Brigade Enterprises Q1 Review- A Mixed Bag; Residential Segment Muted, While Annuity Fares Well: Motilal Oswal

Motilal Oswal Report

Brigade Enterprise Ltd. reported bookings of Rs 10.9 billion in Q1 FY25, up 9% YoY (16% below estimate). Sales volume stood at 2.7 million square feet, down 21% YoY.

Aided by the launch of a premium project in Bengaluru, Brigade Enterprises recorded the highest ever quarterly realisation of Rs 9,440 psf, up 38% YoY.

Towards the end of Q1 , the company also launched its much awaited luxury project ‘Brigade Icon’ in Chennai. The project’s contribution to total bookings has spilled over to Q2 FY25. In FY25, Brigade Enterprises is aiming to launch 12.6 msf of projects with a gross development value value of ~Rs 130 billion across the three markets of Bengaluru, Chennai, and Hyderabad.

With scale-up in Chennai and Hyderabad, we expect the company to deliver 32% compound annual growth rate in pre-sales over FY24-26E to Rs 105 billion.

P&L performance: Revenue increased 65% YoY to Rs 11 billion (6% below estimate). Ebitda stood at Rs 2.9 billion, up 67% YoY with a margin of 27% (up 40 bp YoY). Adjusted profit after tax surged two times YoY to Rs 837 million, clocking a margin of 8%.

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