BRIGADE — earnings call

The transcript as filed. Every paragraph is addressable: its link names the page and the position it sits at in the call.

Prepared remarks

Moderator · Conference Operator

Ladies and gentlemen, good day, and welcome to the Brigade Enterprises Limited Q1 FY '26

Questions and answers

Moderator · Conference Operator

Thank you, sir.

We will now begin the question-and-answer session.

Any one who wishes to ask a question may press * and 1 on the touchtone phone.

If you wish to remove yourself from the question que, you may press * and 2.

Participants are requested to use handsets while asking the questions.

Ladies and gentlemen, we will wait for a moment while the question que assembles.

The first question is from the line of Mr. Girish Choudhary from Avendus Spark Institutional Equities.

Please go ahead.

Brigade Enterprises Limited August 14, 2025

Girish Choudhary

Hi , Good afternoon.

Firstly, on this launch pipeline of 13 million square feet over the next four quarters, if you could highlight the key projects and also how to look at the pacing of this project?

Is it back-ended or I mean, should we expect anything meaningful launches in the next one, two quarters?

Pavitra Shankar

Hi, good afternoon.

So, yes, in terms of our launch already in Q2, we have visibility of multiple projects already where there is no dependency on RERA.

The GDV of those projects is already around Rs.

4,600 crores.

So, for some of those, we will be launching that in Q2. Some of that is already underway.

A couple of those, while we don't require the RERA, it is still part of our, don't require in the sense we already have the RERA.

It is part of our multi-phase approach.

So, for example, both in Chennai, Brigade Morgan Heights, and the second tower of Brigade Gateway Neopolis, we have the RERA.

It is part of our overall sales plan, when we will launch that, potentially in Q3. In Bangalore, we have already launched a plotted project, Brigade Cherry Blossom in Malur.

We have already got the RERA and started selling for Brigade Avalon, which is a project in Whitefield.

And both these have good take-ups.

We have one more where we have the RERA in hand and are currently doing a soft launch.

And with that, I think there is very good visibility already for Q2 and Q3. And of course, we are still working on the approvals for the rest of the launches that we are quite confident should be able to come in Q4.

Girish Choudhary

Secondly, I mean, this is more on the business development.

In terms of entering into new cities beyond South India, I mean, where are we in terms of evaluation or what are we thinking?

And also from an overall real estate cycle point of view, are you comfortable entering into new cities currently or would you want to wait it out?

Pavitra Shankar

Yes, so we have been communicating for a long time and we continue to go in that direction that we will focus on Bangalore, Chennai and Hyderabad.

We have a really strong presence in terms of business development for all three markets.

And there is also much more room to grow for our presence in both Chennai and Hyderabad.

The brand is really well valued, and I think there is a lot of room for us to take more market share in both.

And also in Bangalore to continue to maintain our leadership position and grow on that as well.

So, I think we are just focusing on that.

We will be able to meet whatever growth expectations we have and others have of the organization before we start looking at other markets.

I am not sure if this is the right time to be looking aggressively at entering new markets.

We are always studying them, of course.

Brigade Enterprises Limited August 14, 2025

Girish Choudhary

And lastly, if I see your cash flow, I mean, in terms of outflow, we have seen a significant increase in employee and admin and also marketing expenses Y-o-Y.

And we have just seen one launch this quarter.

So, is this the new run rate or any one-offs to be considered for us?

Jayant Manmadkar

So, as far as employee cost is concerned, it is as usual, the trend will continue.

And the launches, primarily, it is for the expenses which are incurred in the marketing and sales of the project.

So, that is purely activity-based cost.

So, that will always be linked in terms of the launches, the way they are going to come in subsequent quarters in Q2, Q3 and Q4.

Girish Choudhary

So, what I was trying to understand is that in terms of sales and marketing expenses, this quarter was around Rs.

86 crores of cash outflow.

Last year it was Rs.

44 crores, so almost doubling, right?

I mean, we have seen just one launch this quarter.

So, how to read that?

And even employee and admin expenses, right?

What was Rs.

100 crores last year is Rs.

186 crores.

So, even sequentially, I am seeing a significant jump.

Pavitra Shankar

So, the sales and marketing expenses will also reflect the launches that we have done over the last couple of quarters.

So, as we are adding more to our sales pipeline, we will also be spending more in order to do that sales.

So, that is why you are seeing the larger amount compared to a Y-o-Y because in the past year we have launched about 11 to 12 million square feet.

So, the sales and marketing expenses now in Q1 will be reflecting that.

Girish Choudhary

Thank you and all the best.

Moderator · Conference Operator

The next question is from the line of Mr. Pritesh from Axis Capital Limited.

Please go ahead.

Pritesh Sheth

Thanks for the opportunity.

So, first on the city mix for this quarter, how much was from Bangalore and how much from Chennai?

And just for a follow up, I think, you know, we started off with over Rs.

7,500 crores of inventory in this quarter.

You know, yet I think sustenance sales contribution was not too high.

It was pretty much in line with what we have been doing in the past.

So, any specific reason for that?

I am sure, I think Chennai, the two projects, Brigade Icon and Altius has a lot of inventory, which is kind of slow moving.

So, just if you can put some numbers on that to help me understand the lower sustenance sales contribution for this quarter?

Pavitra Shankar

So, in terms of the sales last quarter, if you look at it by revenue or areas, anywhere between 70% to 75% contribution from Bangalore and about 20% to 25% from Chennai.

There is a little bit from Hyderabad as well, a few units from Gateway that are coming through.

But pretty much that is the breakup of what we saw in Q1. Chennai sales and inventory, Icon being the kind of high-end project it is, that is pretty much in a sustenance mode.

We will not see large numbers coming at a launch or continuing in that way.

So, that is an ongoing basis.

Brigade Enterprises Limited August 14, 2025 In terms of Altius, we are actually quite happy with the progress at the way Altius is going on because the pricing is pretty much top of market and much higher than anyone else in that same competitive set.

So, given that it is still in Chennai, we are seeing really good traction for that product and we are quite happy with how the uptake has been even post the launch quarter of Q4. Morgan Heights, we have received the RERA.

We have launched the project in May.

It is sort of in a launch mode because our marketing office is in the process of getting ready.

Chennai as a market requires the marketing office to be in place to have a proper sales experience, etc. So, once that comes on board in the beginning of September, we are expecting to see a lot more traction.

This is quite different from the behavior in Bangalore and Hyderabad, where pretty much it is very launch-driven and the excitement of the launch, whether or not there is a very specific sales experience, that is a little different the way Chennai works.

So, I think once that marketing office is there in place, which is in the next few weeks, we should be able to see much stronger uptake on Brigade Morgan Heights.

So, overall, I think, yes, Chennai definitely does happen at a different pace, but we are mindful of that.

Our plans are also put in place, keeping that in mind.

So, we have a more accelerated sales cycle for Bangalore and Hyderabad launches compared to Chennai.

Pritesh Sheth

And how much is the inventory right now between Icon and Altius?

And how much did Altius specifically contributed to this quarter's pre-sales?

Pavitra Shankar

Yes, I will just come back to you with those numbers.

Pritesh Sheth

Sure, I will take it probably offline as well, no problem.

Just second question on the launches.

So, I think we had a plan of launching 12.3 million square feet for this year.

We have launched a million square feet on the residential side.

Balance is 11.3.

Any changes in terms of the launch plan for the year?

Any slipovers or any preponement of launches that you expect?

I think specifically the Hyderabad project that we just signed this quarter, any chance of launching it this year or it could be next year?

Pavitra Shankar

Yes, so the positive thing is the Hyderabad project that we announced, we are working to get that into this financial year.

One thing was the Brigade Innovation Gardens that we were trying to get it into this financial year, could potentially slip into Q1. But other than that, everything else is per our plan.

In terms of Altius, we did 65 units of Altius last quarter, and that was around Rs.

150 crores in revenue.

Pritesh Sheth

Got it and Innovation Gardens is a Velachery project, is it?

Or Perambur project?

Brigade Enterprises Limited August 14, 2025

Pavitra Shankar

No, that's in Brigade, sorry, that's in North Bangalore in a sub-market called Harlur.

It is what we have been referring to as the KIADB parcel of 75 acres.

It is the larger mix.

Pritesh Sheth

So, that is it from my side for now.

I have a couple of questions, but I will join back the queue.

Moderator · Conference Operator

The next question is from the line of Mr. Parvez from Nuvama Group.

Please go ahead.

Parvez Qazi

Hi, good afternoon, and thanks for taking my question.

So, first a couple of questions for Pavitra.

I mean, did I get it right when you say that we have RERA for projects with Rs.

4,600 crore GDV already?

Pavitra Shankar

Yes, that is right.

So, some of those we have already launched in the course of Q2. For example, Brigade Cherry Blossom, Brigade Avalon.

We have already launched those.

We have one more in Bangalore where we have the RERA and we are in the soft launch phase.

We will be doing an allocation event before the end of the quarter.

The rest of it comes from Hyderabad and Chennai, both in Brigade Gateway, the second tower in Hyderabad, and the Phase 2 of Brigade Morgan Heights, which we have launched the first phase this past quarter in Q1. It is a single RERA, but based on the amount of inventory and phasing, basically we have the visibility already, and it should come in towards the later half of the year.

Parvez Qazi

Overall on the demand side, on the resi space, how do we see it currently?

Is it like the same what it was an year back or are we seeing some moderation and also your views on the pricing going ahead?

Pavitra Shankar

So, in terms of the residential demand, we are seeing that it is still pretty good.

I would say that the pace at which people are making their decisions based on the ticket size, that has changed.

So, in terms of a year ago, the ticket sizes were lower.

People found it much easier to make those kind of decisions.

Now, if I look across my portfolio, more than 80% of it is Rs.

1.5 crore plus.

So, that is quite a big change.

So, therefore, we are seeing people take a little more time to convert, but the on- ground demand is still very good.

For example, Brigade Avalon, which we launched in Whitefield, that is a 206-unit project and an average ticket size of Rs.

4 crores to Rs.

5 crores plus.

And that has really been well accepted.

But that said, that is one of the, you know, we are not going to sell out in the first quarter or second quarter for that matter either.

So, we just have to time accordingly.

In projects where we have more mid-segment inventory or ticket sizes coming below Rs.

1.5 crores or less than Rs.

2 crores, we are seeing a much faster uptake.

Brigade Enterprises Limited August 14, 2025 So, I would just again reiterate what we have been saying that what the customer behavior that we have seen happen over the last two to three years, that is really out of the ordinary.

And I would say that things are still very healthy on ground.

We should just be wary of comparing to the best case scenario, which was there for the last couple of years.

Parvez Qazi

And a couple of questions for Nirupa.

First, I mean, in the presentation for Brigade Hospitality Ventures, I think we have outlined a plan for adding about 1,700-odd keys over the next four to five years.

So, what would be the rough cut CapEx outlay required for this?

And second, your views on leasing in Brigade Twin Towers.

Nirupa Shankar

Thanks for that.

So, with regards to the CapEx for the hospitality, we plan to do it next quarter.

We will share those details with you.

Just to let you know that anything in the 5-star deluxe category, on average, the cost of construction will be about Rs.

1.5 crores to Rs.

1.75 crores a key.

This is just the cost of construction.

And some of the Fairfields that we have mentioned, the 4-star category hotels, on average, the cost per key is around 65 lakhs.

In terms of the CapEx outflow, we plan to outline that by next quarter.

And you will have the details by next quarter.

Regarding Twin towers, what we have understood is that we have one tower, the first tower that we kept for sale because we found that the sales traction has been very healthy.

So, the first tower is about 550,000 square feet.

And we have already sold 50% of that.

And this quarter also we should see another bump up.

I think we have managed to do another 20% this quarter, so almost 70% of the first tower has been sold.

With regards to the other tower, we have kept it aside for leasing, but in case we find that the sales traction continues to be very high, then we will also add that into the sale portfolio.

But as of now, we are getting a healthy rate.

You know, the sale price that we have been doing the last few transactions are at least Rs.

12,000 a square foot plus all additional expenses.

So, it has been a fairly good market for end users and a sale-driven market.

So, that is how we plan to go about it.

Parvez Qazi

Thanks and all the best.

Nirupa Shankar

Thank you

Moderator · Conference Operator

The next question is from the line of Mr. Biplab from Antique Stock Broking Limited.

Please go ahead.

Biplab Debbarma

Good afternoon, everyone and thank you for taking up my question.

So, my question, one question is in continuance to what just Parvez asked.

So, you know, we have been hearing that due to job losses in the IT sector and, in general, slowdown, Bangalore is experiencing slower real estate absorption and maybe heading toward a broader slowdown.

Brigade Enterprises Limited August 14, 2025 So, what you said is that current state of real estate absorption continues to be strong.

That is very good.

So, the question is, what is your outlook on demand?

I mean, despite job losses and some slowdown in IT sector, do you see this kind of demand continuing over the near and medium term?

That is my first question.

Nirupa Shankar

Nirupa here.

I will just throw some color on it from office and then maybe Pavitra can add on the resi side of things.

See, for Bangalore, if you just look at the gross absorption that we saw in Q1 of FY '26, it absorbed almost 4.8 million square feet of office space.

Now, I mean, the dependency on IT and IT services has relatively come down.

From an office perspective, I can tell you that IT services are contributing to only 40% of the overall loss absorption.

The balance is coming 36% from GCCs and the remaining 24% or so from BFSI, so financial services, etc. Now, Bangalore is still the most attractive location when it comes to setting up of GCCs.

So, from an office perspective, I can say that, yes, there are a lot of media written on this and perhaps AI will come into the picture, but nature of jobs required might change.

And maybe there will be more focus on GCCs and R&D facilities being set up here.

Additionally, we are seeing a lot of financial services and pharma companies also being set up.

So, on ground, we are not seeing the kind of slowdown that the media is talking about.

We are still seeing pretty good traction from an office demand perspective.

Pavitra Shankar

Yes, this is Pavitra.

I just wanted to echo that.

We are seeing that supported on the residential side as well because while the IT sector has been seeing layoffs over the last few years, that really has not impacted on the residential side.

In fact, we have been seeing more traction towards premium and higher-end sales, which means it is the kind of talent that you see working in GCCs or this embedded technology or digital jobs that are happening in traditional businesses as well.

So, that is where we feel that despite all of the conversation that is going on, we are not seeing that on ground.

Also, I would say that, you know, being a premium brand and having inventory in great locations and positioned the way we are, we will still be that flight to quality in case of someone has multiple choices, they will come to a Brigade for that.

So, that is where we are seeing things.

So, even if the market does consolidate a little bit, we are still confident of our position.

Biplab Debbarma

That is a very good news.

And that is all from my side.

Moderator · Conference Operator

The next question is from the line of Mr. Mithun from Kivah Adviors.

Please go ahead.

Brigade Enterprises Limited August 14, 2025

Mithun Aswath

Hi.

Just wanted to understand, in terms of FY '26, this year, launch pipeline is quite strong.

And last year, I think we did pre-sales of about 7 million square feet.

So, do you have any target for FY '26 in terms of what kind of sales growth you are looking at?

Pavitra Shankar

So, we have always communicated that we like to target a growth of 15% to 20%.

We will be looking at that from a value perspective.

So, last year we did around Rs.

7,800 crores in total sales.

We are hoping to get to about 15% increment on that.

It is, of course, dependent on approvals and launches coming through at the right time frame.

This year, as well as last year and a couple of years before that, a lot of our numbers were dependent on getting launches.

In fact, at least 50% of the sales is coming from new launches.

So, as long as that continues to happen, and we are, of course, working very hard on that approvals front, we are quite confident of this.

I also mentioned earlier that we launched Morgan Heights Q1. That was almost Rs.

1,000 crores GDV.

And we have visibility of another Rs.

4,600 crores.

So, of the entire year's GDV that we have intended to launch, we have almost 50% in hand as well.

So, I think we are quite confident of the year.

Mithun Aswath

And also on the commercial development side, what is the kind of target of launch of projects?

Nirupa Shankar

So, on the commercial side, we currently have two and a half million square feet that is ongoing in terms of construction.

And upcoming that we plan to launch is another 2.6 million square feet.

So, year-on- year, we are looking to launch about 2.5 - 3 million square feet, which is a number that we have in mind.

But ongoing, we have another 2.5, as I mentioned, and upcoming also another 2.6.

Mithun Aswath

Thank you.

Moderator · Conference Operator

The next question is from the line of Mr. Ashish Shah from HDFC Mutual Fund.

Please go ahead.

Ashish Shah

Just maybe a couple of things.

Would it be possible to sort of give some estimate on the launch values, launch GDV for the second, third and the fourth quarter?

I know things can slip here and there by a quarter, but any sense on how it can pan out?

Pavitra Shankar

Yes, so, in total, we have about 15.5 or 16 million square feet total launch plan for the rolling four quarters.

At the beginning of the financial year, we had communicated around 12 to 12.5 million square feet in the residential launch pipeline, for which I think we have a similar number as of now for the rest of the financial year.

We are approximating around Rs.

10,000 per square foot on average.

So, basically, you could assume Rs.

12,500 crores GDV for the overall launch for FY ‘26, of which I just now went Brigade Enterprises Limited August 14, 2025 through the calculation that we have visibility of 4,600 crores already, for which 1,000 was launched in the last quarter.

So, for the rest of the financial year, we are working on those approvals and hopefully we will be able to get all of that within Q4 itself.

Ashish Shah

Understood.

The other thing is we have spent quite a significant amount on business development this quarter.

If you can throw some light on where have we added these projects, especially on the residential side.

And what kind of projects are these?

Are these very premium projects?

Are these mid premium etcc, etcc?

Any perspective on the color of the BD which has been done in the first quarter?

Pradyumna

Hi, Ashish.

Pradyumna here.

So, we have added about 60% of the projects in Bangalore and 20% each in Chennai and Hyderabad.

In Bangalore, in residential, it is not very premium in nature.

These are the sweet spots that we have been targeting over the last many quarters of the projects that have been launched.

So, these are similar in nature, typically in the range of about Rs.

10,000 to Rs.

12,000 a square foot.

So, that is where we would be launching these projects when they do.

As far as Hyderabad goes, again, it is a similar project.

About Rs.

13,000 per square foot is the pricing that we are looking at.

And the strategy that we have communicated earlier, and this is a great example of that is, you know, we have seen a very successful project called Brigade Citadel in Hyderabad, and therefore we have targeted properties in the same vicinity.

And right now, the ones that we have added last quarter is also literally opposite to this location.

So, our strategy continues to be very, very similar to what we have been communicating.

Ashish Shah

And Chennai?

Chennai would also be at what sort of a price point?

Is that, again, very premium or the lower price point?

Pradyumna

No, it won't be a premium.

Again, it is upmarket but not premium in nature.

It will be a follow- on to our Brigade Altius project.

That is the view that we have taken and we are acquiring the property.

Ashish Shah

Lastly, for the business development done so far in the first quarter or year to date, what would be the land cost to the GDV ratio approximately?

Pradyumna

So, we have about Rs.

11,000 crores of GDV that we have acquired in Q1. And the typical about 20% to 22% is the range.

Ashish Shah

Understood.

Thank you very much.

Moderator · Conference Operator

The next question is from the line of Mr. Girish Choudhary from Avendus Spark Institutional Equities.

Please go ahead.

Brigade Enterprises Limited August 14, 2025

Girish Choudhary

Thanks for the follow-up.

Again, on the land cost, you have a balance which needs to be paid, which is around Rs.

1,380 crores.

So, by when can we expect this to be paid?

And also in terms of business development, what is the pipeline looking like for the rest of the year?

Pradyumna

So, out of the Rs.

1,380 crores, about Rs.

470 crores has already been paid in Q2. And the rest of it is spread across various projects, most of which will, you know, it is a combination of joint development and outright purchases.

So, these will get paid out in the course of the next year, year-and-a-half or so.

So, the balance is about Rs.

910 crores and that will get done in the course of the next, say, 18 months or so.

Girish Choudhary

And in terms of the business development pipeline for the rest of the year?

Pradyumna

So, that is ongoing as usual, Girish.

Typically we get about 200 to 250 proposals every month.

Now, that filter continues to take place.

We will keep adding.

I don't think you will see a slowdown in terms of acquiring new properties, whether it is by way of JD or otherwise.

Girish Choudhary

My next question is on BuzzWorks.

So, what I have seen recently is that you have leased up in a center outside of your own portfolio, 50,000 square feet at the mind space.

So, just wanted to understand how are you thinking about this business of yours?

And what is the current capacity and the growth plans here?

And in general, in this space, how are you seeing the competition, pricing and margin trends playing out?

Pavitra Shankar

Thanks for the question.

So, BuzzWorks for us is currently a smaller portion of our business, but we believe it is a high-growth business.

Currently, of course, we have about 5,000 seats, but we are looking to double that up by FY '26.

So, we believe that this is a vertical that can grow very fast.

Obviously, when you look at the overall absorption of commercial office space, the co-working or the flexible office brands take up at least 18% to 20%.

In some markets, it could be more, like 25%.

But say on average for the country, it could be about 20% of the overall inventory.

So, we think that we know that this trend is here to stay.

So, because we have it in-house, that far it was more of a value-added service to our existing clients when they wanted flexible space.

But I think going forward, we are open to taking space from other builders as well, especially in markets where we currently don't have office space ourselves.

But we believe that this is a high-growth business, and the idea is to scale this up in a big way in the coming years.

Girish Choudhary

In terms of competitive landscape currently, how are you reading this market?

Pavitra Shankar

See, there are multiple players.

Barrier to entry is relatively less.

It doesn't require the kind of capital investment that creating an entire commercial building requires.

So, barrier to entry is Brigade Enterprises Limited August 14, 2025 lower.

I would say we are in the mid to premium.

So, the average seat cost on the premium end could be Rs.

20,000 to Rs.

25,000.

And you get players in the Rs.

4,000 to Rs.

6,000 as well.

On average, our positioning is around Rs.

13,000 to Rs.

15,000.

Of course, like I said, that is an average.

There are some centers that do Rs.

18,000.

There are some centers that do Rs.

10,500, Rs.

12,000.

So, on average, we are around, I would say, Rs.

14,000 or so.

So, we are not on the highest end.

And I would say we are more on the premium end, I would say.

Moderator · Conference Operator

The next question is from the line of Mr. Pritesh from Axis Capital Limited.

Please go ahead.

Pritesh Sheth

Couple of questions.

So, on BD, what would be the estimated spend for this year now with a very strong start in Q1?

Pradyumna

So, that depends on the kind of opportunities that we get, Pritesh.

While we focus on certain lands, both joint development in nature as well as outright purchases, I think, I can't tell you a number in terms of what we will be spending.

But the approach will be of what I mentioned earlier also, which is about 20% to 25% of the cost to GDV.

That would be the approach.

Pritesh Sheth

And in terms of these 2.6 million square feet of upcoming commercial launches, which are the key projects?

I mean, will we start constructing Brigade Gateway, retail, office, this year itself?

So, some insights on these 2.6 million square feet, which are all these projects?

Pavitra Shankar

So, what we have as part of the 2.6 million square feet is Brigade Padmini Tech Valley Tower A, which is in Whitefield in Bangalore.

That is about 345,000 square feet.

Then we have Brigade Panorama Chambers, which is in South Bangalore.

We also have Brigade Cauvery, which is a CBD property in Bangalore, about 190,000 square feet.

We have the Kochi Infopark Tower 3, which is another 150,000 odd square feet.

And then we have more value-added office and retail in our mixed-use township, Brigade Valencia.

So, we have some office of 140,000 square feet, retail of 80,000 square feet.

And the biggest project is again in Bangalore, which is the Brigade HRC, which is right next to the airport toll of about 1.4 million square feet.

So, out of the 2.6 million square feet, BEL share, our share is about 1.76 million.

Pritesh Sheth

So, basically, your Gateway would start construction next year, right.

I mean, not this year.

Pavitra Shankar

Maybe in the next quarter we can have that update.

Pritesh Sheth

Fair enough.

And just last, if you can provide the breakup of collections across our different segments for this quarter.

Pradyumna

Yes, just a second.

Brigade Enterprises Limited August 14, 2025

Jayant Manmadkar

So, the real estate collection is about Rs.

1,248 crore, commercial leasing is about Rs.

311 crore and hospitality is about Rs.

168 crore.

Total Rs.

1728 crore.

Pritesh Sheth

That is it from my side.

Thank you and all the best.

Moderator · Conference Operator

The next question is from the line of Mr. Prolin from Edelweiss Public Alternatives.

Please go ahead.

Prolin B. Nandu

Hi, team.

Just wanted to understand, to the previous participants' question, you answered that you don't want to enter into any new cities, right?

There is enough and more to be done in some of the Chennai and Hyderabad.

So, I want an internal assessment of how has been our foray into these cities, right?

And where I am coming from is that, you know, you talked about this project called Morgan Heights, right, where you launched in May, but the sales office is still going to come up in a few weeks' time.

So, are these some location-specific nuances which we are still grappling with?

Or how should one think about our entry into these two cities specifically?

If you can spend a few minutes on both the cities, that would be very helpful.

Pavitra Shankar

So, I would like to say that the ongoing and the upcoming projects that we have in Chennai is a reflection of a lot of time and hard work to get these lands into the pipeline.

And also a reflection of what Chennai market feels about Brigade, especially after the completion of our World Trade Center project on OMR.

So, when we conceptualize and deliver mixed-use projects, I think that really is a game changer for us in terms of establishing ourselves in the market and then seeing rapid growth from then on.

So, a lot of our business development success, the project launches that are happening now has really sort of taken off after seeing World Trade Center in Chennai.

We are also experiencing the same in Hyderabad.

So, after announcing the Brigade Gateway in Neopolis, having seen what the plans are like, having seen the launch of the first tower, which was an unprecedented success, it is the most premium project in that sub-market.

And I would say the entire market has noticed and also recognize that we are building a very premium mixed-use development, which has the top brands like World Trade Center, Hyderabad, the Intercontinental Hotel, and our own flagship brand, Orion, for retail, along with 600 premium residences.

So, when the market sees that sort of certainty in these projects coming up, we are also seeing a lot of increase in the business development proposals that we are receiving in Hyderabad.

So, what I would say is that our approach in each market is to establish ourselves not just in terms of our BD connections, but also delivering and then building on that.

Specifically in terms Brigade Enterprises Limited August 14, 2025 of Morgan Heights, we don't think there is any sort of specific issue.

It is just that in Chennai, the market is such as they like to have a sales experience on ground.

And also in Chennai, you can't really construct a marketing office prior to receiving certain approvals in hand.

So, we do have a setup at the site.

It is in a soft launch stage.

But we expect to see a lot more traction once the sales office is open.

And I think that is normal and natural.

That is what we have experienced in both Icon and Altius as well.

So, apart from that, there isn't anything specific about Morgan Heights.

Prolin B. Nandu

Thanks a lot.

That's it from my side.

Moderator · Conference Operator

The next question is from the line of Ms. Heta from Monarch AIF.

Please go ahead.

Heta

Hi, Thank you for the opportunity.

I just had two questions.

I wanted to understand how would the average realization shape up for the year of FY '26?

Do we expect it to remain flat?

Or are we expecting any significant corrections?

Pavitra Shankar

Yes, so I think the numbers that you are seeing today are a reflection of the inventory that is getting sold each quarter, which is also dependent on what is getting launched.

So, going forward, we have a mix of projects of super luxury as well as premium and mid-segment.

We also have plotted.

So, you know, it is a mix of what gets transacted every quarter.

So, I would say it will still average out.

You know, in the coming few quarters, we will be launching at rates of Rs.

15,000, Rs.

16,000 for some projects and then plotted maybe at Rs.

5,000.

So, that gets sold every quarter.

So, on average, I would say it will be around the same, maybe slowly sort of move up slightly.

Heta

And what would be the EBITDA margin of these new project launches upcoming in FY '26?

Pavitra Shankar

So, it would be upwards of 30% for the new project launches.

Heta

okay, alright.

That's it from my side.

Thank you.

Moderator · Conference Operator

Thank you.

As there are no further questions from the participants, I would now like to hand the conference over to Ms. Pavitra Shankar, Managing Director, for closing comments.

Pavitra Shankar

Before we wrap up, we would like to share a few key highlights beyond our financial performance this quarter.

The Brigade Foundation, our not-for-profit trust, continues to champion meaningful social impact through initiatives that blend education and community development.

The Venkatappa Art Gallery has reopened its doors to the public.

Beautifully restored through a collaborative effort between the Brigade Foundation and the Department of Archaeology, Brigade Enterprises Limited August 14, 2025 Museums and Heritage Government of Karnataka.

Key enhancements include structural repairs, upgraded lighting, improved accessibility, modern display areas and we have also rejuvenated the landscaping.

We also constructed an auditorium for the Karnataka Public School in Vishwanathapura in North Bangalore.

This is an initiative that is in line with our overall mission of empowering underprivileged children with better spaces for learning.

The Brigade Schools were named Best CBSE Schools in Bengaluru 2025 by Indianpreneur Magazine, a testament to our commitment to quality education.

As part of our L&D programs to support diversity and inclusivity in opportunities, two of our women employees have successfully graduated with an M.Tech from IIT Madras.

This is Brigade's Higher Education Initiative, a reflection of our belief in nurturing talent and investing in long-term growth from within.

A few noteworthy accolades and recognitions.

Brigade Enterprises Limited was honored as a Great Midsize Workplace for the 15th year in a row, ranking 75th.

Meanwhile, Brigade Hospitality Services Limited soared to 8th place, a recognition that our People First culture continues to shine.

Both these awards were by the Great Place to Work Institute.

Additionally, the Track2Realty BrandX Report 24–25 recognized Brigade as the national brand leader of Indian real estate, a title earned through consistent excellence and trust.

Brigade Twin Towers was named Iconic Property of the Year Commercial at the Global Real Estate Brand Awards.

With that, we conclude our earnings call for Q1 FY '26.

And thank you for joining us.

Moderator · Conference Operator

Thank you, ma'am.

On behalf of Brigade Enterprises Limited, that concludes this conference.

Thank you for joining us.

And you may now disconnect your lines.