Ladies and gentlemen, good day, and welcome to the Brigade Enterprise s Limited Q1 FY '26 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode a nd there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing ‘*’ then ‘0’ on your touchtone phone. 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 joini ng us for our Q1 FY '26 Earnings Call. I have with me the management of Brigade Enterprises Limited, Manag ing Director – Ms. Pavitra Shankar, Joint Managing Director – Ms. Nirupa Shankar, Executive Directors – Mr. Roshin Mathew, Mr. Amar Mysore, Mr. Pradyumna; our CFO – Mr. Jayant Manmadkar, and members of our Senior Management Team, including Mr. Om Prakash, Mr. Vineet Verma, Mr. Nandakumar, Mr. Vishwa Prat hap Desu , Mr. Manoj Agarwal, Mr. Rayan Aranha, Mr. Ramcharan and Ms. Thara. We are happy to report that financial year has begun on a stron g footing with all our four 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 pre-sales of Rs. 1,118 crores in Q1 FY '26 , a growth of 3% over Q1 FY '25. Pre-sales volume for Q1 FY ' 26 stood at 0.95 million square feet. Average realizations stood at Rs. 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 Chenn ai. Total collections stood at Rs. 1,728 crores during Q1 FY '26, a growth of 8% over Q1 FY '25. The portfolio saw zero residential debt across the group for the last two 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 four quarters. Our flagship Property Expo Brigade Showcase wrapped up successfully with its 18 th edition. Held over three days, the event featured over 15 Brigade projects across Bangalore, Chennai and Hyderabad, including five new project launches in Bengaluru and Che nnai. Later this month, the Brigade Showcase will be in Chennai for the first time, further strengthen ing our presence and engagement in the region. Coming to leasing: Our portfolio witnessed stable performance occupying 92% for the portfol io of 9.38 million square feet in Q1 FY '26. Brigade Square in Trivandrum achieved 1 00% pre-leasing. Leasing revenue stood at Rs. 300 crores during Q1 FY '26, a growth of 15% over Q1 FY '25. Rental collections remained strong and consistent at 99%. Brigade Twin To wers has been witnessing good traction from sales perspective. The retail SBU recorded a strong leasing traction across the portfolio with 1 la kh square feet SBA currently under fit out across the mall, including 82,000 square feet SBA at Orion Mall at Brigade Gateway Rajajanagar alone. Our commercial assets are being managed in in-house in order to deliv er superior tenant and customer experiences. Brigade's facility management vertical currently ma nages around 16 million square feet. As regards hospitality, Brigade Hotel Ventures completed its successful IPO. What began as a division of Brigade Enterprises in 2006, evolved into a 100% subsid iary in 2016 and has now come of age as a listed entity on both the NSE and BSE. We are proud to be the first real estate developer in India to success fully launch two 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 four to five years. It is indeed a proud moment for all of us. The Hospitality SBU achieved a revenue of Rs. 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 Rs. 6,761 during Q1 FY '26. Brigades Hotels demonstrated steady growth compared to Q1 FY '25 with improv ements across key performance indicators with EBITDA increasing by 24% for the portfolio and F& B increasing by 32% 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 developme nts across residential and commercial segments for the next four 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 b ank across markets with a potential gross development value of Rs. 11,200 crores. We remain foc used 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. Chairman has already sh ared 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 Rs. 1,333 crores, a growth of 20% over Q1 FY '25. Consolidated EBITDA for Quarter 1 FY '26 stood at Rs. 375 crores, a growth of 14% over Q1 FY '25. Consolidated profit before tax for Q1 FY ' 26 stood at Rs. 194 crores, a growth of 80% over Q1 FY '25. Consolidated PAT for Q1 FY '26 stood at Rs. 158 crores, a growth of 95% over Q1 FY '25. And consolidated PAT after minority interest for Q1 FY '26 stood at Rs. 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 undra wn credit lines to support our growth plans. Our average cost of debt is consistently reducing and stood at 8.2 5%, a reduction of 42 basis points over Q4 FY '25. Gross debt of the group stood at Rs. 4,745 crores. The cash and cash equivalents was at Rs. 2,476 crores, as on 30th June 2025. Consequently, the company's net debt outstanding is Rs. 2,269 crores, out of which Brigade's share is Rs. 1,528 crores. 81% of the debt pertains to the commercial portion, which is backed by lease rental. Net debt equity ratio stood at 0.34:1 as on June '25. I will hand it back to the moderator for questions.

Thank you, sir. We will now begin the question-and-answer session. An y one who wishes to ask a question may press * and 1 on the touchtone phone . If you wish to remove yourself from the question que, you may press * and 2. Participants are requested to use handsets while asking the questions. Ladies and gentlemen, we will wait for a moment while the que stion que assembles. The first question is from the line of Mr. Girish Choudhary from Avend us Spark Institutional Equities. Please go ahead.

Hi , Good afternoon. Firstly, on this launch pipeline of 13 million square feet over the next four quarters, if you could highlight the key projects and also how to look at the pacing of this project? Is it back-ended or I mean, should we expect anything meaningful launches in the next one, two quarters?

Hi, good afternoon. 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 Rs. 4,600 crores. So, for some of those, we will 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 multi-phase 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 Ch erry Blossom in Malur. We have already got the RERA and started selling for Brigade Avalon, which is a project in Whitefield. And both these have good take-ups. 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 are still working on the approvals for the rest of the launches that we are quite confident should be able to come in Q4.

Secondly, I mean, this is more on the business development. I n 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 have been communicating for a long time and we co ntinue 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 three 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 are just focusing on that. We will be able to meet whatever growth expectations we have and others have of the organization before we start lookin g at other markets. I am not sure if this is the right time to be looking aggressively at entering new m arkets. We are always studying them, of course.

And lastly, if I see your cash flow, I mean, in terms of outflow, we hav e 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?

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 cost. 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.

So, what I was trying to understand is that in terms of sales and marketing expenses, this quarter was around Rs. 86 crores of cash outflow. Last year it was Rs. 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 Rs. 100 crores last year is Rs. 186 crores. So, even sequentially, I am seeing a significant jump.

So, the sales and marketing expenses will also reflect the launches th at we have done over the last couple of quarters. So, as we are adding more to our sales pipeline, we will also be spending more in order to do that sales. So, that is why you are seeing the larger amount compared to a Y-o-Y because in the past year we have launched about 11 to 1 2 million square feet. So , the sales and marketing expenses now in Q1 will be reflecting that.

Thank you and all the best.

The next question is from the line of Mr. Pritesh from A xis Capital Limited. Please go ahead.

Thanks for the opportunity. 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, you know, we started off with over Rs. 7,500 crores of inventory in this quarter. You know, yet I th ink sustenance sales contribution was not too high. It was pretty much in line with what we have been doing in the past. So, any specific reason for that? I am sure, I think Chennai, the two projects, Brigade Icon and A ltius has a lot of inventory, which is kind of slow moving. So, just if you can put some numbers o n that to help me understand the lower sustenance sales contribution for this quarter?

So, in terms of the sales last quarter, if you look at it by revenue or areas, anywhere between 70% to 75% contribution from Bangalore and about 20% to 25% from Chennai. There is a little bit from Hyderabad as well, a few units from Gateway that are coming through. But pretty much that is the breakup of what we saw in Q1. Chennai sales and inventory, Icon being the kind of high-e nd project it is, that is pretty much in a sustenance mode. We will not see large numbers coming at a launch or continuing in that way. So, that is an ongoing basis. In terms of Altius, we are 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 rea lly 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 received the RERA. We have launched the p roject in May. It is sort of in a launch mode because our marketing office is in the process of getting ready. Chennai as a market requires the marketing office to be in place to have a prop er sales experience, etc. 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 behavior in Bangalore and Hyderabad, where pretty much it i s very launch-driven and the excitement of the launch, whether or not there is a very specific sales experience, that is 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.

And how much is the inventory right now between Icon and Altius ? And how much did Altius specifically contributed to this quarter's pre-sales?

Yes, I will just come back to you with those numbers.

Sure, I will take it probably offline as well, no problem. 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 a million square feet on the residential side. Balance is 11.3. 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 project that we announc ed, we are working to get that into this financial year. One thing was the Brigade Innovation Gardens that 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 was around Rs. 150 crores in revenue.

No, that's in Brigade, sorry, that's in North Bangalore in a sub-ma rket called Harlur. It is what we have been referring to as the KIADB parcel of 75 acres. It is the larger mix.

So, that is it from my side for now. I have a couple of questions, but I will join back the queue.

The next question is from the line of Mr. Parvez from Nuvama Gro up. Please go ahead.

Hi, good afternoon , and thanks for taking my question. So, first a couple of questions for Pavitra. I mean, did I get it right when you say that we have RERA for projec ts with Rs. 4,600 crore GDV already?

Yes, that is right. So, some of those we have already launched in the course of Q2. For example, Brigade Cherry Blossom, Brigade Avalon. We have already launched those. We have one more in Bangalore where we have the RERA and we are in the soft launch phase . We will 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 h ave launched the first phase this past quarter in Q1. It is a single RERA, but based on the amo unt of inventory and phasing, basically we have the visibility already, and it should come in towards the later half of the year.

Overall on the demand side, on the resi space, how do we see it currently? Is it like the same what it was an year back or are we seeing some moderation and als o your views on the pricing going ahead?

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 ti cket size, that has changed. So, in terms of a year ago, the ticket sizes were lower. People found it much easier to make those kind of decisions. Now, if I look across my portfolio, more than 80% of it is Rs. 1.5 crore p lus. So, that is quite a big change. So, therefore, we are seeing people take a little more tim e to convert, but the on- ground demand is still very good. For example, Brigade Avalon, which we launched in Whitefield, that is a 206-unit project and an average ticket size of Rs. 4 crores to Rs. 5 crores plus. And that has really been well accepted. But that said, that is one of the, you know, we are not goin g 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 Rs. 1. 5 crores or less than Rs. 2 crores, we are seeing a much faster uptake. So, I would just again reiterate what we have been saying that what the customer behavior that we have seen happen over the last two to three years, that is really ou t of the ordinary. And I would say that things are still very healthy on ground. We should ju st be wary of comparing to the best case scenario, which was there for the last couple of years.

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

Thanks for that. So, with regards to the CapEx for the hospitali ty, we plan to do it next quarter. We will share those details with you. Just to let you know that anything in th e 5-star deluxe category, on average, the cost of construction will be about Rs. 1. 5 crores to Rs. 1.75 crores a key. This is just the cost of construction. And some of the Fairfields that we have mentioned, the 4-star category hotels, on average, the cost per key is around 65 lakhs. In terms of the CapEx outflow, we plan to outline that by next quarter. And y ou will have the details by next quarter. Regarding Twin towers, what we have understood is that we have on e tower, the first tower that we kept for sale because we found that the sales traction has been ve ry 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 have managed to d o another 20% this quarter, so almost 70% of the first tower has been sold. With regards to the other tower, we have kept it aside for leasing, b ut 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. You know, the sale price that we have been doing the last few transactions are at least Rs. 12,000 a square foot plus all additional expenses. So, it has been a fairly good market for end users and a sale-driven market. So, that is how we plan to go about it.

Thanks and all the best.

Thank you

The next question is from the line of Mr. Biplab from Antique Stock Broking Limited. Please go ahead.

Good afternoon, everyone and thank you for taking up my que stion. So, my question, one question is in continuance to what just Parvez asked. So, you know, we have been hearing that due to job losses in the IT sector a nd, in general, slowdown, Bangalore is experiencing slower real estate absorption and maybe heading toward a broader slowdown. So, what you said is that current state of real estate absorption continu es to be strong. That i 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.

Nirupa here. I will just throw some color on it from office and then maybe Pavitra ca n 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 absorbed almost 4.8 million square feet of office space. Now, I mean, the dependency on IT and IT services has relatively come d own. From an office perspective, I can tell you that IT services are contributing to only 40% of the overall loss absorption. The balance is coming 36% from GCCs and the remaining 24% or so from BFSI, so financial services, etc. Now, Bangalore is still the most attractive location when it comes to se tting up of GCCs. 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 comp anies also being set up. So, on ground, we are not seeing the kind of slowdown that the media is talking about. We are still seeing pretty good traction from an office demand perspective.

Yes, this is Pavitra. I just wanted to echo that. We are seeing that sup ported 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 have been seeing more traction towards premium and higher-end sales, which means it is 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 is wher e we feel that despite all of the conversation that is going on, we are not seeing that on ground. Also, I would say that, you know, being a premium brand and havi ng inventory in great locations and positioned the way we are, we will still be that flight to quality i n case of someone has multiple choices, they will come to a Brigade for that. So, that is where we are seeing things. So, even if the market does consolidate a little bit, we are still confident of our position.

That i s a very good news. And that is all from my side.

Hi. Just wanted to understand, in terms of FY ' 26, this year, launch pipeline is quite strong. And last year, I think we did pre-sales of about 7 million square feet. S o, do you have any target for FY '26 in terms of what kind of sales growth you are looking at?

So, we have always communicated that we like to target a growth of 15% to 20%. We will be looking at that from a value perspective. So, last year we did arou nd Rs. 7,800 crores in total sales. We are 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 lo t 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 approvals front, we are quite confident of this. I also mentioned earlier that we launched Morgan Heights Q1. That was almost Rs. 1,000 crores GDV. And we have visibility of another Rs. 4,600 crores. So, of the entire year's GDV that we have intended to launch, we have almost 50% in hand as well. So, I think we are quite confident of the year.

And also on the commercial development side, what is the kind of t arget of launch of projects?

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

Thank you.

The next question is from the line of Mr. Ashish Shah from HDFC Mut ual Fund. Please go ahead.

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

Yes, so, in total, we have about 15.5 or 16 million square feet total launch plan for the rolling four quarters. At the beginning of the financial year, we had commu nicated around 12 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 Rs. 10,000 per square foot on averag e. So, basically, you could assume Rs. 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 4,600 crores already, for which 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 will be able to get all of that within Q4 itself.

Understood. The other thing is we have 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 etcc, etcc? Any perspective on the color of the BD which has been done in the first quarter?

Hi, Ashish. Pradyumna here. So, we have added about 60% of t he projects in Bangalore and 20% each in Chennai and Hyderabad. In Bangalore, in residenti al, it is not very premium in nature. These are the sweet spots that we have been targeting over the last many quarters of the projects that have been launched. So, these are similar in nature, ty pically in the range of about Rs. 10,000 to Rs. 12,000 a square foot. So, that is where we would be launching these projects when they do. As far as Hyderabad goes, again, it is a similar project. About Rs. 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, you know, we have 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 have added last quarter is also literally opposite to this location. So, our strateg y continues to be very, very similar to what we have been communicating.

And Chennai? Chennai would also be at what sort of a price point? Is that, again, very premium or the lower price point?

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

Lastly, 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?

So, we have about Rs. 11,000 crores of GDV that we have acq uired in Q1. And the typical about 20% to 22% is the range.

Understood. Thank you very much.

Thanks for the follow-up. Again, on the land cost, you hav e a balance which needs to be paid, which is around Rs. 1,380 crores. So, by when can we expect this to be paid? And also in terms of business development, what is the pipeline looking like for the rest of the year?

So, out of the Rs. 1,380 crores, about Rs. 470 crores has already bee n paid in Q2. And the rest of it is spread across various projects, most of which will, you know, it is a combination of joint development and outright purchases. So, these will get paid out in th e course of the next year, year-and-a-half or so. So, the balance is about Rs. 910 crores and that will get done in the course of the next, say, 18 months or so.

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

So, that is ongoing as usual, Girish. Typically we get about 200 to 2 50 proposals every month. Now, 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 is by way of JD or otherwise.

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

Thanks for the question. So, BuzzWorks for us is currently a sma ller portion of our business, but we believe it is a high-growth business. Currently, of course, we have about 5,000 seats, but we are 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, that far it was more of a v alue-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.

In terms of competitive landscape currently, how are you r eading this market?

See, there are multiple players. Barrier to entry is relatively less. It doesn't re quire 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 Rs. 20,000 to Rs. 25,000. And you get players in the Rs. 4,000 to Rs. 6,000 as well. On average, our positioning is around Rs. 13,000 to Rs. 15,000. Of co urse, like I said, that is an average. There are some centers that do Rs. 18,000. There are some centers that do Rs. 10,500, Rs. 12,000. So, on average, we are around, I would say, Rs. 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 Lim ited. Please go ahead.

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. Wh ile 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 GDV. That would be the approach.

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

So, 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 is 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, abo ut 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 townsh ip, 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 the 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, BEL share, our share is about 1.76 million.

So, basically, your Gateway would start construction next year, righ t. I mean, not this year.

Maybe in the next quarter we can have that update.

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

So, the real estate collection is about Rs. 1,248 crore, commercial leasing is about Rs. 311 crore and hospitality is about Rs. 168 crore. Total Rs. 1728 crore.

That is it from my side. Thank you and all the best.

The next question is from the line of Mr. Prolin from Edelweiss Public Alternatives. Please go ahead.

Hi, team. Just wanted to understand, to the previous participants' 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 the Chennai and Hyderabad. So, I want an internal assessment of how has been our foray into these cities, right? And where I am coming from is that, you know, you talked about this p roject 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 how should one think about our entry into these two cities specificall y? If you can spend a few minutes on both the cities, that would be very helpful.

So, I would like to say that the ongoing 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 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 rapi d growth from then on. So, a lot of our business development success, the project launche s that are happening now has really sort of taken off after seeing World Trade Center in Chennai. We are also experiencing the same in Hyderabad. So, after announcing the Bri gade Gateway in Neopolis, having seen what the plans are like, having seen the launc h of the first tower, which was an unprecedented success, it is the most premium project in that sub-market. And I would say the entire market has noticed and also recognize that we are building a very premium mixed-use development, 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 develo pment proposals that we are 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 as they like to have a sales experience on ground. And also in Chennai, you can't really construct a marketing o ffice prior to receiving certain approvals in hand. So, we do have a setup at the site. It is in a soft launch stage. But we expect to see a lot more traction once the sales office is open. And I think that is normal and natural. That is what we have experienced in both Icon and Altius as well. So, apart from that, there isn't anything specific about Morgan Heights.

Thanks a lot. That's it from my side.

The next question is from the line of Ms. Heta from Monarch AIF. Please go ahead.

Hi, Thank you for the opportunity. I just had two 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 are seeing today are a reflec tion of the inventory that is getting sold each quarter, which is also dependent on what is getting lau nched. So, going forward, we have a mix of projects of super luxury as well as premiu m and mid-segment. We also have plotted. So, you know, it is a mix of what gets transacted every quarter. So, I would say it will still average out. You know, in the coming few quarters, we will be launching at rates of Rs. 15,000, Rs. 16,000 for some projects and then plotted maybe at Rs. 5,000. So, that gets sold every quarter. So, on average, I would say it will be around the same, maybe slowly sort of move up slightly.

And what would be the EBITDA margin of these new project launches upcomin g in FY '26?

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

okay, alright. That's it from my side. Thank you.

Thank you. As there are no further questions from the participants, I wo uld now like to hand the conference over to Ms. Pavitra Shankar, Managing Director, for closing comments.

Before we wrap up, we would like to share a few key highlights beyo nd our financial performance this quarter. The Brigade Foundation, our not-for-profit trust, continues to champion meaningful social impact through initiatives that blend educa tion and community development. The Venkatappa Art Gallery has reopened its doors to the public. B eautifully restored through a collaborative effort between the Brigade Foundation and the Departmen t of Archaeology, Museums and Heritage Government of Karnataka. Key enhancements include structural repairs, upgraded lighting, improved accessibility, modern display areas an d we have also rejuvenated the landscaping. We also constructed an auditorium for the Karnataka Public School in Vishwanathapura in North Bangalore. This is an initiative that is in line with our overall mission of e mpowering 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 in opp ortunities, two of our women employees have successfully graduated with an M.Tech from IIT Ma dras. 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 recognitions. Brigade Enterprises Limited was h onored as a Great Midsize Workplace for the 15th year in a row, ranking 75th. Mea nwhile, Brigade Hospitality Services Limited soared to 8th place, a recognition that o ur People First culture continues to shine. Both these awards were by the Great Place to Work Institute. Additionally, the Track2Realty BrandX Report 24 –25 recognized Brigade as the 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. With that, we conclude our earnings call for Q1 FY '26. And than k 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.