Brigade Enterprises: One eye on residential launches, another on annuity capex

Harsha Jethmalani
2 min read19 Aug 2026, 12:50 PM IST
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Brigade plans to scale its leasing portfolio to 10 msf over the next four-five years, backed by ₹6,000 crore of capex. (iStockphoto)
Summary
Brigade re-iterated its ambitious 20% pre-sales growth target of 9,000 crore in FY27, banking on timely launches of residential projects spanning about 12 msf in the next year.

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.

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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.

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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.

Also Read | India's next commercial real estate hotspot isn't Mumbai or Bengaluru

About the Author

Harsha Jethmalani is a Deputy Editor at Mint with over a decade of experience covering stock markets and corporate India. As a key member of the Mark to Market team, she specializes in delivering cutting-edge commentary on market trends, the economy, and corporate financial reports.<br><br>Born and raised in Mumbai, Harsha’s entry into business journalism was a serendipitous pivot. Graduating during the 2008–2009 financial crisis, her initial goal of becoming a research analyst at an MNC was rerouted. However, what began as a chance career move quickly became a conscious choice; she discovered that financial journalism is a powerful storytelling tool capable of influencing and empowering the financial decisions of a massive audience.<br><br>Harsha began her career in 2009 at IRIS Business Services (Myiris.com), tracking mutual funds and interviewing fund managers. In 2011, she joined the Network18 Group, writing extensively on equity market trends for Moneycontrol.com and hosting pre- and post-market audio updates. Following a stint covering personal finance at Dalal Times, she joined Mint in 2016 as a Content Producer, steadily rising through the ranks to her current editorial position.<br><br>A defining highlight of her tenure at Mint was her extensive coverage of India's historic Goods and Services Tax (GST) reform. She chronicled the massive indirect tax overhaul from its initial conceptual and execution hurdles to its eventual streamlining. Her impactful reporting earned official recognition when her article exposing a spike in gold smuggling ahead of the GST rollout was formally acknowledged by the Office of the Director General of Audit (Central), Kolkata. Currently, Harsha closely tracks the IT, cement, real estate, and paint sectors. Her sharp news sense and ability to spot emerging trends consistently bring fresh, actionable perspectives to market analysis.<br><br>She holds a postgraduate degree in financial markets from Indira Gandhi National Open University and a Bachelor of Management Studies from Vivekanand Education Society, Chembur, Mumbai.

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