Ladies and gentlemen, good day. Welcome to the Q4 FY 2026 earnings conference call of Brigade Enterprises Limited. As a reminder, all participant lines will be in the listen-only mode. 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 touch-tone phone. I now hand the conference over to Ms. Pavitra Shankar, Managing Director of Brigade Enterprises Limited. Thank you. Over to you now.
Thank you. Good afternoon, everyone, and thank you for joining us for Brigade Enterprises Limited's Q4 FY 2026 earnings call. I'm joined by the management of Brigade Group, our Chairman, Mr. M.R. Jaishankar, Joint Managing Director, Ms. Nirupa Shankar, Executive Directors, Mr. Roshin Mathew, Mr. Amar Mysore, and Mr. Pradyumna Krishnak umar, and our CFO, Yogesh Patel. FY 2026 has been marked by steady operating performance for Brigade, with demand conditions across our core markets remaining supportive. I will take a few more minutes today to share a more detailed perspective before handing it over to our CFO for the financial details.
The residential sector for our key markets of Bangalore, Chennai, and Hyderabad grew 6% year-on-year in calendar year 2025, increasing their share from 32% - 37% across the top seven cities in India. For Brigade, FY 2026 pre-sales was INR 7,424 crores, which is 5% lower than FY 2025. This was primarily on account of delays in obtaining approvals, with many project launches pushed to the latter half of Q4 and some moving into FY 2027. New launches contributed to 43% of full year pre-sales, despite being concentrated in the back end of the year. Specifically, for Q4, we launched 4 million sq ft, which resulted in pre-sales of INR 2,521 crores, a Q-on-Q increase of 44% by value.
Successful launches in Q4 include Brigade Lumina, which was almost fully sold out, Brigade Belvedere Phase One, both in Bengaluru, Brigade Stellaris in Chennai, and Brigade Manor and Enclave in Hyderabad. We ended the year with 8.3 million sq ft of new launches in FY 2026 versus a plan of 12 million sq ft. Around 1 million sq f t that got pushed into FY 2027 was in Chennai, including the second phase of 1 million sq ft in Brigade Morgan Heights. Sustenance sales contributed 57% for the year, but was also impacted by a regulatory issue post-launch in Brigade Morgan Heights, Chennai, requiring a pause on sales of phase I.
While this issue was disposed by Madras High Court in favor of Brigade in February itself, we chose to wait until Q1 FY 2027 and after state elections were concluded in order to resume sales. We are in process of relaunching in this quarter. Our FY 2026 average realization increased 9% year-on-year to INR 12,109 per square foot. This was achieved with disciplined pricing increases in our existing projects and a positive shift in our product mix towards higher value homes. We continue to see healthy site visits with consistent conversions of 10%-12% across cities and projects with a broad customer base spanning multiple sectors.
NRI buyers have remained stable at around 10% of the pre-sale value. For FY 2027, the residential launch pipeline stands at 11.6 million sq ft with a GDV of INR 11,900 crores. We expect to launch 4.5 million sq ft in Bengaluru and 3 million sq ft each in Chennai and Hyderabad. This year, we are aiming to pull in some of the launches before H2 depending on approvals. In both Bengaluru and Hyderabad, the share of FY 2027 sales from new launches in mid-segment can be more front-ended. Whereas in Chennai and ultra-luxury projects in general, the sales absorption is generally evenly distributed throughout the construction life cycles.
While we are watchful of the macroeconomic uncertainty due to geopolitical tensions in the Middle East and the broader implications of AI, the fundamental demand drivers in our core markets remain intact. If the current sentiment and market conditions hold up, our outlook is that demand on ground will support a pre-sales outlook of at least 20% growth on our FY 2026 numbers and aiming for INR 9,000 crores. From a business development perspective for the residential segment, we added INR 15,000 crores of GDV across 13 million sq ft in projects during FY 2026. The addition was predominantly in Bengaluru and Hyderabad at 60% and 30% respectively.
The Indian office market sustained strong momentum through Q4 FY 2026, with GCCs, tech, and BFSI remaining the primary demand drivers. Brigade's commercial leasing portfolio delivered stable performance in FY 2026, with cumulative leasing of approximately 1.1 million sq ft across new leases, renewals, investor leasing, and managed office transactions, with sustained occupier preference for Grade A, amenity-rich, and technology-enabled assets during the year. We launched 1.3 million sq ft during FY 2026, with 4.5 million sq ft planned for FY 2027, while our rental collection sustained at 99%.
GCCs account for 58% of our leased portfolio, while traditional IT and ITES account for 26% of the leased portfolio, and the balance spread across consulting, BFSI, engineering, healthcare, and flex operators. Tenant concentration is also well managed. Large anchor tenants above 1 lakh sq ft account for 65% of the leased portfolio at an average of approximately 3 lakh sq ft each, providing revenue predictability. The remaining 35% is distributed across midsize and smaller tenants, limiting single tenant risk. We have a pipeline of approximately 10 million sq ft to be launched over FY 2027 and FY 2028.
The capital expenses towards the construction of this 10 million sq ft will be approximately INR 6,000 crores spread over the next four years, ranging between INR 1,200-1,700 crores per annum. Looking ahead, the office market outlook remains constructive, supported by GCC expansion, growth in flexible working spaces, and rising institutional participation. While global macro uncertainties and cost pressures persist, a diversified occupier base and adaptive supply pipeline provide resilience. Turning to retail, the Orion Malls portfolio continued to see healthy operating momentum during FY 2026.
The three Orion malls collectively churned approximately 1.5 lakh sq ft of leasable area and onboarded multiple new tenants, strengthening the overall mall vibrancy. This activity translated into improved footfall and sales performance during the quarter. Key performance highlights include 7% year-on-year growth in footfall during Q4 FY 2026, 25% year-on-year growth in retailer sales for all three malls combined. In hospitality for Q4 FY 2026, geopolitical developments during the period impacted foreign tourist arrivals and led to some MICE cancellations. Despite this, the Indian hotel industry continues to benefit from ADR growth, supported by strong domestic corporate travel.
Brigade's hospitality portfolio delivered a resilient performance during the quarter, supported by disciplined rate management. While occupancy growth remains stable at 78% compared to Q4 2025 due to external disruptions, revenue and RevPAR showed steady improvement on the back of ADR growth with 8% and 13% growth over the previous quarter. FY 2026 saw a 15% increase in revenue and EBITDA compared to FY 2025. RevPAR growth of 6% was driven by a 7% improvement on ADR. Demand for FY 2027 remains strongly anchored in domestic travel, with international travel expected to recover gradually.
With that, I will now hand over the call to our CFO, Mr. Yogesh Patel, to take you through the financial performance for the quarter in detail.
Thank you, Pavitra. Good afternoon, everyone. Further to operational highlights shared by Pavitra, I'll just highlight few financial highlights here. Q4 of FY 2026 was a quarter of positive momentum translating into strong sequential growth. The positive sales performance for the quarter of INR 2,521 crores, and with demand fundamentals remaining steady, we are strongly positioned to capitalize on the momentum led by new project launches coming up. To start with group's revenue update for FY 2026, the consolidated revenue for the financial year stood at INR 5,909 crores, an increase of 11% over FY 2025.
With an EBITDA of INR 1,638 crores. EBITDA margin for the year stood at 28%. The real estate segment clocked a turnover of INR 4,002 crores, an increase of 11% year-on-year on FY 2025, with an EBITDA of INR 525 crores. The leasing segment clocked a turnover of INR 1,303 crores with an EBITDA of INR 906 crores, also an increase of 12% and 18% respectively. The hospitality segment clocked a turnover of INR 604 crores, an increase of 13% over FY 2025, with an EBITDA of INR 207 crores. Consolidated PAT stood at INR 725 crores, which is a growth of 7% over FY 2025. PAT after minority interest for FY 2026 is at INR 644 crores.
Coming to Group's performance for the quarter four FY 2026, our consolidated revenue for this quarter stood at INR 1,523 crores with an EBITDA of INR 430 crores. EBITDA margin for the quarter as well was at 28%. The real estate segment clocked a turnover of INR 1,026 crores with an EBITDA of INR 142 crores. The leasing segment clocked a turnover of INR 337 crores in the quarter and an EBITDA of INR 228 crores. The hospitality segment turnover was at INR 160 crores and an EBITDA of INR 60 crores on that. Consolidated PAT stood at INR 190 crores for the quarter. PAT after minority interest for quarter four is at INR 145 crores.
To touch upon cash flow performance, primarily linked with sales performance in the initial quarters of the year, our overall collections for the year remained at levels similar to FY 2025 at INR 7,476 crores. Cash flow from operating activities have moderated due to increased construction spend, where the total area under construction is higher by about 4.5 million sq ft in this year. Our cash flow and collections will continue to be robust as they will be further supported by the new product launches and sales. Collections from real estate segment stood at INR 5,480 crores. Leasing segment stood at INR 1,298 crores, and hospitality segment contributed INR 698 crores collections.
Net cash flow from operating activities stood at INR 1,411 crores. On debt and liquidity, we continue to have adequate liquidity and undrawn credit lines from banks and financial institutions to support our growth plans. Our average cost of debt has reduced meaningfully in the year by 110 basis points, which now stands at 7.57% as of March 2026, which was 8.67% as of March 2025. Gross debt for the group stood at INR 5,231 crores. The cash and cash equivalent balance as of March 31st, 2026 stands at INR 2,953 crores. Consequently, the company's net debt outstanding as of March end was INR 2,278 crores.
Of this, BEL's Brigade share is INR 1,679 crores. It's noteworthy to mention 88% of the debt pertains to our commercial portion, which is backed by lease rentals itself. The debt equity ratio for the year stood at 0.27. With this, I'll now hand it back to the moderator to initiate the questions.
Thank you very much, sir. Ladies and gentlemen, we will now begin with the question- and- answer session. Anyone who wishes to ask questions may please press star and one on their touchtone phone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use only hands-up while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Adhidev Chattopadhyay from ICICI Securities. Please go ahead.
Yeah. Good afternoon, everyone. Thank you for the opportunity. My first question is on the World Trade Center Bengaluru. I believe it may be Amazon which is vacating there. That's why you see a drop in the area under lease. Could you just help us understand how you intend to fill this space up? Do you already have someone lined up or it will take a little bit longer? That is the first question.
Hi. Good afternoon. This is Nirupa here. Yes, Amazon has vacated their space. They had about 630,000 sq ft that they vacated. We have leased a couple of floors. We've leased close to 100,000 sq ft of that. Line of sight, there are a lot of client interactions, and the idea is to lease it out over the next couple of quarters. There are very high potential client visits that are happening on a regular basis. What we expect is that there may not be one single client that comes to pick up the entire space, and we're expecting the leasing to happen either floor-wise or maybe two to three floors at a time.
Okay. Just to follow up, are we expecting the rates also to be much higher considering Amazon was an older tenant? I guess some of these rates should be mark to market right now, right? Could we see some uptick in the leasing rate overall?
Yeah, I think with the way the current market condition is, we should definitely look to expect anywhere between 10%-15%. In some cases, if it's half a floor, it's gone up to even 20%. Expecting larger transactions of two floors, etc , I think a normal increase of 10%-15% is expected.
Okay. Fair enough. Fair enough. Thank you. My second question is mainly pertaining to our residential business, some more broader questions. If you could help us understand currently the land bank and projects we have, what is the cumulative GDV which is available for launch over the next few years? Considering you're targeting close to over INR 9,000 crores of sales, right, in the coming year, what is your land bank replenishment strategy over the next few years? Some more broader level questions, if you could address that. Yeah. Thank you.
From an overall standpoint, we normally talk about our four quarters on a rolling basis pipeline. For that, we are looking at 11.5 million sq ft for the coming year. That GDV is around INR 11.9 to, say, INR 12,000 crores GDV. From an overall land bank perspective, you know, we have 57 million sq ft. Of that, residential is around 75% as a portfolio. In terms of, you know, replenishment, naturally every quarter we launch, we aim to replenish and focusing on increasing the presence in Bangalore and Hyderabad, moderately in Chennai based on opportunities available.
Okay. Sure. Sure. Fine. Fine, that's it from my side. I'll come back in the queue if I've got more questions. Yeah. Thank you and all the best.
Thank you.
The next question is from the line of Karan Khanna from Ambit Capital. Please go ahead.
Yeah, hi. Good afternoon, thanks for the opportunity. Just a couple of questions from my end. Firstly, Pavitra, on the pre-sales guidance of INR 9,000 crores, if I look at the unsold inventory of around INR 10,000 crores and sustaining sales track record of around 55%, is it safe to infer you're building sales from new launches at around INR 3,500 crores? If that's the case, isn't this a very conservative number considering historically you have seen 35%-40% sales in new launches and you're guiding for a INR 12,000 crore launch pipeline for FY 2027?
Hi, Karan. Yes, in some ways it is a little conservative, also we are looking at the mix of the new launches. Of the number that I mentioned, 11.5 million sq ft, at least 3 million from Chennai. As we've seen in the past, Chennai, in terms of throughput to, from the launch to that same financial year itself, we tend to see the contribution to be more evenly spread throughout the construction life cycle rather than being front-ended. This is one of the reasons why that number may look a little conservative. The other aspect is that launches in general, sometimes we do see them shifting out.
If it shifts out maybe into H2 or towards the end of H2, the amount of time that we have to make those pre-sales happen within the same financial year is going to be less. This is one of the reasons why in FY 2026 also we experienced a lower number. You're right in terms of how much we have in terms of opening inventory, and that's an area that we'll be trying to push further because that's inventory that we have in hand. Looking at both that as well as trying to advance some of the launches so we have better visibility, and as the quarters come through in this financial year, we'll be able to update on that.
Sure. On the launch guidance of 12 million sq ft, so if you can just give some color in terms of what are the current status in terms of approvals and any indication on quarter-wise breakup for the 12 million sq ft of launches?
I think, like the previous years, part of the launches will come in H2. We anticipate, if I just go by market, for example, for Hyderabad, we're anticipating about 1 million sq ft to be coming in Q3 and another 1 million sq ft to be coming in Q4. Hopefully we will get some of that in from a Q3 number, and we'll be expecting another 1 million sq ft in Q4. Brigade Morgan Heights, as I mentioned earlier, there is 1 million sq ft of the phase of the project that we'll be launching now or relaunching one. The other projects in Bangalore, I think, will still be pushed into Q2 and Q3.
Sure. Then secondly and lastly, on the partnership with Bain, can you talk about?
Sir.
Yeah.
I'm sorry to interrupt you, sir. Sir, I think we should connect the management's line again because there is a disruption.
Sure.
when ma'am was speaking. Allow me a few seconds, please. I'll call the management line. Ladies and gentlemen, thank you for patiently holding. The management's line has been reconnected. Sir, you may proceed.
Question for you, Nirupa. If you can talk a bit about the partnership with Bain, and as part of the deal, will you also be evaluating more opportunities, besides the 2 million sq ft office asset, and hotel in Whitefield, and what are the timelines for completion of this project?
Thank you for the question. This is for a 10-acre project right opposite ITPL in Whitefield in Bangalore. It's a very strong location. It's a 50/50 joint venture partnership, so they're pure equity partners with us in this project. We have the potential to develop about 2 million sq ft of office, and we're also planning around a 250 key hotel for the project. It's a five-star hotel as well. This was the first, we decided that, you know, we do one project first, and we are definitely open to looking at more partnerships with them.
Timelines?
Timeline, as you said, we're expecting to complete the project around 40 months, in about 40 months.
Sure. Thank you.
After approval.
Yeah.
Yeah. Thank you.
Thank you.
Thank you. The next question is from the line of Girish Choudhary from Avendus Spark. Please go ahead.
Yeah, hi. Thanks for the opportunity. Have a question on the cash flow. How should we look the trajectory going ahead, what we have seen is the construction cost has seen a material increase, which is understandable given you also mentioned about a significant increase in the area, right? On the collections, any reasons why they have been flattish for the year and when do you expect this to pick up?
The collections for the year, obviously, I mean, if you see, from a residential perspective, I mean, for the new launches, give us a certain amount of collection upfront. The sustenance collection, as the milestones of construction get completed, they get converted into milestones which then gets billed and collected. The reflection of the flattish collection which we talked about is primarily because of the initial part or initial part of the year where the launches were deferred. That kind of getting materialized is converting into cash is ongoing right now. From here, as, you know, as the launches are getting planned, cash flow of them will continue to increase while sustenance cash flow comes based on milestone growth itself.
At different stage of each project, the construction intensity differs, and that's what's reflected in the extra construction cost. The operating cash flow generation continues to be positive, and it'll improve as new launches take a faster pace.
I understand. How should we look at the collection trajectory going ahead? This year we have seen impact to our operating cash flow, in the sense we have seen a decline YoY. Can we expect material or a significant increase in your overall operating cash flows for the year?
We should see an increase for sure. I mean, it should be, it should come in percentage terms, pretty close to the way we look at our sales growth as well. You know, few, 100 basis points probably, you know, lower from there, given the timing per se. That's what would be the trajectory in terms of cash flow generation.
Okay. My second question, if you can give us some updates on your Chennai projects, specifically the Velachery project. How has been the response? What sales absorption we have seen? Also for the year fiscal 2027, you mentioned about three launches in the Chennai market, right? Which are these projects?
Yeah. The project is Brigade Stellaris that we just launched in Q4. That is a pretty high-end project. It's 284 units, and each unit is around INR 6 crores+ . So far in Q4, what we did, we sold around 30 units, and I think we are pretty pleased with that performance. We expect to be fairly stable over the course of the, you know, three to four year construction life cycle, and are also pretty good after the launch quarter. In terms of sq ft coming up in Chennai, 1 million sq ft of that is part of Brigade Morgan Heights. Brigade Morgan Heights overall is a 2 million sq ft project. We launched 1 million of that last year. As I mentioned earlier, we had to pause it.
We are launching the entire project as a full-scale relaunch in Q1 FY 2027. Basically, within the next two months, we are doing that. That is the sq ft of that is what is being counted. We have two more projects that we're talking about. One is part of a larger multi-phase township that is 3 million overall, but we would only be launching 1 million of that in the coming financial year. Both of those have visibility towards H2, Q3, and Q4 respectively.
Sure. Thank you.
Thank you. The next question is from the line of Biplab Debbarma from Emkay Global. Please go ahead.
Good afternoon, everyone. My first question is on the approval-related issues that we faced in FY 2026. In your view, have all the issues related to approval resolved? Do you anticipate any challenges in FY 2027?
Hi, this is Pradyumna here. I think the primary issues of approvals are now behind us. As Pavitra also mentioned, we've launched about 4 million sq ft in the last couple of months. We are on track as far as approvals go from a comparative perspective. I think we are behind the issues that we faced earlier.
Well, that's great. Secondly, I don't know whether I have heard it properly. You said that around 10 million sq ft of commercial projects to be launched in next two years. Is that correct?
Yes, that's right. The moment we start construction, we consider it as launched. While next year we have said that in FY 2027 we'll be launching about 4.5 million sq ft. The balance will come in FY 2028. From a sense of completion, it will take about four years by the time the entire project is up and running with OC, etc . That's what we have clearly said. We've already tied up lands for about 10 million sq ft for commercial.
Ma'am, 10 million sq ft upcoming and around 3 million ongoing.
Yes.
13 million sq ft, how much rental, once they become operational, how much rental, Brigade share do you anticipate?
See, what I would say is, between what is currently ongoing, which is getting completed, and the 4.5 million sq ft that will come up, we, it'll be about INR 800 crores. That is something that we have already estimated. For the balance, 5.5 million sq ft, we will come up with a number soon.
Okay. Okay. That's great. Thank you. Thank you, sir.
Thank you. The next question is from the line of Sourabh Gilda from JM Financial. Please go ahead.
Yeah. Hi, am I audible?
Yes, sir. Please proceed.
Yes. Sure. Firstly, on the commercial bit, our commercial monetization run rate has increased significantly to INR 550 crore annually now. How should one think about this run rate going ahead, given the fact that we are launching a sizable amount of portfolio over the next two years?
Ideally, we would like to grow our annuity income portfolio. The idea is to hold on to many of the projects as much as possible. Sometimes based on how demand is for a particular project, in this particular year, you saw the additional of 100,000 sq ft sold, mainly because of the Twin Tower project. For us, we take it on a case to case basis. With the, you know, if there are smaller projects and if the commercial is part of larger mixed-use townships and is not a very large project, in some cases we might decide to sell. The strata sale is very project dependent. By and large, as a company, we want to enhance our annuity income portfolio.
The larger projects, we would like to hold on to it and maybe some of the smaller commercial projects or joint development, ideally those get into the strata sale perspective. We'll have to look at this on a case-to-case basis, especially when, for instance, for Twin Towers, while we would have liked, we saw that there was much more demand for end user ownership, we had to take it based on that.
Got it. Just, and lastly on the, your leasing income of INR 1,300 crore, can you please share any bifurcation between the office and retail and also the contribution of few of the large office assets?
Yeah. If you look at the of the INR 1,300 crores, INR 877 crores was from office. We had about INR 220 crores from retail and INR 206 crores from the management business. Of course, hospitality was separate at INR 605 crores. Yeah.
Sure. Got it. Thank you so much.
Yeah. Thank you. The next question is from the line of Pritesh Sheth from Axis Capital. Please go ahead.
Yeah, thanks for the opportunity. Just firstly on the clarification in terms of timeline of launches, you were cracking up in between, so just wanted to clarify. Both, all the Hyderabad projects would largely be in second half. Chennai also, largely second half, barring Morgan Heights. Bangalore should be in Q2, Q3, if I heard you correctly. Is it?
I'm sorry, sir. The line for the management has been disconnected. Please hold the line while we reconnect. Ladies and gentlemen, thank you for patiently holding. The line for the management has been reconnected. Mr. Sheth, you may proceed with your question now.
Sure. Just repeating the question, just wanted some clarification on the timelines of launches. If I heard you correctly, you said Hyderabad launch is largely in second half. Chennai also second half, barring Morgan Heights, which would be launched in first quarter. Bangalore would be in Q2, Q3. Is it?
Yeah. Yeah. That's right. Hyderabad, I had said, 1 million in Q3. That project is actually 2 million sq ft. Yes, timing wise, you're right.
Sure. Okay. Okay. Got it. If you can highlight the key projects in Hyderabad and Bangalore, which one should look forward to? You know, Chennai you already highlighted, but, you know, same for Hyderabad and Bangalore.
In Hyderabad, we have the 2 million sq ft is the second plot that we purchased in Kokapet in Neopolis. That is the one we are hoping to launch in Q3. Then there is another project in northern Hyderabad that we are looking at launching in Q4. That is 1 million sq ft. In Bangalore, we have a couple of Bangalore that should be like a Q2 Q3 launch. We do have upcoming launches in East Bangalore as well in the OMR corridor, again, in the Q3 timeframe.
Sure. Bangalore launches also include the large project in North Bangalore and the recently, the JDA that we signed, which is, again, a 39-acre, probably adding Brigade Cornerstone Utopia 2. Is that also included in the launch plans for this year?
The North Bangalore project, there was some approval, change or some bylaw changes. That we're still working on, we'll see if we can work on that for the financial year. Some of the bylaws changed, we've had to redesign. In terms of the new JDA that we signed, we've just now signed it. I think it'll take some time in terms of design and approvals. If it's possible to bring it into this financial year, we'll definitely be looking forward to that, we'll update in the next couple of quarters.
Sure. Got it. Just on the balance sheet side, you know, while we are now looking forward to roughly INR 6,000 crore worth of CapEx, you know, how should one think about the debt trajectory? You know, will the commercial debt continue to increase and, you know, residential CapEx would largely be funded through the accruals? You know, what's the thought process and how should we look forward to?
Yes, sir. That's right. I mean, from a model perspective, residential generates its own cash during the tenancy of the construction itself, so it gets kind of self-funded from that perspective. What we have invested into is our own capital asset, which is the leasing asset, and towards which, for construction, and to create that project itself, debt augmentation has been. As I kind of detailed earlier, I mean, our net debt as of end of the year stands at about INR 2,200 crore. That net debt number, I mean, as these commercial assets, which have been launched, commence or progress, we would see certain addition coming in there.
However, from a debt equity perspective, which is 0.27 for us, I think we would be pretty lower than 1x as well.
Sure. Just on CapEx, you know, will everything be funded through debt? You know, since the portfolio is already generating, the rentals, you know, so a portion of the CapEx would be funded through those cash flows.
It'll be a mix of both for sure. I mean, obviously, we would continue to optimize our cost of finance per se, as well as look at maximizing the return on equity.
Got it. Fair enough. Okay. That's it from my side then. All the best. Thank you.
Thank you.
Ladies and gentlemen, in order to ensure that the management will be able to address questions from all the participants in the conference, kindly limit your questions to only two per participant. Should you have a follow-up question, please rejoin the queue. We'll take the next question from the line of Parvez Qazi from Nuvama Group. Please go ahead.
Hi. Good afternoon, team, and thanks for taking my question. My first question is, what was the GDV of launches that we did in Q4, and also a similar number for FY 2026 would be great.
Yeah. overall in FY 2026, we launched 8.3 million sq ft with a GDV of INR 10,000 crores. In Q4, we launched 4 million sq ft with around INR 4,500 crores of GDV. Sorry, what was the second part of the question?
No, you answered the second part. My second question is.
Okay.
What was the contribution of launches to our Q4 FY 2026, please say?
Overall launches for the year, which was predominantly in Q4, year, it was around 43% of the total sales number.
Possible to get a similar number for Q4?
For, uh.
For Q4.
Only for Q4.
Yeah. Yeah.
60.
66. Oh, the percentage is only, Yeah, the percentage is around 55%.
Sure. Just one more question from my side. For the, roughly INR 12,000 crore of, launches that are planned for FY 2027, what would be a broad ticket size split? I mean, let's say less than INR 3 crore, INR 3 crore- INR 5 crore, and INR 5 crore +. What would be a broad split of this INR 12,000 crore, in this aspect?
Yeah. It's around, see, overall, we look at our portfolio as, say affordable is up to INR 75 lakhs, then mid-segment to INR 1.5 crore. Then our premium portfolio is what we look at up until INR 3 crore, and then above that is our ultra-luxury portfolio. So far it's been around 30%, and it'll come down a little bit over the next financial year, in terms of mix.
Sure. Last question, of the 10 million sq ft of fresh projects which are planned over FY 2027 and FY 2028. What would be the split in terms of the three cities where we are present? Thank you.
Yes. Currently the portfolio is maybe 60% in Bangalore, 27% in Chennai, and 10% in Kochi and a little bit in Mysore. I think once this the 10 million comes up, it will be somewhat similar, with Bangalore still holding about 55% of the portfolio, Chennai about 25, 22%. We are adding two more cities. We are adding Trivandrum, which will have about 7% of the portfolio. We will be adding Hyderabad, that will have about 5% of the portfolio. Of course, Kochi and Ahmedabad as well will have about 6% and 4%. We are expanding our base, we will be adding a couple of more cities to this commercial portfolio.
Thanks, and all the best.
Thank you.
Thank you. A reminder to all the participants that you may please press star and 1 to ask questions. The next question is from the line of Heta Vora from Monarch AIF. Please go ahead.
Hi, ma'am. This is He ta here. I had a couple of questions. Firstly, could you share the current inventory level in million sq ft?
It is, 7.5 Million sq ft.
Okay.
Ms. Vora, any further questions?
Yes, yes. I do have. In Q4 FY 2026, could you please share the pre-sales geographical split?
Yes. Just give me a second. In Q4.
The same for FY 2026.
Yeah, sure. In Q4, 65% came from Bangalore. Actually, this is the same for full year as well. Actually, the numbers for Q4 and FY 2026 just happen to be around the same. 65% Bangalore, 20% Hyderabad, Sorry, sorry. 20% from Chennai, 15% from Hyderabad.
Okay. Could you please help us with the, you know, average ticket size for the launches planned for FY 2027? Is it all largely still in ultra-luxury?
No, no, it's not. Actually, we are on an APR basis, it's more like INR 10,000 crores.
10,000.
Sorry, INR 10,000 per square foot in terms of what we will be launching. Predominantly, most of the ticket sizes will be below the INR 3 crores. While we still have some of this higher than INR 3 crores ticket size in our ongoing stock, and one or two of the launches, some of the larger units as part of those projects.
Okay. Okay. Just lastly, what million sq ft of projects will be completed on the leasing segment side at site in FY 2027? Not the launches, the completion for FY 2027 on leasing segment.
Currently we have about 3 million sq ft of projects that should come into the portfolio and, or we are expecting the OC for that. Ideally, when we look at the budget, you know, we would like to lease out the entire portfolio that is coming into the market, but of course, it could take six quarters instead of four quarters. But we are aiming to at least double what we did in FY 2026.
Okay. Okay, all right. That's it from my side. Thank you.
Thank you. The next question is from the line of Abhishek Khanna from Kotak Securities. Please go ahead.
Hi. Pavitra, I just wanted to check. While you answered this part to you, but on the 4 million sq ft of launches that you did in Q4, I just wanted to understand when were some of these larger projects in Bangalore, like Lumina, Belvedere, launched. Likewise, the ones in Hyderabad, the ones, you know, Citadel had Enclave and Manor. What was the response like in terms of the take-up in the launch quarter itself? Was it like a 40%-50%? Any specific details that you could share on these would be helpful for both the Bangalore and the Hyderabad launches.
Sure. Sure. Of that 4 million sq ft, we launched Lumina, that is in West Bangalore on Tumkur Road. That project, although it came from an approval standpoint towards the end of March, we were still able to do a very high number. In fact, we almost sold out. It was more than 85% sold at the launch itself. I think a lot of this was because we were expecting the approvals to happen much earlier in the year, so there was some awareness of the project. By the time we launched, given the micro market has historic undersupply, metro connectivity, all those things, the project did extremely well at a much higher rate than expected also.
Belvedere also came towards the end, again, like in the last week of March. There we, you know, did not have that luxury of time to sort of build up the market. It has done well, initially and also continuing into the first part of Q1. The projects in Hyderabad actually came in. There are two small projects. One came in in January, which, has, the response was good. The second one again came in, only, you know, early March. That is still, you know, taking some time as it's just recently been launched.
Overall, I think the response in Hyderabad has also been quite good, considering it's not a west market, west Hyderabad sort of market. It's a core central part of Hyderabad market, so we're still quite happy with the response.
Any number that you would like to share for Belvedere? What was the take-up in the month of March in terms of percentage?
Yeah. We basically sold around 150 units. The overall project size is 760 units. 150 we sold.
Okay. That's great. Okay, thanks a lot. The second question that I had was on the weakness in your recognized margins, both residential and maybe partly even annuity. Resi, of course, has been in the low teens or mid-teens, and annuity at the high 60s, low 70s. When can we expect an improvement? What's been causing this weakness? You've given some reasons earlier, when can we expect an improvement in both of these businesses in terms of the reported margins?
There is a.
Yogesh, you have the answer.
From a margin perspective on the resi part, I think it's obviously a mix of projects which kind of come up for revenue recognition, which is upon completion and handover, the way recognition standards work. This is kind of reflective of the mix of project which would have come up during the year for recognition. Traditionally, this would be some of them which have, you know, have been sold much earlier and wouldn't have taken the increases which kind of the market view with over last three odd years. That's a reflection of that. You know, the current margins, what we see on operations basis, they continue to run in the higher 20s.
Can that actually reflect in the reported margins somewhere in FY 2027?
Correct. On the operation, the POCM basis, we continue to see this in that 30% range of EBITDA itself. On the leasing piece, the EBITDA margins continue to be 80% and above. What you see on a reported basis lower, primarily is a section where a certain amount of fit outs were recovered on an annuity basis, which kind of diluted the overall margin from a reporting perspective. For Q4, if you are looking at specifically, there was an accounting gross up done for the full year in Q4 from an accounting perspective.
That's kind of further diluted, but the full year number would give you a reflection. In addition to that, what I explained, our leasing revenues also have a facility management component of about INR 200 crore there on an annual number. That piece also runs at about 15% margin. That kind of blended basis would dilute as well.
Annually, you have INR 2 billion of facility management revenue at 15%, which brings down the blended numbers?
Yes.
When you said there were for certain fit outs that were recovered, which was over and above this facility management revenues, is it?
Correct. Correct.
How much is that number for FY 2027?
Normalizing for all these, leasing income comes at margin of approx 80% of EBITDA.
Sure. Just one last one. What was that fit out revenue that you would have recognized in the year, to your knowledge?
Would be around INR 35 crores.
Okay. All right. Thanks a lot.
Thank you. The next question is from the line of Parvez Qazi from Nuvama Group. Please go ahead.
Hi. Thanks for taking up my follow-up question. Two questions. One, we still have some space left in Twin Towers. What's our thought process there? I mean, we want to lease it or we can convert it into sale model. The second is on pricing on the housing side. I mean, what is the situation now in the market and what kind of price increase, if at all, we are building for FY 2027? Thank you.
Regarding the first question with respect to Twin Towers, the idea is to just sell the project. There is only one, maybe 100,000 sq ft that of common amenities that we plan to hold on to, but the balance we plan to sell. We hope to complete and exit that project in the coming fiscal year. Yeah. On the residential pricing side, while we are looking at an APR increase year-over-year of 13%, a lot of that is due to the product mix as well. If you look at a like-to-like basis, what we've been able to take across various projects is high single digits, so like 8%-9% year-over-year. We still feel this is fairly healthy.
When we come into the market, depending on the project or expect to sell at the time of launch, that's a fairly, you know, fully priced number. It's not really a price discovery at this point. After the launch, we will look at an annual price increase of around 7%- 9% based on that micro market. If we look at our upcoming launches as well, there I had mentioned earlier, the average or the APR for that portfolio is around INR 10,000 per square foot. If you look at our current available as inventory, that number is north of INR 12,000 per square foot. What it signals is that the product mix itself is going to be changing in our upcoming launches as well. That's something to be planning for.
While we are still, you know, priced sort of, at the higher end in terms of any of the sub-markets in which we're present, it's a unit mix that and a product mix that we're going to see shifting back towards mid-segment, upper mid-segment, and away from ultra-luxury over the next financial year.
Thanks, and all the best.
Thank you.
Thank you.
Ladies and gentlemen, this will be the last question for today from the line of Heta Vora from Monarch AIF. Please go ahead. Miss Vora, I have unmuted your line. Please proceed.
Yes. Hi. Am I audible now?
Yes, ma'am.
Hello.
Please proceed.
Okay. Yes. Thank you so much for the follow-up question. I wanted to understand what percentage of your buyers will be from the IT and IT services segment. In terms of the leasing segment, what percentage of our portfolio is leased out to, you know, IT and IT services sector?
I can start with the leasing portfolio. We've said that about 50%-60% of our portfolio is from the GCC segment, and IT and ITES is about 26% of the leasing portfolio.
Okay.
The balance comes from BFSI consulting, engineering, healthcare, and flexible operators.
Okay. on the residential side?
Yeah, on the residential side, since we're in three different markets, in Bangalore it's split between GCC and IT. GCC is around 30%, IT services around 20%-25%. The rest is again BFSI and startup predominantly. In Hyderabad also that number is around 45%-50%, where again it's split equally between GCC and IT. The remainder again from BFSI. There is some customer demographic coming from pharma and life sciences as well in Hyderabad. In Chennai, it's a slightly lower percentage. IT around 20%.
I'm sorry, ma'am.
Uh, the.
I'm sorry, ma'am. Can you please repeat your last line? We missed on the numbers.
For Chennai, GCC is around 15%, IT around 20%, BFSI around 20%, and there is a higher contribution from, say, automobile and manufacturing in Chennai, around 15%-20%.
Okay, understood. Are we seeing any softness in, you know, the walk-ins or, the EOIs from, any of these cities due to the, you know, expected layoffs coming in in the market?
As I mentioned earlier, actually we were really happy with the performance of the launches, especially in Brigade Lumina situation. All of the projects have really healthy walk-ins. Even in terms of inquiries, it's there. It's more skewed towards end user, where I'd say in the last few years we were seeing a lot of inquiries from speculators. In terms of conversions, the conversions are still healthy at 10%-12%. What is happening is that in some of the markets it takes a little longer than usual in terms of the conversion cycle. That is where we are seeing some of the increase in time. In terms of percentage overall, it is still healthy and something that we consider positive.
Okay. All right. That's really helpful. Thank you.
Thank you.
Thank you. As that was the last question, I would now like to hand the conference over to Miss Nirupa Shankar, Joint Managing Director, for closing comments. Thank you. Over to you, ma'am.
Thank you. Before we wrap up, we'd like to highlight a few key achievements beyond this quarter's financial performance. We marked an important development milestone with the completion of Brigade Cornerstone Utopia in Varthur, a 6 million sq ft mixed-use development, now home to over 10,000 residents and a key landmark in the Whitefield Sarjapur Corridor. Orion Mall at Brigade Gateway completed 14 years of operations, marking a significant milestone to one of our earliest malls. Holiday Inn Chennai completed nine years of operations, and Grand Mercure Mysore completed 10 years, marking another milestone in our hospitality portfolio.
The World Trade Center Bengaluru became the first development in India to receive the WiredScore Platinum certification, reinforcing our focus on digitally enabled workplaces. WTC Kochi earned the WTCA Premier accreditation certificates, reflecting strong alignment with the global WTC standards. Brigade Gateway, Hyderabad was awarded the Mixed-Use Project of the Year at the Realty+ Conclave & Excellence Awards 2026. Our facility management arm, Orion, achieved the Great Place to Work certification, underscoring our emphasis on employee engagement and workplace culture.
We were recognized by BW Businessworld as one of India's most sustainable corporates, ranking third in the real estate space and 44th overall. With that, we wrap up our Q4 earnings call. Thank you all for joining, and see you next quarter.
Thank you, members of the management. On behalf of Brigade Enterprises Limited, that concludes this conference. We thank you for joining us. You may now disconnect your lines. Thank you.