Brigade Enterprises Limited (BRIGADE.BO) Q1 FY2026 Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Brigade Enterprises Limited Q1 FY '26 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. M. R. Jaishankar, Executive Chairman, Brigade Enterprises Limited. Thank you, and over to you, sir.

Thank you. Good afternoon, everyone, and thank you for joining us for our Q1 FY '26 earnings call. I have with me the management of Brigade Enterprises Limited, Managing Director, Ms. Pavitra Shankar; Joint Managing Director; Ms. Nirupa Shankar, Executive Directors, Mr. Roshin Mathew; Mr. Amar Mysore; Mr. Pradyumna Krishna Kumar, our CFO; Mr. Jayant Manmadkar; and members of our senior management team, including Mr. Om Prakash, Vineet Verma, Nanda Kumar, Vishwa Pratap, Manoj Agarwal, Rayan and Ram Charan and Tara. We are happy to report that financial year has begun on a strong footing with all our 4 verticals delivering healthy performance. This momentum reflects the resilience of our business and the focused execution by our teams. Coming to real estate. Our real estate portfolio achieved presales of INR 1,118 crores in Q1 FY '26, a growth of 3% over Q1 FY '25. Presales volume for Q1 FY '26 stood at 0.95 million square feet. Average realization stood at INR 11,782 per square foot during Q1 FY '26, an increase of 24% over Q1 FY '25, driven by sales of premium projects. Important launches include Phase 1 of Brigade Morgan Heights in Chennai. Total collections stood at INR 1,728 crores during Q1 FY '26, a growth of 8% over Q1 FY '25. The portfolio saw 0 residential debt across the group for the last 2 years, owing to robust sales and collections. With strong momentum and demand, we have a slew of upcoming projects planned, approximately 13 million square feet in the next 4 quarters. Our flagship property Expo Brigade Showcase wrapped up successfully with its 18th edition held over 3 days, the event featured over 15 Brigade projects across Bengaluru, Chennai and Hyderabad, including 5 new project launches in Bengaluru and Chennai. Later this month, the Brigade showcase will be in Chennai for the first time, further strengthening our presence and engagement in the region. Coming to leasing, our portfolio witnessed stable performance, occupying 92% for the portfolio of 9.38 million square feet in Q1 FY '26. Brigade Square in Trivandrum achieved 100% pre-leasing. Leasing revenue stood at INR 300 crores during Q1 FY '26, a growth of 15% over Q1 FY '25. Rental collections remained strong and consistent at 99%. Brigade Twin Towers has been witnessing good traction from sales perspective. The retail SBU recorded a strong leasing traction across the portfolio with 1 lakh square feet SBA currently under fit-out across the malls, including 82,000 square feet SBA at Orion Mall at Brigade Gateway, Rajajinagar alone. Our commercial assets are being managed in-house in order to deliver superior tenant and customer experiences. Brigade's facility management vertical currently manages around 16 million square feet. As regards to hospitality, Brigade Hotel Ventures completed its successful IPO. What began as a division of Brigade Enterprises in 2006, evolved into a 100% subsidiary in 2016 and has now come off age as a listed entity on both the NSE and BSE. We are proud to be the first real estate developer in India to successfully launch 2 IPOs. With 9 hotels built over 18 years, we are now confidently setting out our sites and doubling that to 18 hotels in the next 4 to 5 years. A proud, it is indeed a proud moment for all of us. The hospitality SBU achieved a revenue of INR 141 crores in Q1 FY '26, an increase of 19% over Q1 FY '25. Portfolio occupancies stood at 75% in Q1 FY '26 and ARR stood at INR 6,761 during Q1 FY '26. Brigade Hotels demonstrated steady growth compared to Q1 FY '25 with improvements across key performance indicators with EBITDA increasing by 24% for the portfolio and F&B increasing by 32% over the, compared to the Q1 FY '25. Hotel growth is set to accelerate through rest of FY '26, fueled by events, festival, travel and longer leisure stays. Coming to the outlook, with a robust pipeline of 16 million square feet of developments across residential and commercial segments for the next 4 quarters and hospitality with 1,700 keys, we remain confident of our ability to deliver sustainable growth and long-term value for our stakeholders. During the past quarter, we added 10 million square feet to our land bank across markets with a potential gross development value of INR 11,200 crores. We remain focused on Tier 1 markets of South India for all our domains of business. I will now hand over to our CFO, Mr. Jayant Manmadkar, to present the detailed financials for the quarter. Over to Jayant.

Thank you, sir, and good afternoon to all. M. R. has already shared operational highlights. I will be sharing consolidated financial highlights for the quarter. All our segments, that is real estate, leasing and hospitality demonstrated a strong revenue growth of 22%, 15% and 19%, respectively, in Q1 FY '26 over Q1 FY '25. The consolidated revenue, including other income for Q1 FY '26 stood at INR 1,333 crores, a growth of 20% over Q1 FY '25. Consolidated EBITDA for quarter 1 FY '26 stood at INR 375 crores, a growth of 14% over Q1 FY '25. Consolidated profit before tax for Q1 FY '26 stood at INR 194 crores, a growth of 80% over Q1 FY '25. Consolidated PAT for Q1 FY '26 stood at INR 158 crores, a growth of 95% over Q1 FY '25 and consolidated PAT after minority interest for Q1 FY '26 stood at INR 150 crores, a growth of 79% over Q1 FY '25. We are happy to inform you that ICRA has upgraded our credit rating to AA stable from AA- stable, underscoring consistent performance, financial discipline and strong corporate governance. We continue to have adequate liquidity and undrawn credit lines to support our growth plans. Our average cost of debt is consistently reducing and stood at 8.25%, a reduction of 42 basis points over Q4 FY '25. Gross debt of the group stood at INR 4,745 crores. The cash and cash equivalents was at INR 2,476 crores as on 30th June 2025. Consequently, the company's net debt outstanding is INR 2,269 crores, out of which Brigade's share is INR 1,528 crores. 81% of the debt pertains to the commercial portion, which is backed by lease rental. Net debt equity ratio stood at 0.34 as of June '25. I will hand it back to the moderator for questions.

[Operator Instructions] The first question is from the line of Mr. Girish Choudhary from Avendus Spark Institutional Equities.

Firstly, on this launch pipeline of 13 million square feet over the next 4 quarters, if you could highlight the key projects and also how to look at the pacing of these projects? Is it back ended? Or I mean, should we expect anything meaningful launches in the next 1, 2 quarters?

So yes, in terms of our launch already in Q2, we have visibility of multiple projects already where there is no dependency on RERA. The GDV of those projects is already around INR 4,600 crores. So, for some of those, we'll be launching that in Q2. Some of that is already underway. A couple of those, while we don't require the RERA, it is still part of our, don't require in the sense we already have the RERA. It is part of our multiphase approach. So, for example, both in Chennai, Brigade Morgan Heights and the second tower of Brigade Gateway Neopolis, we have the RERA. It is part of our overall sales plan when we will launch that potentially in Q3. In Bangalore, we have already launched a plotted project, Brigade Cherry Blossom in Mall Road. We've already got the RERA and started selling for Brigade Avalon, which is a project in Whitefield, and both these have good take-up. We have one more where we have the RERA in hand and are currently doing a soft launch. And with that, I think there is very good visibility already for Q2 and Q3. And of course, we're still working on the approvals for the rest of the launches that we are quite confident should be able to come and move forward.

Sure. Secondly, in terms of, I mean, this is more on the business development. In terms of entering into new cities beyond South India, I mean, where are we in terms of evaluation? Or what are we thinking? And also from an overall real estate cycle point of view, are you comfortable entering into new cities currently? Or would you want to wait it out?

Yes. So we've been communicating for a long time, and we continue to go in that direction that we will focus on Bangalore, Chennai and Hyderabad. We have a really strong presence in terms of business development for all 3 markets. And there is also much more room to grow for our presence in both Chennai and Hyderabad. The brand is really well valued, and I think there is a lot of room for us to take more market share in both. And also in Bangalore to continue to maintain our leadership position and grow on that as well. So I think we're just focusing on that. We'll be able to meet whatever growth expectations we have and others have of the organization before we start looking at other markets. I'm not sure if this is the right time to be looking aggressively at entering new markets. We're always studying them, of course.

Got it. Got it. And lastly, if I see your cash flow, I mean, in terms of outflow, we have seen a significant increase in employee and admin and also marketing expenses Y-o-Y. And we have just seen one launch this quarter. So is this the new run rate or any one-offs to be considered for us?

Yes. So as far as employee cost is concerned, it is, as usual, the trend will continue. And the launches, primarily, it is for the expenses which are incurred in the marketing and sales of the project. So that is purely activity-based costs. So that will always be linked in terms of the launches, the way they are going to come in subsequent quarters in Q2, Q3 and Q4.

Yes. So what I was trying to understand is that in terms of sales and marketing expenses, this quarter was around INR 86 crores of cash outflow, last year, it was INR 44 crores, so almost doubling, right? I mean we have seen just one launch this quarter. So how to read that? And even employee and admin expenses, right, what was INR 100 crores last year is INR 186 crores. So even sequentially, I'm seeing a significant jump.

So, the sales and marketing expenses will also reflect the launches that we have done over the last couple of quarters. So as we're adding more to our sales pipeline, we will also be spending more in order to do that sales. So that is why you're seeing a larger amount compared to a Y-o-Y because in the past year, we have launched about 11 million to 12 million square feet. So the sales and marketing expenses now in Q1 will be reflecting that.

The next question is from the line of Mr. Pritesh from Axis Capital Limited.

So first, on the city mix for this quarter, how much was from Bangalore and how much from Chennai? And just for a follow-up, I think we started off with over INR 7,500 crores of inventory in this quarter. Yet I think sustenance contribution was not too high. It was pretty much in line with what we have been doing in past. So, any specific reason for that? I'm sure I think Chennai, the 2 projects, Brigade Icon and Altius has a lot of inventory, which is kind of slow moving. So just if you can put some numbers on that to help me understand the lower sustenance sales contribution for this quarter? Yes.

Yes. So, in terms of the sales last quarter, if you look at it by revenue, revenue odd areas, anywhere between 70% to 75% contribution from Bangalore and about 20% to 25% from Chennai. There's a little bit from Hyderabad as well, a few units from Gateway that are coming through. But pretty much that's the breakup of what we saw in Q1. Chennai sales and inventory, Icon being the kind of high-end project it is, we don't, that is pretty much in a sustenance mode. We will not see large numbers coming at a launch or continuing in that way. So we, that is an ongoing basis. In terms of Altius, we're actually quite happy with the progress at the way Altius is going on because the pricing is pretty much top of market and much higher than anyone else in that same competitive set. So given that it is still in Chennai, we are seeing really good traction for that product, and we are quite happy with how the uptake has been even post the launch quarter of Q4. Morgan Heights, we have, we received the RERA. We have launched the project in May. It's sort of in a launch mode because our marketing office is in the process of getting ready. Chennai as a market requires a marketing office to be in place to have a proper sales experience, et cetera. So once that comes on board in the beginning of September, we are expecting to see a lot more traction. This is quite different from the behaviour in Bangalore and Hyderabad, where pretty much it's very launch-driven and the excitement of the launch, whether or not there is a very specific sales experience that's a little different the way Chennai works. So I think once that marketing office is there in place, which is in the next few weeks, we should be able to see much stronger uptake on Brigade Morgan Heights. So overall, I think, yes, Chennai definitely does happen at a different pace, but we are mindful of that. Our plans are also put in place, keeping that in mind. So we have a more accelerated sales cycle for Bangalore and Hyderabad launches compared to Chennai.

Sure. And how much is the inventory right now between Icon and Altus? And how much did Altius specifically contributed to this quarter's presales?

Yes. I'll just come back to you with those numbers.

Sure. I'll take it probably offline as well, no problem. Yes. Just second question on the launches. So I think we had a plan of launching 12.3 million square feet for this year. We have launched 1 million square feet on the residential side. Balance is 11.3 million. Any changes in terms of the launch plan for the year? Any slipovers or any preponement of launches that you expect? I think specifically the Hyderabad project that we just signed this quarter, any chance of launching it this year or it could be next year?

Yes. So the positive thing is the Hyderabad that we announced, we are working to get that into this financial year. One thing was the Brigade Innovation Gardens that we had, we were trying to get it into this financial year could potentially slip into Q1. But other than that, everything else is per our plan. In terms of Altius, we did 65 units of Altius last quarter, and that is around INR 150 crores in revenue.

Got it. And innovation height, Innovation Gardens is city project, is it?

No, that's in Brigade, sorry, that's in North Bangalore in a submarket called [Hardalore]. It's what we've been referring to as the KEB parcel of 75 acres. A larger mix

The next question is from the line of Mr. Parvez from Nuvama Group.

So first, a couple of questions for Pavitra. I mean, did I get it right when you say that we have RERA for projects with INR 4,600 crores GDV already?

Yes, that's right. So some of those we are, have already launched in the course of Q2. For example, Brigade Cherry Blossom, Brigade Avalon. We've already launched those. We have one more in Bangalore that's where we have the RERA and we're in the soft launch phase. We'll be doing an allocation event before the end of the quarter. The rest of it comes from Hyderabad and Chennai, both in Brigade Gateway, the second tower in Hyderabad and the Phase 2 of Brigade Morgan Heights, which we have launched the first phase this past quarter in Q1. It is a single RERA, but based on the amount of inventory and phasing, basically, we have the visibility already, and it should come in towards the latter half of the year.

Overall, on the, I mean, demand side on the resi space, I mean, how do we see it currently? Is it like the same what it was a year back? Or are we seeing some moderation and also your views on the pricing going ahead?

Yes. So in terms of the residential demand, we are seeing that it is still pretty good. I would say that the pace at which people are making their decisions based on the ticket size, that has changed. So in terms of a year ago, it was, the ticket sizes were lower. People were, found it much easier to make those kind of decisions. Now if I look across my portfolio, more than 80% of it is INR 1.5 crores plus. So that is quite a big change. So therefore, we are seeing people take a little more time to convert, but the on-ground demand is still very good. For example, Brigade Avalon, which we launched in Whitefield, that's a 206-unit project and an average ticket size of INR 4 crores to INR 5 crores plus, and that has really been well accepted. But that said, that's one of those, we're not going to sell out in the first quarter or second quarter for that matter either. So we just have to time accordingly. In projects where we have more mid-segment inventory or ticket sizes coming below 1.5 or less than 2, we're seeing a much faster uptake. So I would just again reiterate what we've been saying that what the customer behaviour that we've seen happen over the last 2 to 3 years, that's really out of the ordinary. And I would say that things are still very healthy on ground. We should just see variance comparing to the best case scenario, which was there for the last couple of years.

Sure. And a couple of questions for Nirupa. First, I mean, in the presentation for Brigade Hospitality Ventures, I think we have outlined a plan for adding about 1,700-odd keys over the next 4 to 5 years. So what would be the rough cut CapEx outlay required for this? And second, your views on leasing in Brigade Twin Towers?

Thanks for that. So with regards to the CapEx for the hospitality, we plan to, we plan to do it next quarter. We will share those details with you. Just to let you know that anything in the 5-star deluxe category, on average, the cost of construction will be about INR 1.5 crores to INR 1.75 crores a key. This is just the cost of construction. And some of the Fairfields that we've mentioned, the 4-star category hotels, on average, the cost per key is around INR 65 lakhs. In terms of the CapEx outflow, we plan to outline that by next quarter, and you will have the details by next quarter. Regarding Twin Towers, what we have understood is that we have one tower, the first tower that we kept for sales because we found that the sales traction has been very healthy. So the first tower is about 550,000 square feet, and we have already sold 50% of that. And this quarter also, we should see another bump up. I think we've managed to do another 20% this quarter. So almost 70% of the first quarter, first tower has been sold. With regards to the other tower, we have kept it aside for leasing. But in case we find that the sales traction continues to be very high, then we will also add that into the sale portfolio. But as of now, we are getting a healthy rate. The sale price that we've been doing the last few transactions are at least INR 12,000 a square foot plus all additional expenses. So it's been a fairly good market for end users and a sale-driven market. So that's how we plan to go about it.

The next question is from the line of Mr. Biplab Debbarma from Antique Stock Broking Limited.

So my question, one question is in continuance to what just Parvez asked. So, we have been hearing that due to job losses in the IT sector and in general slowdown, Bangalore is experiencing slower real estate absorption and maybe heading towards a broader slowdown. So, what you said is that current state of real estate absorption continues to be strong. That's very good. So, the question is, what is your outlook on demand? I mean, despite job losses and some slowdown in IT sector, do you see this kind of demand continuing over the near and medium term? That is my first question.

Yes. So, I'll just, Nirupa here, I'll just throw some color on it from office and then maybe Pavitra can add on the resi side of things. See, for Bangalore, if you just look at the gross absorption that we saw in Q1 of FY '26, it absorbs almost 4.8 million square feet of office space. Now, I mean, the dependency on IT and IT services has relatively come down. From an office perspective, I can tell you that IT services are contributing to only 40% of the overall gross absorption. The balance is coming 36% from GCCs and the remaining 24% also from BFSI, so financial services, et cetera. Now Bangalore is still the most attractive location when it comes to setting up of GCC. So, from an office perspective, I can say that, yes, there are a lot of media written on this and perhaps AI will come into the picture, but nature of jobs required might change. And maybe there will be more focus on GCCs and R&D facilities being set up here. Additionally, we are seeing a lot of financial services and pharma companies also being set up. So, on ground, we're not seeing the kind of slowdown that the media is talking about. We're still seeing pretty good traction on an office, from an office demand perspective.

Yes. This is Pavitra. I just wanted to echo that. We're seeing that supported on the residential side as well because while the IT sector has been seeing layoffs over the last few years, that really has not impacted on the residential side. In fact, we've been seeing more traction towards premium and higher-end sales, which means it's the kind of talent that you see working in GCCs or this embedded technology or digital jobs that are happening in traditional businesses as well. So that's where we feel that despite all of the conversation that's going on, we are not seeing that on ground. Also, I would say that being a premium brand and having inventory in great locations and positioned the way we are, we will still be that flight to quality in case of someone has multiple choices, they will come to Brigade for that. So that's where we are seeing things. So even if the market does consolidate a little bit, we are still confident of our position.

[Operator Instructions] The next question is from the line of Mr. Mithun from Kiva Advisors.

Just wanted to understand in terms of FY '26, obviously, your launch pipeline is quite strong. And last year, I think you did presales of about 7 million square feet. So, are you target, do you have any target for FY '26 in terms of what kind of sales growth you're looking at?

So, we've always communicated that we like to target a growth of 15% to 20%. We'll be looking at that from a value perspective. So last year, we did around INR 7,800 crores in total sales. We're hoping to get to about 15% increment on that. It is, of course, dependent on approvals and launches coming through at the right time frame. This year as well as last year and a couple of years before that, a lot of our numbers were dependent on getting launches. In fact, at least 50% of the sales is coming from new launches. So as long as that continues to happen, and we are, of course, working very hard on that approval front, we are quite confident of this. I also mentioned earlier that we launched Morgan Heights Q1 that was almost INR 1,000 crores GDV, and we have visibility of another INR 4,600 crores. So, of the entire year GDV that we have intended to launch, we have almost 50% in hand as well. So, I think we're quite confident of the year.

Right. And also on the commercial development side, what is the kind of target of launch of projects?

Yes. So, on the commercial side, we currently have 2.5 million square feet that is ongoing in terms of construction. And upcoming that we plan to launch another 2.6 million square feet. So, year-on-year, we are looking to launch about 2.5 million, 3 million square feet, which is a number that we have in mind. But ongoing, we have another 2.5 million, as I mentioned, and upcoming also another 2.6...

The next question is from the line of Mr. Ashish Shah from HDFC Mutual Fund.

Just maybe a couple of things. Would it be possible to sort of give some estimate on the launch values, launch GDV for the second, third and the fourth quarter? I know I mean things can slip here and there by a quarter, but any sense on how it can pan out?

Yes. So, on the, in total, we have about 15.5 million or 16 million square feet total launch planned for the rolling 4 quarters. At the beginning of the financial year, we had communicated around 12 million to 12.5 million square feet in the residential launch pipeline for, which I think we have a similar number as of now for the rest of the financial year. We are approximating around INR 10,000 per square foot on average. So basically, you could assume INR 12,500 crores GDV for the overall launch for FY '26, of which I just now went through the calculation that we have visibility of INR [Technical Difficulty] crores already, for which INR 1,000 was launched in the last quarter. So, for the rest of the financial year, we are working on those approvals and hopefully, we'll be able to get all of that within Q4 itself.

Understood. The other thing is we've spent quite a significant amount on business development this quarter. If you can throw some light on where have we added these projects, especially on the residential side? And what kind of projects are these? Are these very premium projects? Are these mid-premium, et cetera, et cetera? Any perspective on the color of the BD, which has been done in the first quarter?

Hi, this is Pradyumna here. So, we've added about 60% of the projects in Bangalore and 20% each in Chennai and Hyderabad. In Bangalore and residential, it is not very premium in nature. These are the sweet spots that we've been targeting over the last many quarters of the projects that have been launched. So, these are similar in nature, typically in the range of about INR 10,000 to INR 12,000 a square foot. So that's where we would be launching these projects when they do. As far as Hyderabad goes, again, it is a similar project, about INR 13,000 per square foot is the pricing that we are looking at. And the strategy that we have communicated earlier, and this is a great example of that is we've seen a very successful project called Brigade Citadel in Hyderabad. And therefore, we have targeted properties in the same vicinity. And right now, the ones that we've added the last quarter is also literally opposite to this location. So, our strategy continues to be very, very similar to what we've been communicating.

Okay. And Chennai, Chennai would also be at what sort of a price point? Is that again or at a lower price?

No, no, it won't be a premium. Again, it's upmarket, but not premium in nature. It is, it will be a follow-on to our Brigade Altius project. That's the view that we have taken, and we are acquiring the property.

Okay. Lastly, if you -- for the business development done so far in the first quarter or year-to-date, what would be the land cost to the GDV ratio approximately?

Yes. So we have about INR 11,000 crores of GDV that we have acquired in Q1. And the typical about 20% to 22% is the range.

The next question is from the line of Mr. Girish Choudhary from Avendus Spark Institutional Equities.

Again, on the land cost, you have a balance which needs to be paid, which is around INR 1,380 crores. So by when can we expect this to be paid? And also in terms of business development, what's the pipeline looking like for the rest of the year?

Yes. So out of the INR 1,380 crores, about INR 470 crores has already been paid in Q2. Another, and the rest of it is spread across various projects, most of which will, it's a combination of joint development and outright purchases. So these will get paid out in the course of the next year, 1.5 years or so. So about, the balance is about INR 880 crores, and that will get done in the course of the next, say, 18 months or so.

Okay. And in terms of the business development pipeline for the rest of the year?

So that's ongoing as usual, Girish. We've been, typically, we get about 200 to 250 proposals every month. That filter continues to take place. We will keep adding. I don't think you will see a slowdown in terms of acquiring new properties, whether it's by way of JV or otherwise.

Got it. My next question is on BuzzWorks. What I've seen recently is that you have leased up in a center outside of your own portfolio of 50,000 square feet at the mind space. So just wanted to understand how are you thinking about this business of yours? And what's the current capacity and the growth plans here? And in general, in this space, how are you seeing the competition pricing and margin trends playing out?

Yes. Thanks for the question. So BuzzWorks for us is currently a smaller portion of our business, but we believe it's a high-growth business. Currently, of course, we have about 5,000 seats, but we're looking to double that up by FY '26. So we believe that this is a vertical that can grow very fast. Obviously, when you look at the overall absorption of commercial office space, the co-working or the flexible office brands take up at least 18% to 20%. In some markets, it could be more like 25%. But say, on average for the country, it could be about 20% of the overall inventory. So, we think that we know that this trend is here to stay. So, because we have it in-house, thus far, it was more of a value-added service to our existing clients when they wanted flexible space. But I think going forward, we are open to taking space from other builders as well, especially in markets where we currently don't have office space ourselves. But we believe that this is a high-growth business, and the idea is to scale this up in a big way in the coming years.

Got it. In terms of competitive landscape, currently, how are you reading this market?

See, there are multiple players. It's, barrier to entry is relatively less. It's not, it doesn't require the kind of capital investment that creating an entire commercial building requires. So, barrier to entry is lower. I would say we are in the mid- to premium. So, the average seat cost on the premium end could be INR 20,000 to INR 25,000 and you get players in the INR 4,000 to INR 6,000 as well. On average, our positioning is around INR 13,000 to INR 1,000. Of course, like I said that's an average. There are some centres that do INR 18,000. There are some centres that INR 10,500, INR 12,000. So, on average, we are around, I would say, INR 14,000 or so. So, we are not on the highest end. And I would say we are more on the premium end, I would say.

The next question is from the line of Mr. Pritesh from Axis Capital Limited.

Yes, a couple of questions. So, on BD, what would be the estimated spend for this year now with a very strong start in Q1?

So that depends on the kind of opportunities that we get, Pritesh. While we focus on certain lands, both joint development in nature as well as outright purchases, I think I can't tell you a number in terms of what we will be spending. But the approach will be of what I mentioned earlier also, which is about 20% to 25% of the cost to GDP. That would be the approach.

Okay. And in terms of these 2.6 million square feet of upcoming commercial launches, which are the key projects? I mean, will we start constructing Brigade Gateway, retail office this year itself? So, some insights on this 2.6 million square feet, which are all these projects?

Yes. So, what we have, what we have as part of the 2.6 million square feet is Brigade Padmini Tech Valley Tower A, which is in Whitefield in Bangalore. That's about 345,000 square feet. Then we have Brigade Panorama Chambers, which is in South Bangalore. We also have Brigade Cauvery, which is a CBD property in Bangalore, about 190,000 square feet. We have the Kochi Infopark Tower 3, which is another 150,000-odd square feet. And then we have more value-added office and retail in our mixed-use township Brigade Valencia. So we have some office of 140,000 square feet, retail of 80,000 square feet. And the biggest project is again in Bangalore, which is Brigade HRC, which is right next to the airport toll of about 1.4 million square feet. So out of the 2.6 million square feet, BL share, our share is about 1.76 million. [Technical Difficulty]

Sure, sure. So basically, Gateway would start construction next year, I mean, not this year?

Next quarter. Maybe in the next quarter, we can have that update.

Okay. Okay. Okay. Fair enough. And just last, if you can provide the breakup of collections across our different segments for this quarter?

Just a second. So real estate collection is about INR 1,248 crores. Commercial leasing is about INR 311 crores and hospitality is about INR 168 crores, total INR 1,727 crores... [Technical Difficulty]

The next question is from the line of Mr. Pralin from Edelweiss Public Alternatives.

Just wanted to understand to the previous participant's question, you answered that you don't want to enter into any new cities, right? There is enough and more to be done in some of these in Chennai and Hyderabad. So, I want an internal assessment of how has been our foray into these cities, right? And where I'm coming from is that you talked about this project called Morgan Heights, right, where you launched in May, but the sales office is still going to come up in a few weeks' time. So, are these some location-specific nuances which we are still grappling with? Or is it, how should one think about our entry into these 2 cities specifically? If you spend a few minutes on both the cities, that would be very helpful.

Yes. Yes, sure. So, I'd like to say that and the upcoming projects that we have in Chennai is a reflection of a lot of time and hard work to get these lands into the pipeline and also a reflection of what Chennai market feels about Brigade, especially after the completion of our Brigade, of our World Trade Center project on OMR. So when we conceptualize and deliver mixed-use projects, I think that really is a game changer for us in terms of establishing ourselves in the market and then seeing rapid growth from then on. So a lot of our business development success, the project launches that are happening now has really sort of taken off after seeing Brigade, sorry, World Trade Center in Chennai. We're also experiencing the same in Hyderabad. So after announcing the Brigade Gateway in Neopolis, having seen what the plans are like, having seen the launch of the first tower, which was an unprecedented success, it is the most premium project in that submarket. And I would say the entire market has noticed and also recognize that we are building a very premium mixed-use development, which is, which has the top brands like World Trade Center, Hyderabad, the Intercontinental Hotel and our own flagship brand, Orion for retail, along with 600 premium residences. So when the market sees that sort of certainty in these projects coming up, we are also seeing a lot of increase in the business development proposals that we're receiving in Hyderabad. So what I would say is that our approach in each market is to establish ourselves not just in terms of our BD connections, but also delivering and then building on that. Specifically, in terms of Morgan Heights, we don't think there is any sort of specific issue. It is just that in Chennai, the market is such that they like to have a sales experience on ground. And also in Chennai, you can't really construct a marketing office prior to receiving certain approvals in hand. So we do have a setup at the site. It's in a soft launch stage, but we expect to see a lot more traction once the sales office is open. And I think that's normal and natural. That's what we've experienced in both Icon and Altius as well. So apart from that, there isn't anything specific about Morgan Heights.

The next question is from the line of Heta from Monarch AIF.

I just have 2 questions. I wanted to understand how would the average realization shape up for the year of FY '26? Do we expect it to remain flat? Or are we expecting any significant corrections?

Yes. So I think the numbers that you're seeing today are a reflection of the inventory that is getting sold each quarter, which is also dependent on what is getting launched. So going forward, we have a mix of projects of super luxury as well as premium and mid-segment. We also have plotted, so it is a mix of what gets transacted every quarter. So I would say it will still average out. In the coming few quarters, we'll be launching at rates of INR 15,000, INR 16,000 for some projects and then plotted maybe at INR 5,000. So what gets sold every quarter. So on average, I would say it will be around the same, maybe slowly sort of move up slightly.

Okay. And what would be the embedded EBITDA margin of these new project launches in upcoming in FY '26?

So it would be upwards of 30% for the new project launches.

[Operator Instructions] As there are no further questions from the participants, I would now like to hand the conference over to Ms. Pavitra Shankar, Managing Director, for closing comments.

Before we wrap up, we'd like to share a few key highlights beyond our financial performance this quarter. The Brigade Foundation, our not-for-profit trust continues to champion meaningful social impact through initiatives that blend education and community development. The Venkatappa Art Gallery has reopened its doors to the public, beautifully restored through a collaborative effort between the Brigade Foundation and the Department of Archaeology, Museums and Heritage, Government of Karnataka. Key enhancements include structural repairs, upgraded lighting, improved accessibility, modern display areas, and we've also rejuvenated the landscaping. We also constructed an auditorium for the Karnataka Public School in Vishwanthapura, North Bangalore. This is an initiative that is in line with our overall mission of empowering underprivileged children with better spaces for learning. The Brigade schools were named Best CBSE schools in Bengaluru 2025 by Indianpreneur Magazine, a testament to our commitment to quality education. As part of our L&D programs to support diversity and inclusivity and opportunities, 2 of our women employees have successfully graduated with an M.Tech from IIT Madras. This is Brigade's higher education initiative, a reflection of our belief in nurturing talent and investing in long-term growth from within. A few noteworthy accolades and recognition. Brigade Enterprises Limited was honoured as a Great Mid-Size Workplaces for the 15th year in a row, ranking 75th. Meanwhile, Brigade Hospitality Services Limited sold to Eighth Place, a recognition that our people-first culture continues to shine. Both these awards were by the Great Place to Work Institute. Additionally, the RealtyTractor BrandXReport 2024-25 recognized Brigade as a national brand leader of Indian Real Estate, a title earned through consistent excellence and trust. Brigade Twin Towers was named "Iconic Property of the Year Commercial" at the Global Real Estate Brand Awards (GREBA). With that, we thank you, so we conclude our earnings call for Q1 FY '25 and thank you for joining us.

Thank you, ma'am. On behalf of Brigade Enterprises Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.