In the strong rebound witnessed in the real estate market – residential, commercial and office leasing, many of the larger players in the segment and select smaller companies were strong beneficiaries of the surge in demand.
As one of the leading developers in the country with a strong presence mainly in Bengaluru, Hyderabad and Chennai, Brigade Enterprises has delivered well on multiple fronts across realty segments.
The stock was down over 35 per cent in the broader market fall over the last quarter of 2024 and first quarter of 2025, from its peak touched in October 2024. It has subsequently rallied in the last couple of months, but is still attractive at the current price.
At ₹1,145, the stock trades at 27 times its per share earnings for FY26, making it a healthy bet for investors with a two-three-year perspective, especially given the relatively-higher valuations (35 times or higher) that most real estate companies trade at currently. The BSE Realty trades at a PE multiple of over 55 times.
Robust traction in the premium residential segment, robust occupancies in the commercial properties and steady lease revenues are positives for the company. A heavy pipeline of projects lined up across its top three cities of operation and strong realisations on residential constructions and lease contracts are added advantages.
Over the period FY21-24, Brigade’s revenues grew at 35.9 per cent compounded annually to ₹4,896.7 crore in FY24. From losses in FY22, the company has consistently been recoding strong profits for the past three fiscals (FY23, FY24 and FY25).
In FY25, due to overall slowness in demand (though pricing was healthy), revenues increased about 3.6 per cent year on year to ₹5,074.2 crore, while net profits rose 69 per cent to ₹680 crore. The company’s EBITDA margins has been rising steadily over the past few years and is now at a healthy 31 per cent as of FY25.
Catering across segments
Brigade has been in operations for a little shy of 40 years. It has delivered 300-plus buildings over 100 million sq ft. The company is the licensed owner of six World Trade Centres. In addition to its main cities of operation mentioned above, Brigade has presence in Thiruvananthapuram, Mysuru, Kochi and Gift City. It has expertise and key presence across a wide range of segments — residential, commercial real estate, SEZs, retail and hospitality. The company works on a combination of outright sales and leasing options.
In FY25, the company achieved a presales value of ₹7,847 crore, a 31 per cent increase on a year-on-year basis. Since the company operates in premium and luxury constructions as far as the residential segment is concerned, and high-end offices, mall spaces in the commercial division, per square feet realisations are quite high.
The average realisation was ₹11,138 per sq ft during FY25, an increase of 40 per cent over FY24. In Q4FY25, the figure was ₹12,082 per sq ft, which compares favourably with the best in the industry.
Collections were the highest ever in FY25, at ₹7,250 crore, an increase of 23 per cent over the figure in FY24. Launches, too, were the highest at 9.5 million sq ft in FY25.
Over the next four quarters, there are eight residential projects lined up in Bengaluru, five in Chennai, one in Hyderabad and two in Mysuru.
Overall, the pipeline of projects is quite robust with steady cash flows expected over the foreseeable future.
Besides, the company has a land bank of 498 acres spread across its cities of operation.
A recent report from Anarock for Q12025 indicates that residential units costing north of ₹80 lakh and going beyond ₹2.5 crore accounted for 76-96 per cent of the new project launches in Chennai, Hyderabad and Bengaluru.
In general, though the real estate market is stagnating or struggling at the budget housing level, the premium and luxury segments are thriving, that too with pricing increases as well.
Lease incomes flourish
In addition to strong residential and commercial project sales, Brigade also has a healthy leasing segment that rents out office spaces to companies.
Occupancies in the office spaces it has rented out have generally been north of 90 per cent. In the fourth quarter of FY25, the occupancy level was 92 per cent.
For Brigade, lease rentals make up as much as 23 per cent of the overall revenues. In FY25, lease rentals were up 23.4 per cent year on year, indicating the ability of the company to get the best rates on its leases.
At ₹70-75 per sq ft, Brigade’s lease rentals are among the best in the industry.
Healthy financials
Brigade Enterprises has a reasonably strong balance sheet. The company had a net debt of ₹992 crore as of March 2025. That gives a debt-equity ratio of 0.14, which compares favourably with the best in the industry. With healthy EBITDA margins and steadily increasing realisations, profitability is expected to remain comfortable for the company.
Published on June 21, 2025