Detailed Narrative
Strong Q2 FY26 Performance Across Segments
Brigade Enterprises Limited reported a robust Q2 FY26, with consolidated revenue growing 26% year-on-year to INR 1,430 crores. The company achieved an EBITDA of INR 375 crores, maintaining a 26% margin. Consolidated PAT increased by 48% year-on-year to INR 170 crores. For H1 FY26, consolidated revenue stood at INR 2,763 crores, up 23%, with PAT increasing 67% to INR 328 crores, reflecting strong performance across all business segments.
Residential Segment Drives Growth with Healthy Pipeline
The residential portfolio delivered strong presales of INR 2,034 crores in Q2 FY26, a 12% increase year-on-year, with volumes reaching 1.90 million square feet, up 13%. Average realization also improved by 13% to INR 12,236 per square foot. The company launched 2 million square feet with a GDV of INR 2,200 crores in Q2, contributing approximately 50% to the quarter's sales. A significant launch pipeline of approximately 7 million square feet with a GDV of INR 8,000-8,300 crores is planned for H2 FY26.
Commercial and Retail Segments Maintain Momentum
The leasing segment's turnover grew 17% year-on-year to INR 341 crores in Q2 FY26, with an EBITDA of INR 223 crores. The office portfolio maintained a strong occupancy of 92% across 8.67 million square feet, with 422,000 square feet of office space transacted this quarter. Retail operations saw an 8% year-on-year growth in footfalls and a 9% increase in mall consumption, driven by new store openings and festive demand, with premium international brands expected to debut by year-end.
Hospitality Sector Shows Steady Recovery
The hospitality portfolio recorded a 16% year-on-year increase in turnover to INR 138 crores in Q2 FY26, with an EBITDA of INR 42 crores. Average Room Rate (ARR) stood at INR 7,106, a 14% growth over Q2 FY25, and portfolio occupancy was 76%. The company anticipates accelerated growth in the remainder of FY26, fueled by events, festive travel, and reduced GST on room tariffs up to INR 7,500.
Prudent Capital Management and Debt Profile
Brigade Enterprises maintained a healthy balance sheet with gross debt at INR 4,291 crores and net debt at INR 1,717 crores as of September 30, 2025. The company reported zero residential debt, with approximately 93% of its debt pertaining to the commercial SBU, backed by rental income. The debt-equity ratio stood at a conservative 0.22, and the average cost of debt reduced by 20 basis points to 8.05% in Q2 FY26 from 8.25% in June 2025.
Strategic Land Acquisitions and Future Development
In line with its expansion strategy, Brigade acquired high-potential land parcels, including a strategic long-term lease of 7 acres for a mixed-use development in Chennai and two joint development agreements in South and East Bangalore. The company plans a significant investment of INR 8,000 crores over the next 5-6 years, with the Velachery project in Chennai (1 million sq ft, GDV INR 2,000-2,250 crores) expected to launch by Q4 FY26.
Community Initiatives and Industry Recognition
Brigade inaugurated the Freedom Fighters Memorial in Chikmagalur and launched a tree planting initiative to plant 1 lakh trees. The company's PropTech accelerator, Brigade REAP, welcomed 4 new start-ups. Brigade was recognized in Forbes India Developers A-List 2025, as one of India's Best Workplaces for Women 2025, and received awards for India's Wealth Creators and Top Builders, highlighting its commitment to sustainability, innovation, and employee welfare.