The Brigade Enterprises stock has declined over 12% so far in 2026, lagging the Nifty Realty Index’s positive returns. After a dull June quarter (Q1FY27), a re-rating depends on how the Bengaluru-based developer fares in the rest of FY27.
Pre-sales or bookings fell 5% year-on-year and 58% sequentially to ₹1,061 crore in Q1, with volumes of 0.74 million square feet (msf) sold. No residential projects were launched, so pre-sales were aided by existing projects.
Bengaluru led with a 58% pre-sales share, followed by Chennai and Hyderabad. The average price realization rose 22% year-on-year to ₹14,338/sf, helped by price hikes in existing projects and a shift to higher-value offerings. Collections rose 7% year-on-year but fell sequentially to ₹1,856 crore.
Brigade re-iterated its ambitious 20% pre-sales growth target of ₹9,000 crore in FY27. It is banking on timely launches of residential projects spanning about 12 msf in the next year, with a gross development value (GDV) of ₹13,400 crore. Of this, 9.3 msf with a GDV of ₹10,000 crore will be launched over the rest of FY27.
Brigade Misty Greens in Mysuru was launched in July. Phase 2 of Brigade Neopolis in Hyderabad and a small senior living project within Brigade Meadows are the likely Q2 launches.
Hyderabad projects
On business development, Brigade invested ₹2,400 crore for 2.7 msf land to be used for residential projects, mainly in Hyderabad. Amid artificial intelligence-led concerns hurting affordability of the IT-dominated Bengaluru market, geographical diversification is key to boost sales.
Here, Brigade’s likely pivot towards mid-income projects can also address the issue of soft volume/sales velocity, said Nuvama Research. In Q1, homes worth ₹1.5 crore to ₹3 crore and those worth over ₹3 crore had a 45% share each in pre-sales, while houses below ₹1.5 crore contributed the balance 10%.
Brigade is bracing for a ramp-up in the annuity business as it scales 10 msf of leasing portfolio in the next four-five years for a capital expenditure of ₹6,000 crore. This aids the medium-term rental growth outlook.
But operating cash flow of the core residential business remains weak, while annuity capex commitment is high, Elara Securities (India) said in a report dated 16 August. This makes profitability and cash flow trends in residential business important. Incorrect capital allocation can be a potential downside risk, according to Elara.
