Bagmane REIT net borrowing ratio rises to 4.16% in September

Bagmane Prime Office REIT (Bagmane REIT) reported an unaudited net borrowing ratio of 4.16% at 30 September 2026, up from 3.94% at 30 June 2026, as total borrowings reached Rs 2,459.802 crore and cash declined to Rs 725.14 crore. Net borrowings increased to Rs 1,734.662 crore against REIT assets valued at Rs 41,748.18 crore.

Why did Bagmane REIT’s net borrowing ratio increase?

Bagmane REIT’s ratio increased because net borrowings grew faster than the value of REIT assets during the quarter ended 30 September 2026. Aggregate borrowings and deferred payments, net of cash and cash equivalents, increased by Rs 144.228 crore to Rs 1,734.662 crore, while the value of REIT assets increased by Rs 1,351.23 crore to Rs 41,748.18 crore. The reported ratio is net borrowings divided by the value of REIT assets.

Gross borrowings rose by Rs 126.078 crore from Rs 2,333.724 crore at 30 June 2026, while cash and cash equivalents fell by Rs 18.15 crore from Rs 743.29 crore. There were no deferred payments in either period. The filing says cash and cash equivalents are determined under Schedule III of the Companies Act, 2013, while REIT asset values use the latest valuation report by a valuer appointed under REIT regulations.

Where were Bagmane REIT’s borrowings held at September-end?

Bagmane REIT held Rs 1,052.009 crore of borrowings at the trust level, while Bagmane Developers Private Limited, or BDPL, held Rs 999.908 crore and Bagmane Rio Private Limited, or BRPL, held Rs 407.885 crore at 30 September 2026. Bagmane Green Power Private Limited, or BGPL, reported no borrowings, but its Rs 40.458 crore of cash created a negative net borrowing position for that entity.

The largest disclosed lender balance was at the trust level with Bajaj Housing Finance Limited: a Rs 801.241 crore term loan and a Rs 250.768 crore overdraft, together totalling Rs 1,052.009 crore. BDPL’s balance comprised a Rs 644.494 crore HDFC Bank Limited term loan, Rs 184.203 crore from Indian Overseas Bank and Rs 171.211 crore from Federal Bank LTD.

BRPL’s Rs 407.885 crore borrowing balance consisted of a Rs 341.126 crore ICICI Bank Limited term loan and a Rs 66.759 crore ICICI Bank Limited overdraft. Between 30 June and 30 September 2026, the Bajaj Housing Finance Limited overdraft at the trust increased by Rs 50.156 crore, while the Rs 43.019 crore Canara Bank term loan reported in BDPL at June-end was absent from the September lender schedule. The filing does not provide interest rates, maturity dates or facility purposes.

How did borrowings and cash change across Bagmane REIT entities?

Bagmane REIT’s trust-level borrowings increased by Rs 48.964 crore to Rs 1,052.009 crore, BDPL borrowings increased by Rs 73.82 crore to Rs 999.908 crore, and BRPL borrowings rose by Rs 3.294 crore to Rs 407.885 crore. These movements produced the Rs 126.078 crore consolidated increase in gross borrowings between 30 June and 30 September 2026.

Cash declined at three entities over the same period. Trust-level cash fell by Rs 9.534 crore to Rs 149.627 crore, BDPL cash decreased by Rs 10.54 crore to Rs 491.828 crore, and BGPL cash decreased by Rs 1.752 crore to Rs 40.458 crore. BRPL was the exception, with cash increasing by Rs 3.676 crore to Rs 43.227 crore.

BDPL accounted for Rs 38,501.87 crore of the Rs 41,748.18 crore consolidated REIT asset value at 30 September 2026, followed by BRPL at Rs 2,200.96 crore and BGPL at Rs 1,045.35 crore. The trust itself had no separate REIT asset value in the net borrowings table. At 30 June 2026, consolidated REIT assets had been valued at Rs 40,396.95 crore.

What do Bagmane REIT’s reported coverage ratios show?

Bagmane REIT reported a debt service coverage ratio of 16.46 for the quarter ended 30 September 2026, compared with 1.15 for the quarter ended 30 June 2026. The disclosed formula divides earnings before finance costs, depreciation, amortisation and tax expenses by finance cost plus principal repayments made during the period, net of proceeds from borrowings.

The interest service coverage ratio was also 16.46 in the September quarter, compared with 12.17 in the June quarter. Under the filing’s formula, this ratio uses earnings before finance costs, depreciation, amortisation and tax expenses divided by finance cost, excluding capitalised finance cost and interest on lease deposits and lease liabilities. Consolidated finance costs were Rs 52.754 crore in the September quarter, versus Rs 37.582 crore in the June quarter.

Debt to equity remained 0.07 in both quarterly disclosures, while total debts to total assets stayed at 0.06. Asset cover decreased to 16.97 at 30 September from 17.31 at 30 June, and the current ratio declined to 0.66 from 0.72. Net operating income increased to Rs 684.395 crore in the September quarter from Rs 395.132 crore in the June quarter.

What acquisition and distribution disclosures are relevant to leverage?

Bagmane REIT completed its initial formation transactions, including the issue of units and acquisition of subsidiaries, during the half year ended 30 September 2026. The filing records the acquisition of 100.00% of BDPL securities for Rs 31,610 crore through the issue of 3,161 million units, while BDPL acquired 93.00% of BRPL for Rs 1,300 crore and Luxor @ Bagmane Capital Tech Park for Rs 1,775 crore.

The initial public offer raised Rs 2,390 crore through a fresh issue of units, of which Rs 2,317.20 crore had been used by 30 September 2026. The unutilised Rs 72.8 crore comprised Rs 11.7 crore for general purposes and Rs 61.1 crore for offer expenses. The filing also states that unitholders are entitled to receive at least 90% of net distributable cash flows each financial year, with distributions made at least once every six months.

Conclusion

Bagmane REIT’s net borrowing ratio rose by 0.22 percentage points to 4.16% at 30 September 2026 as consolidated gross borrowings increased to Rs 2,459.802 crore and cash declined to Rs 725.14 crore. The Rs 1,351.23 crore increase in valued REIT assets moderated the effect, but net borrowings still rose by Rs 144.228 crore during the quarter.

The next disclosed items to watch are the use of the remaining Rs 72.8 crore of fresh-issue proceeds and the timing and amount of distributions, given the requirement to distribute at least 90% of annual net distributable cash flows and to make distributions at least once every six months.