Brigade Enterprises On Track To Maintain 28% Ebitda Margin After Strong Q3 Results, Says MD

Brigade Enterprises is confident of sustaining its 28% Ebitda margin on the back of higher revenue recognition and price increases, the company’s Managing Director Pavitra Shankar told NDTV Profit. 

Brigade Enterprises reported a net profit of Rs 91.1 crore in Q3, up 93% year-on-year from Rs 47.3 crore in the corresponding quarter of the previous fiscal. The Ebitda margin of the real estate firm was logged at 28% in Q3. Turnover of the company increased 35% YoY to Rs 606.9 crore versus Rs 450.8 crore in Q3 of the last financial year.

Talking about increased margins over the last few quarters, Shankar told NDTV Profit that this will be the norm from now on.

“Apart from a few basis points difference here and there, it's more or less what we would see going forward because the projects that are being sold and constructed over the next couple of years is where we've seen the higher price realisation. So, the margin outlook is still pretty good in that sense,” she said.

Explaining the reasons behind the margin expansion, the Brigade Enterprises MD said that it was due to multiple factors.

“Across Brigade Enterprises, margins have been contributed by the office segment, hospitality, and residential. For some of the revenue recognition of residential projects that are coming up, we have been able to lock in those higher margins. That's why you're seeing that overall increase compared to a few years ago,” she said.

“The price increases that have been coming through, the land cost at which we were able to acquire these projects that are getting registered today, all of those things are contributing to these higher margins,” Shankar added.

Highlighting the company’s 12 million square feet launch pipeline and approval delays, the top executive stated that while the company has strong visibility for Q4, it is actively working to secure approvals for projects beyond that.

“My comments are related to Q4. So, the 12 million (square feet launch pipeline) is applicable for the next four quarters. We have good visibility for Q4. But beyond that, we are still in various other stages of approvals for the launches that are coming out in, say, Q1 FY26 and beyond,” Shankar said.

“So what could happen is that it could slip into the next quarter,” she added.

Shares of Brigade Enterprises were trading 0.47% lower on the NSE at Rs 1,157.80 apiece, compared with 1.46% rise in Nifty 50 at 23,703.05.