India’s real estate sector is experiencing a sharp revival, driven by robust housing demand, rising incomes, and growing investor interest. After years of muted growth, listed developers are reporting record sales and robust project pipelines. However, with prices rising and interest rates falling, the key question is—can this momentum be sustained?
And if it does, which companies are best positioned to ride this cycle? You can track these three leading companies to keep an eye on this sector.
#1 Prestige Estates
Prestige Estate has 39 years of experience in real estate development. It is one of the leading real estate developers in South India. The company has completed 302 real estate projects, covering a developable area of 193 million square feet (msf).
Its portfolio spans residential, commercial, hospitality, and retail projects. In addition, Prestige offers services such as property management, sub-leasing, & fit-out solutions, supporting its real estate operations with complementary offerings.
As of 31 March 2025, the company had 63 ongoing projects, with a total developable area of 115 msf. Another 67 projects, with a total developable area of 88 msf, are in the pipeline.
Pre-sales Decline Amid Macro Weakness
Prestige reported a 19% decline in pre-sales to ₹170 billion in FY25, primarily due to a 38% decrease in sales volumes. Growth slowed due to weak demand amid a high base and macro slowdown. Collections also grew by just 1% to ₹121 billion. However, average realization rose 36% to ₹14,113- reflecting strong pricing power.
The company continues to diversify beyond the core Bengaluru market. Bengaluru now accounts for 45% of sales, followed by Mumbai (30%), Hyderabad (23%), and others. Net profit declined 62% to ₹6.2 billion.
Inventory Trends Reflect Price vs Volume Strategy
Prestige has an inventory of ₹201 billion. Mumbai accounts for 37% of the value, followed by Bengaluru (33%), Hyderabad (26%). Meanwhile, Hyderabad and Bengaluru contribute more in terms of area, suggesting a volume-driven strategy at lower price points.
This shows that while Mumbai accounts for the highest share of Prestige’s inventory by value, its contribution in terms of area is relatively small, indicating a focus on high-ticket, premium projects. In contrast, Hyderabad and Bengaluru contribute a larger share by area but a lower share by value.
This reflects a volume-driven strategy in more affordable ticket sizes. On the financial front, revenue declined 18% from last year to ₹77.4 billion in FY25, due to a demand slowdown. Net profit dropped 62% to ₹6.2 billion.
The company has a land area of 689 acres, providing strong future development potential. Looking ahead, Presite has a strong launch pipeline and looks to double residential launches in FY26.
It has ongoing and completed projects worth ₹689 billion, with a free cash flow potential of ₹197 billion. In addition, the pipeline of upcoming projects is valued at ₹559 billion, with a projected free cash flow of ₹241 billion, highlighting strong monetisation visibility.
From a valuation perspective, Prestige trades at an EV/EBITDA multiple of 30, at a premium to the 10-year median of 11.
#2 DLF
DLF is one of the largest domestic real estate developers, with a track record spanning over 75 years. The company operates in two core segments: development, which includes residential and commercial property sales, and annuity, which covers leased office and retail assets.
Development business sees strong momentum
In the development segment, new sales bookings rose 44% year-on-year to ₹212 billion in FY25. The unrealised margin on these bookings stands at ₹128 billion, up 130% from the previous year. DLF has a launch pipeline of 37 million square feet (msf) from FY25 onwards, with an estimated sales potential of ₹1.1 trillion.
Of this, 7.5 msf worth ₹406 billion was launched in FY25. Inventory worth ₹193 billion has already been sold. In addition to the remaining unsold area, the company plans to launch another 29 msf of projects valued at ₹739 billion, of which about 15% is likely to be launched in FY26.
Some of its key ongoing projects include The Dahlias, Privana (West and South), and Arbor, with a total sales value exceeding ₹550 billion. Privana and Arbor are fully sold, while The Dahlias are around 41% sold as of December 2024.
From these launched projects, DLF expects a surplus cash potential of ₹436 billion. The company has total bookings of ₹639 billion, out of which ₹444.9 billion of revenue is yet to be recognised. These projects carry a profit potential of ₹206 billion.
Commercial business benefit from stable rentals
DLF’s annuity business includes a retail portfolio of 45 msf with an occupancy level of 98% and an office portfolio of 41 msf with 94% occupancy. Another 20 msf of office space and eight msf of retail space are under development, with 6.2 msf expected to be completed in FY26.
The commercial business posted a 9% year-on-year rise in revenue to ₹64.5 billion in FY25. Net profit grew 46% to ₹24.6 billion. Rental income rose 10% to ₹47.5 billion, with office contributing 81.5% and retail accounting for the remaining 19.5%. The remaining ₹16.9 billion came from services and other sources of income.
On a consolidated basis, DLF reported a 24% rise in revenue to ₹154.4 billion and a 56% increase in net profit to ₹52 billion. Development accounted for 58% of the total, while the commercial contributed the rest. Revenue from the development business rose 29% to ₹90 billion, while commercial revenue rose 58% to ₹64.5 billion.
On the profit front, development contributed 53%, rising 66% to ₹27 billion, while the rest came from the commercial segment. DLF aims to double net profit, cash flows, and rental income by FY30.
From a valuation perspective, DLF trades at an EV/EBITDA of 68x, well-above the 10-year median of 27x.
#3 Macrotech Developers
Macrotech, known by its Lodha Brand, is the second-largest real estate developer in India after DLF. As of March 31, 2025, it has delivered over 100 msf of developed area, mainly in the residential segment, and has 115 msf of projects under development.
Macrotech Exceeds FY25 Targets
In FY25, pre-sales rose 21% from last year to ₹176 billion, beating its ₹175 billion guidance. It also recorded 4% growth in average realisations. On a consolidated basis, revenue grew 33.6% to ₹137.8 billion, while net profit increased 71% to ₹27.7 billion.
Geographically, Macrotech is concentrated in the Mumbai market, which accounts for about 80% of its collections in FY25. However, the company is gradually diversifying its presence within Pune and Bengaluru, and hopes to enter a new market.
Going forward, the company plans to use operating cash flows to invest in land and build an annuity income portfolio. It also holds a large, low-cost land bank of 4,080 acres in Mumbai, which supports future project development.
For FY26, Marcotech has guided for ₹210 billion in pre-sales, with an operating cash flow of ₹77 billion. It also expects to add new projects worth ₹250 billion during the year. Over the longer term, it expects pre-sales to reach ₹500 billion by FY31.
The company estimates the potential to reach a pre-sale of ₹720 billion, offering a 30%+ cushion to its FY31 guidance.
To support its growth targets, it launched 9.8 msf with a gross development value (GDV) of ₹137 billion in FY25. Only 30% of this has been booked as pre-sales so far, leaving the rest yet to be monetised. Additionally, the company expects to launch projects worth ₹188 billion in FY26.
Focus on Annuity and Digital Infrastructure
Macrotech is also building an annuity income portfolio, comprising office and retail assets, facilities management, and warehousing. It currently has 5 locations with 5.3 msf of leasable area. 2.1 msf of this is under development, and just 0.4 msf is leased.
The company is targeting net annual income of ₹15 billion by FY31 from this segment, with ₹5.6 billion expected to come from rentals. It is also investing in digital infrastructure, where 2.1 msf is leased and another 5.3 msf is under development.
To support its growth ambitions outside Mumbai, Macrotech has acquired 33 acres of land in Delhi NCR and 45 acres in Chennai for new developments. These markets are expected to become future growth drivers.
From a valuation standpoint, it trades at an EV/EBITDA of 33.8x, in line with the 4-year median of 32x.
Macrotech Developers Share Price
Conclusion
India’s real estate cycle is gaining momentum, driven by robust housing demand and improving project economics. Among listed players, DLF, Macrotech, and Prestige stand out for their scale, diversification, and future-ready pipelines. While valuations are elevated, their formal, cash-generating models offer a more stable approach to navigating this cycle, provided execution remains on track.
Disclaimer:
Note: Throughout this article, we have relied on data from http://www.Screener.in and the company’s investor presentation. Only in cases where the data was not available have we used an alternate but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
About the Author: Madhvendra has been deeply immersed in the equity markets for over seven years, combining his passion for investing with his expertise in financial writing. With a knack for simplifying complex concepts, he enjoys sharing his honest perspectives on startups, listed Indian companies, and macroeconomic trends.
A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The articles’ content and data interpretation are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources, and only after consulting such independent advisors as may be necessary.