Brookfield India — Q4 FY26 earnings call

Call held 12 May 2026

Management summary

Brookfield India Real Estate Trust reported a strong Q4 and full year FY26, marked by record leasing activity and significant occupancy growth across its portfolio. The company successfully completed the acquisition of Ecoworld and bolstered its balance sheet through capital raises, resulting in a pro forma LTV of 25.2% and substantial dry powder. Financial performance was robust, with NOI growing 24% YoY and DPU increasing 11% YoY, although leasing spreads saw some compression and MAT write-offs impacted dividend mix.

Highlights

  • Record gross leasing of 4 million sq ft in FY26, including 1.6 million sq ft in Q4 FY26, demonstrating broad-based demand.

  • Significant occupancy growth, with committed occupancy reaching 93% (up 5% YoY) and SEZ portfolio improving from 84% to 91%.

  • Strong financial performance with FY26 NOI growing 24% YoY to Rs 22.9 billion and DPU increasing 11% YoY to Rs 21.40 per unit.

  • Enhanced balance sheet strength with pro forma LTV at 25.2% and Rs 50 billion dry powder for future growth, post successful capital raises.

  • NAV per unit increased by Rs 38 from Rs 349 in September 2025 to Rs 387, driven by operating progress and debt cost reduction.

Concerns

  • Leasing spreads achieved over the quarter were approximately 200 bps lower than the previous quarter, indicating some compression.

  • The dividend component in DPU was impacted by recent tax regulations on MAT write-offs, requiring a target of 25% for FY27.

Key financials

3 periods

Headline

  • NAV per Unit
    ₹387
  • NAV per Unit (Sept 2025)
    ₹349
  • Asset Valuation Increase
    ₹2,900 Cr

Q4 FY26

  • Net Operating Income
    ₹7.4 Cr
    YoY +52%

FY26

  • Net Operating Income
    ₹22.9 Cr
    YoY +24%
  • Same-store NOI Growth
    0.1 decimal fraction
  • Distributions per Unit
    ₹21.4
    YoY +11%
  • Total Distributions
    ₹15.2 Cr

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.

Order book

high confidence

Total value

91 million square feet

as of 2026-03-31 quantified

Inflow this quarter

1.6 million square feet

Composition

  • GCC occupiers (client type) 50%
  • Bengaluru (geography)
  • Mumbai (geography)

Pipeline

other

Healthy pipeline of tenants for converted NPA spaces; 8 lakh sq ft of non-processing areas under various stages of conversations.

Leasing demand remained broad-based across sectors and geographies, demonstrating resilience and diversification.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed
    • Capital work-in-progress (CWIP) primarily related to K1 asset upgrades ₹463 Cr
    • Development of Kolkata mixed-use asset
    And on the INR463 crores of capital work-in-progress that you have, when should we expect that to get capitalized? And what is the potential for that? No, these are normal asset upgrades and so the development is happening in K1 as you know,
  • Debt Debt disclosed Cost 7.3% · Maturity: long-dated debt profile and minimal near-term amortization
    • Repayment Expected repayment of debt using QIP proceeds and Ecoworld fundraise, leading to Rs 60-65 crores incremental interest saving. ₹3,600 Cr
    • New borrowing Bond issuance in December to balance maturity profile.
    Our balance sheet remains robust with year-ending borrowing LTV of 32.2% (excluding shareholder instruments) and dual AAA / stable credit rating from CRISIL and ICRA.
  • Dividend ₹21.4/share (final)
    For FY2026, we declared distributions of Rs 21.40 per unit, reflecting an increase of 11% Y-o-Y. Total distributions for the year stood at Rs 15.2 billion.
  • M&A Ecoworld Acquisition · Closed · Consideration ₹[object Object] (mixed)

    Made Bengaluru largest market, strengthened balance sheet, created headroom for future growth.

    Contributed to strong Y-o-Y growth in Q4 NOI; pro forma LTV at 25.2% post acquisition and capital raises.

    completed the acquisition of Ecoworld, making Bengaluru our largest market.
  • Liquidity Cash ₹50 Cr Rs 50-60 crores available from previous quarters for distribution in upcoming quarters.
    So we still have around INR50 crores to INR60 crores available with us from previous quarters that can be used towards distribution in the upcoming quarters.

Guidance & targets

Occupancy

  • Committed Occupancy Level Occupancy · FY27 · High confidence 96%
    But we are expecting to end FY27 at around 96% occupancy levels.

    — Alok Aggarwal

Distributions

  • DPU Growth Distributions · per year from this point onwards · Medium confidence 6% to 7%
    But broadly, I think 6% to 7%, which should mean, call it, Rs 1 or Rs 1.5 per year from this point onwards should be fairly predictable.

    — Rachit Kothari

  • Dividend Component in DPU Distributions · FY27 · High confidence 25%

    Previously 16% → 25%

    In FY27, we expect this 16 percentage to inch up and reach roughly around 25-odd percentage number in financial year 2027.

    — Amit Jain

Taxation

  • Cash Tax Outflow Taxation · next 2 years · High confidence No significant outflow
    So no change is expected in cash taxes at least for 2 years.

    — Amit Jain

Leasing

  • Leasing of Campus 3 ABC post-refurbishment Leasing · within 12 months post vacation · Medium confidence Leased at market
    Once that is finalized, as Alok rightly said, we'll take up the refurbishment, which should take anywhere between 9 to 12 months. And post that, we expect the asset to be leased up at market.

    — Harris K A

Development

  • Completion of Kolkata mixed-use asset development Development · end of this year · High confidence Completed
    On the development, which is happening, we are expecting to complete the development by end of this year.

    — Alok Aggarwal

What to watch in Q1 FY27

Committed Occupancy Level

Next quarter (towards FY27 end)
Current 93%
Target Progress towards 96%

Why it matters

Key indicator of demand and future rental income growth.

But we are expecting to end FY27 at around 96% occupancy levels.

Risks & concerns

  • Global geopolitical uncertainties (e.g., war in Gulf)

    medium

    May cause short-term delays (weeks/months) in leasing decisions but will not lead to lost demand or GCCs deciding not to come to India.

    Management downplayed

  • Impact of MAT write-offs on dividend component

    medium

    Recent tax regulations on MAT write-offs impacted the dividend component, requiring a target of 25% for FY27.

    Management acknowledged

  • Compression in leasing spreads

    low

    Attributed to renewals at market rates and micro-market variations, not a systemic issue. New leasing rentals are moving up.

    Analyst acknowledged

  • Work-from-home culture

    low

    Considered a transient call, related to current geopolitical situation, and not expected to impact long-term leases or lead to downsizing.

    Analyst downplayed

Q&A highlights

7 direct
N2 Expiry and Mark-to-Market Rentals Direct
So if you see N2, our occupancy is already up from 84% to 94% in one year. And when you talk about expiry, as we have said, about 7 lakh square feet, we have already pre-leased or signed leases for the space which is expiring... We have already re-leased this space with a large tenant for the entire tower and it's on a substantially good mark-to-market of 25%.

Provides specific details on N2's strong performance, successful pre-leasing of expiring space, and significant mark-to-market gains, indicating robust demand and pricing power.

Asked by Deep Shah

Debt Repayment and DPU Impact Direct
So utilizing these QIP proceeds and the fund raise at Ecoworld, we are expecting to pay around Rs 3,600 crores of debt and our average debt cost is at around 7.3%. So that will translate into incremental interest saving of around Rs 60 crores to Rs 65 crores that should flow into the distributions going forward.

Quantifies the debt reduction plan post capital raises and its direct positive impact on DPU through interest cost savings.

Asked by Deep Shah

Fixed vs. Floating Debt Strategy Partial
But we continue to evaluate the cost of financing between these markets and we'll hopefully look to continue to increase the fixed rate instruments on a proportionate basis. But obviously, we'll continue to watch and take decisions that are appropriate based on what is the effective cost of financing.

Highlights management's ongoing evaluation of debt structure, indicating a potential shift towards more fixed-rate instruments to manage interest rate risk, but without a firm target.

Asked by Puneet Gulati

NAV Drivers and Future Growth Direct
1/3rd of increase in valuation is on account of reduction in cost of debt and cap rates And 2/3rd of it is on account of the operating progress that we have made in our portfolio due to higher occupancy, better rent and better MTM leading to better cash flows.

Clearly breaks down the factors contributing to the significant NAV increase, emphasizing both operational improvements and favorable market conditions.

Asked by Girish Choudhary

Impact of Global Geopolitical Uncertainties on Leasing Direct
So if you really see this war is not going to have a mid- to long-term impact on any of the leasing decisions... No leasing demand is going to be lost. No GCC is going to take a decision not to come to India, but we can expect few weeks or few months delay if this war continues.

Provides management's perspective on external risks, suggesting that while there might be short-term delays, the fundamental demand for Indian office space from GCCs remains strong.

Asked by Karan Khanna

Leasing Spreads Compression Direct
At times there are tenants who are already at market and when you renew them, the spreads would be slightly lower. Similarly depending upon which micro market the tenant is at, there could be difference in spreads and hence it would be difficult to compare these spreads quarter on quarter or year on year.

Addresses a specific concern about lower leasing spreads, explaining it as a function of market-rate renewals and micro-market variations rather than a systemic issue.

Asked by Yashas Gilganchi

Committed vs. Actual Rent-Paying Occupancy Direct
Typically, there is a 3- to 6-month lag between committed occupancy and rent generating occupancy. The rent generating occupancy as it stands today is same as what it was last quarter ending, which was 91% and somewhere between 91% to 92%.

Clarifies the operational lag between signing leases and revenue generation, providing context for how committed occupancy translates into financial performance.

Asked by Nilesh Doshi

360 ONE Investment Structure and Exit Obligation Direct
No, there's no obligation to give an exit for cash. 360 has an option to swap their interest in the asset into the interest in the unit capital of the REIT on an NAV to NAV basis... So there's no transaction available for 2 to 3 years from today. But after that, they have this option to swap for the share of the REIT.

Details the specific terms of the 360 ONE investment, clarifying that there is no cash exit obligation for the REIT, but an option for unit conversion, which is crucial for understanding future capital structure.

Asked by Puneet Gulati

2 min read 6 chapters

Detailed narrative

Strong Leasing Momentum and Occupancy Growth

Brookfield India REIT achieved record gross leasing of 4 million square feet in FY26, with 1.6 million square feet leased in Q4 FY26 alone. This robust demand, concentrated in high-quality, institutionally managed office campuses, led to a 5% year-on-year increase in committed occupancy, reaching 93%. The SEZ portfolio saw a significant improvement from 84% to 91% occupancy, while non-SEZ properties maintained a resilient 96%.

Robust Financial Performance and Shareholder Returns

For FY26, the company reported a Net Operating Income (NOI) of Rs 22.9 billion, marking a 24% year-on-year growth, with same-store NOI increasing by 10% over FY25. Q4 FY26 NOI alone grew over 52% year-on-year to Rs 7.4 billion, supported by contributions from Ecoworld. Distributions per unit (DPU) for FY26 stood at Rs 21.40, an 11% increase year-on-year, with total distributions reaching Rs 15.2 billion.

Strategic Acquisitions and Strengthened Balance Sheet

FY26 was a transformational year, highlighted by the successful acquisition of Ecoworld, a 7.7 million square feet premium office campus in Bengaluru, making it the largest market. This acquisition, combined with a Rs 2,600 crores Qualified Institutional Placement (QIP) and a Rs 1,125 crores primary investment from 360 ONE, significantly strengthened the balance sheet. The pro forma Loan-to-Value (LTV) now stands at 25.2%, providing approximately Rs 50 billion in dry powder for future growth opportunities.

NAV Appreciation and Value Creation

The Net Asset Value (NAV) per unit increased from Rs 349 in September 2025 to Rs 387, reflecting a gain of approximately Rs 2,900 crores in asset valuation. This appreciation was attributed to a 1/3rd impact from reduced cost of debt and cap rates, and a 2/3rd impact from operational progress including higher occupancy, better rents, and mark-to-market gains. The company also noted a potential understatement of NAV by Rs 4 per unit due to certain non-cash liabilities in its North Commercial Portfolio.

SEZ Conversions and Future Development Pipeline

Brookfield India REIT is actively converting SEZ spaces to Non-SEZ (NPA) across its campuses, with 340,000 square feet applied for conversion in N2 and Ecoworld, of which 260,000 square feet are already tied up. Overall, 80% of the total converted and applied NPA spaces have been leased. The company also has a mixed-use asset under construction in Kolkata, expected to be completed by the end of the year, with a strong pipeline for both retail and office components.

Management Outlook and CEO Retirement

Management expressed confidence in achieving 96% occupancy by the end of FY27 and projected a DPU growth of 6-7% per year. They anticipate the dividend component in DPU to reach 25% by FY27, up from 16%. Alok Aggarwal, CEO and Managing Director, announced his retirement in June, marking his last earnings call. He expressed gratitude for the support and highlighted the platform's strong positioning for future growth and value creation.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Realty earnings calls