance, and Rs.4,000 crores on our business development. [So on a full-year basis, I think our debt should increase by Rs.1,000 to Rs.2,000 crores if we don't do any further monetization plans.”

— V. V. B. S. Sarma, CFO

GDV- Gross Development Value

“Now, launches for this quarter in Bangalore, we have the Prestige Glenbrook, it's a plotted development. We have Prestige Crystal Lawn, it's a plotted development. We have also Prestige Autumn Leaves, which is a plotted development. Along with this, we are also trying to see whether we can bring the Evergreen at the Prestige Shantiniketan Park, which is a fairly large development again in Whitefield. […] If you're able to get that through, even that will be the launch for this quarter. That is in Bangalore. [In Mumbai, we're trying to bring in the Prestige Highline Park which is Dahisar, where we bought the land, and that hopefully will happen in September. And then the other one which we already have RERA will be the third phase, Mayflower of the Prestige City Indirapuram. Even that will happen in September.”

— Irfan Razack, Chairman & Managing Director

JDA - Joint Development Agreement

“Some of them are actually JDA, so there's no major payment. Like Kellambakkam, Kodihalli, Thanisandra, these are JDA projects, so there's not major payments on these projects. What is owned land is actually Vellore and Polimeni. In Vellore, we have paid Rs.100 crores. In Polimeni, another Rs.70 crores is what we have paid. So total Rs.170 crores on this. And apart from that on other projects as well... [For the entire quarter, it was Rs.650 crores is what we have paid for the residential segment. Total business development, we have paid Rs.650 for the quarter. On these projects, close to Rs.200-250 crores is what we have paid.”

— V. V. B. S. Sarma, CFO

This sets a clear, long-term timeline for a potential value-unlocking event via a REIT for its commercial and retail portfolios. It helps manage investor expectations, positioning it as a medium-term catalyst rather than an immediate one.

“That is an after-thought. It is been saying this. There will be a REIT for retail as well as for commercial when we reach the critical mass, which is three to four years down the line.”

— Irfan Razack, Chairman & Managing Director