Brigade Enterprises Ltd Q4 FY26 Earnings Analysis

- Brigade aims for a 15% year-over-year presales growth, though this is considered an aggressive target given current conditions. - Delays in project approvals have impacted launch schedules and sales velocity, causing some projects to slip to FY '27. - Despite the delays, demand remains strong across Bengaluru, Hyderabad, and Chennai, supported by effective marketing and stable pricing without major discounting. - New launches in FY '26 totaled about INR4,400-4,800 crores GDV with more expected in Q4 and FY '27, indicating growth in volume. - Business development efforts have added INR16,000 crores of new GDV, mostly from Bengaluru (54%) and Hyderabad (30%). - For FY '27, Brigade expects better presales growth than FY '26 driven by increased launches, favorable market conditions, and stabilized ticket sizes. - Commercial leasing and real estate segments will also contribute to revenue growth with upcoming projects and increased operational portfolio.

- Brigade Enterprises aims for 15% year-over-year presales growth, though considered aggressive due to current project approval delays; they expect better-than-FY '26 performance by FY '27 depending on project approvals and launch timelines. - Margins in real estate are currently around 15%, expected to rise towards 20% from Q1 or Q2 FY '27 onwards with newer project recognition; premium projects have 27-35% operating margins. - Leasing EBITDA margins are roughly 70%, sustained by recurring rental income; lease revenue expected to increase to over INR 2,000 crores by around FY '31 as new assets stabilize. - Consolidated PAT rose by 24% over 9 months FY '26; overall revenue up 16%, with steady growth across real estate, leasing, and hospitality segments. - Pricing environment remains robust with no major discounts or payment plans, supporting earnings sustainability. - Capex planned around INR 600-800 crores annually for commercial segment to support growth. - Earnings growth is expected as project launches normalize and delayed approvals clear, enabling higher presales and collections.

- For FY '26, commercial division capex expected around INR 600 crores; in FY '27, around INR 800 crores. - Overall capex for commercial properties includes projects in Hyderabad (office and mall segments). - FY '26 budgeted commercial project cost estimated at INR 1,600 - 1,700 crores, with INR 661 crores already incurred and a balance of INR 1,000 crores remaining. - Hospitality segment separately budgeted INR 800 crores capex for the coming fiscal year. - Rental portfolio expansion plans are aggressive, supported by these capital investments.

- The transcript does not mention any current or planned fundraising through equity. - For debt, Brigade Enterprises continues to have adequate liquidity and undrawn credit lines from banks and financial institutions to support growth plans. - The company has a gross debt of INR4,504 crores and cash & equivalents of INR2,617 crores as of December 31, 2025. - Average cost of debt has reduced significantly by 115 bps to 7.61% from 8.76% compared to prior year. - No specific mention of new debt issuances; capex plans for FY26 and FY27 are budgeted and expected to be financed within existing resources. - Commercial division capex is expected at INR600-800 crores across FY26 and FY27; hospitality capex budgeted at INR800 crores for FY26. In summary, no explicit announcement of new fundraising, but liquidity and credit lines are available for growth and capex.

- Brigade Enterprises has about 5.5 million square feet of inventory yet to be sold (unsold inventory). - They have a launch pipeline of approximately 12 million square feet planned over the next 4 quarters. - Currently, about 4.5 million square feet are near launch stage. - Another 8 million square feet have visibility on expected launch quarters, likely in FY '27. - The leasing portfolio includes about 2.5 million square feet expected to come under operations this year. - Additional 4.2 million square feet of commercial space is in the pipeline for future leasing. - The company expects to achieve full leasing of the current portfolio with new assets leased out over 1 to 2 years post occupancy certificate (OC).