Brigade Enterprises reported a steady Q3 FY26 with consolidated revenue up 6% YoY to ₹1,623 crores and a healthy EBITDA margin of 28%. The company achieved strong presales of ₹1,750 crores, driven by a 16% increase in average realization. Strategic land bank additions and a robust launch pipeline position the company for future growth, despite some project approval delays impacting current quarter launches. The company also improved its financial health by reducing its cost of debt and maintaining a low debt-equity ratio.
vs Q4 FY26
| Metric | Value | YoY |
|---|---|---|
| Consolidated Revenue (Q3 FY26) | ₹1.6K Cr | +6.0% YoY |
| Consolidated EBITDA (Q3 FY26) | ₹459 Cr | — |
| Consolidated EBITDA Margin (Q3 FY26) | 28% | — |
| Consolidated PAT (Q3 FY26) | ₹206 Cr | — |
| Consolidated Revenue (9M FY26) | ₹4.4K Cr | +16.0% YoY |
| Consolidated EBITDA (9M FY26) | ₹1.2K Cr | — |
Segment Breakdown
Share of Turnover
| Metric | Latest | Trend |
|---|---|---|
| EBITDA(crores) | 375 | |
| EBITDA Margin | 26% | |
| Consolidated PAT(crores) | 170 |
Total Value
₹ 1,750 crores
as of 2025-12-31
Inflow this qtr
₹ 1,750 crores
Composition
Pipeline
otherLaunch pipeline for next 4 quarters
"Presales volume of 1.33 million square feet in Q3 FY26, with average realization of INR 13,142 per square foot, reflecting a 16% growth over Q3 FY25. Quarterly sales did not increase significantly due to approval-related delays for new projects."
| Category | Headline | |
|---|---|---|
Capex | ₹600 crores | |
Debt | Gross ₹4,504 crores · Net ₹1,887 crores Cost 7.6% | |
Liquidity | Cash ₹2,617 crores Adequate liquidity and undrawn credit lines from banks and financial institutions to support growth plans. |
| Category | Target | Priority |
|---|---|---|
| Pricing | Year-over-year price hike→7% | High |
| Pricing | Year-over-year price hike (internal portfolio)→5-7% | High |
| Launches | Launch pipeline (area)→12 million square feet | High |
| Launches | Commercial office launches (area)→4.2 million square feet | High |
| Commercial Portfolio | Commercial area under operations with OC→2.5 million square feet | High |
| Commercial Portfolio | Commercial top line→INR 1,300 crores | High |
| Commercial Portfolio | Overall lease revenue (stabilized)→upwards of INR 2,000 crores | Medium |
| Commercial Portfolio | Lease out timeline (after OC)→1-2 years | High |
| Real Estate Margins | Real estate segment margins→20% | Medium |
| Real Estate Margins | Premium real estate margins→27-35% | High |
| Presales Growth | Presales growth→15% | Medium |
| # | Metric | |
|---|---|---|
| 01 | Resolution of Brigade Morgan Heights regulatory hurdle | |
| 02 | Timeliness of Q4 FY26 planned launches | |
| 03 | Real estate segment margin improvement | |
| 04 | Brigade Twin Towers leasing/sales strategy execution | |
| 05 | Presales growth for FY27 |
| Severity | Risk |
|---|---|
medium | Regulatory hurdles and approval delays for project launches Approval-related delays caused new projects to slip from Q3 into Q4 FY26 or even Q1/Q2 FY27, impacting quarterly sales. This was attributed to changes in Bengaluru's approval process and the timing of file submissions. Management |
medium | Brigade Morgan Heights legal dispute A regulatory hurdle has halted sales for Brigade Morgan Heights. The matter is in the Madras High Court, with a hearing expected this month, and management anticipates a positive order. Management |
medium | Impact of higher ticket sizes on demand absorption While demand remains strong, customers are more cognizant of overall ticket sizes, leading to longer absorption times for higher-value projects (e.g., Brigade Icon, Avalon, Gateway). This is reflected in project designs. Management |
medium | Operating cash flow moderation due to higher construction spends Cash flows from operating activities have moderated due to higher construction spends and fewer new project launches in the quarter. Management expects this to improve with upcoming launches. Management |
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.