Brigade Enterprises Limited (NSE: BRIGADE) Q1 2026 Earnings Call dated Aug. 14, 2025
Corporate Participants:
Unidentified Speaker
M. R. Jaishankar — Executive Chairman
Jayantt Manamdkar — Chief Financial Officer
Pavitra Shankar — Executive Director
Nirupa Shankar — Joint Managing Director
Pradyumna Krishna Kumar — Executive Director
Analysts:
Unidentified Participant
Girish Chaudhary — Analyst
Pritesh — Analyst
Parvez — Analyst
Biplab — Analyst
Mithun — Analyst
Ashish Shah — Analyst
Heta Vora — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Brigade Enterprises Limited Q1 FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this 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 Mr. Mr. Jaishankar, Executive Chairman, Brigade Enterprises Ltd. Thank you. And over to you, sir.
M. R. Jaishankar — Executive Chairman
Thank you. Good afternoon everyone and thank you for joining us for our Q1 FY26 earnings call. I have with me the management of Brigade Enterprises Limited Managing Director Ms. Pavitra Shankar, Joint Managing Director Ms. Nirupa Shankar, Executive Director Ms. Roshan Matthew, Mr. Amar, Mysore, Mr. Pradimna or CFO Mr. Jain Manmadkar and members of our senior management team including Mr. Om Prakash, Vinit Verma, Nanda Kumar, Vishwa Pratap, Manoj Agarwal Rayan and Ram Charan and Tara. We are happy to report that financial year has begun on a strong footing with all our four verticals delivering healthy performance.
This momentum reflects the resilience of our business and the focused execution by our teams. Coming to real estate, our real estate portfolio achieved Pre sales of 11.18crore in Q1FY26, a growth of 3% over Q1FY25.Pre sales volume for Q1FY26 stood at 0.95 million square feet. Average realization stood at Rupees 11,782 per square foot during Q1FY26, an increase of 24% or Q1FY25 driven by sales of premium projects. Important launches include phase one of Brigade Morgan Heights in Chennai. Total collections to debt rupees 1728 crores during Q1FY26, a growth of 8% over Q1FY25. The portfolio saw zero residential debt across the group for the last two years owing to robust sales and collections.
With strong momentum and demand, we have a slew of upcoming projects planned. Approximately 13 million square feet in the next four quarters. Our flagship property Expo Brigade Showcase wrapped up successfully with its 18th edition. Held over three days. The event featured over 15 Brigade projects across Bangalore, Chennai and Hyderabad including five new project launches in Bengaluru and Chennai. Later this month, the Brigade Showcase will be in Chennai for the first time, further strengthening our presence and engagement in the region. Coming to leasing, our portfolio witnessed stable performance occupying 92% for the portfolio of 9.38 million square feet in Q1FY26.
Brigade Squared in Trivandrum achieved 100% pre leasing. Leasing revenue stood at Rupees 300 crores during Q1FY26, a growth of 15% over Q1FY25. Rental collections remained strong and consistent at 99%. Brigade Twin Towers has been witnessing good traction from sales perspective. The Retail SBU recorded a strong leasing traction across the portfolio with 1 lakh square feet SBA currently under fit out across the mall including 82,000 square feet SBA at Orion Mall at Brigade Gateway Raja Jnagar alone. Our commercial assets are being managed in house in order to deliver superior tenant and customer experiences. Brigade’s facility management vertical currently manages around 16 million square feet.
As regards hospitality, Brigade Hotel Ventures completed its successful IPO. What began as a division of Brigade Enterprises in 2006, evolved into a 100% subsidiary in 2016 and has now come of age as a listed entity on both the NSE and bse. We are proud to be the first real estate developer in India to successfully launch two IPOs. With nine hotels built over 18 years. We are now confidently setting out our sites and doubling that to 18 hotels in the next four to five years. A proud moment. It is indeed a proud moment for all of us.
The hospitality SBU achieved a revenue of Rupees 141 crores in Q1FY26, an increase of 19% over Q1FY25. Portfolio occupancies stood at 75% in Q1FY26 and ARR stood at Rs. 6761 during Q1FY26. Brigades hotels demonstrated steady growth compared to Q1FY25 with improvements across key performance indicators with EBITDA increasing by 24% for the portfolio and FNB increasing by 32% compared to the Q1FY25. Hotel growth is set to accelerate through rest of FY26 fueled by events, festival, travel and longer leisure stays. Coming to the outlook with a robust pipeline of 16 million square feet of developments across residential and commercial segments for the next four quarters and hospitality with 1700 keys, we remain confident of our ability to deliver sustainable growth and long term value for our stakeholders.
During the past quarter we added 10 million square feet to our land bank across markets with a potential gross development value of Rupees 11,200 crores. We remain focused on tier one markets of South India for all our domains of business. I will now hand over to our CFO Mr. Jayant Manmadkar to present the detailed financials for the quarter. Over to Jayant.
Jayantt Manamdkar — Chief Financial Officer
Thank you sir. And good afternoon to all. Chairman has already shared operational highlights. I will be sharing consolidated financial highlights for the quarter. All our segments that is Real estate, leasing and hospitality demonstrated a Strong revenue growth of 22%, 15% and 19% respectively in Q1FY26 over Q1FY25. The consolidated revenue including other income for Q1FY26 stood at rupees 1333 crores. A growth of 20% over Q1FY25. Consolidated EBITDA for quarter one FY26 stood at rupees 375 crores. A growth of 14% over Q1FY25. Consolidated profit before tax for Q1FY26 stood at Rupees 194 crore. A growth of 80% over Q1FY25.
Consolidated PAT for Q1FY26 stood at RUpees 158 crore. A growth of 95% over Q1FY25 and consolidated A PAT after minority interest for Q1FY26 stood at RUpees 150 crore. A growth of 79% over Q1FY25. We are happy to inform you that ICRA has upgraded our credit rating to AA stable from AA minus stable, underscoring consistent performance, financial discipline and strong corporate governance. We continue to have adequate liquidity and undrawn credit lines to support our growth plans. Our average cost of debt is consistently reducing and stood at 8.25%. A reduction of 42 basis points over Q4FY25. Gross date of the group stood at revenue rupees 4745 crores.
The cash and cash equivalence was at rupees 2476 crores as on 30 June 2025. Consequently, the company’s net debt outstanding is rupees 2269 crore out of which Brigade’s share is rupees 1528 crore. 81% of the debt pertains to the commercial portion which is backed by lease rental. Net debt equity ratio stood at 0.34 as of June 25th. I will hand it back to the moderator for questions.
Questions and Answers:
operator
Thank you, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their 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 is from the line of Mr. Girish Chaudhary from Evandes Park Institutional Equities. Please go ahead.
Girish Chaudhary
Yeah, hi, good afternoon. Firstly on this launch pipeline of 13 million square feet over the next four quarters, if you could highlight or the key projects and also how, 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 12 quarters.
Pavitra Shankar
Yeah. 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 4600 crores. So for some of those we’ll 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 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 Mallor we have already got the RERA and started selling for Brigade Avalon which is a project in Whitefield. And both these have good take up. 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 and move forward.
Girish Chaudhary
Sure. Secondly, in terms of, 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 our 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
Yeah. So we’ve 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’re just focusing on that.
We’ll be able to meet whatever growth expectations we have and others have of the organization before we start looking at other markets. I’m not sure if this is the right time to be looking aggressively at entering new markets. They’re always studying them. Of course.
Girish Chaudhary
Got it. Got it. 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. Yes. 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?
M. R. Jaishankar
Yeah. So as far as employee cost is concerned. It is, it is. It is. You know, as usual, the trend will continue. And the launches, primarily it is, 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 Chaudhary
So what I was trying to understand is that in terms of sales and marketing expenses, this quarter was around 86 crores of cash outflow. Last year it was 44 crores, 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 100 crores last year is 186 crores. So even sequentially I’m seeing a significant jump.
Pavitra Shankar
So. So the sales and marketing expenses will also reflect the launches that we have done over the last couple of quarters. So as we’re adding more to our sales pipeline, we will also be spending more in order to do that sales. So that is why you’re seeing the larger amount compared to a YOY 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 Chaudhary
Okay, got it. Thank you and all the best.
operator
Thank you. Participants, if you wish to ask a question, you may press star and one on your touchstone telephone. The next question is from the line of Mr. Pritesh from Access Capital Limited. Please go ahead.
Pritesh
Yeah, thanks for the opportunity. So first on the city mix for this quarter, you know how much was from Bangalore and how much from Chennai. And just for a follow up, I think we started off with over 7,500 crores of inventory in this quarter. Yet I think sustenance contribution was not too high. It was pretty much in line with what we have been doing in past. So any specific reason for that? I’m 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.
Yes.
Pavitra Shankar
Yeah. So in terms of the sales last quarter, if you look at it by revenue, revenue or areas, anywhere between 70 to 75% contribution from Bangalore and about 20 to 25% from Chennai. There’s a little bit from Hyderabad as well, a few units from Gateway that are coming through. But pretty much that’s the breakup of what we saw in Q1 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.
In terms of Altius, we’re 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 bet. 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 received the RERA. We have launched the project in May. It’s 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’s very launch driven and the excitement of the launch, whether or not there is a very, you know, a very specific sales experience that’s 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 a Chennai.
Pritesh
And how much is the inventory right now between Icon and Altius and how much did Altius specifically contributed to this quarter’s details?
Pavitra Shankar
Yeah, I’ll just come back to you with Those numbers.
Pritesh
Sure. I’ll take it from the offline as well. No problem. Yeah, just second question on the launches. So I think we had a plan of launching 12.3 million square feet for this year. We’ve 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
Yeah. So the positive thing is the Hyderabad 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 is around 150 crores in revenue.
Pritesh
Got it. And Innovation Heights is Innovation Gardens is Verit project. Is it? Or Perambul project.
Pavitra Shankar
So that’s in Brigade. Sorry that’s in North Bangalore in a submarket called. Oh, it’s what we’ve been referring to. As the KIDB parcel of 75 acres.
Pritesh
Okay, sure. So that’s it from my side for now. I have a couple of questions that I’ll join back with you. Thank you.
Pavitra Shankar
Thank you.
operator
Thank you. Participants, if you wish to ask a question, you may press Star and one on your touchstone telephone. The next question is from the line of Mr. Parvez from Novama Group. Please go ahead.
Parvez
Hi, good afternoon and thanks for taking my question. So first a couple of questions of Pavitra. I mean did I get it right when you say that we have VERA for projects with 4,600 crore GDV already?
Pavitra Shankar
Yes, that’s right. So some of those we are, you know, have already launched in the course of Q2. For example Brigade, Cherry Blossom, Brigade, Avalon, we’ve already launched those. We have one more in Bangalore that where we have the RERA and we’re in the soft launch phase. We’ll 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 two 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 latter half of the year.
Parvez
Sure. Overall on the Demand side on the re space, I mean how do we see it currently? Is it like the same what it was a year back or are we seeing some moderation and also your views on the pricing going ahead?
Pavitra Shankar
Yeah 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 it was the ticket sizes were lower, people were found it much easier to make those kind of decisions. Now if I look across my portfolio more than 80% of it is 1.5 crores 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’s a 206 unit project and an average ticket size of 4 to 5 crores plus and that has really been well accepted. But that said that’s one of those if you’re 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 one and a half or less than two we’re seeing a much faster uptake. So I would just again reiterate what we’ve been saying that the customer behavior that we’ve seen happen over the last two to three years that’s 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
Sure. And a couple of questions for Nehruka first I mean in the presentation for Brigade Hospitality Ventures I think we have outlined a plan for adding about 1700 hockeys 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. Thank you.
Nirupa Shankar
Thanks for that. So with regards to the capex for the hospitality we plan to, we plan to do it next, we plan to. Do it next quarter. We will share those details with you just to let you know that anything in the five star deluxe category on average the cost of construction will be about 1.5 to 1.75 crores a key this is just the cost of construction and some of the Fairfields that we’ve mentioned the four star category hotels on average the cost per quay 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’ve understood is that we have one tower, the first tower that we kept for sales 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’ve managed to do another 20% this quarter. So almost 70% of the first quarter has first tower has been sold. With regards to the other tower, we have three 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. The sale price that we’ve been doing the last few transactions are at least 12,000 rupees a square foot plus all additional expenses.
So it’s been a fairly good market for end users and a sale driven market. So that’s how we plan to go about it.
Parvez
Sure. Thanks and all the best.
Pavitra Shankar
Thank you.
operator
Thank you. The next question is from the line of Mr. Biplub from Antique Stock Broking Limited. Please go ahead.
Biplab
Good afternoon everyone and thank you for taking my question. So my question, one question is in continuance to what just Farve 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. So what you said is that current state of real estate absorption is continues to be strong. That’s 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
Yeah. So I’ll just nirupa here. I’ll just throw some color on it from office and then maybe Kavitra 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 FY26, it absorbed almost 4.8 million square feet of office space. Now 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 gross absorption. The balance is coming 36% from GCCS and the remaining 24% or so from PFSI.
So financial services, etc. Now Bangalore is still the most attractive location when it comes to setting up of gcc. So from an office perspective I can say that yes, there are lot of media written on this and perhaps, you know, AI will come into the picture but nature of jobs required might change and maybe there’ll 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’re not seeing the kind of slowdown that the media is talking about.
We’re still seeing pretty good traction from an office demand perspective.
Pavitra Shankar
Yeah, this is Sabitra. I just wanted to echo that. We’re seeing that supported on the residential side as well because you know, 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’ve been seeing more traction towards premium and higher end sales. Which means it’s 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’s where we feel that, you know, despite all of the conversation that’s going on, we’re not seeing that on ground.
Also I would say that 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’s where we’re seeing things. So even if the market does consolidate a little bit, we are still confident of our position.
Biplab
That’s a very good news and that’s all from myself. Thank you and have a great weekend.
operator
Thank you. Participants, if you wish to ask for questions, please press star and one on your touchtone telephone. The next question is from the line of Mr. Mithun from Kiva Advisors. Please go ahead.
Mithun
Just wanted to understand in terms of FY26 this year, launch pipeline is quite strong and last year I think you did pre sales of about 7 million square feet. So are you target, do you have any target for FY26 in terms of what kind of sales growth you’re looking at?
Nirupa Shankar
So we’ve always communicated that we like to target a growth of 15 to 20%. We’ll be looking at that from a value perspective. So last year we did around 7,800 crores in total sales. We’re 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 approval front, we are quite confident of this.
I also mentioned earlier that we launched Morgan Heights Q1 that was almost 1000 crores GDV and we have visibility of another 4600 crores. So of the entire year’s GDP that we have intended to launch, we have almost 50% in hand as well. So I think we’re quite confident of the year.
Mithun
Right. And also on the commercial development side, what is the kind of target of launch of projects?
Nirupa Shankar
Yeah, so on the commercial side, we currently have half million square feet that is ongoing in terms of construction and upcoming that we plan to launch another 2.6 million square feet. So year on year we are looking to launch about 2 1/2, 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
Thank you.
operator
Thank you. The next question is from the line of Mr. Ashish Shah from HDFC Mutual Fund. Please go ahead.
Ashish Shah
Yeah, thanks. Thanks for the opportunity. 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, I know things can slip here and there by a quarter, but any sense on how it can pan out?
Pavitra Shankar
Yeah. So on the 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 and a half 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 10,000 rupees per square foot on average. So basically you could assume 12,500 crores GDV for the overall launch for FY26, of which I just now went through the calculation that we have visibility of crores already for which 1000 was launched in the last quarter.
So for the rest of the financial year we are working on those approvals and hopefully we’ll be able to get all of that within Q4 itself.
Ashish Shah
Understood. The other thing is we’ve 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, et cetera, et cetera. Any perspective on the color of the BD which has been done in the first quarter?
Pradyumna Krishna Kumar
Hi Ashish Prajumna here. So we’ve 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’ve 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 10,000 to 12,000 rupees a square foot. So that’s where we would be launching these projects when they do. As far as Hyderabad goes again it is a similar project, about 13,000 rupees 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 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’ve added last quarter is also literally opposite to this location. So our strategy continues to be very, very similar to what we’ve been communicating.
Ashish Shah
Okay. And Chennai, Chennai would also be at what sort of a price point is that? Again, very. At a lower price.
Pradyumna Krishna Kumar
No, no, it won’t be a premium. Again, it’s upmarket but not premium in nature. It is, it is a, it will be a follow on to our Brigade RTS project. That’s the, that’s the view that we have taken and we are acquiring the property.
Ashish Shah
Okay. Lastly, if you 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 Krishna Kumar
So yeah, so we have about 11,000 crores of GDV that, that we have acquired in Q1 and the typical, you know, about once, about 20 to 22% is the, is the range.
Ashish Shah
Okay, understood. Thank you. Thank you very much.
operator
Thank you. The next question is from the line of Mr. Girish Chaudhary from Evander’s Park Institutional Equities. Please go ahead.
Girish Chaudhary
Yeah, thanks for the follow up. Again on the land cost you have a balance which needs to be paid which is around 1380 crores. So by when can we expect this to be paid? And also in terms of business development, what’s the pipeline looking like for the rest of the year?
Pradyumna Krishna Kumar
Yeah, so out of the 1380 crores, about 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’s a combination of, you know, 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 about, about the balance is about 880 crores and that will get done in the course of the next say 18 months or so.
Girish Chaudhary
And in terms of the business development pipeline for the rest of the year.
Pradyumna Krishna Kumar
So. So that’s ongoing as usual. Girish. We’ve been, you know, typically we get about 200 to 250 proposals every month. 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’s by way of JD or otherwise.
Girish Chaudhary
My next question is on Buzzwords. What I’ve seen recently is that you have leased up in a center outside of your your own portfolio, 50,000 square feet at the mine space. So just wanted to understand how are you thinking about this business of yours and what’s the current capacity and the growth plans here and in general in this space, how are you seeing the competition, pricing and then margin trends playing out?
Nirupa Shankar
Yeah, thanks for the question. So Buzzworks for us is currently a smaller portion of our business but we believe it’s a high growth business. Currently of course we have about 5,000 seats but we’re looking to double that up by FY26. 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 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 thus 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 Chaudhary
In terms of competitive landscape currently. How are you reading this market?
Nirupa Shankar
See there are multiple players, barrier to entry is relatively less. It’s not, it doesn’t require the kind of capital investment that creating an entire commercial building requires. So barrier to entry is lower. I would say we are in the mid to Premium. So the average seat cost, you know, on the premium end could be 20 to 25,000. And you get players in the 4,000 to 6,000 rupees as well. On average our positioning is around 13 to 15,000. Of course, like I said, that’s an average. There are some centers that do 18,000. There are some centers that do 10 and a half, 12,000.
So on average we are around I would say 14,000 or so. So we are not on the highest end. And I would say we are more on the premium. Premium end I would say.
Girish Chaudhary
Thank you.
Nirupa Shankar
Thanks.
operator
Thank you. The next question is from the line of Mr. Pritesh from Access Capital Ltd. Please go ahead.
Pritesh
Yeah, a couple of questions. So on bd, what would be the estimated spend for this year? Now with a very strong start in Q1.
Pradyumna Krishna Kumar
So that depends on the kind of opportunities that we get. Pritish. 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 GDP. That would be the approach.
Pritesh
Okay. And in terms of this 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 inside service, 2.6 million square feet which are all these projects.
Pavitra Shankar
Yeah. So what we have put in what, what we have as part of the. 2.6 million square feet is Brigade Padmani Tech Valley Tower A which is in Whitefield and Bangalore. That’s about 345,000 square feet. Then we have Brigade Panorama Chambers which is in south Bangalore. We also have Brigade kaveri which is CBD property in Bangalore, about 190,000 square feet. We have the Kochi Info Park Tower 3 which is another 150. 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 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 BL share, our share is about 1.7 million.
Pritesh
Sure, sure. So basically your gateway would start construction next year only. I mean not this year, next quarter.
Nirupa Shankar
Maybe in the next quarter we can have that update.
Pritesh
Okay. Okay, okay, fair enough. Thanks. And just last if you can provide the breakup of Collections across our different segments for this quarter.
Jayantt Manamdkar
Yeah. Just a second. So the real estate collection is about 1248 crore. Commercial leasing is about 311 crore. And hospitality is about 168 crore. Total 172.
Pritesh
Got it. Okay, thank you. That’s it from my side. All the best.
operator
Thank you.
Pradyumna Krishna Kumar
Thank you.
operator
The next question is from the line of Mr. Pralin from Edelweiss Public Office Alternatives. Please go ahead. Yeah.
Unidentified Participant
Hi team. Just wanted to understand, you know 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, Chennai and Hyderabad. So I want an internal assessment of how has been our foray into this cities. Right. And uh, where I’m coming from is that you know you talked about this project called Morganites, right where you launched in May, but the sales office is still going to come up in few weeks time. So are these some, you know, location specific nuances which we are still, you know, grappling with or you know, is it, how should one think about, you know, our, you know, our entry into these two cities specifically if we send a few minutes on both the cities, that would be very helpful.
Thank you.
Pavitra Shankar
Yeah, yeah, sure. So I’d like to say that 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 Brigade World 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 Brigade, sorry, World Trade center in Chennai, Chennai, we’re 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 submarket. And I would say the entire market has noticed and also recognize that we’re building a very premium mixed use development which has the top brands like World Trade Center, Hyderabad, they, 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, they 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 but also delivering and then building on that. Specifically in terms of Morgan Heights. We don’t think there is any sort of specific issue. It is just that in Chennai the market is such that 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’s in a soft lawn court.
But we expect to see a lot more traction once the sales office is open. And I think that’s normal and natural. That’s what we’ve experienced in both Icon and Altius as well. So, you know, apart from that, there isn’t anything specific about Morgan Hyde.
Unidentified Participant
Got it. Thanks a lot. That’s it from my side.
operator
Thank you. The next question is from the line of Heta from. From Monarch aif. Please go ahead.
Heta Vora
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 FY26? Do we expect it to remain flat or are we expecting any, you know, significant corrections?
Pavitra Shankar
Yeah. So I think the numbers that you’re 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 it is a mix of what gets transacted every quarter. So I would say to still average out in the coming few quarters, we will be launching at rates of 15,000, 16,000 for some projects and then plotted maybe at 5,000. So what gets sold every quarter? So on average I would say it’ll be around the same, maybe slowly sort of move up, move up slightly.
Heta Vora
Okay. And what would be the EBITDA margin of these new project launches in, you know, upcoming in FY26?
Pavitra Shankar
So it would be upwards of 30% for the new project launches.
Heta Vora
Okay. Okay. All right. That’s information. Thank you.
operator
Thank you. Participants, if you wish to ask a question, you may press star and one on your touch tone telephone. We will wait for a moment while the question queue assembles 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’d 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 Venkatapa Art Gallery has reopened its doors to the public, beautifully restored through a collaborative effort between the Brigade foundation and the Department of Archaeology, Museums and Heritage, Government of Karnataka. Key enhancements include structural repairs, upgraded lighting, improved accessibility, modern display areas and we’ve also rejuvenated the landscaping. We also constructed an auditorium for the Karnataka Public School in Vishwanathgura 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 and D programs to support diversity, inclusivity and opportunities. Two of our women employees have successfully graduated with an M Tech from IIT Madras. This was 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 honoured as a great mid sized workplace for the 15th year in a row ranking 75th.
Meanwhile, Brigade Hospitality Services Limited soared to eighth place, a recognition that our people first culture continues to shine. Both these awards were by the Great Place to Work Institute. Additionally, the Tractor Realty Brand X Report 2425 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 thank you. So we conclude our Earnings call for Q1FY25 and thank you for joining us.
operator
Thank you Ma’a m. On behalf of Brigade Enterprises Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines.