Bengaluru-based real estate firm Brigade Group delivered impressive financial performance in Q1 FY27, with profit (attributable to owners of the holding company) growing 37% year-on-year to ₹217 crore. According to latest reports, this growth was driven by strong retail and hospitality performance despite a 12% revenue decline to ₹1,179 crore. The company's profit before tax (PBT) stood at ₹285 crore, up 47% from the year-ago period, demonstrating strong operational leverage across business segments. As per CNBC TV18, the company's EBITDA increased 11.7% to ₹361.4 crore from ₹323.7 crore, while the EBITDA margin expanded significantly to 32.4% from 25.3%, showcasing improved operational efficiency.
The company's revenue from operations declined 12% YoY to ₹1,179 crore from ₹1,333 crore in Q1FY26, primarily due to a 20.73% YoY decrease in revenue from the real estate business to ₹707 crore. However, Brigade achieved strong operational efficiency with its average realisation rising 21% YoY to ₹14,256 per square foot. The real estate segment's EBITDA margin stood at 21%, while the leasing segment reported revenue of ₹328 crore, up from ₹300 crore in Q1FY26, registering 9% year-on-year growth. Premium brand mix, events, brand activations and customer experience drove an 11% year-on-year increase in mall footfalls, with retailer sales growing 35% year-on-year led by global brands across fashion, lifestyle, dining and family retail. The company's real estate sales stood at ₹1,061 crore during the quarter, with pre-sales volume at 0.74 million square feet, down 22.1% YoY. As per Business Standard, the sales volumes dropped 22% from 0.94 million sq ft in the first quarter of the last financial year, while the average sales realisation stood at ₹14,256 per sq ft during the June quarter.
The hospitality segment emerged as a key growth driver, with revenue standing at ₹144 crore and portfolio occupancy at 76%. The segment achieved an average room rate (ARR) of ₹7,241, demonstrating strong pricing power and operational efficiency. This performance contributed significantly to the overall profit growth despite the revenue decline in other segments. As per CNBC TV18, the company's EBITDA increased 11.7% to ₹361.4 crore from ₹323.7 crore, while the EBITDA margin expanded significantly to 32.4% from 25.3%. The hospitality business remained steady despite challenging global conditions, with the segment's EBITDA standing at ₹150 crore during the quarter.
Total expenses during the quarter declined 17.75% YoY to ₹936.51 crore, driven by a sharp fall in land purchase costs (including development rights), licence fees and plan approval charges. The company's EBITDA margin improvement to 36% from 28% reflects effective cost optimization across all business segments. This improvement in operational efficiency demonstrates Brigade's ability to optimize costs while maintaining quality standards across its business segments, with the company's leasing, retail and hospitality businesses forming annuity streams that provided relatively stable revenue during the quarter.
Managing Director Pavitra Shankar highlighted the company's focus on creating integrated destinations across homes, workplaces, hospitality and retail segments. According to CNBC TV18, Brigade launched around 4 million square feet of commercial projects in Bengaluru and Hyderabad during the quarter and is planning nearly 12 million square feet of launches as it builds its development pipeline across key markets. The company is partnering with Bain Capital for a landmark mixed-use development in Whitefield, Bengaluru, significantly strengthening its future pipeline in high-growth markets. As of August 13, Brigade's shares closed at ₹586.90, down ₹5.95 or 1.00% on the BSE. The company's strategy of developing integrated destinations combining residential, commercial, hospitality and retail components comes as India's urbanisation continues to support demand for mixed-use developments in major cities.
