Brigade Enterprises targets 15–20% growth in FY26

Brigade Enterprises targets 15–20% growth in FY26

Real estate developer Brigade Enterprises is betting on a strong project pipeline and sustained demand to meet its ambitious sales target for FY26.

“We like to target a growth of 15 to 20 percent. Last year we did around Rs 7,800 crores in total sales. We’re hoping to get to about 15 percent increment on that,” the management said during the Q1FY26 earnings call.

For the remaining quarters of the financial year, the company has lined up launches across the residential, commercial and hospitality segments. This includes seven residential projects in Bengaluru, four in Chennai, three in Hyderabad and two in Mysuru. “With strong momentum and demand, we have a slew of upcoming projects planned, approximately 13 million square feet in the next four quarters,” the company said.

In Q1FY26, home city Bengaluru accounted for 70–75 percent of sales, Chennai for 20–25 percent and Hyderabad for the rest. The management said that over 80 percent of its residential portfolio now consists of units priced above Rs 1.5 crore.

Further, Brigade Enterprises said it has not seen any slowdown in office space demand despite concerns over growth in the information technology sector. “From an office perspective, IT services are contributing to only 40 percent of the overall. The balance is coming 36 percent from GCCs (global capability centres) and the remaining 24 percent from other sectors. On ground, we are not seeing the kind of slowdown that the media is talking about. We are still seeing pretty good traction,” management said, adding that residential sales too remained resilient.

On the commercial side, the company plans to launch around 2.6 million square feet this year, including Brigade Padmini Tech Valley Tower A in Whitefield, Brigade Panorama Chambers in South Bengaluru, Brigade Kaveri in Bengaluru’s central business district and Brigade HRC near the city’s airport.

It is also expanding its co-working business, BuzzWorks, from the current 5,000 seats to about 10,000 seats by the end of FY26. The company said it is open to leasing space from other developers in markets where it does not have its own office assets.

For the first quarter of the current fiscal, the company reported a consolidated revenue of Rs 1,333 crore, up 20 percent from Rs 1,113 crore in Q1FY25 but down 13 percent from Rs 1,532 crore in Q4FY25. Profit after tax rose 95 percent year-on-year to Rs 158 crore from Rs 81 crore in the same quarter last year but was lower than the Rs 249 crore posted in the previous quarter. Earnings before interest, taxes, depreciation and amortisation stood at Rs 375 crore, up 40 percent from a year earlier.

Collections during the quarter were Rs 1,728 crore, 8 percent higher than a year earlier. Real estate pre-sales stood at Rs 1,118 crore, a 3 percent year-on-year growth, with volumes of 0.95 million square feet and an average realisation of Rs 11,782 per square foot, up 24 percent from Q1FY25.

The company’s leasing portfolio had an occupancy of 92 percent for a total of 9.38 million square feet, with Brigade Square in Thiruvananthapuram achieving 100 percent pre-leasing. Leasing revenue was Rs 300 crore, up 15 percent from last year.

In hospitality, subsidiary Brigade Hotel Ventures Limited was spun out, had its initial public offering—which was oversubscribed 3.13 times—and was  listed end-July. The hospitality segment recorded revenue of Rs 141 crore in Q1FY26, up 19 percent year-on-year, with portfolio occupancy at 75 percent and an average room rate of Rs 6,761. The company plans to double its hotels portfolio from nine to 18 properties over the next four to five years.

The company added 10 million square feet to its land bank in Q1FY26, with a potential gross development value of Rs 11,200 crore, and said it will continue to focus on tier-1 markets in South India.