This article first appeared on GuruFocus .
Release Date: August 14, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Real estate EBITDA margin improved significantly to 21% from 12% year-over-year, driven by better-margin project revenue recognition.
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Consolidated EBITDA margin expanded by 800 basis points to 36%, with PAT growing 37% year-over-year.
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Strong launch pipeline of 16.4 million square feet (12.4 million residential) with a GDV of approximately Rs. 13,400 crores, supporting FY27 pre-sales guidance of Rs. 9,000 crores.
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Commercial office portfolio maintained high occupancy at 88% with robust rent collections at 99%, and leasing demand remains broad-based across sectors.
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Hospitality segment delivered strong growth with 9% RevPAR increase, 140% PAT growth, and successful rebranding of Kochi hotel expected to boost ADR by 15-20%.
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Retail portfolio saw strong performance with 35% year-on-year sales growth and 11% footfall increase.
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Healthy balance sheet with net debt-to-equity ratio of 0.26 and average cost of debt at 7.61%.
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Collections grew 7% year-over-year to Rs. 1,856 crores, with operating cash flow up 10%.
Negative Points
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Q1 FY27 net sales declined 5% year-over-year due to no new launches, and residential sales were down 6% pan-India.
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Brigade Morgan Heights relaunch was impacted by revocation of environment clearance, leading to refunds to homebuyers and removal from launch pipeline.
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Commercial leasing at WTC Bangalore is slower than expected, with large RFPs postponed due to the West Asia crisis, forcing smaller leases.
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Hospitality F&B revenues were impacted by softer MICE activity and event postponements due to geopolitical disruptions.
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Launch pipeline is back-ended, with 7 million square feet of launches expected in H2 FY27, posing execution and approval risk.
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The company faces ongoing litigation on the Kengeri land parcel, delaying its launch potential.
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Q1 launches were lower than planned, with only 2.36 million square feet expected in Q2, indicating potential slippage risks.
Q & A Highlights
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Q: Of the 12.36 million square feet of planned launches, is this for the remainder of FY27 or for rolling four quarters? Can you provide quarter-wise timelines and is there a risk of slippage due to approval delays? A: Pavitra Shankar, Managing Director: The 12.36 million square feet is for a rolling four quarters. For the remaining three quarters of FY27, we are looking at 9.36 million square feet, with 3 million square feet moving into Q1 FY28. Q2 launches are expected to be around 2.36 million square feet, with the remaining 7 million in H2. The Morgan Heights project has been removed from the launch pipeline due to the environmental clearance issue, and it is not part of the Chennai numbers. There is always a risk of approval delays, but this is our current plan.
Q: With Q1 sales at Rs. 1,050 crores against a guidance of Rs. 9,000 crores, should we expect volumes to accelerate with upcoming launches or will pricing mix remain a significant part of pre-sales growth? A: Pavitra Shankar, Managing Director: We do expect more sales velocity associated with the launches. Since we expect those launches to start from Q2 itself, the run rate per quarter will definitely be increasing.
Q: Can you provide visibility on the leasing pipeline for the 4 million square feet of commercial properties launched, including occupancy at completion and when they will become meaningful contributors to rental EBITDA? What does steady-state revenue and EBITDA look like? A: Nirupa Shankar, Joint Managing Director: The properties launched will come online over the next two to three years. We expect about 2.5 million square feet to come into the market by FY28, with the bulk of almost 6 million square feet coming in FY30. We typically lease assets within the first six to eight quarters of getting the OC. In FY26, office leasing revenue was around Rs. 765 crores, and over the next five to six years, we expect the leasing revenue CAGR to increase by about 20%.
Q: Can you talk about near-term trends in the hotels business and the impact of the West Asia crisis? What improvements are expected from the Kochi Infopark Hotel rebranding to Courtyard by Marriott? A: Nirupa Shankar, Joint Managing Director: We saw some impact from the West Asia crisis, with a 10% reduction in business due to cancellations or postponements of events. However, we increased ADR by 7% and occupancy by 2%, leading to a 9% revenue increase and a 140% increase in PAT. We expect the business to bounce back strongly in H2, particularly in Q3. For the Kochi rebranding, we saw a blip in occupancy initially, but it has bounced back to the 70s, and we expect at least a 15% to 20% increase in ADR due to the rebranding.
Q: Regarding the H2 launches, are the Hyderabad Neopolis-2 and Whitefield Hoskote launches still on track for Q4, or have they been advanced? A: Pavitra Shankar, Managing Director: The Hyderabad launch is likely to come much earlier than Q4, definitely in Q3 if not sooner. The Whitefield Hoskote launch is also looking like a Q3 launch for Bangalore.
Q: What is the leasing status for WTC Bangalore, and how should we think about getting back to normal occupancy? A: Nirupa Shankar, Joint Managing Director: WTC is about 1.13 million square feet, and we have leased about 50% of that space, with about 375,000 square feet remaining. Large clients have delayed decisions due to the West Asia crisis, so we are now doing smaller leases of 20,000 to 40,000 square feet. We are able to get mark-to-market rental increases of at least 10% to 15%, and we aim to close out the leasing in the next three to four quarters.
Q: What is the status of the larger Bangalore projects like Cornerstone Utopia 2, the 75-acre Devanahalli parcel, and the Kengeri land parcel? A: Pavitra Shankar, Managing Director: The phase two of Utopia is seeing positive movement, and we hope to launch it in Q1 of next financial year. The 75-acre KIADB allotment has a substantially smaller residential component of only 3 to 4 lakh square feet due to bylaw changes, and it will come later this financial year. The Kengeri land parcel is not in a position to be launched yet due to ongoing litigation, and it is not part of any current numbers.
Q: For the 4 million square feet of commercial projects launched in Q1, what would be the rental potential, and are you planning to hold or sell these assets? A: Nirupa Shankar, Joint Managing Director: We plan to hold all of these assets, including Brigade HRC Atrium, an industrial block, Brigade United in Kaveri, and the Orion Mall at Hyderabad. None are for sale. We will need to wait closer to the launch, at least a year out, to share details on expected rentals.
Q: The estimated sales value of unsold units is around Rs. 8,950 crores. Does this include any inventory from the Morgan Heights project? A: Pradyumna Krishnakumar, Executive Director: Yes, it currently includes Brigade Morgan Heights, but if the issue is not addressed, we will remove it in the next quarter's presentation. It is about 0.7 million square feet out of the 6.7 million square feet shown as unsold, with an attributable value of around Rs. 650 crores.
Q: Last quarter you mentioned launching around 11.5 million square feet this year. The updated number is around 9.3 million. Where is the additional shortfall besides Morgan Heights? A: Pavitra Shankar, Managing Director: The shortfall is primarily Morgan Heights, which was reduced by a little more than a million square feet. The other million square feet change is due to how we represent launches, as we have fine-tuned the sales phasing for FY27. We still maintain our pre-sales guidance of Rs. 9,000 crores for the year.
Q: This quarter we
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
