KNOWLEDGEREALTYTRUST Q3 FY26 earnings call.
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Revenue
₹1,178.7 Cr
verification pending
Revenue YoY
21%
reported change
EBITDA
Pending
latest reported figure
Source
bse pending
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Knowledge Realty Trust delivered a strong Q3 FY26 with 21% YoY revenue growth to Rs 1,178.7 crore, driven by narrowing the committed-to-economic occupancy gap from 9% last year to 6%, combined with 5-6% contractual rent escalations and mark-to-market (MTM) gains. NOI grew 19% YoY to Rs 1,047 million. The REIT declared DPU of Rs 1.57 from NDCF of Rs 695.3 crore. Committed occupancy held steady at 92% with 1 million sq ft leasing pipeline for Q4 conversion to 93%. Leasing spreads of 25% YTD (6% premium to market on new deals, 26% on renewals) support the embedded 22% MTM opportunity. Average cost of debt reduced 19bps to 7.25% with 65% floating-rate debt. FY26 distributions are on track to meet Rs 6.2/unit projection; FY27 guidance raised to Rs 7.03/unit. Key risk: Satav Global City (79% occupancy, 0.9msf denotified) and broader economic occupancy lagging committed occupancy by 6% could pressure near-term NOI if leasing conversions stall.
Colored figures show movement against the previous available record.
Guidance to track
- Management confirmed FY26 NDCF will meet offer document projections; FY27 distribution expected higher based on business momentum and interest rate tailwinds flowing fully through Q4.
- Pipeline of ~1msf expected to convert in Q4, driving committed occupancy to 93%, which will support NOI growth in Q4 and FY27.
- 42% of Q4 expiries already renewed/released at ~28% average spread; remaining 5msf under advanced discussion for Q4 FY26 or early Q1 FY27 conversion.
- 62% of next fiscal year's ~1.5msf lease expiries already secured through renewals or advanced negotiations.
Risks flagged
- Economic occupancy lags committed by 6pp (vs historical 3-4pp norm) due to tenant fit-out and ramp-up timelines. Management targets narrowing to 3-4pp over next 2-3 quarters, but delays could cap NOI upside despite strong leasing.
- Asset at 79% occupancy with 0.9msf denotified; only 0.7msf of 0.9msf re-leased. Management plans further denotification and development pipeline but acknowledged take-up will be 'gradual' with FY27 recovery expected. Large IT services/GCC pipeline opportunity remains unconverted.
- Analyst questioned why DPU did not increase despite 19bps cost reduction (8.6% to 7.4% since March). Management cited lagged rate transmission (full impact in Q4) and offsetting factors, maintaining FY26 projections without upside. FY27 will see improvement per projections.
- Recent budget MAT amendment queried; management stated no significant expected impact but is still 'in discussion with tax advisors' and will share assessment later. For a newly listed REIT (August 2025), MAT credit carry-forward changes could have deferred tax implications.
Key quotes
- The difference between committed occupancy or actual/economic occupancy is roughly about 3 to 4%. In our particular case, our difference in March was 9 point difference which has narrowed down to a 6 point difference today.
- Our in-place rent 9 months back was Rs 90 which was an average of the whole portfolio rent. That in-place rent has moved from Rs 90 to Rs 95 as against the market rent of Rs 118, and that difference is really the mark-to-market opportunity.
- We're actively seeking, looking out for acquisitions, but we're being disciplined. We're just trying to make sure that we make accretive acquisitions. To that extent, just because an opportunity is out there doesn't mean we'll just go out and make that acquisition.
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