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Operating performance hit by lack of material launches

13msf of residential launch pipeline provides near-term growth visibility

Operating performance

* In 1QFY26, BRGD reported a 3% YoY pre-sales growth, reaching INR11.2b, 56% below our estimates, mainly because only one project with 1.09msf of potential was launched in Chennai. The company recorded volumes of 0.95msf, a 17% YoY decline and 63% below our expectations.

* Consolidated collections rose 8% YoY to INR17.3b (31% below estimate).

* BRGD launched 1.63msf of projects in 1Q in Chennai, Bengaluru and Gujarat (1 residential and 2 commercial).

* It plans to launch ~13msf of residential area in the next four quarters in Bangalore, Chennai, Hyderabad, and Mysuru.

* In 1QFY26, Brigade Group acquired a prime land parcel on Velachery Road, Chennai, for INR4.4b for premium residential development, with total potential of 0.8msf and GDV of INR16b.

* Gross debt was INR47.5b, while net debt was INR22.7b. Its net debt-toequity ratio stood at 0.34x by 1QFY26 end (vs 0.64x in 1QFY25). The cost of debt was 8.25%.

* Leasing: Leasing revenue grew 15% YoY to INR3b, while EBITDA stood at INR2.2b.

* BRGD has a balance capex commitment of INR8b out of a total ongoing capex of INR11.8b for commercial assets.

* 2.6msf of commercial area will be launched in the next four quarters.

* Hospitality: The business was listed on 31st Jul’25 under the name of Brigade Hotel Ventures Limited (BHVL), wherein Brigade Enterprises holds a 74.09% share.

* BHVL revenue rose 19% YoY to INR1.4b and EBITDA grew 34% YoY to INR480m.

* BHVL currently has 1,604 keys. Nine Hotels with total 1,700 keys are under the planning stage, of which six hotels with 940 keys are in an agreement with Marriott International.

Financial performance

* Revenue increased 19% YoY to INR12.8b (34% above our estimate).

* EBITDA stood at INR3.2b, up 11% YoY (in line with estimate). EBITDA margin came in at 25.3%.

* Adj. PAT jumped 79% YoY to INR1.5b (19% below estimate), clocking a margin of 12%. The miss was attributed to higher-than-expected depreciation and interest costs.

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