Now Reading: Brigade Enterprises targets Rs 9,000 crore pre-sales in FY27
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Brigade Enterprises targets Rs 9,000 crore pre-sales in FY27
Brigade Enterprises has reiterated its 20% pre-sales growth target of Rs 9,000 crore for FY27, relying on timely residential project launches totalling about 12 million square feet (msf) over the next year. The Bengaluru-based developer posted a 5% year-on-year drop in pre-sales to Rs 1,061 crore in the June quarter, with no new project launches during the period. The stock has fallen over 12% so far in 2026, underperforming the Nifty Realty Index.
The company plans to launch 9.3 msf of residential projects with a gross development value of Rs 10,000 crore in the remainder of FY27. Brigade Misty Greens in Mysuru was launched in July, and Phase 2 of Brigade Neopolis in Hyderabad along with a senior living project within Brigade Meadows are expected in the September quarter. Bengaluru accounted for 58% of pre-sales, followed by Chennai and Hyderabad.
Brigade is also scaling its annuity business, targeting a leasing portfolio of 10 msf over the next four to five years with a capital expenditure of Rs 6,000 crore. However, Elara Securities has flagged weak operating cash flow in the residential business and high annuity capex commitments as potential risks, stressing the importance of profitability and cash flow trends in the residential segment.
Indian Opinion Analysis
The real test for Brigade will be its ability to execute on the planned 12 msf of residential launches, especially in Hyderabad and mid-income segments, to reverse the Q1 sales decline. The shift towards mid-income projects could improve sales velocity, which has been soft in the IT-dominated Bengaluru market. Investors should watch the Q2 launch pipeline closely, as any delay would jeopardise the full-year target. The company's heavy capex on annuity assets also raises the stakes: if residential cash flows do not improve, Brigade may face a tight balance between growth and debt servicing. The next trigger is the September quarter sales data, due in October.
Source: livemint.com
This story was synthesised by AI from the source linked above. Methodology and corrections.
