Brigade Enterprises Limited (BRIGADE) Q2 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Brigade Enterprises Limited's Q2 F527 Earnings Conference Call. This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risk and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the lesson only more, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Pavitha Shankar, Managing Director. Thank you, and over to you, Ms. Shankar.

Thank you. Good afternoon, everyone, and thanks for joining us for Brigade Enterprises Q2 FY27 earnings call. I'm joined by our Joint Managing Director, Ms. Nirupa Shankar, and our Executive Directors, Mr. Amar Mysore and Mr. Pradyumna Krishnakumar, and our CFO, Mr. Yogesh Patel. We will jump right in. In real estate, we launched 2.4 million square feet of residential projects in Q2 at an estimated GDV of approximately 3,000 crores. Brigade Barcelona at Neopolis and Hyderabad had a good customer response with launch quarter sales of 475 crores. Brigade Misty Greens in Mysuru was a launch that slipped into Q2, yet we have almost completely sold the available inventory. A small senior-friendly project, Azalea at Brigade Meadows in Bengaluru, rounded out the quarter's launches. Net sales for the quarter were 8,827 crores on a volume of 1.32 million square feet, 72% and 78% higher than Q1 value and area, respectively. While pre-sales was 10% lower than Q2 FY26, this is mostly reflective of the launch timing this year and not of the demand on ground. Average realizations stood at Rs. 13,841 per square foot, a strong 29% year-on-year improvement driven by disciplined pricing increases in our existing projects and a sustained shift in contribution of higher-end homes in our overall product mix. While the RBI raised repo rates by 25 bists after a long period of stable rates, this has not impacted customer sentiment on ground, as the share of home loans continues to hold steady. Two-thirds of residential volume in the quarter came from sustenance sales in our ongoing projects, with a balance from new launches. We have 9,800 crores of inventory, in addition to another 7 million square feet, or 7,600 crores GDV of launches, planned for the second half of the financial year. In Q3, we aim to launch two of our large township projects in Bengaluru, which both have significant contributions to the H2 sales achievement. For now, we reiterate the 9,000 crores pre-sales guidance. Our commercial office portfolio continued to grow steadily. During Q2, we added 0.27 million square feet to our operational leasing portfolio with the completion of Brigade Square in Trivandrum and a 185,000 square feet project that's 100% pre-leased. We also completed Arcadia Brigade Cornerstone Utopia in Bengaluru, taking our total operational leasing area to 9.6 million square feet at a portfolio occupancy of 90%. This quarter, we transacted close to 6 lakh square feet of commercial space, approximately 1 lakh square feet in sales, 1.5 lakh square feet in new leasing, 2 lakh square feet in Churned space and 1.34 lakh square feet of investor space. Rental collections remain robust at 99%, and office-only lease revenues stood at 201 crores, 8% higher year-on-year. Our occupier base remains well-diversified across GCCs, IT-ITES, BFSI, engineering, life sciences, and flexible workspace operators. Occupy Demand continues to reflect flight equality, with GCC's accounting for 41% of Q2 office leasing and green-certified tech parks capturing 61% of market absorption. In line with this, three of our assets, WTC Annex, Brigade Twin Towers, and Brigade Decken Heights, received IGBC Gold certification during the quarter. Lease-up of WTC Bengaluru and Brigade Twin Tars for the coming quarters, and both projects have a healthy pipeline. Beyond our operating portfolio, we have 6.8 million square feet of commercial development under construction, including the World Trade Center and Orion Mall in Hyderabad, with a balanced capital expenditure of approximately 3,350 crores to complete this pipeline. We will continue to phase new supply in line with occupier demand. Turning to retail, our Orion Mall portfolio delivered a steady quarter at 94% trading occupancy. Retailer sales across the portfolio grew 16% year-on-year, led by stronger electronics and restaurant sales, while mall footfalls remained steady, supported by new store openings, festive activations, promotional events, and major movie releases. We're also premiumizing the lower ground-fired Orion Gateway with bridge-to-luxury brands. Aurea FM Services, our in-house facility management company, now manages 16 million square feet with a revenue of 71 crores and EBITDA of 30% in this quarter. In hospitality, BHBL delivered a strong Q2. Portfolio ARR grew 11% year-on-year to INR 7,876 to 7,876, and REVPAR grew 10% year-on-year to 5,922 at an occupancy of 75%. Bengaluru remained the key growth market with occupancy of 81% and rev bar growth of 12%. BHPL's PAT more than doubled to 22 crores from a year ago, aided by lower finance costs following the post-IPO debt repayment and improved operating performance. Growth has been rate-led with resilient domestic demand. Q2 was also a strong quarter for our ESG on both performance and recognition. We achieved a Gredby Rating Real Estate ESG score of 93.7 with a four-star rating for FY26, reflecting our steady progress towards the sustainability goals. Brigade Citrine received the IGBC Net Zero Carbon Design Certification with 76 credit points, extending our Net Zero approach from individual landmark projects to how we design the wider portfolio. Q2 marks the return of our launch cycle, with sales, launches, and development potential all moving in the right direction. Our priorities for the second half are clear. Deliver our planned launches on time, convert sales into collections, and continue to grow our annuity portfolio. 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, Paritra. Greetings and good afternoon to all. To start with, a quick summary of key reported financial numbers for Q2 FI27. Consolidated revenue for the quarter stood at 1,250 crores with EBITDA of 478 crores. The EBITDA margin improved to 38% compared with 26% in Q2 of FI26, an improvement of 1,200 basis points. This improvement builds further upon our performance of Q1 F527 and is primarily contributed by higher margins in the real estate segment. Detailing the segment-wise performance in the quarter, the real estate segment reported a revenue of Rs. 760 crores and an EBITDA of Rs. 278 crores, with EBITDA increasing by 62% as compared to Q2 of F526. The EBITDA margins grew 2x year-on-year to 24% versus 12% in Q2-FI26. Statement revenue of Rs. 329 crores was consistent with the previous quarter of this year, while on a year-on-year basis, it decreases by 3%. It is pertinent to note that Q2-FI26 included a one-time income of around Rs. 26 crores related to finance lease transaction. Excluding this, the revenue for Q2 FY27 would be higher by 4% year-on-year. Facility management stood at Rs. 242 crores, an EBITDA margin of 73%. The segment clocked a turnover of Rs. 161 crores in Q2 FY27, with an EBITDA of Rs. 59 crores. Solidated PAT for the group stood at Rs. 219 crores, 29%. That after minority interest for Q2F527 stands at Rs. 194 crores. The quarter, as Pavitza highlighted earlier, we saw completion of two leasing facilities, adding about 2.7 lakh square feet of leasing space. A large part of delta increase that you notice in the depreciation line item of RPNL, the quarter is contributed by this. Touching upon cash flow performance, collections for the quarter stood at 1,633 crores. The reduction in collection number as compared to earlier quarters was primarily due to milestone that got billed in the third month of the quarter and for which collections were in progress. This is also reflected in higher trade receivables number in the balance sheet. Net cash flow from operating activities stood at 246 crores. We remain confident of sustaining healthy cash flows in the coming quarters and outlook to generate operating cash flow from operations for the entire financial year higher than that of FY26, in line with the segment performances. To give a segment view of the collections in this quarter, real estate segment contributed Rs. 1,115 crores, leasing segment Rs. 343 crores, and hospitality segment Rs. 175 crores. According to debt and liquidity, as of September 30, 2026, the group's consolidated gross debt stood at Rs. 5,439 crores and consolidated net debt outstanding was Rs. 2765 crores, adjusting for cash and cash equivalent of Rs. 2674 crores. 85% of our debt is backed by rental cash flow, income, and GOP from leasing and hospitality segment. The equity ratio at the end of the quarter stood at 0.31, and our average cost of debt, investment for growth towards land acquisitions and capital asset creations would be met through a mix of options, including internal accruals and debt. The consolidated debt-to-equity ratio outlook for the year, post-funding for projected CAPEX commitments and business development spends is comfortable and will be well within 0.5x. We continue to maintain adequate liquidity backed by improved outlook of cash from operations in true H of F527 and credit options from banks and financial institutions. I would also like to mention that along with our financial results for this quarter, we have presented certain ratios as required by Regulation 50-4 of SEBI-LODR, Thank you.

We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on your touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Sukrit D. Patil with iSight FinTrade Private Limited. Please come in.

I have two questions. My first question to Mr. Shankar is, following our 29% net profit growth this quarter, what is our residential volume guidance next two quarters or specifically next quarter as we launch 2.4 million square feet of new projects? It's what key execution risks do you foresee, and what is our forward strategy to project margins from localized import cost price? That's the first question. And it's my second question after this.

Okay. You might have to remind me. I heard about three questions there. But in terms of the guidance for the year, we have reiterated 9,000 crores. For this first half, we've done around 2,900 crores. So the balance of around 7,000 crores is what we are hoping to and planning to achieve in the second half of the year, supported by the plans to come in Q3 and Q4. For the projects to be launched, I mean, there's nothing material to really mention. As per usual business plan, it's just a matter of getting the approvals, and we will start construction. Sorry about the other questions you had asked.

Yeah, okay. My second question is from Mr. Patel. With Q2 EBITDA up about 26-27% to 470-478 crore, what is our forward capex and debt guidance for FY27-28? And how are you managing working capital and liquidity risk across our expanding commercial leasing and hospitality portfolios to protect the cash flow?

So our first quarter operations have been around 600 crores. This number in terms of free cash flow from operations is going to be much higher in second half. The way I explained, you know, certain billing milestones, which kind of from September onwards, which are yet to be collected, and the higher uptick of sales and sales-led collections as well, adding up to our milestone collections. All this would generate cash for investments, and a combination of debt and internal cash accrual is what will fund our investments in our CAPEX, which is our investment properties, which become our leasing assets per se. And in addition to the land bank investments for growth. This debt which would come in, the current outlook of it based on our spend, our debt equity which rests at 0.31 under 0.5x by end of March. So that would be the difference in leverage.

Thank you, and bless you.

Next question comes from the line of Piplup Teh Barma with MK Global. Please go ahead.

Good afternoon, everyone. My first question is on the, you know, overall real estate demand in Bangalore. You know, recently we just read another, you know, job.

Mr. Dev Burman, sorry for interrupting. We cannot hear you. Can you speak all the time now?

Hello. Yeah. Is it better?

Yes, please go ahead. Yes, yes. Yeah.

So my first question is overall, you know, the IT sector and job losses in the IT sector that we've been hearing. So given the ongoing job losses and the lack of fresh hiring in the IT sector, how do you see residential demand in the Bengaluru market evolving over the, say, next two, three years?

Hi, Biflav. So, yeah, there is a lot of talk about what's happening generally in the tech sector with AI and IT. I feel it's something that will really take some time to work itself out. I wouldn't have any knee-jerk reactions on this. We've been maintaining for a long time that despite the net hiring in IT and IT sector and certain companies not being positive, it has not really impacted demand. In fact, demand has actually become more premium while also maintaining growth, whether in our portfolio or Bangalore in general. So there is a lot of technology work happening among GCCs, amongst other companies where this talent is getting absorbed and potentially shifted from IT companies directly to other firms. And that's what we've been seeing in terms of our overall, you know, absorption of residential. So even in upcoming launches, you know, the ones that we are preparing for, there seems to be pretty good demand on ground. Of course, we will be able to realize that for sure once we have approvals and launch the project. But indications so far are still good. There is still a lot of demand from end users for residential.

That's really great news. My second question is, you know, on the launches, key project launches that is planned for third quarter. Can you just give us some insight on the key launches and what would be the GDV?

Yeah, so I had mentioned a number of 7 million square feet and 7,600 crores for the rest of the financial year. Predominantly, there are two large township projects in Bangalore that we're working towards. One of them should come in Q3, and the second also we're hoping to get it in Q3. It may slip into Q4. There is one more residential project in Bangalore that is also slated for early Q4. There is a million square feet in Chennai that we are working towards in early Q4, and another million square feet that will also happen in Q4. In addition, there's, you know, other smaller projects that would add up to the overall number that I mentioned, but that's the 7,600 crores GDV that we have pretty decent visibility about that coming to the market.

What would be the GDV of the township?

Just give me a minute. So, one of them is around, I mean, the two together should be around 3,800 crores.

And my final question is on the, you know, rental expectant. Do we expect any rental income to increase in FI 28, 29 from new projects?

Yeah, we definitely expect the rental income to grow. We're adding quite a bit of square footage into, you know, with the properties coming into the portfolio. So, we are definitely expecting the rental income to grow.

So, what kind of, in terms of millions square feet or rupees, what kind of rental income, you know, increase we see in FY28 and FY29?

See, the office portfolio, by FY29, we expect that to grow to 12.4 million square feet. So, if I add even the retail, then we will be adding a smaller amount. So, I would just say 12.5 million square feet, you can expect from 9.5 to 12.5.

YFI 29?

Yeah, in terms of what will become operational.

Okay, okay. Thank you, thank you, and all the best. Thank you.

Next question comes from the line of Jim and Isha, Bonak AIF.

Hi, ma'am. Thank you for the opportunity and congratulations on the good set of numbers for Q2. I have two questions, both first was on the leasing bit. You know, we've seen some activity in WDC Bengaluru and Twin Towers. Any flavor on that, ma'am, at what, you know, any exit rentals that you can provide because these two still, you know, account for the largest amount that is left to be leased in the leasing book. So, any commentary on these two projects?

Happy with the kind of traction we've done. We did about 100,000 square feet in Twin Towers in terms of sales, and we did about 100,000 square feet of leasing in WTC Bangalore. But then the third quarter is looking extremely healthy. The idea and the focus is to see if we can, you know, complete these projects in H2 and ensure that we lease it out and complete the sales of Twin Towers as well. That's the focus. In terms of rentals, we've seen a pretty healthy increase. I would say from what we were getting, we are seeing the annual 5% increase per year. That is pretty market standard. Through leases that we're doing, we are re-leasing the same space at around 15% higher than what it was getting us.

Okay, thank you for that. Ma'am, and the second question is on the launches. You said, obviously, 9,000 crores of pre-sales and 12.65, I think that's the total expected over the next four quarters. Ma'am, are we expecting an uptick in velocity?

Because, you know, given how X1 has gone, the current velocity is

basically slightly on the lower side. So, if there's no uptick in velocity, we may see some inventory build up. So are we expecting H2 to kind of pick up in terms of velocity or just your thoughts on that?

Velocity is really the launch, the project launch and the option that happens at the time of launch. Since we didn't necessarily have launches in Q1, we didn't see much of that about, you know, overall, if you're looking at the entire H1, 80% of that came from sustenance. So that's something that will reduce not because of lower sales, but because of the contribution from launch will be higher. So the remaining sales that we need to do for H2, a larger percentage of that will come from launch, and we tend to realize a greater percentage of the overall project GDP at the launch cycle itself. Depending on the segmentation of the product, we can have higher absorption at the time of launch. Some of our upcoming launches are in that one to two crore range, which is a sweet spot for many customers, especially in Bangalore and Chennai. So we expect to have a higher absorption for those launches. Based on that is how we've retained the guidance for H2.

And I'm sorry, just last one, then I'm done. The Brigade Barcelona launch is quite, you know, it was a chunky and lumpy bit in Q2. Despite that, only 34% of it has come, of your pre-sales have come from new launches. Is some of it obviously not from Brigade Barcelona? Is the bigger share coming in Q3? How are we looking at it?

Yeah, so in Q2, we had three launches. Barcelona is one of them. I also mentioned Misty Greens in Mysore. So while it is a smaller project, we sold substantially almost whatever available inventory there was. So that is the contribution that you're seeing from there. So not the entire new launch is coming from Barcelona. There is some from Misty Greens as well.

All right. Understood. Thank you, man. Thank you for your time. I'll jump back in the queue. Thanks.

A reminder to all the participants that you have a star and want to ask a question. Next question comes from the line of Harsh Patak with Motil al-Oswal. Please comment.

Yeah, hi, Parvitra and Neelupar and team. Good afternoon. So my first question is on the collections. Like it was mentioned earlier on the call that there were some milestones that we could not hit. So can you please explain what could have been the fall and since the data have also gone up, Since invoicing might have been done, what would have been the thoughtful? Because we also think that construction cost is also lower on a sequential and viable basis. So is it that we have already executed and some payments are left to be done? Can you please explain that?

The collection of that milestone not coming in within the quarter itself was the trade receivables uptick is about 200 crores. So, I mean, of that milestone, about 250 to 260 crores is what remains to be collected, which would have added, it should have been collected within September to our cash. A bit of accounting delta coming in with India's amendment ask variance from BRS. So, no difference there other than for accounting visa.

Understood. So, this would have been more like an 800-810 crore kind of construction cost out there. Is that right to look at it? Second thing, we have incurred some bank payments of around 440 crore. So, which would have been the key or maybe key? It's almost half and half between Panjur and Hyderabad. Understood. Second thing, on the sustainable sales, since, you know, the rate has gone up, I think, 1,200 pros of sustainable sales, we have done this quarter, which is, you know, a significant jump over the last quarter. Which are the key projects that might have contributed to this, and can we expect the same rate to follow through for the rest of the year?

Yes, hi. So, on this abstinence sale, the large contributors were Brigade Eternia in Bangalore and Brigade Belvedere in Bangalore. We also had Brigade Insignia in Bangalore. The other projects are Brigade Gateway Hyderabad, ICON. So, each of these is all contributing and is expected to continue contributing in the same manner for the rest of the financial year.

So, around 11-100% growth of Australian sales, can we expect following through quarterly in the second half as well?

Yeah, I mean, I'm hoping that what we did in sales for the first half is what we will also be able to do in the second half.

Understood. And to the projects that you mentioned, Eternia, Velvet Ray, Insignia, Gatling, Icon, any numbers to put against this? Or maybe just on the region-specific also some sales if you can highlight.

Yeah, so on the residential sales, for Q2, we had mentioned 1,700 crores. So around 900 crores of that came from Bangalore and Mysore. I had mentioned that launch that happened in Mysore, Misty Green. Hyderabad, around 580 crores. And Chennai, around 225 crores.

So, I have 580 crores out of this, I think, 450 crores, like you mentioned, was from this Barcelona project. So, we can engine 130-odd crores from Gateway Mountain Basical.

So, Gateway, yeah, but we also have two smaller projects, close to our previously completed project called Citadel. They're smaller projects, so they've also got some contributions.

Understood. And one last question from my side. Since, you know, I understand Barcelona was launched towards mid-September, rather towards the end of September. So, how do we expect the sales panning out for the rest of the year? Because I understand we have gotten some, you know, very good EOIs that we understood from our channel text. So, how do we expect the sales to ramp up from this project here on?

You're talking about the industry, right?

Yeah, in the industry as well as on the cruise in Barcelona. So how are we expecting the ramp-up of sales happening at this project since we have almost 20,000 crores of inventory in total? How do we expect the sales panning out here, and how is Hyderama demand in general?

Yeah, so, yeah, we did about 450 to 475 crores so far in Q2. For the remaining part of the year, I think we should be able to do another 300 or 325 crores of sales for Barcelona. Maybe we can touch 800 crores for the full year. So each of those units in Barcelona is around 4 crores. I think for a Neopolis sub-market, it's still a healthy size. It's still very much accepted. But over the Hyderabad market, it's generally absorbing higher ticket sizes compared to, say, an upper mid-segment in Chennai on Hyderabad. So we're still pretty confident of it. But from an absorption standpoint, it's not as quickly as we saw it happen for Brigade Gateway Hyderabad. So there is definitely a change in terms of the pace of absorption. But we're still confident in terms of the product and we'll get absorbed well and we're able to charge the price that we want and should be able to take up the pricing as well, despite any...

So, I think, Zodara, just one last thing on the collection phase, we are reporting the total number. So, can we have some break-up on the residential and annuity business for this quarter as well as a comparable number on the YOY business?

This quarter from the three segments, you want to number once again. So, with the 1,633 for the quarter, the real estate segment contributed 1,115 crores, leasing segment contributed 343 crores, and hospitality segment contribution was 175 crores. A reminder

to all the participants, please restrict yourself to two questions. The next question comes from the line of Pritesh, Seth, with Access Capital, please comment.

Yeah, thanks for the opportunity. Just some clarification on launches. So, these two large townships are like one in Whitefield, Hoshkote, and one in North Bangalore. Am I right? Sure. And in terms of Chennai, what are the status of both the projects that are planned for Q4? And any risk you see in terms of spillover considering there has been a government change there? So, you know, how has been the approval cycle, you know, since then?

Yeah, so we had these two projects that we wanted to launch. One of them, we do have good visibility, and hopefully that should come in January of next calendar year. The other one, they're still working to try and get it within Q4, But that one might get pushed out into the next financial year. And that's part of the 76 million? No, so I included only 1 million in the 7 million square feet number that I mentioned earlier.

So can you give me a full breakup of how much should be Bangalore, how much should be Chennai, and how much should be Hyderabad?

Of the 7 million square feet, we are expecting 1 million from Hyderabad, 1 million from Chennai. And the remainder from Bangalore.

Fair enough. And in terms of cash flows, since you just highlighted that, you know, we will be doing higher OCF versus what we have done last year, that still, you know, is a big ask in Q2 for cash-up. You know, large part of this will come from ramp-up in collections and costs remaining same, or I think both will go up, you know, equally in terms of proportions. So, how should we think about, you know, collections and, you know, the overall outflows, you know, to remain in second half? And just one last, you know, I can see like almost 12 odd million square feet of land addition this quarter, between last quarter and this quarter, largely coming from Bangalore and, you know, to an extent from Chennai and Hyderabad. If we can elaborate on those projects, pretty much in details you can...

Hi, Pritesh. So, at this point in time, what we can say is that these projects, but primarily from East Bangor as well, we've added...

Okay, okay. Fair enough. And, you know, that's it from my side. Thanks for answering my questions and all the best. Thank you.

Thank you. Next question comes from the line of Parve Skazi with Nuama Group. Please go ahead.

Hi, good afternoon, and thanks for taking my question. So, two questions, one on each of the businesses. First, on the Resi side, you gave a lot of details about our launch pipeline across cities and quarters. So, my question is on the ticket size, while presumably the one in Hyderabad might have larger ticket size, but regarding the 5 million per week that we plan to launch in Bangalore, So, in general, how much, let's say, will be less than 3 crore and what proportion will be higher than 3 crore?

Yeah, so, including in Hyderabad, so we are expecting a good absorption for that project launch at the time of launch. For Bangalore, a lot of it is actually below one and a half lakhs, mainly happening in North Bangalore is below, is basically one to one and a half lakhs ticket size. The rest of it is around two crores. And then there is maybe, you know, 20% of that that could be around the three crore ticket size.

Thanks. Second question is on the office side, we have a balanced capex of about 3,300 odd crore. So what would be out of this 3,300 odd crore, what proportion could be spent, let's say, by 529, essentially over the next two and a half years?

Since CAPEX, we have to spend for the office in the remaining H2 of 27 is about 400 crores. In 28, we're expected to spend about 1500 crores. And in 29, we're expected to spend another 1400 to 1500 crores.

Sure, and one question if I may ask. So, the projects which will go on beyond FY29, will these be largely the WTC in Hyderabad and the Brigade Atrium?

So, beyond 29, we have, in 29, we have, of course, Cauvery, but if we're talking about FY30, there is a Brigade Industrial Park, Block 1, which is about 300,000 square foot. There is Brigade Icon, the commercial tower, which is about 410,000 square feet, and, of course, Brigade World Trade Center in Hyderabad and Orion Mall, which will be 1.72 million square feet. We will, we should also have, okay, yeah, so that's about it for now.

Sure. Thanks and all the rest.

Thank you. A reminder to all the participants, I will be my best star and want to ask a question. Next question comes from the line of Piblok Devarma with MK Global. Please go ahead.

Thank you. So, on this WTC Hyderabad and Brigade Industrial Park and Brigade Icon, have the construction comments?

Yes, this is all under construction. This is all under construction already, and they're all, those three projects that I mentioned are all slated to come into operation by FY30.

And on the rental assets only, what kind of rental run rate do you expect in FY29 following the additions of all the projects that would come from operation by FY29?

So, we are expecting about 1,700 crores of overall rental income in FY29.

And my final question is on the revenue recognition. Overall, what kind of revenue recognition from residential segment do you expect in FY27, and what could be the margins for FY27 residential segment?

From a revenue perspective, we should do a year-on-year growth again, you know, on a full-year basis. This is depending, obviously, on the OCs coming in, registrations happening, because that's what it reaches the recognition milestone. From a margin perspective, this year, or actually coming in from last year, we had mentioned that the profile of projects which are now stated for recognition of revenue Revenue are the ones which kind of took the prices, are at a better margin, which is reflective of higher EBITDA in the real estate, which we have delivered in Q1 and Q2 both. So the margin profile of the entire FI27 would, in real estate, would be in that early 20s, between 22 and 24 percent, which is what was there in H1 as well.

I need the revenue recognition part. What would be the revenue recognition, the approximate Thank you.

Next question comes from the line of Harish Bhattar with Mutlal Oswal.

Please comment.

Yeah, hi. Thanks for the follow-up. You can see if you also can highlight the same revenue recognition and margin thing for FY28 also, please.

I was explaining the earlier answer itself that it would depend on OCs and those outlooks we get much more closer to that timing comes through from our revenue perspective. But since I have you on the call right now and you had asked me on the cash numbers for last year, I can pick that up and let you know. We have FI 26 cash flow, what you had asked, cash collections break up by segment. We had 2,000 entry.

Okay, thanks a lot for the break. Just one more thing on coming back to the cash flows. In this quarter, we had some 20 crores of payment to what would be?

Payment to PE basically is our JV partner. So the amount in a project, once it starts collecting cash, if there's a distribution, that's what reflects our payment. Thank you. If the entity has become a joint venture and does not get into a line item consolidation mode, the investment what we had done had to be reclassified.

Thank you. A reminder to all the participants, Rajima Pestar and want to ask a question. Next question comes from the line of Rastev with Nuwama.

Please go ahead.

Yes, thank you for the opportunity. Can you give some details on business development? Please come in.

Mr. Vastev, sorry for interrupting. We cannot hear you. Can you speak? Can you come in the range and talk? Voice is not clear.

Is it better now?

Yes, please go ahead.

Yeah, so I was asking about the business development that we have done in Q2. In this case, some color in terms of area or GDC added, and the balance table is about 2,300 crores that we have for non-payment. So what time frame are we expecting to pay this?

Thank you. Ladies and gentlemen, that was the last question for today. We have reached the end of question and answer session. I now hand the conference over to Nirupashankar for closing comments.

Thank you, everyone. Before we wrap up, we'd like to highlight a few key highlights beyond the quarter's financial performance. Through the Big A Foundation, we're redeveloping the pipeline road in Yashwanpur, Implemented in association with the GBA. We also held our first AI Buildathon, Brigade Builds Better, which brought together close to 700 employees over two days to turn everyday business challenges into practical AI solutions. A few noteworthy awards and recognitions, Brigade has been recognized amongst the top listed and fastest growing large category real estate companies in 26 at the Construction World Architect and Builder Awards. Brigade also won the Digital Transformation of Business, organized by XLRI Jamshedbore. The Freedom Fighters Memorial in Chikmagalore was awarded the Outstanding Museum Practice Award at the Karnataka Tourism Awards 26. Brigade Cornerstone Utopia won the Architectural Project Integrated Townships at the Economic Times Designscape Awards. Brigade Enterprises also received a silver recognition under the Quality Improvement category at the CII Competition on Digitalization and Artificial Intelligence for Quality Improvement 26, and Pavitra and I were ranked number 30 on Business Today's Most Powerful Women 2026 list. Brigade celebrated 40 years, marking our journey from a team of just five individuals to a diversified organization with thousands of employees. In our first decade, we built a million square feet. In our second decade, we built nine million square feet. In our third decade, we built 30 million square feet, and in the fourth decade, we built 70 million square feet. The next decade promises to show even more exponential growth as well. Every stage of that journey has been made possible by the people who believed in us, worked alongside us, and placed their trust in us. We also held the 19th edition of the Brigade Showcase, where many customers trusted us once again with their second home. As we look ahead, we do so with gratitude to everyone who has brought us this far. With that, we wrap up our Q2 earnings call. Thank you all for joining, and see you next quarter.

Thank you. On behalf of BrickH Enterprises Limited, let's conclude this conference. Thank you for joining us. You may now disconnect your lines.