Brookfield India — Q3 FY26 earnings call

Call held 30 Jan 2026

Management summary

Brookfield India REIT (BIRET) delivered a transformational quarter marked by the completion of the Ecoworld acquisition and robust leasing momentum. The trust significantly strengthened its balance sheet through a major QIP and bond issuance, while maintaining a healthy LTV of 31.5%. Management is pivoting towards high-growth micro-markets like Bengaluru and Mumbai, leveraging strong GCC demand to drive occupancy toward a 97.5% stabilization target.

Highlights

  • Net Operating Income (NOI) reached ₹5.4 billion, a 14% YoY growth; total NOI including North Commercial Portfolio stood at ₹6.8 billion.

  • Declared a distribution of ₹5.4 per unit, up 10% YoY, totaling ₹4 billion for the quarter.

  • Completed the marquee acquisition of Ecoworld (7.7 MSF), increasing total operating area by 31% to 32.4 million square feet.

  • Committed occupancy improved to 92%, up 5% YoY, driven by 1.2 million square feet of gross leasing in Q3.

  • Successfully raised ₹55 billion through a ₹35 billion QIP (3x subscribed) and ₹20 billion in sustainability-linked bonds.

  • Average cost of debt stood at 7.6%, with a projected reduction to 7.3% in Q4 FY26 following a repo rate cut.

  • Re-leasing spread achieved was 17% for the quarter with an average lease term of 11 years.

  • Management set a long-term DPU target of ₹25.6 per unit upon achieving 97.5% portfolio occupancy.

Key financials

  1. Net Operating Income 5.4 Bn +14%YoY
  2. Distribution Per Unit ₹5.4 +10%YoY
  3. Committed Occupancy 92% +5%YoY
  4. Loan to Value 31.5%
  5. Average Cost of Debt 7.6%

What they filed

Q1 FY27: revenue up 51.7%, net profit up 67.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue590 602 620 642 671 +14%697 +16%960 +55%974 +52%
EBITDA419 409 433 450 465 +11%491 +20%696 +61%701 +56%
Net profit23 23 79 132 149 +548%201 +774%54 −32%221 +67%
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.

Segment breakdown

  • Leasing Activity
    1.2 MSF Gross Leasing0.7 MSF New Leasing0.5 MSF Renewals17% Re-leasing Spread
  • Portfolio Composition
    32.4 MSF Operating Area45% GCC Tenant Share6.5 years WALE

Guidance & targets

Dividend

  • Annualized DPU Target Dividend · next 2 years · High confidence ₹25.6
    Our target of DPU of Rs 25.6 per unit is at 97.5% occupancy... I think at least in the next 2 years, the idea would be to touch this number.

    — Rachit Kothari, Non-Executive Director

  • Dividend Mix in Distributions Dividend · FY27 · Medium confidence 30%
    For the next year, we are targeting to achieve a approximately 30% dividend mix in the overall distributions.

    — Amit Jain, CFO

Debt

  • Average Cost of Debt Debt · Q4 FY26 · High confidence 7.3%

    From 7.6% today

    Our average cost of debt of 7.6% in the current quarter is expected to reduce to 7.3% in Q4 FY'26.

    — Amit Jain, CFO

  • Ecoworld SPV Interest Rate Debt · early February 2026 · High confidence 7.4%

    From 8.4% today

    It is currently at 8.4%. It is expected to come down to 7.4% by early February.

    — Amit Jain, CFO

  • Cap LTV Ratio Debt · Long term · Medium confidence 33% to 35%
    from a capital structure perspective, we will look at 33% to 35% as our cap LTV on the bank borrowings.

    — Rachit Kothari, Non-Executive Director

Risks & concerns

  • Churn in the Technology Sector

    medium

    Management acknowledged churn in tech but noted strong offsetting demand from GCCs for the same space.

    Management downplayed

  • Interest Rate Sensitivity

    medium

    While rates are expected to fall, the high interest portion of distributions remains tax-inefficient for investors.

    Both acknowledged

  • SEZ Demand vs. NPA Conversion

    low

    Management must balance converting SEZ space to Non-Processing Area (NPA) while maintaining capacity for ongoing SEZ-specific demand.

    Management acknowledged

Areas of evasion (1)

  • Specific quarterly guidance for NDCF was withheld, citing future guidance updates.

Q&A highlights

2 direct
One-off receipt of ₹650 million in NDCF Direct
Ecoworld as a legal entity, has other receivables from the demerged entity. Such receivables have also been accounted for while distributing Rs 5.4 per unit.

Clarifies that the current DPU was supported by a one-time receivable, though management argues organic growth will offset its absence in future quarters.

Asked by Deep Shah, B&K Securities

Leasing spreads and pressure on MTM Direct
I think on a steady state basis, if you take full financial year performances, we've always been in high teens... anywhere between 15% to 20%.

Management defends the volatility in quarterly leasing spreads as a function of specific asset expiries rather than a structural decline in market demand.

Asked by Yashas Gilganchi, BOB Capital Markets

Timeline for achieving stabilized DPU of ₹25.6 Partial
It's a question of when do we achieve the next 5%... We'd like to do it in 4 quarters, 5 quarters, maybe it will take 6 or 7 quarters.

Investors are focused on the timeline for the 19% DPU growth promised at stabilization; management suggests a 1.5 to 2-year horizon.

Asked by Pritesh Sheth, Axis Capital

2 min read 5 chapters

Detailed narrative

Ecoworld Acquisition Reshapes Portfolio

The completion of the 7.7 million square feet Ecoworld acquisition in Bengaluru is a pivotal milestone, increasing BIRET's operating area by 31% to 32.4 million square feet. This move concentrates nearly half of the portfolio's value in the high-growth micro-markets of Outer Ring Road (Bengaluru) and Powai (Mumbai). Post-acquisition, the tenant roster has improved with GCC tenants now accounting for 45% of the portfolio, up from 37% previously.

Leasing Momentum and Occupancy Gains

BIRET achieved 1.2 million square feet of gross leasing in Q3 FY26, bringing committed occupancy to 92%. The leasing was well-diversified across technology, BFSI, and engineering sectors, with GCCs contributing 44% of the volume. Management highlighted a 17% re-leasing spread and a long average lease term of 11 years, underscoring strong rental upside and income visibility.

Capital Structure and Debt Optimization

The trust successfully raised ₹55 billion, including India's largest sustainability-linked bond by a REIT (₹20 billion). This capital was used to fund acquisitions and strengthen the balance sheet, maintaining a robust LTV of 31.5%. The average cost of debt is expected to decline from 7.6% to 7.3% in Q4 FY26, aided by a 100 bps reduction in the Ecoworld SPV's borrowing costs and a recent repo rate cut.

NPA Conversion Strategy Drives Demand

A key driver of leasing momentum is the conversion of SEZ space into Non-Processing Areas (NPA), which allows for domestic business occupiers. BIRET has already converted or is in advanced stages of converting 1.3 million square feet in G2 and N2 assets. Management noted that 0.5 million square feet of the current 1.2 million square feet conversion pipeline is already backed by LOIs or advanced discussions.

Distribution Trajectory and Tax Efficiency

Management has set a clear path for distribution growth, targeting a 19% increase in DPU to ₹25.6 per unit once the portfolio stabilizes at 97.5% occupancy. To improve tax efficiency for unit holders, BIRET is targeting a 30% dividend mix in overall distributions for the next year, up from current levels, by utilizing capital restructuring schemes across various SPVs.

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