Brigade Enterprises Limited (NSE: BRIGADE) Q4 2025 Earnings Call dated May. 15, 2025
Corporate Participants:
M.R. Jaishankar — Brigade Enterprises Limited
Jayant Bhalchandra Manmadkar — Chief Financial Officer
Unidentified Speaker
Pavitra Shankar — Managing Director
Analysts:
Parikshit Kandpal — Analyst
Pritesh Sheth — Analyst
Parvez Akhtar Qazi — Analyst
Biplab Debbarma — Analyst
Sabyasachi — Analyst
Presentation:
Operator
Hello, ladies and gentlemen, good day and welcome to the Q4 FY ’25 Earnings Conference Call of Brigade Enterprises Limited. 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 star, then zero on your touchstone phone. Please note that this conference is being recorded. We have the management of Brigade Enterprises Limited. I now hand the conference over to Mr MR Jai Shankar, Executive Chairman for the opening remarks. Thank you, and over to you, sir.
M.R. Jaishankar — Brigade Enterprises Limited
Thank you. Thank you. Good afternoon, ladies and gentlemen, and welcome to the Brigadge Enterprises Full-Year Financial Year ’25 earnings call. I’m joined by — joined today by our Managing Director, Ms Shenkar, Joint Managing Director, Ms Shankar; Executive Directors, Mr Matthew; Mr Amar, Mr Pratimna Krishn Kumar; our CFO, Mr Jain; and members of our senior management team. We are pleased to report that this year was the best-ever in terms of project launches, pre-sales by value and collections in a financial year marked by robust growth across all our business verticals.
As of, 31 March 2025, Brigade has also achieved a landmark completion of 100 million square feet of development across projects since inception. We are proud and grateful for the hard work and commitment of our staff and our partners customers past and present who have been part of this momentous journey. We remain focused on acquiring prime land parcels in strategic locations to bolster our land-bank and support our expansion plans. In the past week, we have concluded two marquee transactions. We acquired 11 acres of prime land opposite ITPL in Whitefield for an overall consideration of INR486 crores.
For an office development with a GDV of about INR2,000 crores. Yesterday, coincidentally, yesterday, we acquired 5.41 acres parcel in, Chennai for a marquee residential development for a value of INR441 crores with a revenue potential of INR600 crores or more. Our commitment remains firm and delivering and delivering high-quality sustainable projects that cater to the evolving needs of our customers. In our journey towards achieving net zero by 2045, we are committed to ensuring all our projects are in-line across all stages of development.
Coming to the real-estate segment, the segment achieved pre-sales volume for FY ’25, which stood at 7.05 million square feet with an average realization of INR11,138 per square feet during the financial year, which is an increase of 40% over previous financial year, driven by launch of premium project. We achieved pre-sales value of INR7,847 crore rupees in financial year ’25, a 31% increase over the previous year and recorded collections of INR7,250 crores, reflecting a 23% year-on-year growth. We are steadily strengthening our presence outside of Bangalore in our key markets of Chennai and Hyderabad. In financial year ’25, we launched 11.5 million square feet with a GDV of INR13,500 crores, of which INR9.5 million was in residential projects with a GDV of INR11,700 crores.
Notable residential launches in Q4 includes Brigade Altius in Chennai and Brigade Eternia in Bangalore. We also launched, one of the final parcel in our 135 acre township, Brigade Orchards in, Bangalore. We continue to maintain zero residential debt across the group, driven by robust sales and collections. The market remains resilient with sustained demand across both new launches and ongoing projects, particularly in the sustainable and premium housing segments.
As we look-ahead, we are optimistic about maintaining this momentum in the upcoming quarters. Coming to leasing portfolio, it recorded a revenue of INR1,165 crores in this financial year ’25, a growth of 24% over financial year ’24. We launched 2 million square feet of commercial development during the year Brigade winters saw reasonably good demand for both sales and leasing, particularly from manufacturing, flexible office space and retail tenants, highlighting the continued need for quality office infrastructure.
Overall, retail consumption grew by 4% year-on-year driven by categories such as electronics, specialty lifestyle, watches and accessories across all three malls. Hospitality coming to hospitality thing, our Brigade Hotel Ventures Limited has filed the DRHP, the draft grade prospectus with SEBI in October and we received the DRHP approval we are gone by publicity restrictions due to which we will not be in a position to take any questions from the hospitality business or about the IPO. But happy to say the sector — our business has shown a 20% jump-in business over the past year.
With a robust pipeline of — for financial year ’26, the coming financial year, pipeline of about 16 million square feet of developments across residential, commercial and hospitality segments, we remain confident in our ability to deliver sustainable growth and long-term value for our stakeholders. I will now hand over to our CFO, Mr, to present the detailed financials for the quarter. Thank you.
Jayant Bhalchandra Manmadkar — Chief Financial Officer
Thank you, sir, and good afternoon to all. On behalf of the company, we welcome you to the earnings call for Q4 FY 2025. Our Chairman has already shared operational highlights. I’ll be sharing key financial highlights for the quarter and financial year 2025. We are happy to share that Group has reported its highest-ever real-estate sales value of INR7,847 crores for FY ’25, a growth of 31% over FY ’24. We also clocked the highest-ever collections for the year amounting to INR7,250 crore, an increase of 23% over FY ’24. Net cash-flow from operating activities stood at INR2,135 crore, an increase of 36% over FY ’24.
To start with the Group’s performance for FY 2025, the real-estate segment clocked a turnover of INR3,613 crores with an EBITDA of INR697 crores. The leasing segment clocked a turnover of crore, an increase of 24% over FY ’24 with an EBITDA of INR771 crores. The consolidated revenue for FY ’25 stood at INR5,314 crore. Consolidated EBITDA stood at INR1,654 crore, an increase of 21% over FY ’24. EBITDA margin stood at 31%. Consolidated PAT after minority interest for FY ’25 is INR686 crore, an increase of 52% over FY ’24. Coming to the Group’s update for quarter-four FY ’25, the real-estate segment cropped a turnover of INR1,050 crores in-quarter four FY ’25 with an EBITDA of INR240 crores. The leasing segment clocked a turnover of INR331 crore, an increase of 34% over Q4 of FY ’24 with an EBITDA of INR194 crores. The consolidated revenue for quarter-four FY ’25 stood at INR1,532 crore with an EBITDA of INR488 crore, EBITDA margin stood at 32%. Consolidated PAT after minor rate interest for Q4 FY ’25 stood at INR247 crores. Overall collections in-quarter four FY ’25 stood at INR1,929 crore, an increase of 9% over quarter three FY ’25. Net cash-flow from operating activities stood at INR586 crore, an increase of 30% over Q3 of FY ’25. Now about the debt and liquidity position, we continue to have adequate liquidity and undown credit lines from banks and financial institutions to support our growth plan. Our average cost of debt has been reduced to 8.67% as of March ’25 from 8.82% as of March ’24. Has updated our rating outlook to AA minus positive from AA minus cable on the basis of performance and financial stability. Gross debt of the Group stood at INR4,44 crores. The cash-and-cash equivalents was INR3,483 crores as of 31st March 2025. Consequently, company’s net-debt outstanding as of 31st March ’25 was at INR962 crore, out of which Brigade share is INR199 crores. We continue to have zero residential debt driven by higher sales of real-estate and collections. Almost 82% of the debt pertains to the commercial portion, which is backed by rental income. Debt-equity ratio stood at 0.14 as of March ’25 as compared to 0.62 in March ’24. I will hand it back to the moderator for questions.
Questions and Answers:
Operator
Thank you, sir. We will now begin with 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 in two. All participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Parikshit Kandpal from HDFC Securities. Please go-ahead.
Parikshit Kandpal
Yeah, hi, Anal, congratulations on a good quarter. Sir, my first question is that you said that INR11,700 crores was the launch value. So against this how much was the contribution to this year’s pre-sale of INR7,800 crore from the new launches?.
Unidentified Speaker
So of the new — the total sales that we did, we had about 54% coming from new launches.
Parikshit Kandpal
Okay. So my question is again. So now we have expanding big way in Chennai. Yesterday also big acquisition was announced. So first of all, I wanted to understand that what has been the velocity in the two projects, Iken and Altus when they were launched to release GDV versus sales we have done in this year? And how does it compare to Bangalore? And in context to that, I would like to see — understand that if the velocity in Chennai is lower, so we are expanding big way. And also in Chennai, our prices, especially when I look at is almost INR20,000 is what we have given, if I implied the realization is INR20,000, so which is a premium of 40%. So what are we developing there? So do you think market can absorb that kind of a product? So — and how will be the sales velocity there?
Unidentified Speaker
Yeah. Yeah. So definitely Chennai market is different from Bangalore. We don’t even expect the same kind of launch pattern. In fact, we don’t plan for it that way at all. So in Bangalore, whatever percentage that we’re planning at the time of launch in Chenna, it’s quite different actually. That said, both and Icon had very good launches altimately launched itself, we sold 100 units within the first month itself.
Now we will see that stabilizing and then we see that going at a more sustenance kind of rate as opposed to trying to sell everything in a very short period of time. So I think we have to gear through our sales before completion of the project and that is actually a normal state of planning our sales. I think in the last few years, everyone got induced to selling in a very short period of time, which is not a normal situation. It’s a good situation, but it’s not typical. So in Chennai, we expect to see the same and the kind of pricing and sales velocity that we have planned will be on those lines.
In Chennai also, all of our land parcels are extremely high-quality, really are well-located, they’re in very good neighborhoods. So naturally the pricing that you’re seeing is reflecting that. It’s not that it is not in a premium area and we are charging something and putting and positioning a product that’s not in-line with that submarket. So yesterday’s acquisition included us an excellent parcel is right next to Phoenix, the mall and Mall and Western Hotel as well. So it’s a fantastically located parcel and I think the pricing there is fair. So overall, I feel both markets are strong. Bangalore still moves very differently, especially at the time of launch.
But both are — both are markets that we’re very confident of in the coming couple of years as well.
Parikshit Kandpal
So just to get some numbers, so this alters project in Chennai, so what was the launch value and how much have we sold-in that in terms of crores?.
Unidentified Speaker
So the launch value — the ticket size is around INR2 or so. We’ve done about 100 units, so we’ve done INR200 crores. That’s totally about INR662 units.
Parikshit Kandpal
So out of INR1,200 odd, you have booked INR200 crores of sales, that will be the right assumption. Okay. Got it. And just one question on the embedded EBITDA margins. Now INR1,700 crores of pre-sales, IN 1,700 plus. So what could be the embedded EBITDA margin in this pre-sales for this year, FY ’25?
Unidentified Speaker
Sorry, can you repeat the question?
Parikshit Kandpal
So we have recorded INR1,700 crore-plus of pre-sales for this financial year. So what would be the embedded EBITDA margins in this.
Jayant Bhalchandra Manmadkar
We expect it to be — we will aim to be on the similar lines what we have achieved this year. But at the end-of-the year, only we will know the exact figure too early to —
Parikshit Kandpal
No, sir, I’m talking about the pre-sales number. So I mean, residential EBITDA margins are 19% that is because of the CCM accounting similar. It will be in similar levels. I think then we were target, yes. I think last call you said 27% to 28% is what we’ll be targeting from the new business.
Jayant Bhalchandra Manmadkar
Better than that. This year, we have done better than that. That will be the desire to keep the EBITDA better than, 27% 28%. So generally, we aim to make it about 30% plus. But you know, all a factor of market conditions and project-to-project of EBITDA and overall when it gets averaged, it can vary a percentage or two.
Parikshit Kandpal
Okay. Just last question to. Joan is INR3,483 crores of cash. So how much is it in and what will be the free-cash which can be used for acquisition and also non-acquisition and gross.
Jayant Bhalchandra Manmadkar
So as of — as of 31st of March, about INR1,100 crores is of free-cash, then about INR480 crores is the cash which is out of that we have to use and balance is in.
Parikshit Kandpal
Okay. So approximately, INR1500 is free-cash, which can be used for growth.
Jayant Bhalchandra Manmadkar
Yes, yes.
Parikshit Kandpal
Thank you, team and wish you all the best.
Operator
Thank you. A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Pritesh Set from Axis Capital. Please go-ahead.
Pritesh Sheth
Yeah. Thanks for the opportunity and congrats on the great year. First is in terms of launches for this year, it’s almost 12 million square feet. How would you split between the three markets or rather two I think. Yeah, you can help you know that.
Pavitra Shankar
We have 12 million square feet across Residential. In that, it’s about 5.5 million in Chennai and approximately the same in Bangalore and about 1 million or so square feet from my — sorry, from Hyderabad. We also have 0.5 million square feet coming from store this year.
Pritesh Sheth
Got it. Got it. And so in terms of value, it should be like same INR12,000 odd crores, 10,000 per square feet would be the plant utilization.
Pavitra Shankar
Yeah. Yeah. Okay, average of INR10,000 is what we are assuming.
Pritesh Sheth
Got it. Just for Bangalore, I mean, we were — probably last year, we were planning to scale-up our launches in Bangalore from this 5.5 million, 6 million square feet kind of a run-rate to more of 7 million, 7.5 million square feet. But now we are back to again that 5.5 million square feet run-rate, which we have been doing since last five, six years. Do you think that I think at the scale at which we are in Bangalore, there is some constraint of growth there and large part of our growth will come from Chennai, Hyderabad or is my heading that is incorrect?
Pavitra Shankar
Yeah. So in general, we still expect Bangalore to be a very large driver of our growth. You know, every quarter, every year, these numbers can change a little bit based on approval cycles and so on. In Bangalore as well, I would say there are a couple of land process that we pulled back from acquiring because some of the land cost was a little bit higher. So in some cases, we have not gone forward. I think we are still very bullish about Bangalore as a whole in terms of residential and we still have some large projects coming up in the pipeline for us in the next four quarters and beyond.
And wherever it’s possible to pull-up what is in our land-bank and bringing — bring it into the coming four quarters, we’ll do that. Even in our land-bank, we have substantial amount of pipeline from Bangalore itself. It’s just a matter of the approval cycle and getting it into the pipeline earlier?
Pritesh Sheth
Sure. And just to continue with that, what’s — in general, the conversion cycle in Bangalore now, right from acquisition to eventual launch? Has there been any favorable or a favorable timeline there or there are still things which are delayed
Jayant Bhalchandra Manmadkar
Yeah. Compared to two years back, you can say we are adding about two months delay compared to two years back. But still we generally say for large projects, we still keep in mind about 12 months as the launch cycle. If we do before that, it is — we treat it as a plus. If we do later than that, it is a slight minus. But normally on an average, we can take it as 12 months, but our record in many cases is about 10 months.
Pritesh Sheth
Got it, that’s very helpful. And just one last on residential. Hyderabad, you know this we would exhaust our pipeline this year, what more we can see in Hyderabad, you know are we doing some transactions this year?
Jayant Bhalchandra Manmadkar
Yeah, we have tied-up another million square feet plus, which is we have entered into MOUs, etc., and it’s in advanced stages of planning and we are in the process of finalizing another 1 million square feet and we’re waiting for some public level auctions for us to okay. We hope to launch this year if I mean new projects we plan to acquire, 2 million square feet of new project to be acquired. Out of which 1 million we have signed-up another 1 million in the process.
Pritesh Sheth
That’s very helpful. And you know,
Jayant Bhalchandra Manmadkar
Eventually do you think this is apart from — this is apart from 1 million approved project which is to be launched?
Pritesh Sheth
Yeah, yeah. And eventually, given the supply which we are able to create in Hyderabad, do you think eventually that market is going to be as large as what Bangalore is right now and what Chennai could be in two, three years from down the line? Do we have envisage that kind of volumes being clocked in Hyderabad as well?
Jayant Bhalchandra Manmadkar
So as it is, Hyderabad and Bangalore are running neck-to-neck, it is not that Hyderabad is way behind or anything. Chennai is a bit behind in terms of volumes, but Hyderabad and Bangalore are close to each other. Some years, some quarters maybe, Hyderabad has done even better. But I think they have much more stock, maybe eight to nine quarters stock, whereas Bangalore is four to six quarters.
Pritesh Sheth
Yeah. I was asking from China
Jayant Bhalchandra Manmadkar
China has the potential to improve certainly. That’s what we feel.
Pritesh Sheth
Yeah. I was asking for our perspective, Bangalore right now this — I mean annually does INR6,000 odd crores of pre-sales. We know do we strategize in a way that eventually Hyderabad should also contribute that much of sales for us?
Jayant Bhalchandra Manmadkar
Yeah, no, certainly that is a desire. We are working towards that to get the right parcels of land in Hyderabad., but that’s the desire.
Pritesh Sheth
That’s it from my side. I have few more questions, but I’ll join back the queue. Thank you.
Operator
Thank you. Thank you. A reminder to all participants, please press star and want to ask a question. The next question comes from the line of Parveyas Kazi from Nuvama Wealth Management. Please go-ahead.
Parvez Akhtar Qazi
Hi, good afternoon team and congratulations for a great FY ’25. So a couple of questions from my side. First, if you look at the average realizations for FY ’25 as a whole roughly about INR11,100 a square feet. They were up about 40% Y-o-Y. Obviously, there was a change in-product mix and there have been some organic or like-to-like price growth. I mean, in your view, what would have been, let’s say, the like-to-like or organic price growth portion within this 40% increase in realization
Pavitra Shankar
So it’s like-to-like, it’s about 10% like-to-like because the big difference in the average price realization has really come from the product mix that we have been able to launch in the past year across all markets?
Parvez Akhtar Qazi
Sure. And now when we move towards FY ’26, again, what is your view, one, on like-to-like price growth? And second, do you anticipate further change in-product mix, which could push this realization even higher in FY ’26 beyond the like-to-like price goes?
Pavitra Shankar
So the way in which we plan our launches is to ensure that we’re getting a good price at the time of launch itself. So that beyond that, we see it growing for the same project maybe at 10% or so. And I think that is because the market is not in a price discovery phase anymore. People know what the price is and what they expect the price to be at the time of launch. And then it just increases annually at a nominal number. In terms of new launches, that’s how we are planning the way in which we look at it.
So going-forward also, I think we are assuming more than the inventory that we have in our pipeline is assumed at approximately INR10,000 per square-foot value or EPR. So while in the past, we’ve seen it go to INR11,000 or high 11,000, we see whatever is in our next four quarters, we’re looking at around 10,000 average. That’s mainly from the product mix.
Parvez Akhtar Qazi
Sure. Second question is on the value versus the volume equation. So in FY ’25, our volumes were down 7% Y-o-Y, but our sales value was up 31% Y-o-Y. In your view, I mean, what will, let’s say, these numbers be in FY ’26, will we see more volume growth and lesser value growth in FY ’26, how will — I mean, how do you expect the next year to pan-out?
Pavitra Shankar
So definitely, we will be aiming — we would always love to sell more in terms of area, but we have to keep in mind that also what it means in terms of ticket sizes to customers and the market’s ability to absorb a certain type of ticket size. So naturally, we want to push on both fronts, both on the area as well as the total pre-sales value itself. But seeing that the average ticket — the average price realization is going to be around INR10,000, I think we’ll be looking to increase both, but hard to say really whether I’ll — at what kind of percentage I’m going to see that grow over the coming year, but we are hoping to increase The overall area and naturally the value as well.
Parvez Akhtar Qazi
But I mean, in terms of sales value growth, would it be fair to say that we’ll be targeting at least a double-digit value growth in FY ’26?
Pavitra Shankar
Yeah, double-digit is the typical sort of approach to try and increase the value?
Parvez Akhtar Qazi
Sure. And my last question is on Brigade twin towers so just wanted to think what’s your thought process towards leasing the balanced portion that we have there?
Pavitra Shankar
Yeah, for twin towers you know, we have started, as you know, leasing and one tower for a strata sale and ownership. And in some cases, we have investors also buying into the floor. So we are leasing the space for them. So I would say about 30% of the project has been leased or sold and one tower we are keeping aside for one — a leasing — a leasing client. We have applied for a few RFPs and we are yet to hear back. So the sale traction has been good, but the number of traction has been a number of transactions have been very-high, but price has been a bit small.
So while the transactions and there’s lot of demand End-User, overall, we’ve like I said, sold — sold or leased about 30% of the project. And I think it should see good demand in the coming year.
Parvez Akhtar Qazi
Sure. Thanks and all the best thank you.
Operator
A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Biplab Debrama from Antique Stock Broking. Please go-ahead.
Biplab Debbarma
Good afternoon, everyone, and congratulations for another stupendous year. My first question is on that on the — you know, can you maintain similar kind of, 20% 25% 30% sales value growth in the next foreseeable future. What’s your take on this on the pre-sales growth
Pavitra Shankar
So we are typically looking at a 15% to 20% year-over-year growth. I think that is fair in terms of the base also in which we are continually adding. So that’s kind of how we look at it.
Biplab Debbarma
And you know, for the last three, four months we’ve been hearing a lot of narrative that looking at the economy and everything the real-estate cycle may be some kind of moderation. Our Q4 numbers are good, but going-forward, numbers may be or absorption may see moderation. As you say see last few years, the absorption if people are selling 50%, 60%, 100% on launch, that may not be tenable in the long-run. So in April, May, whatever you are selling, have you seen any kind of moderation compared to what you saw the FY ’24, FY ’25, the kind of the sales velocity we saw? Have you seen any moderation in the last few months in your a portally.
Jayant Bhalchandra Manmadkar
In Q4, there is some amount of moderation. And in April, every year there is always a moderation after the financial year completion, but May is looking a bit brighter, May should be fine. But I think everything is a function of your demand, supply and the affordability but — and also you need to look at holistically not price alone, not volume alone. You have to see them together. See, when volume comes down a bit, people question us and volume has dropped. When prices go up, nobody appreciates that the prices have gone up. So I think overall, we need to look at holistically.
I think based on that, you know, it’s a combination of quantity and our price. We expect to do overall better in terms of the revenue and profitability?
Biplab Debbarma
And one final question compared to what you did in FY ’25, would there be any — should this — are you going to see more contribution from the new markets or the contribution from these three markets, Bangalore, Chennai, already will remain same? I’m just trying to understand from where you get this 15% 20% growth.
Jayant Bhalchandra Manmadkar
So it will be from this — this within these three markets. We are not looking at, you know, a fresh city from — though we may enter a one other city or so, not Mumbai or Delhi immediately. But more or less, it is in these three markets.
Biplab Debbarma
Okay. Thank you, sir. And all the best.
Jayant Bhalchandra Manmadkar
Thank you. Thank you.
Operator
Thank you. A reminder to all participants, you may press time and one to ask a question. Thank you. The next question comes from the line of Pritesh Set from Axis Capital. Please go-ahead.
Pritesh Sheth
Yeah. Thanks for the follow-up. So a couple of questions. Firstly on Quinta, you mentioned about the leasing that just wanted to clarify that by what time we expect with 6 lakh square feet odd which is vacant now to be occupied
Pavitra Shankar
We are targeting to complete by this fiscal year. That’s the target
Pritesh Sheth
By this fiscal year. Okay, and in what sort of rentals are being built-in? In terms of per square feet?
Pavitra Shankar
Yeah. The rentals we’re looking at is currently between INR70 to INR75 per square-foot.
Pritesh Sheth
Okay. Okay, got it. That’s helpful. And just one last on the cash flows of collections, if you can split that across businesses
Jayant Bhalchandra Manmadkar
Yeah, certainly.
Pritesh Sheth
Just for this quarter.
Jayant Bhalchandra Manmadkar
I’ll just come back. You can ask the next question and come back to you.
Pritesh Sheth
Okay. No, that’s the only question. You can come back later. That’s okay. Thank you
Operator
Thank you. The next question comes from the line of Sabyachi from Bajaj Capital. Please go-ahead.
Sabyasachi
Yeah, hi, this is Sabey Sachi from Bajaj AMC. I have two questions. First on the residential piece. Could you walk us through the timeline of major launches of this 12 million square feet that we have planned for FY ’26 six across micro markets?
Jayant Bhalchandra Manmadkar
Sorry, can you just repeat that question again.
Sabyasachi
So I’m looking for timeline of launches — major launches across the three markets of this 12 million square feet that we have planned for FY ’26.
Jayant Bhalchandra Manmadkar
Yeah. So in Q1 in Chennai, we will be launching one large development. And much like the two previous financial years, we’ve been launching launching more of our projects in the second-half of the year okay so in terms of the trend, I think it’s very, very similar to what we see in the last two FYs.
Sabyasachi
Got it, got it. It will be second-half heavy.
Jayant Bhalchandra Manmadkar
Yeah.
Sabyasachi
And what would be our current inventory pending, I mean inventory is there on whatever projects we have launched.
Pavitra Shankar
5 million square feet. 5 million square feet already launched.
Sabyasachi
5 million square feet with an average relation of 10,000, that’s the inventory value that we have.
Pavitra Shankar
Yeah, maybe a little bit more, because these are all the higher-value projects that we had launched in the last year or so.
Sabyasachi
Got it. It. On the business development, is there any target we have for FY ’26, any investment target that we have number for BD activities for FY ’26.
Jayant Bhalchandra Manmadkar
So our strategy has been very, very stable through all the years. The way we look at it is from a medium-term, what can we launch over the course of the next four to five years. So typically, the way we look at it is how much have we launched or are we launching in the current year and what we’ve done in the previous year. And we are the minimum look at replenishing that much amount of square footage . We’ve done about 11.5 million square feet of launches last year. We have added about 12 million square feet-in the previous financial year. So we will continue to focus on similar lines.
Sabyasachi
Got it. Okay. Okay. That’s all from my side. All the best. Thank you.
Operator
Thank you. Thank you. The next question comes from the line of Parikshit Kandpal from HDFC Securities. Please go-ahead.
Parikshit Kandpal
Yes. So I just wanted to understand that there is this concern about the slowdown and the trade war. So over the years, what do you think would be the change in the concentration of the customers for us as a percentage? Do you see there is any change in the trend? And how do you think this thing given over concerns on the demand from IT IPS. What are you seeing really on-the-ground?
Jayant Bhalchandra Manmadkar
See by and large I think a trade war is getting resolved on its own but nobody can predict Mr Mister T so I would put it things should resolve faster than one can imagine the way the so-called war between India and Pakistan got resolved earlier-than-expected. And as far as Bangalore market is concerned, it is, yes, a lot will depend on the IT sector performance. But having said that, whenever there is any kind of so-called recession or a slowdown in the United States, the IT sector improves in India much more than expected in those that the American companies can maintain their profitability.
And as-is known to everybody, there is a huge rush of GCCs, global capability centers in the last one year particularly. And that trend is likely to also continue. I think Indian capability is appreciated globally. That’s why the GCCs are coming to India in a much faster pace. So that way IT is here to stay. And I think by 2030, we might exceed nearly $1 trillion of IT business is what is expected.
Parikshit Kandpal
But I’m also — I mean, looking at the INR7,800 crores out of sales pre-sales this year, so any ballpark sense and estimate what could be the contribution from the ITITS in this
Jayant Bhalchandra Manmadkar
No specific contribution from ITIT as such in terms of sales are easing.
Parikshit Kandpal
Please, I’m about the INR1,700 crores of sales residential sales, which we did this year. So approximately what would be attributable to the buyer of the customer coming in from the ITIPS sector in this.
Pavitra Shankar
See actually because we are in these markets of Bangalore,, Chennai, the proportion across-the-board, I mean, if I take all three must be around 60%, 65%. We have been getting this question about IT services and so on. But I would say over the last 10 years, the profile of what is considered as IT as a job has really gone up the value chain. So previously, we all looked at in-fources with Pro and so on as like your potential companies from where you get your customers.
Now because there — now because of the way the economy has also grown and the kind of jobs that are there and the growth of GCCs, we’re seeing a lot of people in GCCs or companies where they have tech roles or digital roles. Those are the kind of customers they’re getting and that’s happening even in much higher — even in more premium projects within our own portfolio. So we’re seeing that customers are from a tech background, maybe not necessarily working for your typical IT services firm, but they have that kind of tech — tech is sort of the reason for their employment. So I think we should look at it from a more holistic basis.
Parikshit Kandpal
Okay. The next question is now we are at almost INR878,000 crore or INR8,000 crores and next year even if we grow, 15%, 20%, we will touch that magical number of close to over INR10,000 crores. So at what point of time in the life-cycle of genesis of the company do you think that you need to diversify now beyond South and look at probably starting with MNR and then NCR. So I’m planning for the same at least you need to plan at least couple of years in advance, look at client opportunities. So in terms of readiness and going from here on, so how do you sense these opportunities outside South
Jayant Bhalchandra Manmadkar
I think in FY ’26, we’ll take that call, I would say. We’ll take that call. What to do is something we need to or decide because we feel these three markets are quite strong and able to absorb higher volumes. But in terms of pure volume, it is Bangalore, Hyderabad and followed by maybe NCR is the one which comes under volumes. But in terms of price it is Mumbai, Gurugon and then Bangalore which other cities will come. So we need to see when to to vegetable it.
Sabyasachi
Okay, so will MMR be the first at all if they have to decide MMR, so you should be more aligned with your current product, current market. So where do you think would be the first move the NCR?
Jayant Bhalchandra Manmadkar
I think time will tell.
Parikshit Kandpal
Okay. Sure. And just last question for. So this year, we have seen 54% contribution coming in from the new launches. Typically, we have seen launches contributing for others or peers as I get 65% to 70%. Do you think that even going ahead, the share will keep growing and new launches will become lesser contributor to the free sales?
Pavitra Shankar
Yeah.. So actually said about 54% this year came from new launches. So I actually think that it’s a healthy number because we — our sales is — I mean, I don’t think it is great to have a number that is 70%, 80% all our new launches because our approach is to have a healthy launch and to also lead some inventory for sustenance. So our plan is not to sell-out on day-one. We will not make those kind of announcements because that’s not part of our approach anyway.
So going-forward, I think 50-50 in terms of new launch versus ongoing and there is always very minimal you know, sales coming from what is seen as completed, it’s almost negligible. But as the cycle continues to evolve, we’ll will have to see how this goes. But in general, I think we have settled into a pattern where we look at, say, 40% to 50% of the — of any new launch should be sold within the first couple of quarters.
And then we take the rest of the construction cycle to sell the remaining inventory, if we’re able to increase price and still sell, then we will look at it. But there is no hard and fast rule that I need to sell everything upfront and that’s why I think around 50% to 60% from new launch is what we’ll continue to look at.
Parikshit Kandpal
And just have you been handling — are you handling with the number for FY ’24? What was the contribution from the new launches in FY ’24 sales?
Pavitra Shankar
Yeah, around 60% 62% or something like that, 62% in FY ’24 yeah, 162,
Parikshit Kandpal
Okay. Okay. Got it.
Pavitra Shankar
Yeah,
Parikshit Kandpal
Okay. Thank you. Thank you team and wish you the best.
Unidentified Speaker
And just as a response to the earlier question that is split all the collections across three verticals. So total collections for the year was INR7,250 crore. In that real-estate was INR5,412. Commercial lease retail business was about INR1,197 crore and hospitality was about INR642 crores.
Operator
Thank you, sir. The next question comes from the line of Perve from Nuvama Wealth Management. Please go-ahead.
Parvez Akhtar Qazi
Hi, thanks for taking my follow-up question. Sir, firstly, would it be possible to get a broad split of our in FY ’25 across the three cities? I mean, even a rough-cut number would be fine.
Pavitra Shankar
In terms of the overall value or just as a percentage?
Parvez Akhtar Qazi
Yeah, I mean either it’s fine, yeah.
Pavitra Shankar
Okay. So just approximately, I will say Bangalore was around INR5,000 crores, Chennai about INR1,000 crores and Hyderabad INR1,400 crores.
Parvez Akhtar Qazi
Sure. I mean you gave a number of 54% contribution from new launches in FY ’25 for Q4 also the number would be more or less in the similar range.
Pavitra Shankar
Yeah. Yeah. So Q4 also is around 55% new launches. It was a little — but that’s why kind of actually around 55% for the year.
Parvez Akhtar Qazi
Sure. And lastly, the land that we Have bought opposit ITCL. The OpEx project that you make will be on-sale model or a lease model is also possible.
Jayant Bhalchandra Manmadkar
So it will be on primarily early model.
Parvez Akhtar Qazi
Sure, sir. Thank you and all the best.
Jayant Bhalchandra Manmadkar
Thank you.
Operator
Thank you. Thank you. Ladies and gentlemen, the last question comes from the line of Biplab Dabarama from Antique Stock Broking. Please go-ahead.
Biplab Debbarma
Sir, my first question is on the business development you did in this financial year FY ’25. In terms of GDV ballpark, what would be that number
Jayant Bhalchandra Manmadkar
The GD upwards of INR12,500 crores.
Biplab Debbarma
Okay. Okay. And now coming to the pre-sales, new launch sales, so 54% of pre-sales from new launches, that means you have sold around INR4,000 crore-plus from new launches in this financial year and we have launched around INR11,000 crores in this financial year. So that means ballpark around 40% is the absorption of new launches, new project launches. If that is a ballpark number is correct. So is it a — is it a high number or okay number or a moderate number? Because 45% of absorption increases. I thought pre-COVID it would be something around 25% 30%. So it doesn’t look like it’s too high a number in terms of absorption of new launches.
Pavitra Shankar
Yeah. Your calculation is more or less correct. We also have to see the timing of the new launches. So I only had one month-to do the new launches and that is the kind of value that I can probably manage within that. As I mentioned earlier, we will look at how much we can do within 1/4 or two quarters of the launch and consider that as our overall launch period, because we aren’t trying to sell everything at one-shot when we launch.
So considering that some of our launches came in like Brigade Eternia basically came in at the last month or so, all sales came in February. So basically we didn’t have too much to time to absorb even more within the financial year.
Biplab Debbarma
So what would be the typical absorption in the first year of launch? Comfortable number that would give you comfort?
Pavitra Shankar
So yeah, around 60% what — but I would say in the last couple of years, there are some projects which we fully pulled out within one year itself. So it’s not typical. Whatever we saw in the last two years is not typical and whatever pre-COVID is — yeah, it’s a different time entirely. So post that, as I mentioned earlier, we look to sell around 50% to 60% within the first or so. If it is faster, then we will try to attain a certain price appreciation and not necessarily just sell-off the inventory very quickly.
Biplab Debbarma
So anything below 50%, 60% is moderate and anything above 50% 60% is exceedingly well. That would be the
Pavitra Shankar
Different strategies. We have different strategies for different projects. So if it’s a volume project, I look at it differently from like a high-end or smaller inventory type of project. So we will look at it based on what is best for that particular size project.
Biplab Debbarma
Okay. Thank you, ma’am and all the best.
Pavitra Shankar
Thank you.
Operator
Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Ms Pavitra Shankar, Managing Director to give her closing remarks. Thank you ma’am, please go-ahead.
Pavitra Shankar
Before we wrap-up, we’d like to share a few key highlights beyond our financial performance this quarter. We launched the Earth Fund, a sustainability and prop tech-focused investment fund in collaboration — in collaboration with, the Investment Arm of Pharmace and RBG fund. This steppy registers to Alternative investment fund has a of INR200 crores with a INR100 crore green shoot option. The fund aims to support high-growth startups, driving innovation and sustainability in the build environment. And I were named among Fortune India’s 100 Most Powerful Women in Business 2025, ranked 88 alongside leaders such as Kiran Shaw, and Isha Ambani and Nair. The Brigade Foundation broke ground on the upcoming St. John’s Medical College Hospital at Endorado, 108 debt facility in North Ben.
Gregate Group was ranked 10th in Fortune India and top-50 Future Ready Employers 2024 list, highlighting our progressive and people first workplace practices. World Center Kochi has been designated as premier accredited member by the World Centers Association, the highest-level of certification. With this, all three of our WTCs, Bangalore, Chennai and have achieved this prestigious. A few words in recognition. Brigade Tech won for best practices in water management at the BPIC ESG Awards 2025.
Brigade Tech Cardence was also awarded the and Waterproofing Award by the American Short Creed Association. Brigade Citadel was awarded residential Project of the Year at the Second Class Excellence conflict and award at about 2025. Brigade Parkside North received the IIA Award for Excellence and Architecture under the residential architecture category by the Indian Institute of Architects. Brigade Foundation has been partnering with the Foundation supporting the equal use Cricket Excellence program, delivering hundreds of impactful interventions involving 30 experts and 10 high-performance. The program has proudly nurtured three Indian national team players, four IPL players, three India Under 19 team members. On that note, we conclude this quarter’s earnings call. Thank you for your time today and for your continued interest in the Brigade.
Operator
Thank you, ma’am. Ladies and gentlemen, on behalf of Brigade Enterprises Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.