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Approval delays for large mixed-use projects
View Risks →Brigade Enterprises Limited — Q2 FY26
Brigade Enterprises delivered a strong Q2 FY26 with consolidated revenue of ₹1,430 crore (+26% YoY) and EBITDA margin of 26%.
bullish
high
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Brigade Enterprises delivered a strong Q2 FY26 with consolidated revenue of ₹1,430 crore (+26% YoY) and EBITDA margin of 26%. PAT after minority interest grew 37% YoY to ₹162 crore. Residential pre-sales reached ₹2,234 crore (+12% YoY), driven by premium launches and healthy demand across Bengaluru, Chennai, and Hyderabad. The company added 13 million sq ft to its development pipeline with GDV of ₹14,000 crore. Leasing portfolio maintained 92% occupancy, while hospitality saw ARR growth of 14% YoY. Management guided for ~7 million sq ft of launches in H2 FY26 (GDV ₹8,000-8,300 crore) but flagged potential shortfall against the ₹9,000 crore pre-sales target due to launch timing. Key risk: delays in approvals for large mixed-use projects could push sales into FY27.
ब्रिगेड एंटरप्राइजेज ने दूसरी तिमाही (जुलाई-सितंबर 2025) में मजबूत प्रदर्शन किया। कंपनी की कुल आय ₹1,430 करोड़ रही, जो पिछले साल से 26% ज्यादा है। कमाई पर खर्च घटाने के बाद मुनाफा (EBITDA) 26% रहा। शुद्ध लाभ ₹162 करोड़ हुआ, जो 37% बढ़ा। घरों की बिक्री ₹2,234 करोड़ रही, जो 12% ज्यादा है। यह बेंगलुरु, चेन्नई और हैदराबाद में नए प्रीमियम प्रोजेक्ट्स की वजह से हुआ। कंपनी ने 1.3 करोड़ वर्ग फुट के नए प्रोजेक्ट जोड़े, जिनकी कुल कीमत ₹14,000 करोड़ है। किराए पर दी गई जगह 92% भरी रही। होटलों में कमरे की कीमत 14% बढ़ी। अब कंपनी अगले छह महीनों में 70 लाख वर्ग फुट के प्रोजेक्ट लॉन्च करेगी, लेकिन ₹9,000 करोड़ की बिक्री का लक्ष्य पूरा नहीं हो सकता। बड़ा जोखिम: बड़े प्रोजेक्ट्स की मंजूरी में देरी से बिक्री अगले साल खिसक सकती है।
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Pre-sales value
₹2,234 crore
+12% YoY
Pre-sales for Q2 FY26 grew 12% year-on-year, driven by strong demand across segments.
Pre-sales volume
1.90 million sq ft
+13% YoY
Sales volume increased 13% YoY, reflecting sustained momentum in residential sales.
Average realization
₹12,236 per sq ft
+13% YoY
Realization improved 13% YoY due to premium product mix and price hikes.
H2 launch pipeline GDV
₹8,000-8,300 crore
N/A
Management guided for ~7 million sq ft of launches in H2 FY26 with GDV of ₹8,000-8,300 crore.
What Changed vs Last Quarter
NEW
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.
NEW
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.
NEW
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.
NEW
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.
DROPPED
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.
DROPPED
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.
DROPPED
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.
DROPPED
Embedded EBITDA margin >30% for new launches
New project launches in FY26 are expected to have embedded EBITDA margins upwards of 30%.
NEW RISK
Approval delays for large mixed-use projects
The North Bangalore mixed-use project may slip from Q4 FY26 to Q1 FY27 due to approval timelines, impacting H2 sales.
NEW RISK
Chennai project controversy
An 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.
NEW RISK
Residential margin pressure
Residential EBITDA margin fell to ~12% in Q2 due to project mix and one-time costs; management expects normalization only next fiscal year.
NEW RISK
BBMP restructuring delays
Restructuring of BBMP into GBA caused about a month of approval delays, though management does not foresee major issues going forward.
RISK GONE
Slower sales cycle in Chennai
Chennai market requires physical sales offices, leading to slower uptake; Morgan Heights traction expected only after September.
RISK GONE
Potential launch slippages
Brigade Innovation Gardens may slip to Q1 FY27; overall launch timing depends on approvals.
RISK GONE
Rising marketing and employee costs
Sales & marketing expenses doubled YoY to ₹86 crore; employee costs rose to ₹186 crore, raising margin concerns.
RISK GONE
Bangalore IT sector slowdown
Media reports of IT job losses could impact residential demand, though management sees no on-ground impact yet.
Fast read
Guidance and risk preview
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.
The North Bangalore mixed-use project may slip from Q4 FY26 to Q1 FY27 due to approval timelines, impacting H2 sales.
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