Bengaluru-based real estate developer Brigade Group is entering a mega capital expenditure cycle of up to ₹20,000 crore to scale up its diversified portfolio, which includes premium residential developments, offices, malls, and hotels. According to Business Standard, Managing Director Pavitra Shankar stated that while the West Asia conflict has had a direct impact on costs, the company has headroom to take on more debt, even as capex will be funded through a mix of internal accruals, construction finance, and debt. The company spent ₹600 crore in capex in 2025-26 and plans to spend ₹1,300-1,500 crore in FY27.
For FY27, Brigade Group has set ambitious launch guidance of 11.5-12 million square feet of residential projects with a gross development value (GDV) of ₹12,000-13,000 crore, depending on the mix and final pricing. As reported by Business Standard, the company is on track to achieve this guidance and is looking at pulling forward some launches that may have been scheduled for Q1 of 2027-28 into FY27. The existing land bank provides around five years of visibility with 57 million square feet of launchable area and a GDV of ₹55,000-60,000 crore across all segments, applying a blanket ₹10,000 per square foot pricing.
The Coimbatore project is surrounded by social infrastructure including educational institutions, retail malls and hospitals. As reported by Brigade Enterprises, Pavitra Shankar, Managing Director emphasized that Coimbatore has all the fundamentals of a high-growth real estate market: a diversified economy, a deep talent pool, strong social infrastructure and a robust pipeline of infrastructure investments. She noted that as the city continues to attract businesses, professionals and families, demand for quality real estate is set to accelerate. Shankar stated that "Our entry into Coimbatore is a strategic step in Brigade's growth journey across South India, and we are excited to bring our multi-domain development expertise to a market that is poised for its next phase of transformation."
According to the latest financial results, Brigade Enterprises reported a 37.3% YoY rise in consolidated net profit to ₹216.94 crore in Q1 FY27, despite total income falling 11.5% to ₹1,179.22 crore. The company maintains a debt-equity ratio that is still very low, giving capacity to absorb more debt. Currently, 5-10% of capex financing is construction financing, while the rest is lease rental discounting (LRD), providing access to relatively low rates. The company's weighted average cost of debt remains in the mid-7% range, allowing for increased debt levels. Brigade remains confident of achieving its ₹9,000 crore 2026-27 pre-sales target, with strong operational margins expected to improve as projects launched around 2021-22 are now being registered and handed over.
According to CNBC TV18, shares of Brigade Enterprises Ltd ended at ₹655.90, up by ₹12.80, or 1.99%, on the BSE following the announcement. The company expects a stronger launch pipeline from the July-September quarter of 2026 (Q2FY27) onwards, with around 1.5 million square feet of launches that were deferred from the last quarter expected to come through during the rest of the year. Pavitra Shankar of Brigade Enterprises said the company remains confident of achieving its ₹9,000 crore 2026-27 pre-sales target, despite a muted first quarter and delays in project approvals. The company is also exploring a real estate investment trust (Reit) structure, targeting a certain portfolio size as it enters this capex cycle.
