Brigade Enterprises Limited

Brigade Enterprises reported a consolidated revenue of ₹1,623 crores for Q3 FY26, a 6% increase over Q3 FY25. The company achieved an EBITDA of ₹459 crores, maintaining a healthy EBITDA margin of 28%. Consolidated PAT stood at ₹206 crores. For the first nine months of FY26, consolidated revenue grew 16% to ₹4,386 crores, with PAT increasing 24% to ₹534 crores, and PAT after minority interest at ₹499 crores, up 14% YoY.

The residential segment delivered consistent performance with presales of ₹1,750 crores and a volume of 1.33 million square feet in Q3 FY26. The average realization per square foot was ₹13,142, reflecting a 16% growth over Q3 FY25. Approximately 85% of presales were for properties above ₹1 crore, indicating a focus on premium offerings. Year-to-date, 4.3 million square feet of residential projects with a GDV of ₹4,800 crores have been launched, with another 4.3 million square feet planned for Q4 FY26, carrying a higher GDV of ₹5,400 crores.

Brigade's commercial office portfolio achieved cumulative leasing of 0.66 million square feet in Q3 FY26, maintaining a healthy occupancy of around 93%. The company launched 1.2 million square feet of commercial space in FY26 and plans to launch an additional 4.2 million square feet in the next four quarters. The three Orion malls collectively leased about 1 lakh square feet, boosting footfall by 5% and sales by 16% for FY26. The company is considering selling the remaining tower of Brigade Twin Towers instead of leasing, due to strong demand.

The hospitality segment demonstrated steady growth in Q3 FY26 compared to Q3 FY25, with revenue and RevPAR increasing by 14% and 17% respectively, driven by a 17% rise in ADR. EBITDA for the segment grew by 17% for the quarter. Brigade Hotel Ventures Limited is expanding its portfolio by building out 1,700 keys across 9 hotels in key markets, with a budgeted capex of ₹800 crores for the coming fiscal.

In the last nine months, Brigade incurred about ₹2,100 crores towards land bank additions, securing 14 million square feet of developable area with a GDV of ₹16,000 crores. Gross debt stood at ₹4,504 crores as of December 31, 2025, with cash and equivalents at ₹2,617 crores, resulting in a net debt of ₹1,887 crores. The debt-equity ratio remained low at 0.23. The average cost of debt significantly reduced by 115 basis points to 7.61% as of December 2025, from 8.76% in December 2024, with approximately 92% of debt backed by rental income from the commercial segment.

Project launches in Q3 FY26 were impacted by approval-related delays, causing some projects to slip into Q4 FY26 or Q1/Q2 FY27. Management noted that while the 12 million square feet launch pipeline for the next four quarters is strong, the overall 12.45 million square feet target for residential launches for the fiscal year might not be met due to these delays. However, they expressed confidence that these are only delays and the projects will eventually launch. The company is actively working to ensure timely approvals for upcoming projects.

The real estate market remains healthy with good demand, particularly in Bengaluru and Chennai. While price increases have been substantial, Brigade expects to achieve 5-7% year-over-year price hikes. The company's focus on premium, high-quality developments has led to higher ticket sizes, which customers are absorbing, albeit with a longer sales cycle. Management is also exploring ways to reduce overall ticket sizes in some projects to make them more palatable for customers.