Bagmane Prime Office REIT Reports ₹400 Crore Q2 Profit

Bagmane Prime Office REIT reported net profit of ₹399.80 crore in Q2 FY27, up 583.30% quarter-on-quarter from ₹58.51 crore, while net operating income reached ₹684.39 crore and committed occupancy stood at 99% as of September 30, 2026.

What did Bagmane Prime Office REIT report for Q2 FY27?

Bagmane Prime Office REIT, referred to as Bagmane REIT, reported revenue from operations of ₹764.99 crore for the quarter ended September 30, 2026. Revenue increased 75.05% from ₹437.01 crore in the preceding quarter. The REIT separately reported net consolidated total income of ₹778.81 crore.

Net operating income, or NOI, was ₹684.39 crore, producing an NOI margin of about 89%. Operating profit was ₹646.09 crore, up 77.39% sequentially from ₹364.22 crore. PBDT increased 78.49% quarter-on-quarter to ₹607.16 crore from ₹340.16 crore.

Profit before tax stood at ₹291.64 crore, compared with ₹152.87 crore in the prior quarter, a 90.78% sequential increase. Net profit was ₹399.80 crore, against ₹58.51 crore in Q1 FY27. The reported quarterly results describe year-on-year changes as 0.00%, reflecting no stated annual movement in the available data.

Why did Bagmane REIT's reported profit rise sharply?

Bagmane REIT's net profit was supported by a ₹108.15 crore tax benefit reported during the quarter. The REIT reported total income of ₹778.82 crore and expenses of ₹487.17 crore, resulting in profit before tax of ₹291.65 crore before the tax benefit lifted net income to ₹399.80 crore.

The quarter was Bagmane REIT's first full quarter as a listed REIT. Management said that reported figures now represented a complete quarter of operations. This context is relevant when comparing the Q2 figures with the prior quarter, as the listed REIT structure had only recently begun reporting full-quarter financial performance.

The company maintained an NOI margin in the 88% to 90% range, with Q2 at approximately 89%. Management described this as among the higher margins within India's listed office REIT sector. The margin reflects the proportion of property revenue retained as net operating income after property-level operating costs.

How did leasing and occupancy support Bagmane REIT's performance?

Bagmane REIT recorded gross leasing of 1.2 million square feet in Q2 FY27, including 0.6 million square feet of pre-leased space. Global capability centres accounted for 96% of the gross leasing reported for the period.

The portfolio had 99% committed occupancy across 16.7 million square feet. Management said this was the highest occupancy level among India's listed office REITs. The weighted average lease expiry was 6.1 years, providing visibility on contracted lease tenures across the portfolio.

The leasing outcome came amid broader office-market activity. According to JLL data cited by management, India recorded 61 million square feet of gross office leasing in the first nine months of calendar 2026, the highest level recorded for that period. Bagmane REIT's leasing and near-full occupancy place its quarterly performance within this active office-market environment.

What distribution did Bagmane REIT declare for unitholders?

Bagmane REIT declared a Q2 FY27 distribution of ₹527 crore, equivalent to ₹1.55 per unit. The record date was November 5, 2026, and payment was scheduled by November 13, 2026.

For the first half of FY27, distributions totalled ₹1,040 crore, or ₹3.05 per unit. The REIT reported net distributable cash flow at the REIT level of ₹531.30 crore for Q2, compared with the ₹527 crore distribution declared for unitholders.

The reported fair-value net asset value was ₹113.61 per unit as of September 30, 2026. NAV is a portfolio valuation measure and is distinct from the market price of a listed REIT unit.

What do the Q2 numbers indicate about Bagmane REIT's financial position?

Bagmane REIT reported a loan-to-value ratio of 4%, which management described as the lowest among India's listed office REITs. A low loan-to-value ratio indicates that debt represented a limited share of the REIT's property value at the reported date.

The combination of 99% occupancy, 1.2 million square feet of quarterly gross leasing and a 4% loan-to-value ratio provides the key operating and balance-sheet context for the quarter. Pre-leased development of 0.6 million square feet was also part of the reported leasing activity.

For investors, the financial results show a substantial sequential rise in revenue and net profit, while the distribution provides a direct cash-flow measure. However, the reported profit included a tax benefit, so operating measures such as NOI, occupancy, leasing and distributable cash flow remain important for assessing the quarter's underlying property operations.

Conclusion

Bagmane REIT's Q2 FY27 results showed revenue from operations of ₹764.99 crore, NOI of ₹684.39 crore and net profit of ₹399.80 crore. The results were supported by 99% committed occupancy, 1.2 million square feet of gross leasing and an 89% NOI margin, while the tax benefit contributed to the reported increase in net profit.

The next disclosed milestones are the November 5, 2026 record date and payment of the ₹1.55-per-unit distribution by November 13, 2026. Investors will also track subsequent leasing, occupancy, distribution declarations and the REIT's low leverage position in future quarterly updates.