Brigade targets Rs 1,700 crore rental income in FY29

Brigade Enterprises Limited expects overall rental income of about Rs 1,700 crore in FY29 as its operational office and retail portfolio reaches 12.5 million sq ft, management said on October 30, 2026. The target is supported by 6.8 million sq ft of commercial projects under construction and approximately Rs 3,350 crore of balance capital expenditure.

What is Brigade's FY29 office and rental-income target?

Brigade expects its operational office portfolio to increase to 12.4 million sq ft by FY29 from 8.2 million sq ft, measured by assets that become operational. Management said the addition of a smaller retail component would take the broader office-and-retail portfolio to 12.5 million sq ft from 9.5 million sq ft by FY29.

Brigade also expects overall rental income of about Rs 1,700 crore in FY29. Management did not provide annual rental-income milestones, an office-and-retail income split, or a portfolio yield assumption behind that figure, so the target does not establish a stated rent per square foot.

The target represents a multiyear operating plan rather than just the September 2026 quarter. In Q2 FY27, Brigade reported 9.6 million sq ft of total operational leasing area at 90% occupancy after completing Brigade Square in Trivandrum and Arcadia at Brigade Cornerstone Utopia in Bengaluru.

How is Brigade's leasing portfolio performing now?

Brigade's office-only lease revenue was Rs 201 crore in Q2 FY27, 8% higher year on year, while rental collections were 99%. The 9.6 million sq ft operational leasing-area figure is broader than the 8.2 million sq ft office portfolio measure management used for the FY29 expansion plan.

Leasing-segment revenue was Rs 329 crore in Q2 FY27, unchanged from Q1 FY27 and 3% lower than Q2 FY26. Management said Q2 FY26 contained about Rs 26 crore of one-time finance-lease income; excluding that item, it said Q2 FY27 leasing revenue increased 4% year on year.

Leasing earnings before interest, tax, depreciation and amortisation, or EBITDA, including facility management, were Rs 242 crore in Q2 FY27, representing a 73% margin. Brigade transacted close to 6 lakh sq ft of commercial space during the quarter, including about 1.5 lakh sq ft of new leasing, 2.13 lakh sq ft of churned space and 1.34 lakh sq ft of investor space.

Global capability centres, or GCCs, accounted for 41% of Brigade's Q2 FY27 office leasing. Management also said green-certified tech parks captured 61% of market absorption, while WTC Annexe, Brigade Twin Towers and Brigade Deccan Heights received Indian Green Building Council Gold certification during the quarter.

What capital spending supports Brigade's FY29 expansion?

Brigade had 6.8 million sq ft of commercial development under construction at the end of Q2 FY27, including the World Trade Center and Orion Mall in Hyderabad. Management estimated balance capital expenditure of approximately Rs 3,350 crore to complete the commercial pipeline and said it would phase new supply in line with occupier demand.

Management outlined an office-capital-expenditure schedule of about Rs 400 crore in the remaining H2 FY27, Rs 1,500 crore in FY28 and Rs 1,500 crore in FY29. The disclosed schedule totals Rs 3,400 crore, compared with the earlier approximate balance-capex estimate of Rs 3,350 crore.

Some assets identified by management are expected to become operational after the FY29 target period. These include Brigade Industrial Park Block 1 of about 3 lakh sq ft, Brigade Icon's commercial tower of about 4.1 lakh sq ft, and the World Trade Center and Orion Mall development in Hyderabad of 17.2 lakh sq ft, all slated for FY30.

How will Brigade fund commercial development?

Brigade plans to fund growth investment through a combination of internal cash accruals and debt. As of September 30, 2026, consolidated gross debt was Rs 5,439 crore, net debt was Rs 2,765 crore and cash and cash equivalents were Rs 2,674 crore.

Management said about 85% of debt was backed by rental cash flow and gross operating profit from the Leasing and Hospitality segments. It reported a net debt-to-equity ratio of 0.31 at September 30 and said the ratio should remain below 0.5 by the end of March after projected capital expenditure and business-development spending.

Leasing-segment collections were Rs 343 crore in Q2 FY27, part of consolidated collections of Rs 1,633 crore. Management said first-half cash generation from operations was around Rs 600 crore and expected free cash flow from operations to be higher in the second half as collections from billed milestones are received.

The funding plan coincides with a larger development programme across the group. Brigade added about 12.5 million to 13 million sq ft of projects in the first half of FY27, including close to 10 million sq ft in Q2, which management said translated to approximately Rs 13,000 crore of gross development value.

Which assets will drive near-term leasing progress?

Brigade's immediate leasing priorities are World Trade Center Bengaluru and Brigade Twin Towers, both of which management said had healthy pipelines. During Q2 FY27, Twin Towers recorded about 1 lakh sq ft of sales and World Trade Center Bengaluru recorded about 1 lakh sq ft of leasing.

Management said it aimed to complete lease-up at the two assets and complete Twin Towers sales in H2 FY27. This near-term activity sits alongside the 6.8 million sq ft development pipeline, whose eventual completions are intended to support the office portfolio's increase from 8.2 million sq ft to 12.4 million sq ft by FY29.

Management said existing leases were receiving annual escalations of about 5%, while new or renewed leases were being signed at around 15% above prior rentals. Those figures describe management's experience in current leasing activity and are not a stated forecast for every future lease or for portfolio-wide rents.

Brigade's retail portfolio also provides part of the broader 12.5 million sq ft target. Orion Mall portfolio trading occupancy was 94% in Q2 FY27, and retailer sales grew 16% year on year, led by electronics and restaurant sales, according to management.

Conclusion

Brigade's disclosed FY29 plan combines a 12.4 million sq ft operational office portfolio, a 12.5 million sq ft office-and-retail portfolio and approximately Rs 1,700 crore of overall rental income. The plan starts from 9.6 million sq ft of operational leasing area at 90% occupancy in Q2 FY27 and depends on converting its 6.8 million sq ft construction pipeline into operating assets.

The next measures to watch are management's planned office capital expenditure of about Rs 400 crore in H2 FY27 and Rs 1,500 crore in each of FY28 and FY29, plus lease-up at World Trade Center Bengaluru and Brigade Twin Towers. Projects including the 17.2 lakh sq ft World Trade Center and Orion Mall development in Hyderabad are slated for FY30, beyond the stated FY29 target period.