Brigade Enterprises Limited (BRIGADE) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Q4FY26 Earnings Conference Call of Brigade Enterprises Limited. As a reminder, all power spin lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation continues. Should you need assistance during the conference call, please signal an operator by pressing star 10-0 on your touch-tone phone. I now hand the conference over to Ms. Pavitra Shankar, Managing Director of Brigade Enterprises Limited. Thank you and over to you, Ma.

Thank you. Good afternoon, everyone, and thank you for joining us for Brigade Enterprises Limited's Q4 FY26 earnings call. I am joined by the Management of Brigade Group, our Chairman, Mr. M. R. Jayashankar, Joint Managing Director, Ms. Nirupa Shankar, Executive Directors, Mr. Roshan Matthew, Mr. Amar Mysore, and Mr. Pradyumna Krishnakumar, and our CFO, Yogesh Patel. FY26 has been marked by steady operating performance for Brigade, with demand conditions across our core markets remaining supportive. I will take a few more minutes today to share a more detailed perspective before handing it over to our CFO for the financial details. The residential sector for our key markets of Bangalore, Chennai, and Hyderabad grew 6% year-on-year in calendar year 2025, increasing their share from 32% to 37% across the top seven cities in India. For Brigade, FY26 pre-sales was Rs. 7,424 crores, which is 5% lower than FY25. This was primarily on account of delays in obtaining approvals, with many project launches pushed to the latter half of Q4 and some moving into FY27. New launches contributed to 43% of full-year pre-sales, despite being concentrated in the back end of the year. Specifically, for Q4, we launched 4 million square feet, which resulted in pre-sales of Rs. 2,521 crore, a Q-on-Q increase of 44% by value. Successful launches in Q4 include Brigade Lumina, which was almost fully sold out, Brigade Belvedere Phase 1, both in Bengaluru, Brigade Stellaris in Chennai, and Brigade Banner and Enclave in Hyderabad. We ended the year with 8.3 million square feet of new launches in FY26, versus a plan of 12 million square feet. Around 1 million square feet that got pushed into FY27 was in Chennai, including the second phase of 1 million square feet in Brigade Morgan Heights. Sustenance sales contributed 57% for the year, but was also impacted by a regulatory issue post-launch in Brigade Morgan Heights, Chennai, requiring a pause on sales of Phase 1. While this issue was disposed by Madras High Court in favor of Brigade in February itself, we chose to wait until Q1 FY27 and after state elections were concluded in order to resume sales. We are in process of relaunching in this quarter. Our FY26 average realization increased 9% year-on-year to 12,109 rupees per square foot. This was achieved with disciplined pricing increases in our existing projects and a positive shift in our product mix towards higher-value homes. We continue to see healthy site visits with consistent conversions of 10% to 12% across cities and projects with a broad customer base spanning multiple sectors. NRI buyers have remained stable at around 10% of the pre-sale value. For FY27, the residential launch pipeline stands at 11.6 million square feet with a GDV of 11,900 crores. We expect to launch 4.5 million square feet in Bengaluru and 3 million square feet each in Chennai and Hyderabad. This year, we are aiming to pull in some of the launches before H2 and the tendency on approvals. In both Bengaluru and Hyderabad, the share of FY27 sales from new launches in mid-segment can be more front-ended, whereas in Chennai and ultra-luxury projects in general, the sales absorption is generally evenly distributed throughout the construction life cycle. While we are watchful of the macroeconomic uncertainty due to geopolitical tensions in the Middle East and the broader implications of AI, the fundamental demand drivers in our core markets remain intact. If the current sentiment and market conditions hold up, our outlook is that demand on ground will support a pre-sales outlook of at least 20% growth on our FY26 numbers and aiming for 9,000 crores. From a business development perspective for the residential segment, we added 15,000 crores of GDV across 13 million square feet in projects during FY26. The addition was predominantly in Bengaluru and Hyderabad at 60% and 30% respectively. The Indian office market sustained strong momentum through Q4 FY26, with GCC's tech and BFSI remaining the primary demand drivers. Brigade's commercial leasing portfolio delivered stable performance in FY26 with cumulative leasing of approximately 1.1 million square feet across new leases, renewals, investor leasing, and managed office transactions with sustained occupier preference for grade A, amenity-rich, and technology-enabled assets during the year. We launched 1.3 million square feet during FY26, with 4.5 million square feet planned for FY27, while our rental collection sustained at 99%. GCCs account for 58% of our leased portfolio, while traditional IT and ITES account for 26% of the leased portfolio, and the balance spread across consulting, BFSI, engineering, healthcare, and flex operators. Tenant concentration is also well-managed. Large anchor tenants above 1 lakh square feet account for 65% of the lease portfolio at an average of approximately 3 lakh square feet each, providing revenue predictability. The remaining 35% is distributed across mid-size and smaller tenants, limiting single-tenant risk. We have a pipeline of approximately 10 million square feet to be launched over FY27 and FY28. The capital expenses towards the construction of this 10 million square feet will be approximately 6,000 crores spread over the next four years, ranging between 1,200 to 1,700 crores per annum. Looking ahead, the office market outlook remains constructive, supported by GCC expansion, growth in flexible working spaces, and rising institutional participation. While global macro uncertainties and cost pressures persist, a diversified occupier base and adaptive supply pipeline provide resilience. Turning to retail, the Orion Malls portfolio continued to see healthy operating momentum during FY26. The three Orion Malls collectively churned approximately 1.5 lakh square feet of leasable area and onboarded multiple new tenants, strengthening the open-ended mall vibrancy. This activity translated into improved footfall and sales performance during the quarter. Key performance highlights include 7% year-on-year growth in footfalls during Q4 FY26, 25% year-on-year growth in retailer sales for all three malls combined. In hospitality for Q4 FY26, geopolitical developments during the period impacted foreign tourist arrivals and led to some mice cancellations. Despite this, the Indian hotel industry continues to benefit from ADR growth, supported by strong domestic corporate travel. Brigade Hospitality Portfolio delivered a resilient performance during the quarter, supported by disciplined rate management. While occupancy growth remained stable at 78% compared to Q425 due to external disruptions, revenue and REVPAR showed steady improvement on the back of ADR growth, with 8% and 13% growth over the previous quarter. FY26 saw a 15% increase in revenue on EBITDA compared to FY25. REFPA growth of 6% was driven by a 7% improvement on ADR. Demand for FY27 remains strongly anchored in domestic travel, with international travel expected to recover gradually. With that, I will now hand over the call to our CFO, Mr. Yogesh Patel, to take you through the financial performance for the quarter in detail.

Thank you, Padita. Good afternoon, everyone. Further to operational highlights shared by Padita, I'll just highlight a few financial highlights here. Q4 of FY26 was a quarter of positive momentum translating into strong sequential growth. The positive sales performance for the quarter of 2,005,021,021 crores, and with demand fundamentals remaining steady, we are strongly positioned to capitalize on the momentum led by new project launches. To start with group's revenue update for FY26, the consolidated revenue for the financial year stood at 5,909 crores, an increase of 11% over FY25, with an EBITDA of 1,638 crores. EBITDA margin for the year stood at 28%. The real estate segment clocked a turnover of 4,002 crores. The leasing segment clocked a turnover of 1,303 crores with an EBITDA of 906 crores. The construction is higher by about four and a half million. Cash flow and collections will continue to be robust as they will be further supported by the new product launches and sales. Collections from real estate segments stood at 5,480 crores. Leasing segment stood at 1,298 crores, and hospitality segment contributed 698 crores collections. Net cash flow from operating activities stood at 1,411 crores. On debt and liquidity, we continue to have adequate liquidity and undrawn credit lines from banks and financial institutions to support our growth plans. Our average cost of debt has reduced meaningfully in the year by 110 basis points, which now stands at 7.57% as of March 26, which was 8.67% as of March 25. Gross debt for the group stood at 5,231 crores. The cash and cash equivalent balance as of March 2,953 crores. Consequently, the company's net debt outstanding as of March end was 2,278 crores. Of this, BEL's brigade share is 1,679 crores. It's noteworthy to mention 88% of the debt pertains to our commercial portion, which is backed by lease rentals itself. The debt-equity ratio for the year stood at 0.27. With this, I will now hand it back to the moderator to initiate the questions.

Thank you very much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask questions may please press star and 1 on the touchstone phone. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use only a hand desk while asking our questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Adhidev Chattopardhyay from ICICI Securities. Please go ahead.

Good afternoon, everyone. Thank you for the opportunity. My first question is on the World Trade Center, Bangalore. So, I believe it may be Amazon, which is existing there. That's why I see a drop in the area under lease. So, please help us understand how we intend to fill this space up. Do we already have someone lined up or it will take a little bit longer? That is the first question.

Hi, good afternoon. This is Naropa here. Yes, Amazon has vacated their space. They had about 630,000 square feet that they vacated. We have leased a couple of floors, so we've leased close to 100,000 square feet of that. Line of sight, there are a lot of client interactions, and the idea is to lease it out over the next couple of quarters. So there are very high potential client visits that are happening on a regular basis. What we expect is that there may not be one single client that comes to pick up the entire place, and we're expecting the leasing to happen either floor-wise or maybe two to three floors at a time.

Okay, and just to follow up, are you expecting the rates also to be much higher considering Amazon was an older tenant? So, I guess some of these rates will be marked to market right now, right? So, could we see some uptick in the leasing rate overall?

Yeah, I think with the way the current market condition is, we should look to expect anywhere between 10% to 15%. In some cases, if it's half a floor, it's gone up to even 20%. Expecting larger transactions of two flows, etc., I think a normal increase of 10-15% is expected.

Okay, fair enough, fair enough. Thank you. And my second question is mainly pertaining to our residential business. Some more broader questions. If you could help us understand currently in the land bank and projects we have, what is the cumulative GDP which is available for launch for the next few years? And considering you're targeting close to 9,000 crores of sales, right, in the coming year, what will be your land bank replenishment strategy of the next few years? More broader level questions, if you could address that. Thank you.

Yeah. So, from an overall standpoint, we normally talk about our four quarters on a rolling basis pipeline. For that, we are looking at 11.5 million square feet for the coming year, and that GDV is around 11.9 to, say, 12,000 crores GDV. From an overall land bank perspective, you know, we have 57 million square feet. Of that residential is around 75% as a portfolio. So, in terms of, you know, replenishment, naturally, every month we launch, we aim to replenish, focusing on increasing the presence in Bangalore and Hyderabad, and moderately in Chennai, based on opportunities available.

Sure, sure, fine. Fine, that's it. From my side, I'll come back in the queue. I've got more questions. Thank you and all the best.

Thank you. The next question is from the line of Karan Khanna from Ambit Capital. Please go ahead.

Yeah, hi. Good afternoon and thanks for the opportunity. Just a couple of questions from my end. Firstly, Pavitra on the pre-sales guidance of 9,000 crores. If I look at the unsold inventory of around 10,000 crores and sustain in sales track record of around 55%, is it safe to infer you're building sales from new launches at around 3,500 crores? And if that's the case, isn't this a very conservative number considering historically you have seen 35 to 40% sales in new launches and you're guiding for a 12,000 crore launch pipeline for FI 27?

Hi, Karan. Yes, in some ways, it is a little conservative, but also we're looking at the mix of the new launches of the number that I mentioned, 11.5 million square feet, at least 3 million from Chennai. As we've seen in the past, Chennai, in terms of throughput to the From the launch to that same financial year itself, we tend to see the contribution to be more evenly spread throughout the construction life cycle rather than being front-ended. So this is one of the reasons why that number may look a little conservative. The other aspect is that launches in general, sometimes we do see them shifting out. So if it shifts out maybe into H2 or towards the end of H2, the amount of time that we have... To make those pre-sales happen within the same financial year is showing to be less. This is one of the reasons why in FY26 also we experienced a lower number. So we're going to be right in terms of how much we have in terms of opening inventory, and that's an area that we'll be trying to push further because that's inventory that we have in hand. So looking at both that as well as trying to advance some of the launches so we have better visibility, and as the quarters come through in this financial year, we'll be able to update on that.

Sure. And on the launch guidance of 12 million square feet, so if you can just give some color in terms of what are the current status in terms of approvals and any indication on quarter-wise breakup for the 12 million square feet of launches?

I think, like the previous year, part of the launches will come in H2. We anticipate, if I just go by market, for example, for Hyderabad, they're anticipating about a million or so million square feet to be coming in Q3 and another million square feet to be coming in Q4. Hopefully, we will get some of that in. From a Q3 number, and we'll be expecting another million square feet in Q4. Morgan Heights, as I mentioned earlier, there is a million square feet of the phase of the project that we'll be launching now, or relaunching now, in Q1. The other projects in Bangalore, I think, will still be pushed into Q2 and Q3.

Sure. Question for you, Nirupa. If you can talk a bit about the partnership with Bain, and as part of the deal, will you also be evaluating more opportunities besides the 2 million square feet office asset and hotel in Whitefield, and what are the timelines for completion of this project?

Yes, thank you for the question. Yes, so this is for a 10.8-acre project right opposite IPGL in Whitefield in Bangla. It's a very strong location. It's a 50-50 joint venture partnership, so they're pure equity partners with us in this project. We have the potential to develop about 2 million square feet of office, and we're also planning around a 250-key hotel for the project. It's a five-star hotel as well. Yes, this is, I mean, this was the first. We decided that, you know, we do one project first, and we are definitely open to looking at more partnerships with them. And the timeline, as you said, we're expecting to complete the project around 40 months, in about 40 months.

Thank you. Thank you.

The next question is from the line of Girish Chaudhary from Evendus Park. Please go ahead.

Yeah, hi. Thanks for your opportunity. I have a question on the cash flow. How should we look at the trajectory going ahead? Because what we have seen is the construction cost has seen a material increase, which is understandable given you also mentioned about a significant increase in the area, right? So, but on the collections, any reasons why they have been flattish for the year and when do you expect this to pick up?

So the collection for the year, obviously, I mean, if you see from a residential perspective, I mean, for the new launches, give us a certain amount of collection up front. The sustenance collection as the milestone of construction gets completed, they get converted into milestones which then gets built and collected. So the reflection of the flattish collection which we talked about is primarily because of the initial part of the year where the launches were deferred. That kind of getting materialized, these converting into cash is ongoing right now. So from here, as the launches are getting planned, the cash flow of them will continue to increase, while sustenance cash flow comes based on milestone growth itself. At different stage of each project, the construction intensity differs, and that's what's reflected in the construction cost. So, the operating cash flow generation continues to be positive, and it will improve as new launches take a faster pace.

I understand. How should we look at the collection trajectory going ahead? Because this year, we have seen impact to our operating cash flow in the sense we have seen a decline, why or why? So, can we expect material or a significant increase in your overall operating cash flows for the year?

I mean, it should be, it should come in percentage terms pretty close to the way we look at our sales growth as well. Probably lower from there given the timing per se, but that's what would be the trajectory in terms of cash to generation.

And my second question, if you can give us some updates on your Chennai project, specifically the bariatric project, how has been the response, what sales absorption we have seen, and also for the year fiscal 27, you mentioned about three launches in the Chennai market, right? So, which are these projects?

So, the project is Brigade Stellaris that we just launched in Q4. That is a pretty high-end project. It's 284 units, and each unit is around 6 crores plus. So, so far in Q4, what we did, we sold around 30 units, and I think we are pretty pleased with that performance. We expect... To be fairly stable over the course of the, you know, three to four-year construction life cycle, and so... After the launch quarter, in terms of... 1 million square feet coming up in Chennai. 1 million square feet of that is part of Morgan Heights. So Morgan Heights overall is a 2 million square feet project. We launched 1 million of that last year. As I mentioned earlier, we had to pause it. We are launching the entire project as a full-scale relaunch in Q1 FY27. So basically within the next two months, we're doing that. So that is the... Of that is what is being counted. We have two more projects that we're talking about. One is part of a larger multi-phase township that is 3 million overall, but we would only be launching 1 million of that in the coming financial year. So both of those have visibility towards each two, Q3 and Q4.

Thank you.

Thank you. The next question is from the line of Biplaf Devarma from MK Global. Please go ahead.

Good afternoon, everyone. So, my first question is on the approval related issues that we face in FY26. So, in your view, have all the issues related to approval resolved and do you anticipate Any challenges in FI-27?

I think the primary issues of approvals are now behind us, and as Pavitra also mentioned, we've launched about 4 million square feet in the last couple of months, and we are on track as far as approvals go from a comparative perspective. So I think we are behind the issues that we have.

Well, that's great. And secondly, I don't know whether I have heard it properly. So, you said that around 10 million square feet of commercial projects to be launched in the next two years. Is that correct?

Yes, that's right. The moment we start construction, we consider it as launch. So, while next year, we have said that in FY27, we will be launching about 4.5 million square feet. The balance will come in FY28. But from a sense of completion, it will take about four years by the time the entire project is up and running with OC, etc. So, that's what we have clearly said. We have already tied up lands for about 10 million square feet for commercial.

So, ma'am, 10 million square feet upcoming and around 3 million ongoing. So, from this 13 million square feet, how much rental, once they become operational, how much rental brigade share do you anticipate?

See, what I would say is between what is currently ongoing, which is getting completed, and the 4.5 million square feet that will come up, it will be about 800 pros. That is something that we have already estimated. And for the balance, 5.5 million square feet, we will come up with a number soon.

Okay. Okay. No, that's great. Thank you. Thank you, sir.

Thank you. The next question is from the line of Saurabh Gilda from GM Financials. Please go ahead.

Yeah, hi, I'm Adubhan.

Yes, sir, please proceed.

Yeah, so firstly on the commercial bit, our commercial monetization run rate has increased significantly to 550 crore annually now. So how should one think about this run rate going ahead, given the fact that we are launching a sizable amount of portfolio over the next two years?

See, ideally, we would like to grow our annuity income portfolio. The idea is to... But sometimes based on how demand is for a particular project, in this particular year, you saw the additional of... So, for us, we take it on a case-to-case basis, and if there are smaller projects and if the commercial is part of larger mixed-use townships and is not a very large project, in some cases, we might decide to sell. So, the strata sale is very project-dependent. By and large, as a company, we want to enhance our annuity income portfolio. So, the larger projects, we would like to hold on to it, and maybe some of the smaller commercial projects or... So, we'll have to look at this on a case-to-case basis, especially when, for instance, for Twin Towers, while we would have liked it, we saw that there was much more demand for end-user ownership. So, we had to take it based on that.

So, got it. So, just and lastly on the your leasing income of 1300 crore, can you please share any bifurcation between the office and rental and also the contribution of few of the large office assets?

So if you look at the 1,300 crores, 877 crores was from office. We had about 220 crores from retail and 206 crores from the office. I'll leave a separate app.

Got it. Thank you so much.

Thank you. The next question is from the line of Pritesh Sej from Access Capital. Please go ahead.

Sure. So just repeating the question, just wanted some clarification on the timelines of launches. If I heard you correctly, you said Hyderabad launches largely in second half, Chennai also second half, barring Morgan Heights, which will be launched in first quarter, and Bangalore would be in Q2, Q3. Is it?

Yeah, yeah, that's right. Hyderabad, I had said 1 million in Q3. That project is actually 2 million square feet. But yes, timing-wise, you're right.

Okay, okay, got it. And if you can highlight the key projects in Hyderabad and Bangalore, which one should look forward to. You know, Chennai, you already highlighted, but, you know, same for Hyderabad and Bangalore.

Yeah, so in Hyderabad, we have the 2 million square feet is the second plot that we purchased in Kokapet in Neopolis. So that is the one we are hoping to launch in Q3. And then there is another project in northern Hyderabad that we are looking at launching in Q4. That is 1 million square feet. In Bangalore, we have a couple of... That should be like a Q2, Q3 launch, and we do have upcoming launches in East Bangalore as well in the OMR corridor, again in the Q3 timeframe.

And Bangalore launches also include the large project in North Bangalore and the recently The JDA that we signed, which has been a 39-acre, probably, I think, called Cornerstone Utopia II, is that also included in the launch plans for this year?

Through the North Bangalore project, there were some approval or some bylaw changes that we're still working on, and we'll see if we can work on that for the financial year. But some of the bylaws changed, so we've had to redesign. In terms of the new JDA that we signed, we've just now signed it. I think it will take some time in terms of design and approvals. If it's possible to bring it into this financial year, we'll definitely be looking forward to that and we'll update in the next couple of quarters.

Sure, got it. And just on the balance sheet side, you know, while we are now looking forward to 36,000 crore worth of CAPEX, you know, how should one think about the debt trajectory? You know, will the commercial debt continue to increase and, you know, residential CAPEX would largely be funded through the accruals? Or, you know, what's the thought process and how should we look forward to that?

Yes, that's right. I mean, from a model perspective, residential generates its own cash during the tenancy of the construction itself, so it gets kind of self-funded from that perspective. What we have invested into is our own capital asset, which is a leasing asset, and towards which for construction and to create a project itself, debt augmentation has been. As I kind of detailed earlier, I mean, our net debt, as of... As of end of the year, it stands at about 2,200 crores. And that net debt number, I mean, as these commercial assets which have been launched commenced or progress, we would see certain inflation coming in there. However, from a debt equity perspective, which is 0.27 for us, I think we would not, I mean, we would be pretty lower than 1x as well.

Just on CAPEX, you know, will everything be funded through debt or, you know, since the portfolio is already generating the rentals, you know, so a portion of the CAPEX would be funded to those cash flows?

So it will be a mix of both for sure. I mean, obviously, we would continue to optimize our cost of finance per se, as well as look at maximizing the return on equity.

All the best. Thank you.

Thank you. Ladies and gentlemen, in order to ensure that the management will be able to address questions from all the participants in the conference, kindly limit your questions to only two per participant. Should you have a follow-up question, please rejoin the queue. We'll take the next question from the line of Parvays Kazi from Nuwa Maghru. Please go ahead.

Hi, good afternoon, team, and thanks for taking my question. So, my first question is what was the GDB of launches that we did in Q4 and also a similar number for F5.6 would be great.

Overall, in FY26, we launched 8.3 million square feet with a GDV of 10,000 crores. In Q4, we launched 4 million square feet with around 4,500 crores of GDV. Sorry, what was the second part of the question?

No, you wanted the second part. My second question is, what was the contribution of launches to our Q4 FY26?

So, overall launches for the year, which was predominantly in Q4, the entire year, it was around 43% of the total sales number.

Possible to get a simpler number for Q4?

For Q4. Only for Q4.

Yeah.

Oh, the percentage is only, yeah, the percentage is around 55%.

Sure. Just one more question from my side. For the roughly 12,000 odd crore of launches that are planned for FY27, what would be a broad ticket size split? I mean, let's say less than 3 crore, 3 to 5 crore and 5 crore plus. So what would be a broad split of this 12,000-odd crore in this respect?

Yeah, so it's around, see, overall, we look at our portfolio as, say, affordable is up to 75 lakhs. Then, mid-segment to 1.5 CR. Then, our premium portfolio is what we look at up until 3 CR. And then, above that is our ultra-luxury portfolio. So, so far, it's been around 30%. And it will come down a little bit over the next financial year in terms of mix.

And last question, of the 10 million square feet office projects, which are planned over FY27 and FY28, what would be the split in terms of the three cities where we are present? Thank you.

Yes, so currently the portfolio is maybe 60% in Bangalore, 27% in Chennai. And then 10% in Kochi and a little bit in Mysore. I think once this... The 10 million comes up. It will be somewhat similar with Bangalore still holding about 55% of the portfolio, Chennai about 22%. But we are adding two more cities. We are adding Trivandrum, which will have about 7% of the portfolio. We will be adding Hyderabad, that will have about 5% of the portfolio. And of course, Kochi and Ahmedabad as well will have about 6% and 4%. So we are expanding our base. So we will be adding a couple of more cities to the commercial portfolio.

Thanks and I'll be there.

Thank you. A reminder to all the participants that you may please press star and want to ask questions. The next question is from the line of Heath Vora from Monarch AIF. Please go ahead.

Yeah. Hi, ma'am. This is Heta here. I had a couple of questions. Firstly, could you share the carbon convention level in million square feet?

This is 7.5 million square feet.

Ms. Mora, any further questions?

Yes, yes, I do have. And in Q4, FY26, could you please share the pre-sales geographical split?

Yes, just a second.

And the name for FY26.

Yeah, sure. So, in Q4, 65% came from Bangalore. Actually, this is the same for a full year as well. Actually, the numbers for Q4 and FY26 just happen to be around the same. So, 65% Bangalore, 20% Hyderabad, and 15% from, sorry, sorry, 20% from Chennai, 15% from Hyderabad.

Okay. And could you please help us with the average ticket size for the launches planned for FY27? Is it all largely still in ultra luxury?

No, no, it's not. Actually, we are – on an APR basis, it's more like 10,000 crores in terms of what we will be looking – sorry, 10,000 rupees per square foot in terms of what we will be launching. Predominantly, most of the ticket sizes will be below the 3 crores, while we still have some of this higher than 3 crores ticket size in our ongoing stock, and one or two of the launches, some of the larger units as part of those projects.

Okay. Okay. Just lastly, what is, what million square feet of projects will be completed on the lasing segment side that's sized in FY27? Not the launches, the completion for FY27 on lasing segments.

Yeah, so currently we have about 3 million square feet of projects that should come into the portfolio, or we are expecting the OC for that. So ideally when we look at the budget, you know, we would like to lease out the entire portfolio that is coming into the market, but of course it could take six quarters instead of four quarters, but we are aiming to at least double what we did in FY26.

Okay.

Okay, all right. That's it for my time.

Thank you. Thank you. The next question is from the line of Abhishek Khanna from Kotak Securities. Please go ahead.

Hi, I just wanted to check while you answered this partly, but on the 4 million square feet of launches that you did in 4Q, I just wanted to understand. When were some of these larger projects in Bangalore, like Lumina, Belvedere launched, likewise the ones in Hyderabad, the ones that they had, NTM and Manor, and what was the response like in terms of the take-up in the launch quarter itself, was it like a 40-50%? Any specific details that you could share on these would be helpful for both the Bangalore and the Hyderabad launches.

So, of that 4 million square feet, we launched Lumina, that is in West Bangalore on Thunkur Road. That project, although it came from an approval standpoint towards the end of March, we were still able to do a very high number. In fact, we almost sold out. So, it was more than 85% sold at the launch itself. I think a lot of this was because we were expecting the approvals to happen much earlier in the year. So, there was some awareness of the project. So, by the time we launched, given the micro market has historic undersupply, metro connectivity, all those things, the project did extremely well at a much higher rate than expected also. Belvedere also came towards the end, again, like in the last week of March. So, there we, you know, did not have that luxury of time to sort of build up the market. It has done well. Initially, and also continuing into the first part of Q1, the projects in Hyderabad actually came in, there are two small projects. One came in in January, which the response was good. The second one again came in only early March. That is still taking some time as it's just recently been launched. But overall, I think the response in Hyderabad has also been quite good. So, considering it's not a West Hyderabad sort of market, it's a core central part of Hyderabad market. So, we're still quite happy with the response.

Any number that you would like to share for Belvedere, what would be take up in the month of March in terms of percentage?

Yeah, so we basically sold around 150 units. The overall project size is 760 units. So, 150 we sold.

Okay, thanks a lot. The second question that I had was on the weakness in your recognized margins, both residential and maybe partly even annuity. Resi, of course, has been in the low teens or mid teens and annuity at the high 60s, low 70s. When can we expect an improvement? What's been causing this weakness? You've given some reasons earlier, but when can we expect an improvement in both of these businesses in terms of the reported margins?

The RECI part, I think it's obviously a mix of projects which kind of come up for revenue recognition, which is upon completion and handover, the way recognition standards work. So this is kind of reflective of the mix of projects which would have come up during the year for recognition, and traditionally this would be some of them which have been sold much earlier and wouldn't have taken the increases which kind of the market grew with over the last three odd years. So that's a reflection of that, and the current margins, what we see on operations basis, they continue to run in the higher 20s, which we have kind of lost. On the operation of the POCM basis, we continue to see this in the 30% range of hepatitis cells. The EBITDA margins continue to be 80% and above. What you see on a reported basis here, primarily, is a section where a certain amount of fit outs were recovered on an annuity basis, which kind of diluted the overall margin from a reporting perspective. For quarter four, if you are looking at it specifically, there was an accounting gross-up done for the full year in quarter four from an accounting perspective. So that's kind of further diluted, but the full year number would give you a reflection of what the... And in addition to that, what I explained, leasing revenues also have facility management component of about 200 crores there on an annual number. So that piece also runs at about 15% margin. So that kind of blended basis would dilute as well.

Annually, you have to maintain a facility management revenue at 15% which brings down the blended numbers. And when you said there were for certain sit-outs that were recovered, which was over and above this facility management revenues, is it? How much is that number?

Normalizing for all these leads.

Thank you.

Participants, you may please press star and want to ask questions at this time.

The next question is from the line of Parvez Kali from Nuwama Group. Please go ahead.

Hi, thanks for taking up my follow-up question. So, two questions. One, we still have some space left in twin towers. So, what's our thought process that, I mean, we want to lease it or we can convert it into sale models? And the second is on pricing on the housing side. I mean, what is the situation now in the market and what kind of price increase, if at all, we are building for FY27? Thank you.

Regarding the first question with respect to Twin Towers, the idea is to just sell the project. There is only maybe 100,000 square feet of common amenities that we plan to hold on to, but the balance we plan to sell. So we hope to complete and exit that project in the coming fiscal year.

Yeah, on the residential pricing side, while we are looking at an APR increase year-over-year of a 13%, a lot of that is due to the product mix as well. If you look at a like-to-like basis, what we've been able to take across various projects is high single digits, so like 8% to 9% year-over-year, and we still feel this is fairly healthy. So when we come into the market, depending on the project, Expect to sell at the time of launch. That's a fairly, you know, fully priced number. It's not really a price discovery at this point. So after the launch, we will look at an annual price increase of around 7 to 9% based on that micro market. If we look at our upcoming launches as well, there I had mentioned earlier the average or the APR for that portfolio is around 10,000 rupees per square foot. If you look at our current portfolio, Available as inventory, that number is north of 12,000 rupees per square foot. So what it signals is that the product mix itself is going to be changing in our upcoming launches as well. So that's something to be planning for. While we are still, you know, priced sort of at the higher end in terms of any of the sub-markets in which we are present, it's a unit mix and a product mix that we're going to see shifting back towards mid-segment, Upper-mid segment and away from ultra-luxury over the next financial year.

Thanks, and all the rest.

Thank you. Ladies and gentlemen, this will be the last question for today from the line of Hita Vora from Monarch AIF. Please go ahead. Ms. Hora, I have unmuted your line. Please proceed.

Yes. Hi. Am I audible now?

Yes, ma'am.

Yes. Thank you so much for the follow-up question. I wanted to understand what percentage of our buyers are from the IT and IT services segment, and in terms of the leasing segment, what percentage of our portfolio is leased out to, you know, IT and IT services sector?

I can start with the... Basically, we've said that about 50% to 60% of our portfolio is from the GCC segment, and IT and ITS is about 26% of the leasing portfolio. And the balance comes from...

Okay, and on the residential side?

Yeah, on the residential side, since we're in three different markets, in Bangalore, it's around... It's split between GCC and IT, so GCC is around 30%, IT services around 20% to 25%. The rest is, again, BFSI and startup predominantly. In Hyderabad, also, that number is around 45% to 50%, where, again, it's split equally between GCC and IT. And the remainder, again, from BFSI, there is some customer demographic coming from pharma and life sciences as well in Hyderabad. And in Chennai, it's a slightly lower percentage.

I'm sorry, ma'am, can you please repeat your last line? We missed on the numbers.

Okay, so for Chennai, GCC is around 15%, IT around 20%, BFSI around 20%, and there is a higher contribution from, say, automobile and manufacturing in Chennai, around 15% to 20%.

Okay, understood. And have we seen any softness in, you know, the walk-ins or the EOIs from any of these cities due to the, you know, expected layoffs coming in in the market?

No, as I mentioned earlier, actually, we were really happy with the performance of the launches, especially in a Lumina situation. All of the projects have really healthy walk-ins. Even in terms of inquiries, it's there. It's more skewed towards end-user, where I'd say in the last few years, we were seeing a lot of inquiries from speculators. In terms of conversions, the conversions are still healthy at 10% to 12%, but what is happening is that in some of the... It takes a little longer than usual in terms of the conversion cycle. So that is where we are seeing some of the increase in time, but in terms of percentage overall, it is still healthy and something that we consider positive.

All right, everyone, that's really helpful. Thank you.

Thank you. Thank you. As that was the last question, I would now like to hand the contents over to Ms. Nurupa Shankar. Thank you.

Before we wrap up, we'd like to highlight a few key achievements beyond this quarter's financial performance. We marked an important development milestone with the completion of Brigade Cornerstone Utopia and Barstur, a 6 million square feet mixed-use development, now home to over 10,000 residents, and a key landmark in the Whitefield-Sarjapur corridor. Orion Mall at Brigade Gateway completed 14 years of operations, marking a significant milestone to one of our earliest malls. Holiday in Chennai completed 9 years of operations, and Grand Moor-Misor completed 10 years, marking another milestone in our hospitality portfolio. The World Trade Center Bangalore became the first development in India to receive the Wirescope Platinum Certification, reinforcing our focus on digitally-enabled workplaces. WTC Cochi earned the WTCA Premier Accreditation Certificate, reflecting strong alignment with the global WTC standards. Brigade Gateway Hyderabad was awarded the Mixed-Use Project of the Year at the Reality Plus Excellence Awards, 2026. Our Facility Management Arm, Aurea, achieved a Great Place to Work certification, underscoring our emphasis on employee engagement and workplace culture. We were recognized by Business World as one of India's most sustainable corporates, ranking third in the real estate space and 44th overall. With that, we wrap up our Q4 earnings call. Thank you all for joining and see you next quarter.

Thank you, members of the management. On behalf of Brigade Enterprises Limited, that concludes this conference. We thank you for joining us and you may now disconnect your line. Thank you.