Ladies and gentlemen, good day and welcome to the Q4 FY25 Earnings Conference Call of Brigade Enterprises Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchstone phone. Please note that this conference is being recorded. We have the management of Brigade Enterprises Limited. I now hand the conference over to Mr. M. R. Jaishankar, Executive Chairman, for the opening remarks. Thank you, and over to you, sir.
Thank you. Good afternoon, ladies and gentlemen, and welcome to the Brigade Enterprises Full Year, Financial Year 2025 earnings call. I am joined today by our Managing Director, Ms. Pavitra Shankar, Joint Managing Director, Ms. Nirupa Shankar, Executive Directors, Mr. Rose and Matthew, Mr. Amar Mysore, Mr. Pradyumna Krishna Kumar, our CFO, Mr. Jayant Manmadkar, and members of our senior management team. We are pleased to report that this year was the best ever in terms of product launches, retail by value, and selections in a financial year marked by robust growth across all our business verticals. As of March 31st, 2025, Brigade has also achieved a landmark completion of 100 million sq ft of development across projects since inception. We are proud and grateful for the hard work and commitment of our staff and our partners, customers, past and present, who have been part of this momentous journey.
We remain focused on acquiring prime land parcels in strategic locations to bolster our land bank and support our expansion plans. In the past week, we have concluded two market transactions. We acquired 11 acres of prime land opposite ITPL in Whitefield for an overall consideration of INR 486 crore for an office development with a GDV of about INR 2,000 crore. Yesterday, coincidentally, we acquired a 5.41 acres parcel in Velachery, Chennai for a marquee residential development for a value of INR 441 crore with a revenue potential of INR 1,600 crore or more. Our commitment remains firm in delivering high-quality, sustainable projects that cater to the evolving needs of our customers. In our journey towards achieving net- zero by 2045, we are committed to ensuring all our projects are in line across all stages of development.
Coming to the real estate segment, the segment achieved pre-sales volume for FY 2025, which stood at 7.05 million sq ft, with an average realization of INR 11,138 per sq ft during the financial year, which is an increase of 40% over previous financial year, driven by launch of premium projects. We achieved pre-sales value of INR 7,847 crore in financial year 2025, a 31% increase over the previous year, and recorded collections of INR 7,250 crore, reflecting a 23% year-on-year growth. We are steadily strengthening our presence outside of Bangalore in our key markets of Chennai and Hyderabad. In financial year 2025, we launched 11.5 million sq ft with a GDV of INR 13,500 crore, of which 9.5 million was in residential projects with a GDV of INR 11,700 crore. Notable residential launches in Q4 include Brigade Altius in Chennai and Brigade Eternia in Bangalore.
We also launched Ebony, one of the final parcels in our 135-acre township, Brigade Orchards in Devanahalli, Bangalore. We continue to maintain zero residential debt across the group, driven by robust sales and collections. The market remains resilient with sustained demand across both new launches and ongoing projects, particularly in the sustainable and premium housing segments. As we look ahead, we are optimistic about maintaining this momentum in the upcoming quarters. Coming to leasing portfolio, it recorded a revenue of INR 1,165 crore in this financial year 2025, a growth of 24% over financial year 2024. We launched 2 million sq ft of commercial development during the year 2024. Brigade Renters saw reasonably good demand for both sales and leasing, particularly from manufacturing, flexible office space, and retail tenants, highlighting the continued need for quality office infrastructure.
Overall, retail consumption grew by 4% year-on-year, driven by categories such as electronics, specialty lifestyle, watches, and accessories across all three malls. Coming to hospitality team, our Brigade Hotel Ventures Limited has filed the DRHP, the draft red herring prospectus, with SEBI in October, and we received the DRHP approval. We are bound by publicity restrictions, due to which we will not be in a position to take any questions on the hospitality business or about the IPO. Happy to say, the sector, our business, has shown a 20% jump in business over the past year. With a robust pipeline for financial year 2026, the coming financial year, a pipeline of about 16 million sq ft of development across residential, commercial, and hospitality segments, we remain confident in our ability to deliver sustainable growth and long-term value for our stakeholders. I will now hand over to our CFO, Mr.
Jayant Manmadkar, to present the detailed financials for the quarter. Thank you.
Thank you, sir, and good afternoon to all. On behalf of the company, we welcome you to the earnings call for Q4 FY 2025. Our Chairman has already shared operational highlights. I'll be sharing key financial highlights for the quarter and financial year 2025. We are happy to share that Brigade Group has reported its highest-ever realistic sales value of INR 7,847 crore for FY 2025, a growth of 31% over FY 2024. We also clocked the highest-ever collections for the year amounting to INR 7,250 crore, an increase of 23% over FY 2024. Net cash- flow from operating activities stood at INR 2,135 crore, an increase of 36% over FY 2024. To start with the group's performance for FY 2025, the real estate segment clocked a turnover of INR 3,613 crore with an EBITDA of INR 697 crore. The leasing segment clocked a turnover of INR
1,165 crores, an increase of 24% over FY 2024, with an EBITDA of INR 771 crores. The consolidated revenue for FY 2025 stood at INR 5,314 crores. Consolidated EBITDA stood at INR 1,654 crores, an increase of 21% over FY 2024. EBITDA margin stood at 31%. Consolidated PAT after minority interest for FY 2025 is INR 686 crores, an increase of 52% over FY 2024. Coming to the group's update for quarter four FY 2025, the real estate segment clocked a turnover of INR 1,050 crores in quarter four FY 2025, with an EBITDA of INR 240 crores. The leasing segment clocked a turnover of INR 331 crores, an increase of 34% over Q4 of FY 2024, with an EBITDA of INR 194 crores. The consolidated revenue for quarter four FY 2025 stood at INR 1,532 crores, with an EBITDA of INR 488 crores. EBITDA margin stood at 32%.
Consolidated PAT after minority interest for Q4 FY 2025 stood at INR 647 crore. Overall collections in quarter four FY 2025 stood at INR 1,929 crore, an increase of 9% over quarter three FY 2025. Net cash flow from operating activities stood at INR 586 crore, an increase of 30% over Q3 of FY 2025. Now about the debt and liquidity position. We continue to have adequate liquidity and unutilized credit lines from banks and financial institutions to support our growth plan. Our average cost of debt has been reduced to 8.67% as of March 2025 from 8.82% as of March 2024. CRISIL has updated our rating outlook to AA- minus positive from AA- minus stable on the basis of performance and financial stability. Gross debt of the group stood at INR 4,444 crore. The cash and cash equivalents was INR 3,483 crore as of 31st March 2025.
Consequently, company's net debt outstanding as of 31st March 2025 was at INR 962 crore, out of which Brigade share is INR 199 crore. We continue to have zero residential debt driven by higher sales, real estate, and collections. Almost 82% of the debt pertains to the commercial portion, which is backed by rental income. Debt equity ratio stood at 0.14 as of March 2025, as compared to 0.62 in March 2024. I will hand it back to the moderator for questions.
Thank you, sir. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Parikshit Kanth from HDFC Securities. Please go ahead.
Yeah, hi. Amar, congratulations on a good quarter. My first question is that you said that INR 11,700 crore was the launch value. Against this, how much was the contribution to this year's pre-sale of INR 7,800 crore from the new launches?
Yeah. Of the total sales that we did, we had about 54% coming from new launches.
Okay. 54%. My question is again, now we have expanding big way in Chennai. Yesterday also, a big acquisition was announced. First of all, I wanted to understand what has been the velocity in the two projects, Icon and Altius, when they were launched, to relieve the GDV versus sales we have done in this year. How does it compare to Bangalore? In context to that, I would like to understand that if the velocity in Chennai is lower, we are expanding big way. Also in Chennai, our prices, especially when I look at Velachery, is almost INR 20,000 is what we have given. Implied realization is INR 20,000, which is a premium of 40%. What are we developing there? Do you think market can absorb that kind of a product? How will be the sales velocity there?
Yeah. Yeah. Definitely, Chennai market is different from Bangalore. We do not even expect the same kind of launch pattern. In fact, we do not plan for it that way at all. In Bangalore, whatever percentage that we are planning at the time of launch, in Chennai, it is quite different, actually. That said, both Altius and Icon had very good launches. Altis itself, we sold 100 units within the first- month itself. Now we will see that stabilizing, and then we see that going at a more sustenance kind of rate as opposed to trying to sell everything in a very short period of time. I think we have to gear to our sales before completion of the project, and that is actually a normal state of planning our sales.
I think in the last few years, everyone's gotten used to selling in a very short period of time, which is not a normal situation. It's a good situation, but it's not typical. In Chennai, we expect to see the same, and the kind of pricing and sales velocity that we have planned will be on those lines. In Chennai also, all of our land parcels are extremely high quality, really well located. They're in very good neighborhoods. Naturally, the pricing that you're seeing is reflecting that. It's not that it is not in a premium area, and we are charging something and positioning a product that's not in line with that sub-market. Yesterday's acquisition included that. That's an excellent parcel. It's right next to Scenic, the mall, and the Lydia Mall, and the Western Hotel as well.
It's a fantastically located parcel, and I think the pricing there is fair. Overall, I feel both markets are strong. Bangalore still moves very differently, especially at the time of launch, but both are markets that we're very confident of in the coming couple of years as well.
Just to get some numbers for this Altius project in Chennai, so what was the launch value, and how much have we sold in that in terms of crores?
Yeah. The launch value, the ticket size is around INR 2 crore or so. We've done about 100 units, so we've done INR 200 crore. That's totally about 662 units.
Out of INR 1,200 crore odd, you have booked INR 200 crore of sales. That will be the right assumption. Okay. Got it. Just one question on the embedded EBITDA margins. Now, INR 1,700 crore of pre-sales, INR 1,700+ crore. What would be the embedded EBITDA margin in this pre-sale for this year FY 2025?
Sorry, could you repeat the question?
We have recorded INR 1,700+ crore of pre-sales for this financial year. What would be the embedded EBITDA margins in this?
We expect it to be, we will aim to be on the similar lines of what we have achieved this year. At the end of the year only, we will know the exact figure. Too early to.
No, sir. I'm talking about the pre-sales numbers. I mean, residential EBITDA margins are 19%. That is because of the CCM accounting.
It will be in similar lines.
I think we will target, I think last is what we'll be targeting from the new pre-sales.
We have done better than that this year. We have done better than that. That will be the desire to keep the EBITDA better than 27%-28%. Generally, we aim to make it about 30% +.
Okay. Got it.
This is all a factor of market conditions and the project-to-project EBITDAs. Overall, when it gets averaged, it can vary a percentage or two.
Okay. Just last question to Jayant. Jayant, it's INR 3,483 crore of cash. So how much is it in REIT escrow, and what will be the free cash which can be used for acquisition and acquisition in gross?
As of 31st of March, about INR 1,100 crore is the free cash. Then about INR 480 crore is the cash usually out of TIP that we have to use. Balance is in REIT.
Okay. So approximately INR 1,500-INR 1,600 is free cash which can be used for growth?
Yes. Yes. As of 31st.
Okay. Okay. Thank you, team. I'm going to share on the rest.
Thank you. A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Pritesh Sheth from Axis Capital. Please go ahead.
Yeah. Thanks for the opportunity and congrats on the great year. First is in terms of launches for this year. It is almost 12 million sq ft. How would you split between the three markets or other two, I think? Yeah. You can help me on that.
Yeah. We have 12 million sq ft across residential. In that, it's about 5.5 million sq ft in Chennai and approximately the same in Bangalore and about 1 million or so sq ft from Hyderabad. We also have 500,000 sq ft coming from Mysore this year.
Got it. Got it. In terms of value, it should be the same, INR 12,000 crore? INR 10,000 per sq ft would be the blended relation?
Yeah. Yeah. Average of INR 10,000 is what we are assuming.
Got it. Just for Bangalore, I mean, we were probably last year, we were planning to scale up our launches in Bangalore from this 5.5 million sq ft-6 million sq ft kind of rendered to more of 7 million sq ft-7.5 million sq ft. Now we are back to, again, that 5.5 million sq ft rendered, which we have been doing since the last five, six years. Do you think that, I think, at the scale at which we are in Bangalore, there is some constraint of growth there? That part of our growth will come from Chennai, Hyderabad, or is my reading that way incorrect? Yeah.
No. In general, we still expect Bangalore to be a very large driver of our growth. Every quarter, every year, these numbers can change a little bit based on approval cycles and so on. In Bangalore as well, I would say there are a couple of land parcels where we pulled back from acquiring because some of the land cost was a little bit higher. In some cases, we have not gone forward. I think we are still very bullish about Bangalore as a whole in terms of residential, and we still have some large projects coming up in the pipeline for us in the next four quarters and beyond. Wherever it is possible to pull up what is in our land bank and bring it into the coming four quarters, we will do that.
Even in our land bank, we have a substantial amount of pipeline from Bangalore itself. It is just a matter of the approval cycle and getting it into the pipeline earlier.
Sure. And just to continue with that, what's in general the conversion cycle in Bangalore now, right, from acquisition to eventual launch? Has there been any favorable timeline there, or there are still things which are delayed?
Yeah. Compared to two years back, you can say we are adding about two months delay compared to two years back. Still, we generally say for large projects, we still keep in mind about 12 months as the launch cycle. If we do before that, we treat it as a plus. If we do later than that, it is a slight minus. Normally, on an average, we can take it as 12 months. Our record in many cases is about 10 months.
Got it. That's very helpful. Just one last on residential. Hyderabad, we would exhaust our pipeline this year. What more can we see in Hyderabad? Are we doing some transactions this year?
Yeah. We have tied up another 1 million sq ft plus, which is we have entered into MOUs, etc., and it's in advanced stages of planning. We are in the process of finalizing another 1 million sq ft, and we are waiting for some public-level auctions for us to participate.
Okay.
We hope to launch this year, I mean, new projects we plan to acquire.
2 million sq ft of new projects to be acquired.
New projects. Out of this, 1 million, we have signed up. Another 1 million, we have approved.
Got it. That's very helpful. Eventually, do you think?
This is apart from 1 million sq ft of approved project, which is to be launched.
Yeah. Yeah. Eventually, given the supply which we are able to create in Hyderabad, do you think eventually that market is going to be as large as what Bangalore is right now and what Chennai could be in two, three years down the line? Do we have in regards that kind of volumes being clocked in Hyderabad as well?
As it is, Hyderabad and Bangalore are running neck to neck. It is not that Hyderabad is way behind or anything. Chennai is a bit behind in terms of volumes, but Hyderabad and Bangalore are close to each other. Some quarters, maybe Hyderabad has done even better. I think they have much more stock, maybe 8-9 quarters of stock, whereas Bangalore has 4-6 quarters.
Yeah. I was asking from our perspective.
Chennai has the potential to improve, certainly. That's what we feel.
Yeah. Yeah. I was asking from our perspective, Bangalore right now, I mean, annually does INR 6,000 crore of pre-sales. Do we strategize in a way that eventually Hyderabad should also contribute that much of sales for us?
Yeah. No. Certainly, that's the desire. We are working towards that to get the right parcels of land in Hyderabad. Certainly, that's the desire.
Sure. That's it for my side. I have a few more questions, but I'll be right back. Thank you. Thank you.
Thank you. A reminder to all participants, please press star and one to ask a question. The next question comes from the line of Parvez Qazi from Nuvama Wealth Management. Please go ahead.
Hi. Good afternoon, team. Congratulations for a great FY 2025. A couple of questions from my side. First, if you look at the average realizations for FY 2025 as a whole, roughly about INR 11,100 per sq ft, they were up about 40% YoY. Obviously, there was a change in product mix, and there have been some organic or like-to-like price growth. I mean, in your view, what would have been, let's say, the like-to-like or organic price growth portion within this 40% increase in realization?
If like-to-like, it's about 10% like-to-like because the big difference in the average price realization has really come from the product mix that we have been able to launch in the past year across all markets.
Sure. Now when we move towards FY 2026, again, what is your view, one, on like-to-like price growth? Second, do you anticipate further change in product mix which could push this realization even higher in FY 2026 beyond the like-to-like price growth?
No. The way in which we plan our launches is to ensure that we're getting a good price at the time of launch itself so that beyond that, we see it growing for the same project maybe at 10% or so. I think that is because the market is not in a price discovery phase anymore. People know what the price is and what they expect the price to be at the time of launch. It just increases annually at a nominal number. In terms of new launches, how we are planning the way in which we look at it. Going forward also, I think we are assuming more the inventory that we have in our pipeline is assumed at approximately INR 10,000 per sq ft value or EPR.
While in the past we've seen it go to INR 11,000 or high INR 11,000, we see whatever is in our next four quarters, we're looking at around INR 10,000 average. That's mainly from the product mix.
Sure. Second question is on the value versus the volume equation. In FY 2025, our volumes were down 7% YoY , but our sales value was up 31% YoY . In your view, I mean, what will, let's say, these numbers be in FY 2026? Will we see more volume growth and lesser value growth in FY 2026? I mean, how do you expect the next year to pan out?
We will be aiming, we would always love to sell more in terms of area, but we have to keep in mind that also what it means in terms of ticket sizes to customers and the market's ability to absorb a certain type of ticket size. Naturally, we want to push on both fronts, both on the area as well as the total pre-sales value itself. Seeing that the average ticket size, the average price realization is going to be around INR 10,000, I think we'll be looking to increase both, but hard to say really at what kind of percentage I'm going to see that grow over the coming year. We are hoping to increase the overall area and naturally the value as well.
I mean, in terms of sales value growth, would it be fair to say that we'll be targeting at least a double-digit value growth in FY 2026?
Yeah. Double-digit is the typical sort of approach to try and increase the value.
Sure. My last question is on Brigade Twin Towers. Just wanted to think what's our thought process towards leasing the balance portion that we have there.
Yeah. For Twin Towers, we have started as leasing and one tower for strata sale and ownership. In some cases, we have investors also buying into the floor, so we are leasing the space for them. I would say about 30% of the project has been leased or sold, and one tower we are keeping aside for a leasing client. We have applied for a few RFPs, and we are yet to hear back. The sales traction has been good, but the number of transactions has been very high, but it has been a bit small. While the transactions and there is a lot of demand end user, overall, like I said, we have sold or leased about 30% of the project. I think it should see good demand in the coming year.
Sure. Thanks and all the best.
Thank you. A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Viplav Devadiga from Antique Stock Broking. Please go ahead.
Good afternoon, everyone, and congratulations for another stupendous year. My first question is on that only. Can you maintain similar kind of 25%-30% sales value growth in the next foreseeable future? What's your take on this on the pre-sales growth?
We are typically looking at a 15%-20% year-over-year growth. I think that is fair in terms of the base also in which we are continually adding. That is kind of how we look at it.
For the last three, four months, we've been hearing a lot of narrative that looking at the economy and everything, the real estate cycle may see some kind of moderation. Q4 numbers are good, but going forward, numbers may be decreased or absorption may see moderation. As you said, last few years, the absorption, people are selling 50%, 60%, 100% on launch. That may not be tenable in the long run. In April, May, whatever you are selling, have you seen any kind of moderation compared to what you saw, say, FY 2024, FY 2025, the kind of sales velocity you saw? Have you seen any moderation the last few months in your portfolio?
Yeah. In Q4, there was some amount of moderation. In April, every year, there is always a moderation after the financial year completion. May is looking brighter. May should be fine. I think everything is a function of the demand supply and the affordability. You need to look at it holistically, not price alone, not volume alone. You have to see them together. See, when volume comes down a bit, people question us, and volume has dropped. When prices go up, nobody appreciates that the prices have gone up. I think overall, we need to look at it holistically. I think based on that, it's a combination of quantity and price. We expect to do overall better in terms of the revenue and profitability.
One final question. Compared to what you did in FY 2025, would there be any, should, are we going to see more contribution from the new markets, or the contribution from these three markets, Bangalore, Chennai, Hyderabad, will remain the same? I'm just trying to understand from where you get this 15%-20% growth.
No, no. It will be from within the three markets. We are not looking at a fresh city, though we may enter one other city or so, not Mumbai or Delhi immediately. More or less, it is in these three markets.
Okay. Thank you, sir. All the best.
Thank you. Thank you.
Thank you. A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Pritesh Sheth from Axis Capital. Please go ahead.
Yeah. Thanks for the follow-up. A couple of questions. Firstly, on Twin Towers, you mentioned about the leasing. I just wanted to clarify that by what time we expect with the flexible free door, which is vacant right now, to be occupied?
We targeting to complete by this fiscal year. That's the target.
This fiscal year. Okay. And what sort of rentals are being built in in terms of prospecting?
Yeah. The rentals we're looking at are currently between INR 70-INR 75 per sq ft.
Okay. Okay. Got it. That is helpful. Just one last on the cash flows collections, if you can split that across businesses?
Yeah. That's it.
Just for this quarter.
Sure. I just come back. You can ask the next question, and come back to me.
Okay. No, that's the only question. You can come back later. That's okay. Thank you.
Thank you. The next question comes from the line of Sabya Sachi from Bajaj Capital. Please go ahead.
Yeah. Hi. This is Sabya Sachi from Bajaj Capital. I have two questions. First, on the residential piece, could you walk us through the timeline of major launches of this 12 million sq ft that we have planned for FY 2026 across micro markets?
Sorry. Can you just repeat that question again?
I'm looking for timeline of launches, major launches across the three markets of this 12 million sq ft that we have planned for FY 2026.
Yeah. In Q1 in Chennai, we will be launching one large development. Much like the two previous last year, we'll be launching more of our projects in the second half of the year.
Okay. Okay.
In terms of the trend, I think it's very, very similar to what you've seen in the last two FYs.
Got it. Got it. It will be second half heavy.
Yeah.
Got it.
What would be our current inventory pending? I mean, inventory is there on whatever projects we have launched?
Yeah. 5 million sq ft.
Yeah.
5 million sq ft already launched.
Yeah.
5 million sq ft with an average elevation of INR 10,000. That's the inventory value that we have.
Maybe a little bit more because these are all the higher value projects that we have launched in the last year or so.
Okay. Got it. On the business development, is there any target we have for FY 2026? Any investment target that we have number for BD activities for FY 2026?
Our strategy has been very, very stable through all the years. The way we look at it is from a medium term, what can we launch over the course of the next four- to- five years? Typically, the way we look at it is how much have we launched or are we launching in the current year and what we've done in the previous year? We at the minimum look at replenishing that much amount of square footage. We've done about 11.5 million sq ft of launches last year. We have added about 12 million sq ft in the previous financial year. We will continue to focus on similar lines.
Got it. Okay. Okay. That's all from my side. All the best. Thank you.
Thank you. The next question comes from the line of Parikshit Kanth from HDFC Securities. Please go ahead.
Yes. I just wanted to understand that there is this concern about the IT/ITES slowdown and the trade war. Over the years, what do you think would be the change in the concentration of the IT/ITES customers for us as a percentage? Do you see there is any change in the trend? How do you think this thing, given the war concerns and the demand from IT/ITES, what are you seeing really on the ground?
By and large, I think the trade war is getting resolved on its own, but nobody can predict Mr. T. I would put it things should resolve faster than one can imagine the way the so-called war between India and Pakistan got resolved earlier than expected. As far as Bangalore market is concerned, it is yes, a lot will depend on the IT sector performance. Having said that, whenever there is any kind of so-called recession or a slowdown in the United States, the IT sector improves in India much more than expected so that the American companies can maintain their profitability. As is known to everybody, there is a huge rush of GCCs, Global Capability Centers, in the last one year particularly. That trend is likely to also continue. I think Indian capability is appreciated globally.
That's why the GCCs are coming to India in a much faster pace. IT is here to stay. I think by 2030, we might exceed nearly a- trillion dollars of IT business is what is expected.
I'm also, I mean, looking at the INR 1,700 crore out of pre-sales this year, so any ballpark sense and guesstimate what would be the contribution from the IT/ITES in this?
There is no specific contribution from IT/ITES as such in terms of sales.
No, no.
Sales are leading.
Pre-sales, I'm talking about the INR 1,700 crore of sales. We have residential sales, which we did this year. Approximately, what would be attributable to the buyer or the customer coming in from the IT/ITES sector in this?
Yeah. See, actually, because we are in these markets of Bangalore, Hyderabad, Chennai, the proportion across the board, I mean, if I take all three, must be around 60%-65%. We have been getting this question about IT services and so on. I would say over the last 10 years, the profile of what is considered as IT as a job has really gone up the value chain. Previously, we all looked at Infosys, Wipro, and so on as your potential company from where you get your customers. Now, because of the way the economy has also grown and the kind of jobs that are there, the growth of GCCs, we're seeing a lot of people in GCCs or companies where they have tech roles or digital roles. Those are the kind of customers we're getting.
That's happening even in much higher, even in more premium projects within our own portfolio. We're seeing that customers are from a tech background, maybe not necessarily working for your typical IT services firm, but they have that kind of tech. Tech is sort of the reason for their employment. I think we should look at it from a more holistic basis.
Okay. The next question is now we are at almost INR 7,800 crore or INR 8,000 crore. Next year, even if we grow 15%-20%, we'll touch that magical number of close to INR 10,000 crore. At what point of time in the life cycle or genesis of the company do you think that you need to diversify now beyond south and look at probably starting with MMR and then MCR? I'm planning for the same. At least we need to plan at least a couple of years in advance, look at land opportunities. In terms of readiness and going from here on, how do you sense these opportunities outside south?
Yeah. I think in FY 2026, we'll take that call, I would say. We'll take that call. What to do is something we need to decide because we feel these three markets are quite strong and able to absorb higher volumes. In terms of pure volume, it is Bangalore, Hyderabad, and followed by maybe NCR is the one which comes under volumes. In terms of price, it is Mumbai, Gurgaon, and then Bangalore, southern cities will come. We need to see when to bite the bullet.
Okay. Will MMR be the first to change at all? Is that to decide, MMR, Pune? Which will be more aligned with your current product, current market? Where do you think would be the first move? Or maybe MCR?
I think time will tell.
Okay. Sure. Just last question, Pavitra. This year, we have seen 54% contribution coming in from the new launches. Typically, we have seen new launches contributing for others or peers as high as 65%-70%. Do you think that even going ahead, the sustainance share will keep growing and new launches will become lesser contributor to the pre-sales?
Yeah. So actually, about 54% this year came from new launches. I actually think that it's a healthy number because our sales is, I mean, I don't think it is great to have a number that is 70%-80% all our new launches because our approach is to have a healthy launch and to also leave some inventory for sustenance. Our plan is not to sell out on day one. We will not make those kind of announcements because that's not part of our approach anyway. Going forward, I think 50/50 in terms of new launch versus ongoing. There is always very minimal sales coming from what is seen as complete. It's almost negligible. As the cycle continues to evolve, we will have to see how this goes.
In general, I think we have settled into a pattern where we look at, say, 40%-50% of any new launch should be sold within the first couple of quarters. We take the rest of the construction cycle to sell the remaining inventory. If we're able to increase price and still sell, then we will look at it. There is no hard and fast rule that I need to sell everything upfront. That is why I think around 50%-60% for new launch is what we'll continue to look at.
Are you handy with the number for FY 2024? What was the contribution from the new launches in FY 2024, sir?
Yeah. Around 60%-62% or something like that.
62?
In FY 2024. Yeah.
60, 62. Okay. Okay. Got it.
Yeah.
Okay. Thank you. Thank you, team. I'm actually going to.
Just a response to the earlier question. There is INR 3,000 collections across three verticals. Total collection for the year was INR 7,250 crore. In that, real estate was INR 5,412. Commercial lease retail business was about INR 1,197 crore. Hospitality was about INR 642 crore.
Thank you, sir. The next question comes from the line of Parvez Qazi from Nuvama Wealth Management. Please go ahead.
Hi. Thanks for taking my follow-up question. Firstly, would it be possible to get a broad split of our pre-sales in FY 2025 across the three cities? I mean, even a rough cut number would be fine.
In terms of the overall value or just as a percentage?
Yeah. I mean, either way is fine. Yeah.
Okay. So just approximately, I would say Bangalore was around INR 5,000 crore, Chennai about INR 1,000 crore, and Hyderabad INR 1,400 crore.
Sure. I mean, you gave a number of 54% contribution from new launches in FY 2025. For Q4 also, the number would be more or less in the similar range?
Yeah. Yeah. For Q4 also, it is around 55% new launches. It was a little bit high, but that's why it kind of averages out around 55% for the year.
Sure. And lastly, the land that you bought opposite ITPL, the office project that you make will be on sale model or lease model is also possible?
No, it will be primarily on lease model.
Sure, sir. Thank you and all the best.
Thank you.
Thank you. Ladies and gentlemen, the last question comes from the line of Viplav Devadiga from Antique Stock Broking. Please go ahead.
Sir, my first question is on the business development you did in this financial year, FY 2025. In terms of GDV ballpark, what would be that number?
The GDV would be upwards of INR 12500 crores.
Okay. Okay. Now coming to the pre-sales new launch sales, 54% of pre-sales from new launches. That means you have sold around INR 4,000+ crore from new launches in this financial year. You have launched around INR 11,000 crore in this financial year. That means ballpark around 40% is the absorption of new launches, new project launches. If that is a ballpark number, it is correct. Is it a high number or okay number or moderate number? Because 45% of absorption in pre-sales, I thought we covered it to be something around 25%-30%. It does not look like it is too high a number in terms of absorption of new launches.
Yeah. Your calculation is more or less correct. We also have to see the timing of the new launches. I only have one month to do the new launches, and that is the kind of value that I can probably manage within that. As I mentioned earlier, we will look at how much we can do within one quarter or two quarters of the launch and consider that as our overall launch period because we aren't trying to sell everything at one shot when we launch. Considering that some of our launches came in like Brigade's earlier, basically came in at the last month or so. All sales came in in February. Basically, we didn't have too much time to absorb even more within the financial year itself.
What would be the typical absorption in the first year of launch? Comfortable number that would give you comfort?
Yeah, around 60%. I would say in the last couple of years, there are some projects which we fully sold out within one year itself. It is not typical. Whatever we saw in the last two years is not typical. Whatever we saw in the second year, it is a different time entirely. Post that, as I mentioned earlier, we look to sell around 50-60% within the first year or so. If it is faster, then we will try to attain a certain price appreciation and not necessarily just sell off the inventory very quickly.
Anything below 50%-60% is moderate, and anything above 50%-60% is exceedingly well. That would be the.
Again, we have different strategies. We have different strategies for different projects. If it's a volume project, I look at it differently from a high-end, smaller inventory type of project. We will look at it based on what is best for that particular size project.
Okay. Thank you, ma'am. All the best.
Thank you.
Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Ms. Pavitra Shankar, Managing Director, to give her closing remarks. Ma'am, please go ahead.
Before we wrap up, we'd like to share a few key highlights beyond our financial performance this quarter. We launched the Earth Fund, a sustainability and proptech-focused investment fund in collaboration with Gruhart. The investments are of Nicholas Dalmia and Abhijeet Pan. This SEBI-registered Category II alternative investment fund has a corpus of INR 200 crore with INR 100 crore green- shoe options. The fund aims to support high-growth startups, driving innovation and sustainability in the built environment. Nirupa and I were named among Fortune India's 100 Most Powerful Women in Business 2025, ranked 80th alongside leaders such as Kiran Mazumdar-Shaw, Nita and Isha Ambani, and Panguni Nair. The Brigade Foundation broke ground on the upcoming St. John's Medical College Hospital at Brigade Eldorado, a 108-bed facility in North Bengaluru.
Brigade Group was ranked 10th in Fortune India and CLHR's Top 50 Future Ready Employers 2024 list, highlighting our progressive and people-first workplace practices. World Trade Center Kochi has been designated a premier accredited member by the World Trade Centers Association, the highest level of certification. With this, all three of our WTCs, Bangalore, Chennai, and now Kochi, have achieved this prestigious status. A few awards and recognitions. Brigade Tech Gardens won for best practices in water management at the BCIC ESG Awards 2025. Brigade Tech Gardens was also awarded the Short Creek and Waterproofing Award by the American Short Creek Association. Brigade Citadel was awarded Residential Project of the Year at the second REALG+ Excellence Conclave and Award, Hyderabad 2025. Brigade Parkside North received the IIA Award for Excellence in Architecture under the Residential Architecture category by the Indian Institute of Architects.
Brigade Foundation has been partnering with the GoSport Foundation, supporting the Equal Youth Cricket Excellence Program, delivering hundreds of impactful interventions involving 30-plus experts and 10 high-performance teams. The program has proudly nurtured three Indian national team players, four IPL players, three India Under-19 team members. On that note, we conclude this quarter's earnings call. Thank you for your time today and for your continued interest in the Brigade Group.
Thank you, ma'am. Ladies and gentlemen, on behalf of Brigade Enterprises Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.