Brigade Enterprises FY26 Annual Earnings Summary
4 quarters covered · ₹5,844 Cr revenue · ₹690 Cr PAT · 19.8% average EBITDA margin.
Quarter-by-quarter progression
Management promises made during the year
Promise tracking available after 2+ quarters of coverage.
Risks flagged during the year
Residential launches have been delayed by 3-4 months due to changes in Bangalore's approval process, causing FY26 pre-sales to be flat. Further delays could push launches into FY27.
Q3 FY26 · highSales in the Chennai project are stalled due to a court case affecting over 1 lakh properties. A hearing is expected in February 2026, but an adverse verdict could delay sales further.
Q4 FY26 · highFY26 saw delays pushing launches to H2; similar risks persist for FY27 launches, especially in Chennai and Hyderabad.
Q1 FY26 · mediumChennai market requires physical sales offices, leading to slower uptake; Morgan Heights traction expected only after September.
Q1 FY26 · mediumBrigade Innovation Gardens may slip to Q1 FY27; overall launch timing depends on approvals.
Q1 FY26 · mediumSales & marketing expenses doubled YoY to ₹86 crore; employee costs rose to ₹186 crore, raising margin concerns.
Q2 FY26 · mediumThe North Bangalore mixed-use project may slip from Q4 FY26 to Q1 FY27 due to approval timelines, impacting H2 sales.
Q2 FY26 · mediumAn NGO alleged illegal approvals for the Brigade Modern Heights project in Chennai, though management clarified all approvals are in order and government has issued a clarification.
Q2 FY26 · mediumResidential EBITDA margin fell to ~12% in Q2 due to project mix and one-time costs; management expects normalization only next fiscal year.
Q3 FY26 · mediumAs ticket sizes increase (85% of sales above ₹1.5 crore), conversion times are lengthening, which could slow sales velocity and inventory turnover.
Q3 FY26 · medium9M FY26 operating cash flow dropped to ~₹30 crore from ₹1,550 crore in 9M FY25, due to higher construction spends and elevated sales & marketing costs despite limited launches.
Q4 FY26 · mediumAnalyst raised concern about vacancy; management expects to lease out over next few quarters but no single large tenant lined up.
What changed through the year
Q1 FY26 · FY26 sales growth target of 15-20%
Management targets 15-20% growth in pre-sales value for FY26, building on ₹7,800 crore in FY25.
Q1 FY26 · Launch pipeline of ~13 million sq ft over four quarters
Approximately 13 million sq ft of residential and commercial launches planned, with 50% of GDV already in hand.
Q1 FY26 · Hospitality to double to 18 hotels in 4-5 years
Brigade Hotel Ventures plans to expand from 9 to 18 hotels, adding ~1,700 keys.
Q1 FY26 · Embedded EBITDA margin >30% for new launches
New project launches in FY26 are expected to have embedded EBITDA margins upwards of 30%.
Q2 FY26 · H2 FY26 launch pipeline of ~7 million sq ft with GDV ₹8,000-8,300 crore
Management expects to launch approximately 7 million sq ft in the second half of FY26, with a gross development value of ₹8,000-8,300 crore.
Q2 FY26 · Pre-sales target of ₹9,000 crore for FY26 may be missed
Management indicated that achieving the ₹9,000 crore pre-sales target is heavily dependent on timely launches and approvals; they may fall short.
Q2 FY26 · Residential EBITDA margin expected to normalize next financial year
Current residential EBITDA margin of ~12% is below normal run rate due to project mix and one-time costs; management expects margins to revert to historical levels in FY27.
Q2 FY26 · Planned investment of ₹8,000 crore in Chennai over 5-6 years
Brigade reiterated its long-term commitment to Chennai with a planned investment of ₹8,000 crore over the next five to six years.
Q3 FY26 · Residential launches of 12 msf over next four quarters
Management plans to launch approximately 12 million sq ft of residential projects in the next four quarters, with Q4 FY26 alone targeting 4.3 msf (GDV ₹5,400 crore).
Q3 FY26 · Commercial office launches of 4.2 msf in next four quarters
Plan to launch another 4.2 million sq ft of commercial office space in the next four quarters, adding to the 1.2 msf launched in FY26.
Q3 FY26 · Real estate segment margins to improve to ~20% from Q1/Q2 FY27
Management expects real estate EBITDA margins to rise to around 20% from the current ~15% as newer, higher-margin projects are recognized.
Q3 FY26 · Commercial leasing revenue to exceed ₹2,000 crore by FY30-31
Once the current under-construction and upcoming commercial assets are leased and stabilized, total lease revenue is expected to be upwards of ₹2,000 crore.
Q4 FY26 · FY27 pre-sales target of ₹9,000 crore
Management expects at least 20% growth over FY26 pre-sales of ₹7,424 crore, aiming for ₹9,000 crore.
Q4 FY26 · FY27 launch pipeline of 11.6 msf with GDV ₹11,900 crore
Planned launches include 4.5 msf in Bengaluru, 3 msf each in Chennai and Hyderabad.
Q4 FY26 · Commercial launches of 4.5 msf in FY27, 10 msf over FY27-28
Capex for 10 msf commercial pipeline estimated at ₹6,000 crore over four years.