BAGMANE — Q1 FY27 earnings call

Call held 12 Aug 2026

Management summary

Bagmane Prime Office REIT reported a strong Q1 FY27, its first earnings call since listing, with robust operational and financial performance. The REIT achieved a 98.7% committed occupancy and executed significant leasing at healthy mark-to-market spreads. Financials showed a 16% YoY growth in revenue and NOI, with an industry-leading 90% NOI margin. The company maintains a very low LTV of 4%, providing substantial firepower for future growth through its large ROFO pipeline and third-party acquisitions.

Highlights

  • Committed occupancy stood at 98.7%, the best among listed peers.

  • Executed 260,000 square feet of gross leasing at a mark-to-market spread of 16% over expiring rents.

  • Revenue from operations for Q1 FY27 was INR 7.3 billion, with Net Operating Income (NOI) of INR 6.6 billion, delivering a 90% NOI margin, the best in the listed Indian office REIT sector.

  • Revenue from operations and NOI grew year-on-year at a rate of 16%.

  • Loan-to-value (LTV) ratio was 4% at quarter-end, the lowest among listed office REITs, providing over INR 180 billion of debt headroom.

  • Declared a distribution of INR 5.1 billion for the full quarter, translating to INR 1.5 per unit, with 92% as tax-exempt dividend component.

Key financials

  1. Revenue from Operations 7.3 Bn +16%YoY
  2. Net Operating Income (NOI) 6.6 Bn +16%YoY
  3. NOI Margin 90%
  4. Distribution Declared 5.1 Bn
  5. DPU ₹1.5
  6. Loan-to-Value (LTV) 4%

What they filed

₹ Cr · quarterly
Line itemQ4 FY00Q1 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue0 623 0 0 437
EBITDA0 519 0 0 364
Net profit0 254 0 0 59
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

16.6 million sq ft

as of 2026-06-30 quantified

Inflow this quarter

2,60,000 sq ft

Composition

  • Existing Tenants (client type) 2,60,000 sq ft 100%

Pipeline

other

1 million sq ft under construction, 2 million sq ft for future development, and 47 million sq ft ROFO growth opportunity.

Committed occupancy is at 98.7%, with in-place rents 18% below current market rates, indicating significant mark-to-market growth potential. Approximately 1 million sq ft comes up for renewal annually over the next 3.5 years.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed
    • Office space under construction (2 buildings in Bagmane Cosmos Business Park) 1 million sq ft
    • Future office development 2 million sq ft
    • Hotel development (2 hotels) 607 keys
    • Solar project in Chitradurga 72.5 megawatts
    We own six Grade A+ business parks in Bengaluru, 19.6 million square feet of commercial space in total, of which 16.6 million square feet is completed and operational. A million square feet of commercial space is under construction and a further 2 million square feet is available for future development. The portfolio also includes two hotels under construction totaling 607 keys and four solar projects with a total capacity of just over 164.4 megawatts... On the development side, we have 1 million square feet under construction with 2 buildings in Bagmane Cosmos Business Park... Additionally, we have 2 million square feet for future development. On our complementary assets, we are developing 2 marquee hotels totaling 607 keys... Our solar asset in Chitradurga with the capacity of 72.5 megawatts is expected to complete by Q2 of FY27.
  • Debt Gross ₹23 Bn Cost 7.4%
    • New borrowing Raised debt facility at trust level in form of LRD at 7.4% interest. ₹15 Bn
    • Repayment INR 10 billion drawn to replace debt at SPV level. ₹10 Bn
    In the June quarter, we have raised a debt facility of INR 15 billion at the trust level in the form of LRD at an interest rate of 7.4%. Of this, INR 10 billion has been drawn to replace debt at SPV level. On the balance sheet, our loan-to-value ratio at the end of June quarter was 4%, the lowest among listed office REITs in India. It is 2.3, 23 billion of debt.
  • Dividend ₹1.5/share (interim)
    Though we were listed for partial quarter, as part of our commitment to investors, the Board has declared distribution for the full quarter amounting to INR5.1 billion, translating to INR 1.5 per unit. Our distribution is most tax-efficient with 92% as dividend component, which is tax-exempt in hands of the unit holders. The record date is August 14 and payment will follow within the regulatory timelines.
  • Liquidity Liquidity disclosed Over INR 180 billion of debt headroom available for acquisitions and development, leveraging the low LTV of 4%.
    On the balance sheet, our loan-to-value ratio at the end of June quarter was 4%, the lowest among listed office REITs in India. To explain, this gives us over INR180 billion of debt headroom for acquisitions and development.

Guidance & targets

Distribution

  • DPU for FY27 Distribution · FY27 · High confidence Track projections
    Yes, so on the distribution, the intent is to track the projections. We had given our projections not quite a while ago. And intent is that whatever we had projected for FY27 is what we want to achieve.

    — Ashay Shah

  • DPU impact from tax benefits Distribution · Medium confidence Over and above projections
    When I say we will track the projections, it is excluding the tax benefits. That will be over and above the projections.

    — Ashay Shah

ROFO Assets

  • Transfer timeline to REIT ROFO Assets · Next 2-5 years · Medium confidence Next two to five years
    So, we expect the ROFO assets to be offered to the REIT in the range of next two to five years. Broadly, the two large ROFO assets which are partly developed, they are likely to be offered to REIT within that five-year period.

    — Ashay Shah

Development

  • Start of construction for future development (from 2M sq ft) Development · This financial year · High confidence One building will start
    So, the future development, Deep, is split across three more buildings and out of that, one building will start in this financial year.

    — Ashay Shah

Leasing

  • Update on 1M sq ft under-construction leasing Leasing · End of next quarter (Q2 FY27) · High confidence Update on progress
    But we have extreme interest in about a million square feet of what we're building. And we're very confident that by the end of the next quarter, our second quarter, we will be able to update you with the progress there.

    — Hugh Andrew

Project Completion

  • Hotel construction completion Project Completion · 2029 · High confidence Back end of 2029
    With regard to completion, our projection is still that the back end of 2029 and at the moment we've got no reason to see that slipping.

    — Hugh Andrew

  • Solar asset in Chitradurga completion Project Completion · Q2 FY27 · High confidence Complete
    Our solar asset in Chitradurga with the capacity of 72.5 megawatts is expected to complete by Q2 of FY27.

    — Rajkumar T

What to watch in Q2 FY27

Leasing progress for 1M sq ft under-construction assets

Next quarter (Q2 FY27)
Current Extreme interest, negotiations ongoing
Target Specific leasing updates, pre-lease percentages

Why it matters

This will provide visibility on future revenue streams from new supply and validate demand for premium office spaces.

But we have extreme interest in about a million square feet of what we're building. And we're very confident that by the end of the next quarter, our second quarter, we will be able to update you with the progress there.

Q&A highlights

4 direct
Timeline for ROFO assets transfer to REIT Direct
So, we expect the ROFO assets to be offered to the REIT in the range of next two to five years. Broadly, the two large ROFO assets which are partly developed, they are likely to be offered to REIT within that five-year period.

Provides clarity on the monetization timeline for the significant ROFO pipeline, which is a key growth driver.

Asked by Deep Shah

Strategy and timeline for developing the 2 million sq ft future development area Direct
So, the future development, Deep, is split across three more buildings and out of that, one building will start in this financial year.

Explains the phased approach to development and confirms immediate plans for new construction, indicating organic growth within existing parks.

Asked by Deep Shah

Leasing status and target rents for the 1 million sq ft under-construction assets Partial
But we have extreme interest in about a million square feet of what we're building. And we're very confident that by the end of the next quarter, our second quarter, we will be able to update you with the progress there. ... we expect to be able to tell you that those rents will be again at the top of that market.

Analysts are keen on visibility for new revenue streams; management indicates strong demand and premium rents but defers specific details to next quarter.

Asked by Girish Choudhary

Details on the hotel portfolio (operator, completion, stabilization) Partial
Sure. We are in the last stages of finalizing our operator agreement and that conversation means that I am unable to share with you who it is. ... With regard to completion, our projection is still that the back end of 2029 and at the moment we've got no reason to see that slipping.

Hotels are complementary assets; operator details and completion timelines are crucial for assessing future annuity income and tenant amenities.

Asked by Mohit

Impact of recent tax changes on DPU estimates Direct
So, the tax change is definitely beneficial, not just to us, the entire REIT sector. Definitely more to us because we have very low leverage and we have high taxation. But we have not yet worked out the numbers. We will come back to you once we've worked on these numbers. When I say we will track the projections, it is excluding the tax benefits. That will be over and above the projections.

Highlights a potential upside to DPU beyond current projections, indicating further value creation for unitholders.

Asked by Mohit

Dip in physical occupancy at World Technology Center and recovery plan Direct
Sure. So, one of our clients who was there with us for their quite a long period, they wanted to consolidate with additional space and we did not have space to offer them and hence they moved out to some other park. So, that's where the vacancy happened and it has largely been leased. This gets converted to occupancy by October-November.

Addresses a specific operational detail, reassuring investors that a temporary dip is understood and already largely resolved, with clear timelines for recovery.

Asked by Mohit

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Detailed narrative

Successful Listing and Market Positioning

Bagmane Prime Office REIT successfully listed on May 14, 2026, at INR 103.5 per unit, a 3.5% premium to its IPO price of INR 100. The IPO was oversubscribed 25x with over 207,000 applications, marking the highest ever for a listed REIT in India. The REIT's public unit holders include a diverse base of large foreign institutions, pension funds, and mutual funds, reflecting strong institutional conviction in its long-term income profile.

Robust Portfolio Performance and Leasing Activity

The REIT owns six Grade A+ business parks in Bengaluru, comprising 19.6 million sq ft of commercial space, with 16.6 million sq ft operational. Committed occupancy stood at an impressive 98.7% as of June 30, 2026, the highest among listed peers. During Q1 FY27, Bagmane executed 260,000 sq ft of gross leasing, entirely with existing tenants like Google, Boeing, Nike, and BNP Paribas, achieving a mark-to-market spread of 16% over expiring rents. In-place rents are currently 18% below market rates, indicating significant embedded rental growth.

Strong Financials and Unitholder Distributions

For Q1 FY27, Bagmane reported revenue from operations of INR 7.3 billion and a Net Operating Income (NOI) of INR 6.6 billion, translating to an industry-leading 90% NOI margin. Both revenue and NOI grew by 16% year-on-year. The Board declared a distribution of INR 5.1 billion for the full quarter, equating to INR 1.5 per unit, with 92% of this distribution being tax-exempt dividends. The company aims to track its FY27 DPU projections, with potential upside from recent tax benefits.

Strategic Development Pipeline and Growth Opportunities

Bagmane has 1 million sq ft of commercial space under construction, with two buildings nearing completion in Q3 and Q4 FY27. An additional 2 million sq ft is available for future development, with one building slated to commence construction this financial year. The REIT also has a substantial ROFO pipeline of 47 million sq ft across Bengaluru, Delhi, and Chennai, expected to be offered within the next two to five years. Complementary assets include two hotels totaling 607 keys under construction and a 72.5 MW solar project in Chitradurga expected to complete by Q2 FY27.

Prudent Capital Structure and Acquisition Headroom

The REIT maintains a very strong balance sheet with a loan-to-value (LTV) ratio of just 4% at the end of June 2026, the lowest among listed Indian office REITs. This provides significant financial flexibility, with over INR 180 billion of debt headroom available for future acquisitions and development. In Q1 FY27, Bagmane raised INR 15 billion in debt via LRD at 7.4% interest, with INR 10 billion used to refinance existing SPV-level debt.

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