Brigade Enterprises Limited (NSE: BRIGADE) Q3 2026 Earnings Call dated Feb. 02, 2026
Corporate Participants:
Pavitra Shankar — Managing Director
Pradyumna Krishna Kumar — Executive Director
Analysts:
Unidentified Participant
Karan Khanna — Analyst
Aditya Chaturvedi — Analyst
Girish Choudhary — Analyst
Parvez Qazi — Analyst
Murtaza Arsiwala — Analyst
Biplab Debbarma — Analyst
Anmol Mittal — Analyst
Akash Gupta — Analyst
Pritesh Sheth — Analyst
Parikshit Kandpal — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Brigade Enterprise Limited’s Q3FY26 financial results 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 the conference call, please signal an operator by pressing then zero on your touchstone phone. I now hand the conference over to Ms. Pavitra Shankar, managing director of Brigitte Enterprises Limited. Thank you. And over to you ma’.
Pavitra Shankar — Managing Director
Am. Thank you. Good afternoon everyone and thank you for joining us at our Q3 FY26 earnings call. I am joined by the management of Brigade group. Our chairman Mr. Mr. Jaishankar. Joint managing director Ms. Nirupa Shankar. Executive directors Mr. Roshan Matthew, Mr. Amar, Mysore and Mr. Pradyumna Krishna Kumar. Along with members of our senior management team we welcome Mr. Yogesh Patel who joined Brigade Enterprises today as CFO. This has been a steady and well rounded quarter for Brigade. With each of our business segments contributing to overall growth. Our focus remains on deepening our presence in key micro markets by selecting land parcels that offer strong long term development potential.
In the last nine months we have incurred about 2,100 crores towards our land bank with a developable area of 14 million square feet and GDV of 16,000 crores. With 54% in bank and 30% in Hyderabad. These projects should enter our launch pipeline over the next four to six quarters. On the real estate front, we delivered consistent performance achieving presales of 1750 crores and a pre sales volume of 1.33 million square feet. In Q3FY26, average realization stood at Rupees 13,142 per square foot reflecting a 16% growth over Q3FY25. Looking ahead, we have a strong pipeline with approximately 12 million square feet of launches planned over the next four quarters.
While the residential sector seeing stabilization in terms of volume growth, prices continue to rise across major metros due to tight supply and the strong performance of higher value segments. Luxury and premium housing now account for over a quarter of national supply as developers increasingly shift focus upward. Within our own portfolio, about 85% of our pre sales is above the 1 point crore ticket size which underscores our positioning as the premium high quality developer. Our current inventory also reflects the same distribution. While price increases are still being absorbed and the demand is strong. Customers are more cognizant of overall ticket sizes and we are reflecting these inputs in our projects.
Under design, Brigade’s commercial Office portfolio delivered a stable performance in Q3 FY26 with cumulative leasing of 0.66 million square feet. As of the quarter, portfolio occupancy remained healthy at around 93% supported by steady demand from healthcare and education sector occupiers. We’re actively working towards increasing our commercial office portfolio. We already launched 1.2 million square feet in FY26 and plan to launch another 4.2 million square feet in the next four quarters. India’s office market continues to exhibit structural momentum led by the rapid expansion of global capability centers which now account for close to 40% of total office leasing.
On the retail front, as of Q3FY26, the three Orion malls collectively churned about 1 lakh square feet of leasable airdrop and added new tenants, boosting footfall and rental income while strengthening the overall brand and tenants mix. Footfalls across our malls grew 5% and sales grew at 16% for FY26 aided by strong performances in cinema, end of season sales and the festive period Brigades hotels delivered steady growth compared to Q3 FY25 with improvements across key performance metrics. Revenue and RevPAR increased by 14 and 17% respectively driven by a 17% rise in ADR. EBITDA also grew by 17% for the quarter.
The Indian hospitality sector continues to see demand outpacing supply with about 1 lakh new rooms expected to be added over the next five years. Against this backdrop, Brigade Hotel Ventures Limited is building out 1,700 quays across nine hotels in our markets of focus. I’ll now hand it over to our Executive Director Mr. Pratyumna to present the detailed financials for the quarter.
Pradyumna Krishna Kumar — Executive Director
Thank you Pavitra. Good afternoon and a warm welcome again. Pavitra has already shared the operational highlights. I will be sharing the key financial highlights. We achieved Pre sales of Rupees 1,750 crores for Q3FY26 with a pre sales volume of 1.33 million square feet. While quarterly sales did not increase significantly, it was primarily due to approval related delays for launching new projects. Now, with better certainty on the approvals front, we are confident that our upcoming launches will significantly strengthen our sales trajectory in the coming quarters. The underlying demand remains strong and we are well positioned to capitalize on the momentum with the new project launches and new land acquisitions in Bangalore, Hyderabad and Chennai.
The ongoing projects and the new projects that will launch soon are all well located within micro markets that have strong demand with excellent connectivity and access to very good social infrastructure and public transportation. This is the case with all our projects in Bangalore, Hyderabad and Chennai. Overall, collections for the quarter have remained at levels similar to Q3FY25 at rupees 1760 crores due to fewer launches. Cash flows from operating activities have moderated due to higher construction spends. Our cash flow collections will continue to be robust in the coming quarters and will be further supported by the new project launches.
Collections from the real estate Segment stood at Rupees 1258 crores, Leasing segment stood at Rupees 325 crores and Hospitality stood at Rs. 177 crores. Net cash flow from operating activities stood at Rs. 278 crores. To start with the group’s revenue update for Q3FY26, the consolidated revenue for the quarter stood at Rupees 16.23crores, an increase of 6% over Q3FY25 with an EBITDA of Rupees 459 crores. EBITDA margin stood at 28%. The Real Estate segment clocked a turnover of Rupees 1133 crores with an EBITDA of Rupee 170 crores. The Leasing segment clocked a turnover of Rupee 325 crores, an increase of 16% over Q3FY25 with An EBITDA of Rs.
231 crores. The Hospitality segment clocked a turnout of Rupees 165 crores, an increase of 12% over Q3FY25 with AN EBITDA of Rupees 58 crores. Consolidated PAT stood at Rupees 206 crores and PAT after minority interest is Rupees 187 crores. Coming to the group’s performance for nine months FY26, their consolidated revenue for the period stood at Rupees 4386 crores, an increase of 16 percent over nine months. FY25 with an EBITDA of rupees 1209 crores. The EBITDA margin stood at 28 percent. Real Estate segment clocked a turnover Of Rupees 2976 crores, an increase of 16percent over nine months.
FY25 with An EBITDA of Rupees 384 crores. The Leasing segment Clocked a turnover of Rupees 966 crores, an increase of 16%, again over nine months. FY25 with AN EBITDA of rupees 678 crores. The Hospitality segment Clocked a turnover of Rupee 444 crores, an increase of 16 Percent over nine months. FY25 with A EBITDA of Rupees 147 crores. Consolidated PAT stood At Rupees 534 crores, an increase of 24% over nine months. FY25 PAT after minority interest for the same period is Rupees 499 crores, an increase of 14% over nine months. FY25 now on debt and liquidity, we continue to have adequate liquidity and undrawn credit lines from banks and financial institutions to support our growth plans.
Our average cost of debt has reduced significantly by 115bps to 7.61% as of December 25 from 8.76% as of December 24. Gross debt of the group stood at Rupees 4504 crores cash and cash equivalent was Rs. 2,617 crores as of 31st December 25. Consequently, the company’s net debt outstanding as of 31st December 25 was Rupees 1887 crores out of which DL’s share of the same is Rupees 1273 crores. About 92% of the debt or pertains to the commercial segment which is backed by rental income. Debt equity ratio stood at 0.23. I will now hand it back to the moderator for questions.
Questions and Answers:
operator
Thank you very much ladies and gentlemen. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on the 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 Karan Khanna from Ambit Capital. Please go ahead.
Karan Khanna
Yeah. Hi team. Thank you for the opportunity. Just a couple of questions from my end. Firstly, Pavitra, there have been talks of excess unaffordability in Bangalore market which are limiting future price hikes. Could you share some thoughts on the pricing environment and on the kind of like to like price increase you expect from both Bangalore and Chennai. And as a follow up, what kind of like to like price hikes were taken across the already launched projects during the quarter.
Pavitra Shankar
Hi, Good afternoon. So in general the market is still pretty healthy and demand is good while the price rise in Bangalore over the last, if you look the last two, three years has been really substantial. All of our projects that are being launched today, I think are being launched with the expectation that we can still take price hikes of 5 to 7% year over year. That is how we underwrite and that’s how we launch. But that also means when we launch, it’s a fairly full price and we are not expecting to see rapid price increase at the time of launch.
That said, and as I mentioned in the opening remarks as well, this has led to a lot of the ticket sizes being, you know, two to two and a half crores, three crores and so on is not as fast as it used to be in say the 1.5 to 2.5 crore ticket size. So this is where we’re seeing the stabilization in the market in our own portfolio. About 5 to 7% is what we would like to take year over year. And what we’ve been doing in the past, while we may not do it on a quarterly basis, we do it along with inventory movement and we’re able to achieve this.
This holds good for both Bangalore and Chennai.
Karan Khanna
This is helpful. Secondly, if we look at slide 9 of your fourth year FY25 presentation, we were fairly confident of launching 16 residential projects totaling 12 million square feet over the next four quarter. But if I look at slide 28 of your current investor presentation, you have just launched less than 4 1/2 million square feet of residential projects in 9 months FY20. Can you help us reconcile these numbers and why launches this year have been skewed more towards 4Q versus A previous years where they were largely spread out across quarters. Say in FY25 you had two two and a half million square feet worth of launches every quarter.
Pavitra Shankar
Yeah. So I would say the launches were actually more towards H2 in this. So Q3 and Q4. And that’s what we had seen in the last few years also so far in the year to date, 4.3 million square feet in the residential sector in the number that you are mentioning, we had actually that 16 million was actually including commercial as well. So year to date we have launched 3 million square feet in residential with a GDV of 4800 crores in Q4. Actually, our plan is to launch the same amount, 4.3 million square feet with a higher GDV of around 5400 crores.
Unfortunately, yes, we have seen the delay in approvals which has caused many of these projects to slip into Q4. And we are hoping that they will come in. We are working hard to ensure. But overall the 12.45% number that we mentioned it looks like we will not meet that for the calendar year. Sorry. For the fiscal year for sure. Just to continue. It’s only. It’s not like the projects are not coming. There is approval delay. So if it moves into Q, I mean it will move into Q1 or Q2 in. In that sense but there is no real risk of the project taking off.
Karan Khanna
Sure. And lastly on business development, can you help us understand the new BDS during last quarter largely in Hyderabad? What kind of IRRs were you looking at when you signed these new BDS and how are these IRRs versus what they were, let’s say 912 months back?
Pavitra Shankar
So you know the IRRs that we look at are around 18%. I would love to say they’re going to keep increasing but as customers are willing to pay more or as end customer pricing increases, land rates increase as well. So that is why we look at an overall 18% IRR in general.
Karan Khanna
Sure. This is helpful part. I’ll come back in the Q and thank you and all the best.
operator
Thank you. The next question is from the line of Aditya Chaturbadhya from ICICI Securities. Please go ahead.
Aditya Chaturvedi
Yeah. Good afternoon everyone. Thank you for the opportunity. So I’ll just take a follow up on the previous question on the 5,400 crores of launches you mentioned for Q4. Could you just help us understand how this will be split geographically and which will be the key projects you’re planning to launch in the current quarter?
Pavitra Shankar
Yeah. In Q4 it is predominantly we have about 8 lakh square feet in Chennai that would around 1600 crores and 2.3 million square feet or 2,500 crores in GDV from Bangalore and about a little under a million square feet from Hyderabad. So that is how it’s going to hopefully pan out. I think we have good visibility on the Hyderabad launches and couple of the Bangalore launches as well.
Aditya Chaturvedi
Okay, okay fine. The second question is on your rental capex. Right. So considering the aggressive plans we have. Right. To expand our rental portfolio so nine months including the hotels business that we have done an amount of capex. Right. But could you give us helpful understand for the full year in 26 and for 27 any overall budgeted capex number you’d like to share which we can expect.
Pavitra Shankar
I think for the commercial we. We have said that the estimated cost for the year is about 1700 or so for the projects that we’ve Launched which have been listed on page 14 of the presentation. We’ve already incurred the 661 crores and we have a balance of thousand crores for hospitality. That’s separate. We have said that we budget crores capex for the coming fiscal.
Aditya Chaturvedi
Yeah. So just wanted to tie up means for this now for 26 right. The full year number and 27. Right. The overall capex we’ll be doing as a company and a consolidated entity in terms of the cash requirement. That is what we’re trying to just understand.
Pradyumna Krishna Kumar
So in FY26 for the commercial division about 600 crores is what we expect to spend and the year after FY27 about 800 crores.
Aditya Chaturvedi
Okay. And this would include the Hyderabad project also, right? I assume the office and mall would be a large portion of that.
Pradyumna Krishna Kumar
Yes.
Aditya Chaturvedi
Okay, that didn’t include that. Okay, okay, okay fine, fine. Okay, that’s it. Thank you. I’ll come back in the five more questions.
operator
Thank you. The next question is from the line of Pradesh said from Access Capital. Please go ahead.
Unidentified Participant
Yeah, good afternoon. Thanks for the opportunity. Just first on the contribution from Brigade Gateway in this quarter that we had launched, you know how much would be that number? And second question is in terms of launches that we have highlighted for Q4 at what stages they are, you know how many, how many we have applied for rera, how many are still under plan approvals? If you can give us those details that would be helpful.
Pavitra Shankar
Yeah. First on Brigade Gateway this is tower two that we launched in Q3. About 550 crores of GDV or pre sales value is what we have sold in terms of the approval. I’ll ask Pratyumna to just speak on that.
Pradyumna Krishna Kumar
Yeah. So out of the about 4 1/2 million square feet that we plan to launch in this quarter, one third of it is already almost at the end of receiving the approval and much of the balance is at the very final leg of the plan sanction. So we are therefore hopeful that we are able to launch all this in this quarter itself.
Unidentified Participant
Sure, got it. And in terms of Gateway, total GDV of launch would be somewhere around 16, 1700 crores. Out of that we have done 550. Slightly slower response than the first phase. Obviously you know, timing were different but how you read into this response, anything from our side we could have done to have a better response in terms of timing of launch or in terms of ticket size. And how you with this launch, how you read the overall Hyderabad. Hyderabad market right now.
Pavitra Shankar
So actually I’ll say we are quite happy with the response to the launch. When we launched the first tower which was a year ago, we were quite surprised with the way in which the project got absorbed and we were able to pretty much do a complete sellout within that month. That not something we were trying to emulate in Q3. Sorry. In the past quarter one because this is a mixed use development and there is an incredible amount of value that is being created. So the increase in pricing just has been about 15% or more on a like to like basis.
And despite that we’ve been able to do these kind of numbers. So I think there is a lot of confidence in the project and a lot of confidence in the vision that we have for the overall mixed use. So we’re quite happy with it. Our plan here was not to try and water itself. This is a project where it’s important for us to also maintain. As you know we are starting off with the residential but then going to be investing into the capex for the office and hotel tower as well. So we are quite happy with the progress so far and we don’t intend to sell it off asap.
We want to be taking some price increases over the year as well.
Unidentified Participant
Got it. I understand the launch happened towards the end of December. You know, few weeks before the end. Any spillover of sales which happened or whatever we had done has been booked for the current quarter.
Pavitra Shankar
Whatever we had done for the quarter has been booked. So about 100 units is what we had done in Q3. The sales are continuing in Q4.
Unidentified Participant
Okay, got it, Fair enough. And any update on Brigade Morgan Heights you want to provide? Because there was a regulatory hurdle which came in. When will we be able to restart the sales in that project?
Pradyumna Krishna Kumar
Yeah, so we are expecting the hearing to happen in a couple of weeks, in a couple of weeks time. So we are quite hopeful that it should be done by this month itself and we should be able to restart by the end of the month. Yeah, I think the important thing to note is, you know we are not the only one affected by this. A minimum of over a lakh properties are affected by this and now there are a lot of protests that are taking place in Chennai as we speak on this particular issue. So we are hopeful, like I said, that things will be cleared out in this month.
Unidentified Participant
Got it. Fair enough. Thank you. That’s it from my side and all the best.
Pradyumna Krishna Kumar
Thanks.
operator
Thank you. The next question is from the line of Girish Chaudhary from Avendus Park. Please go ahead.
Girish Choudhary
Yeah Hi, good afternoon. Thanks for the opportunity. Firstly, I have a question on the operating cash flow rate. So if I look at the nine month number, we have seen a substantial decline from around 1550 crores, 2030 odd crores. And if I see the internals right, the collections have grown marginally. I understand the pre sales were weak this year but I mean prior to the, the prior years have been pretty strong and construction cost has gone up 20 odd percent. But what I’m also seeing that the sales and marketing levels continue to remain elevated despite limited launches.
So overall, how should we interpret this? Is it largely a timing sort of issue or are there any other pressures from the overall cash flow point of view? So that’s my first question.
Pavitra Shankar
Yeah. So on the sales and marketing I would say we have supported the marketing efforts substantially more. Especially because we have a much more high end and premium segment kind of portfolio in this year which requires a lot more branding and marketing efforts as opposed to, you know, it was a bit lighter from that aspect over the last few years we were just able to run with amount of digital and so on. So that is really the reason why.
Girish Choudhary
Okay. And then on the collections because that has dampened the overall operating cash flow rate. So I mean we have just seen a marginal growth this year in the first nine months.
Pradyumna Krishna Kumar
So like I mentioned in my remarks, Girish, this is also due to the fact that you know we have not launched much in the last quarter and hence you would see that difference in numbers. But again as mentioned, we expect with the launches that take place in this quarter and the next these numbers to pick up.
Girish Choudhary
But any from the existing projects, are we seeing any collection bump up in the coming quarters?
Pavitra Shankar
Yeah, the existing continue. We don’t have any sort of payment plans or things like that. So it’s a very consistent form of collection. So it’s all milestone related construction progress, milestone related. So we should continue to see that as the work happens on site.
Girish Choudhary
And my second question is on the overall execution. I just wanted to assess, I mean at, I mean overall projects level, how are they progressing in terms of, in terms of the planned timelines? Are you seeing any challenges around the labor availability or let’s say the contractor capacity or any approvals that are impacting deliveries. So in general the confidence on execution.
Pavitra Shankar
Yeah. So you know, over the course of time we’ve also increased the in house construction contribution that we do. This is just to ensure that there’s no impact from, you know, issues at subcontractors or third party contractors. I think labor availability Is, you know, there’s always some issue or the other, whether it is festivals or voting or whatever it might be. But we are trying to, you know, dull the impact of that by increasing our in house construction contribution.
Girish Choudhary
Okay. And on the timelines, are you confident at the overall level in terms of delivery? Delivery schedules?
Pavitra Shankar
Yeah. Yes, yes. Not. Not an issue.
Girish Choudhary
Okay, thank you.
operator
Thank you. The next question is from the line of Parve Qazi from Nuvama group. Please go ahead.
Parvez Qazi
Hi, good afternoon and thanks for taking my question. So a couple of questions from my side. I mean you mentioned that you’re taking cognizance of the fact that with increasing prices customers are also sensitive to ticket size. So of the overall launches, let’s say which are planned over the next four quarters, what would be a broad split in terms of ticket size across all your projects? I mean let’s say what percentage will be in the 2 to 3 crore. What will be above 3 crore or 5 crore. Any data on that would be great.
Pavitra Shankar
So as I had mentioned earlier, around 85% of our 80 to 85% of our current portfolio is in that 1 and a half crore plus. I would say it’s equally distributed right now between 1 and a half to 3 crores range and 3cr plus going forward. We’re trying to look at unit sizes to also maintain it within the 2-3-cr ticket size. I think that is a fairly good sweet spot for the Bangalore and Chennai market for some projects. We’re also looking at trying to get ticket size range. So it’s not easy to do that right away.
But many of the projects in the pipeline at reducing the overall ticket sizes so that it becomes a lot more palatable for the customer. There are still some projects and locations where we can very comfortably go in the high end or luxury spectrum as well. And we’re continuing to look at that spectrum as the opportunity arises.
Parvez Qazi
When you mentioned that in the nine month we have done deals for 2100 crore, is this the payment that we need to make for these deals or is this 2100 crore is the land capex that we’ve already done in the nine months?
Pavitra Shankar
We’ve already done that.
Parvez Qazi
Got it. What would be the geographical split of sales for Q3?
Pavitra Shankar
Yeah, for Q3 one second. About 35% from Hyderabad, 15% from Chennai and the rest 50% from Bangalore.
Parvez Qazi
Sure. And one question, I mean in our current office portfolio largely we have space left to lease only in brigade twin towers. So I mean what is our thought process there and when do we See this space getting leased out?
Pavitra Shankar
Yes. In twin towers, we pretty much sold about half of the project, about 46 to 50% of the project. We had initially thought of actually giving out, giving the balance out lease, but I think seeing how the demand is, our plan is to potentially look at selling the other tower as well. So based on demand, we’re looking at selling the other tower as well. So that while it is currently mentioned in the leasing portfolio, one tower is mentioned in the leasing portfolio is unleased. We are looking at a combination of sale and lease, but mostly it will go into sale.
Parvez Qazi
Got it? Sure. And last question, I mean in terms of future bd, what is our thought process in terms of the three cities where we are present and also in terms of the segment that we would want to target? Thank you. That’s my last question.
Pavitra Shankar
Yeah, the last few ramping up our BD efforts, our efforts in Chennai have really borne fruit. We’ve been able to show an increasing contribution of sales from there in the past year as well. From Hyderabad, we’ve seen a lot of momentum, not just in terms of projects being launched, but also business development. So we’re very happy with those results. And of course, Bangalore, we continue to be extremely bullish about. So our three markets, we would say are in full sway, full swing, and we’re happy with the momentum there. So this is also a time where we will potentially consider evaluating new markets.
Parvez Qazi
Sure. Thanks. And all the best.
operator
Thank you. The next question is from the line of Murtaza Arsewala from Kotak Securities. Please go ahead.
Murtaza Arsiwala
Yeah, hi, Portfolio.
operator
I’m sorry to interrupt you, Mr. Murtaza, but your voice is not clear.
Murtaza Arsiwala
Sir, is it better now? Can you hear me better?
operator
It’s still sounding little muffled. Yes, please go ahead.
Murtaza Arsiwala
Okay. Now I just want to know on the upcoming leasing portfolio, what is the. Kind of area and rental expectation and. If you could give us some ramp. Up, you know, in terms of how the step up will happen over the next few years?
Pavitra Shankar
I think when we look at the commercial office portfolio, as I mentioned earlier, the portfolio is fully leased except for that one tower and twin towers. But this year, for instance, we should get about 2 1/2 million square feet that we will be. That will come under operations with Oculus. And we have also mentioned that in FY26 we’ve launched about 1.2 million square feet and upcoming launches will also amount about 4.21 million square feet. So we have quite a bit coming up in the pipeline in terms of the current this year. For FY26 is what I can talk about.
We’ll have almost 1300 crores if we include our commercial facility management and retail commercial portfolio. At least 1300 crores of commercial top line.
operator
Mr. Murtaza, does it answer your question?
Murtaza Arsiwala
Yes. Thank you.
operator
Thank you. The next question is from the line of Viplab de Burma from antique stockbroking. Please go ahead.
Biplab Debbarma
Good afternoon everyone. So first one is the clarification. Just a small clarification needed in the slide.13 leasing portfolio, disabled areas 9.29 last quarter. I think it is 9.38. So do we sell some of the spaces, the leasing portfolio or there is some. Some you know, correction or something happened. What happened there?
Pradyumna Krishna Kumar
Yeah, so we just small sold a small part of brigade twin task which Nirupa was also mentioning the previous question. So that’s the reason for the reduction.
Biplab Debbarma
Okay. Okay, fine. And with the pipeline that we had for quarter four and the kind of, you know, absorption that we are seeing in these three markets, do you think we would be able to surpass last year’s pre sales number?
Pavitra Shankar
Yes. With the expectation that the launches would come in we should be around last year’s number in terms of overall sales and ideally breaking past that as well.
Biplab Debbarma
Okay. Okay. And one final question. Third question is on the Morgan Heights. I. I never of the issue. I just want you to just wanted to understand when you say hearing it is the hearing is in the court and you are expecting positive verdict. I mean how the issue do you think will get resolved? Like by some positive verdict from court that you are expecting this quarter and that’s this month and that’s the end of it or is there chance of it dragging? Because you also mentioned about protest and 1 lakh properties getting impacted. So just trying to understand this.
Pradyumna Krishna Kumar
You’re correct. Basically the matter is in the court in high court of Madraj and the hearing is happening this month and therefore we expect a positive order in our favor.
Biplab Debbarma
Okay. Okay. Thank you. Thank you. And all the best for the coming quarters.
Pradyumna Krishna Kumar
Thank you.
operator
Thank you. The next question is from the line of Anmol Mittal from SMC Private Wealth. Please go ahead.
Anmol Mittal
Good afternoon everyone. Thanks for the opportunity. So my first question is in the real estate segment, margins have moderated. Could you please help me with to understand the three key factors behind this. Any specific project delay or the margins are lower in this quarter as well. And on the premium real estate, could you update me about the launches pipeline and the margin in real estate in future and the growth.
Pradyumna Krishna Kumar
Yeah. So as explained earlier Too the margin in the real estate segment is hovering around 15%. It is primarily due to many of the older projects being recognized currently. And two, because of India there is rough accounting that takes place so which has no margin. So that has an impact on the overall margins. And that is one in terms of the second question on how things will pan out in the coming years, I think from Q1, maybe Q2 we should start seeing higher margins in the real estate segment, maybe closer to 20%. And as again as mentioned earlier, these are due to projects that are getting recognized now which have been launched in the last three to four years.
Anmol Mittal
Okay. And there is a segment of real estate, premium real estate which the management had guided that it Is of about 30% operating margin. So any update on that part?
Pradyumna Krishna Kumar
Yeah. So project to project, depending on the category of it, it varies anywhere from 27, 28% up to 35%. So the premium one will come at the higher end of that.
Anmol Mittal
Okay, so the second question is there is a line item in segmental results, unallopable expenses. So could you please provide some color on that part? And there is a massive amount of increase in that as well. And I. If you can provide me the breakdown as well, that will be beneficial.
Pradyumna Krishna Kumar
Yeah. Actually unallocated expenditure. Expenditure is more towards the common expenditure which would have been incurred majorly the admin cost and employee cost. The reason being we treated it as an unallocatable expenditure because the people will be working on the both the segments put together. Okay.
Anmol Mittal
Okay. Thank you. Have a great day.
Pradyumna Krishna Kumar
Thank you.
operator
Thank you. The next question is from the line of Akash Gupta from Nomura. Please go ahead.
Akash Gupta
Hi. Am I audible?
operator
Yes, you are. Please go ahead.
Akash Gupta
Hi. Actually first question is on the demand perspective. I think I heard your comments on Bangalore and Hyderabad and you were pretty optimistic about it. Contrary to what the market is thinking. My question is like what gives you this confidence about the demand for the Bangalore, Hyderabad and Chennai markets? That’s my first question.
Pavitra Shankar
We have this confidence based on the kind of response that we see to our marketing campaigns and to the walk ins at project offices. We are still getting very good response. Conversion times tend to as we go into the larger or the higher ticket sizes which is where we are seeing some kind of extension in those time frames. And it takes some time to get those numbers reflected into our results. But. Project has always been quite positive. We are always looking at our marketing mix as well and looking at the best ways to get customers into our projects.
We’re able to achieve the pricing that we have launched at and don’t need to take any discounts. We haven’t had to do any major payment plans. We don’t do subventions, we don’t do 1090 schemes. So I think we’re quite confident of what we are able to charge and be able to transact in our projects in both Bangalore and Hyderabad. It’s a mix of the right kind of product and of course brand and the right pricing as well.
Akash Gupta
My second question is on the miss on the launches. Just wanted to understand what is this approval delay that we have had because none of your peers which are we tracking, at least the listed peers for that market, they have not given anything on approval delays. And could you just give us a brief understanding of that at why any project in Bangalore that was supposed to be launched this year has gone up to one QFY27 or two QFY27.
Pradyumna Krishna Kumar
Yeah. So we’ve faced delays of about three to four months in some of these projects and it’s primarily due to some of the changes that took place in Bangalore. It also depends on where your file was at that particular point in time when that change took place. So those files which are in the advanced stage of approval would have come to a little sooner as against those that were being processed out. That is the only reason for it.
Akash Gupta
Understood. And my third and final question is that I think we’re launching roughly 8 million square feet this year and probably 10 to 12 million square feet in FY27. How should we think about pre sales growth in FY27? Because we’re doing something like flattish in FY26. What is the guidance here? How should we think about it?
Pavitra Shankar
Yeah. So naturally we will be looking to do better than FY26. I think the number of projects that we’re launching as well as the markets in which we will be launching those projects and the ticket sizes should all mean an improvement in the numbers. But we will have to see how that plays out.
Akash Gupta
Okay, perfect. Thank you so much for answering my questions.
operator
Thank you. The next question is from the line of Heta from Monarch aif. Before we take the next participants, reminder to everyone to please limit their questions to two per participant. Ms. Heta, please go ahead with your question.
Unidentified Participant
Yes, sure. Good afternoon everyone. Could you help me with the current inventory levels in million square feet?
Pradyumna Krishna Kumar
Do you mean inventory that we haven’t sold as yet?
Unidentified Participant
Yes, correct.
Pradyumna Krishna Kumar
So we have about five and a half million square feet in in total which is yet to be sold.
Unidentified Participant
Okay. All right. And could you help me understand what percentage of flags is Brigade Icon are sold and are we, are we seeing any good traction at Brigade Icon and Brigade Alts that we launched last?
Pavitra Shankar
I didn’t get the second project name. Icon is going along. I think it will still take the better of three to three and a half years to completely sell out. It’s a very high end project. Accelerate sales or do anything, you know, on the pricing front for that. It’s doing well. Brigade Altius is actually shown some pretty good momentum. It’s quite aggressively priced in terms of ticket sizes, quite high priced for that market and we’ve still been able to have some good absorption. So that project is also doing quite well. So both our large Chennai projects are doing quite well.
operator
Just help me with the quantified number like the total number of units there and the percentage. So it.
Pavitra Shankar
Yeah, I just come back to you with the exact number.
operator
Okay, sure. If I could just squeeze in one more question regarding the Mysore market. We are planning to launch four projects in Mysore. So what average ticket size are we looking at?
Pavitra Shankar
Those should be around north of 1.5 crores. All right.
operator
Just join back to Kyo. Thank you. The next question is from the line of Siddharth Mishra from Fidelity International. Please go ahead.
Karan Khanna
Yeah, hi. My question was around your initial comments on that you have better certainty on the approval front and you, you see that leading to improved sales in the coming quarters. So could you just elaborate on that? What is this better certainty? Is it, you know, are you seeing things more settling down in terms of the changes which have happened over there in Bangalore?
Pradyumna Krishna Kumar
You know, you hit the nail on the head. Basically that’s what we are seeing and, and we’ve been able to get these projects into near launch stage as we speak. So you know, so about the 4 1/2 million square feet coming through, that’s one of the, one of the aspects and for the rest of it, the 8 million square feet also now we have visibility as to you know, which quarter the likelihood of the quarter that it comes in. FY27.
Karan Khanna
Okay. And just a follow up on that, you know, with the change in structure from BBMP to gba, you know, has that accelerated the approval timelines or could you just elaborate on what’s happening there?
Pradyumna Krishna Kumar
No, I wouldn’t say it is accelerated. What it has done is that you know, things have settled down at GBA and you know the approvals are now moving forward, forward as it used to earlier in a stabilized manner. So I wouldn’t say that approvals have yet sort of picked up in terms of speed of getting it processed. It is more about the fact that there is no stability and certainty on the approval.
Unidentified Participant
Okay, yeah, thanks a lot. That’s all.
operator
Thank you. The next question is from the line of Pritesh State from Axis Capital. Please go ahead.
Pritesh Sheth
Yeah, thanks. Just one question on the commercial side. So once we deliver this 2 1/2 million square feet under construction and 4.2 million square feet of a pipeline, what would be our rental run rate and by when can we achieve that?
Pradyumna Krishna Kumar
So as we see, once these assets sort of are leased out and stabilized, the overall lease revenue will be upwards of 2000 crores.
Pritesh Sheth
Okay. And, and, and in five, six years time. I mean what will be the completion time? You know, and then we can assume some stability.
Pradyumna Krishna Kumar
Yeah, it’s about, I would say 20, 30, 20, 31. 31. You can assume say five years from now.
Karan Khanna
Sure, got it. Thanks.
Pavitra Shankar
I just want to add on here to the previous question. In terms of how much sales has happened in Icon and Altius Brigade. Icon Begin Altius In Chennai, around 40% has been sold in both projects. So we have about 60% of the inventory to go.
operator
Thank you. The next question is from the line of Heta from Monarch aif. Please go ahead. Yes, thank you so much. For those on Brigade Icann and Brigade Altairs, I just wanted to understand what is a sustainable EBITDA margins in leasing segment?
Pavitra Shankar
In which segment?
Pritesh Sheth
The commercial leasing segment.
Pavitra Shankar
70%. So it’s slightly lower because we include facility management as well, which has just a margin of maybe 2015 to 20%. But that’s why our overall segment looks slightly lower. But yeah, so it’s 70% and it should continue this way.
Pritesh Sheth
All right. And how. I just, I’m not sure if I’m repeating the question, but could you please help me with what will be a total area to be leased out in FY27 after the launch list?
Pavitra Shankar
Yes. So the current portfolio should be completely leased out. And like I mentioned, we should be getting 2 1/2 million square feet into the portfolio this year. So it will get leased out over the next one to two years I would say because once the OC comes in, it will take at least four quarters to lease out.
operator
Thank you so much. Thank you. The next question is from the line of Prolin Nandu from Edelweiss Public Alternatives. Please go ahead.
Unidentified Participant
Yeah. Hi team. Thank you for this opportunity. Just, you know, again, probably repeating myself and lots of questions on the launches and maybe presales that you are Expecting in let’s say FY27. My question is, we started the year with a target of 15% pre sales growth on FY25 number. Is it possible to reach that number on a 2 year figure basis at the end of FY27?
Pavitra Shankar
We’ll have to look at that. I mean that seems like a pretty aggressive number considering where we are today. We will be looking at doing better than last year in FY26 numbers. And beyond that we’ll have to see based on which projects approvals come through and the timeliness of those approvals. But definitely the intent is to keep growing at our 15% number that we have said in the past.
Unidentified Participant
Right. I mean, you know, I’m just probably connecting this 15% number back to some of the comments that were made on the call that these projects are delayed and not, you know, in a way demand is still there. Right? In a way. If that is the case, why should this 15% be a bit aggressive number given that we have a launch pipeline? Right. And the approval also are pretty much now in line. Right. So is it some capacity issue internally or do you don’t think the market is, you know, as good as probably it was at the start of the year?
Pavitra Shankar
No, I think it is okay to continue with a 15% year over year assumption because the base is also something we’ve been able to grow over the last few years. Based on how the launches are looking at the end of next quarter, I think we’d have a better picture. So which ones come into Q4 and which ones are going to be into FY27? We’ll have a better answer standing in terms of our estimate for FY27.
Unidentified Participant
Thank you. Thank you.
operator
Thank you. The next question is from the line of Parikshit Kandapal from HDSE Securities. Please go ahead.
Parikshit Kandpal
Hi, my first question is the miss on the guidance on qc. Is we expecting flash a flat kind of a growth? So was it an issue of just delay in approvals or was it an issue of velocity in different markets?
Pavitra Shankar
It’s primarily an issue of the delay in approvals because that impacts not just obviously the fact that we have that project and inventory, but the time that we have in the financial year to sell. As we’ve said many times in the past, the quarter of launch is not really impacting the profitability of the project or the demand on ground or any of that. It is just how it looks year over year that is giving it these kind of optics. And one other factor is as ticket size has increased. You’ve seen our own project portfolio average price realization more than double in the past 18 months.
So that also larger ticket sizes that are still being absorbed. But that means the pace of absorption of those projects. Whether it is a Brigade Icon or a Brigade Avalon or even a Brigade Gateway, Hyderabad, all of these take a little longer in terms of absorption. But that doesn’t change anything in terms of our profitability and other metrics.
Parikshit Kandpal
So we have launched 4,500 crores of new GDV this year. So she can help us with the split of that. And what has been the sales for this year from these launches?
Pavitra Shankar
So about 50% of that has. 50% in the past three quarters has come from the new launches and you know the from the ongoing projects.
Parikshit Kandpal
So 50% from the new launches. So new launches. So 4,500 includes the sustained sustainable launch. Also adjust the new launch.
Pavitra Shankar
4400 is the value is the GDP of the projects that we have launched. But so far we have shown for nine months 50% of that number of the pre sales number has come from new launches.
Parikshit Kandpal
This entire 4400 is new launches or it’s also part of sales of existing projects released.
Pavitra Shankar
No, it is just a coincidence that the number is 4400. Similarly so 4.3 million square feet that got launched, that GDV is around 4800 crores actually. And the number that we saw in terms of pre sales was also around that number. But that doesn’t mean 100% of what we launched was sold in the first nine months.
Parikshit Kandpal
So out of this 4800, how much was Chennai and how much we sold in Chennai and Hyderabad. So just I want to break up of these new launches in Chennai, Hyderabad and Bangalore. And just to get the velocity of how much has you’ve been able to sell during the launch for the nine months?
Pavitra Shankar
Yeah, for the nine months totally 15% came from Hyderabad, 20% came from Chennai and 65% from Bangalore. Earlier I had given the Q3 breakup which was slightly different. 35% from Hyderabad, 15% from Chennai and 50% from Bangalore.
Parikshit Kandpal
Okay. And since the last question on the business development, I think you have added 16,000 crores. I think you undertold in this year GD, we knew GD valuations. So what is the breakup of that geography wise?
Pavitra Shankar
So I had said about opening remarks, I think I said 54% from Bangalore and 30% from Hyderabad and the rest across other markets.
Parikshit Kandpal
Okay, thank you. Thank you.
operator
Thank you ladies and gentlemen. That was the last question. For today. I would now like to hand the conference over to Mr. Amar Mysore, executive Director for closing remarks.
Pradyumna Krishna Kumar
Yeah. Before we wrap up, I’d like to highlight a few key achievements beyond this quarter’s financial performance. Brigade has always been built on trust, on honoring our commitments and consistently striving to do better. As we look ahead, we’re sharpening our focus on this promise. We’ve released our new tagline believe in better which captures the philosophy that has guided us for decades. A belief that there is always a better way to design, build, serve and create lasting value. As we close this quarter, we remain anchored in that belief and energized by what lies ahead. Credai, the Confederation of Real Estate Developers association honored the CSR led restoration of Venkatapa Art Gallery with a runner up award acknowledging Brigade’s commitment to preserving cultural heritage through responsible partnerships.
A few noteworthy awards. Pavitra Shankar and Nirupa Shankar were once again featured in business Today’s amongst the most powerful women in business. Brigade group received Rotary Midtown CSR Award 2025 for its impactful contributions to community welfare. Brigade Group was recognized under Silver category at the Aarogya World healthy workplace award 2025. St. John’s Medical College Hospital at Brigade Meadows successfully completed one year of providing quality care and service. At the Global Business Forum 2025. A reciprocity memorandum of understanding was signed between World Trade Center Bangalore, World Trade Center Chennai and Kochi along with World Trade Center Shenzhen.
The agreement aims to strengthen collaboration in areas such as international trade promotion, investment facilitation, innovation, exchange and business networking. Brigade Reap will serve on the jury of the yes Bangalore Challenge. Part of the World Economic Forum’s Global Yes Cities program. The initiative focuses on identifying innovative solutions to help reimagine and transform the city of Bengaluru. Thank you very much.
operator
Thank you ladies and gentlemen. On behalf of Bigger Enterprises Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines.