Brigade Enterprises said it will follow a measured sales strategy in Chennai, while increasing focus on the mid-segment housing category in Bengaluru, the management told analysts post Q2 FY26 earnings.
The management said the pace of sales in Chennai would be gradual as the company intends to sell units across the life cycle of projects rather than targeting rapid sell-outs at launch.
“For Chennai, we don’t expect to sell and launch everything within the first year or the first even two years. Our plan is to launch and sell during the life cycle of the construction of the project. We've seen this happen in the past and that's kind of how that market is geared,” the management said.
The company said market conditions in each city required different strategies.
“In Chennai, yes, the inventory movement will be a little slower than Bengaluru and Hyderabad. But that doesn't mean we have to revisit any capital allocation. It is still a very good market. But Bengaluru and Hyderabad are still markets of focus for us in business development,” the management said.
The developer achieved pre-sales of Rs 2,034 crore during the quarter, a growth of 12 percent over Q2 FY25, with volumes of 1.90 million square feet, according to its investor presentation. Average realisation stood at Rs 12,236 per sq ft, up 13 percent from the previous year. The company launched 2.02 million square feet of residential projects during the quarter.
Brigade said it has maintained zero residential debt across the group for the last two years, supported by steady sales and collections. Upcoming residential launches total about 11 million square feet over the next four quarters across Bengaluru, Chennai, Hyderabad and Mysuru.
Of this, about one million square feet will come from the Velachery project in Chennai, with an estimated gross development value (GDV) of Rs 2,000 crore to Rs 2,250 crore.
Mid-segment drives Bengaluru demand
The company said demand in Bengaluru continued to be strong, led by the mid-segment category.
“The market is still strong in Bengaluru specifically. I think there is a lot more demand in the mid segment category. So we are also looking at that in terms of new projects. When we are looking at design or land acquisition in terms of location of properties,” the management said.
It defined the mid-segment category as units priced between Rs 75 lakh and Rs 1.5 crore.
“In our portfolio we classify mid segments as Rs 75 lakhs to Rs 1.5 crores. Premium we look at as Rs 1.5 crores to Rs 3 crores and above that we call as luxury as ultra luxury,” the management said.
Seven new residential projects are planned in Bengaluru over the next four quarters, the company said in its investor presentation. In Hyderabad, Brigade said it continued to see strong traction in the higher-end category.
“In Hyderabad we are still doing very well in the Rs 5 crore plus category. But that said there is still good demand in mid segment as well,” the management said.
Pipeline and performance
For the second half of FY26, the company expects to launch about seven million square feet of residential projects with a GDV of Rs 8,000 crore to Rs 8,300 crore. Around 60 percent of H1 sales came from ongoing projects and 40 percent from new launches.
Consolidated revenue for Q2 FY26 stood at Rs 1,430 crore, an increase of 26 percent year-on-year. EBITDA was Rs 375 crore with a margin of 26 percent, and profit after tax rose 48 percent to Rs 170 crore.
Brigade’s land bank as of 30 September 2025 totalled 571 acres, of which 345 acres are in Bengaluru, 136 acres in Chennai and 26 acres in Hyderabad. Residential development accounts for 77 percent of its total project mix.
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