Knowledge Realty Trust Q1 FY27: 15% Revenue Growth

Quick context: why this quarter mattered

Knowledge Realty Trust reported a strong start to FY27, led by higher revenue, improved occupancy, and record cash distributions. For the quarter ended June 30, 2026, the Mumbai-based office REIT said revenue and net operating income (NOI) grew 15% year-on-year to ₹12,431 million and ₹11,117 million, respectively. The Board of Directors approved the results on July 28, 2026.

The update is notable because it combines operating momentum with capital market activity. Alongside leasing gains, the trust raised fresh debt at a blended 7.2% rate and increased fixed-rate exposure to 30%. The trust’s manager is Knowledge Realty Office Management Services Private Limited.

Q1 FY27 financial performance: revenue and NOI up 15%

In its Q1 FY27 disclosure, Knowledge Realty Trust reported revenue of ₹12,431 million and NOI of ₹11,117 million, both up 15% year-on-year. The trust linked the performance to robust leasing activity and improved portfolio occupancy.

While the filing highlights growth and operational execution, it also sets a baseline against FY26, when the trust reported revenue of ₹45,772 million (+16% YoY) and NOI of ₹40,484 million (+18% YoY). The FY26 figures provide context for the trust’s trajectory as it enters a new financial year.

Record distributions: ₹7,516 million declared, DPU rises

For the period ended June 30, 2026, the trust declared record distributions of ₹7,516 million. It reported a distribution per unit (DPU) of ₹1.70, which it said was 5% higher quarter-on-quarter versus the previous DPU of ₹1.62.

Separately, the trust also disclosed a total distribution of ₹7,516.31 million described as a ₹1.695 per unit payout for “Q1FY26”, with record date and payment timelines set for late July and early August 2026. The trust stated the record date is July 31, 2026, and payments are expected to be credited on or before August 7, 2026.

Leasing and occupancy: portfolio improves to 93%

Operationally, the trust said portfolio occupancy improved to 93% during Q1 FY27. It attributed the occupancy improvement to gross leasing of 1.4 million sq ft in the quarter.

For comparison, the trust had earlier reported that in Q4 FY26 it achieved gross leasing of 1.1 million sq ft, taking cumulative leasing for FY26 to 3.5 million sq ft and portfolio occupancy to 92%. It also reported gross leasing of 1.8 million sq ft in H1 FY26, comprising 1.2 million sq ft of new leases and 0.6 million sq ft of renewals.

Balance sheet update: ₹11,000 million debt at 7.2%

Knowledge Realty Trust raised ₹11,000 million of debt at a blended rate of 7.2% during the quarter, according to the update. It also increased fixed-rate exposure to 30%, reflecting a shift in the interest-rate mix.

In an earlier period, the trust reported raising ₹16,000 million through AAA-rated listed non-convertible debentures (NCDs) at a 7.2% coupon (H1 FY26). Taken together, these disclosures show an ongoing focus on debt market access and rate management.

FY26 backdrop: full-year growth and distributions

For FY26, Knowledge Realty Trust reported revenue of ₹45,772 million and NOI of ₹40,484 million, translating into 16% and 18% year-on-year growth, respectively. It reported net profit of ₹3,754.36 million for the full year FY26, with earnings per unit (basic and diluted) at ₹1.32.

The trust also reported cumulative FY26 distribution of ₹4.740 per unit, totalling ₹21,019.19 million, and said this exceeded projections outlined at the time of the IPO. It further disclosed that the distribution payout ratio for the period was 99.99%.

Unit metrics: NAV disclosure and a trading snapshot

The trust declared a net asset value (NAV) of ₹123.61 per unit as of March 31, 2026, based on a valuation report issued by independent valuer iVAS Partners with market intelligence support from CBRE South Asia Private Limited.

In a market snapshot included in the provided disclosures, units were cited trading at ₹118.16 per unit as of May 14 at 9:55 AM, down 0.03% versus the previous close. This price reference is tied to the FY26 distribution announcement period.

Key numbers at a glance

Distribution components disclosed in filings

Market impact: what investors and trackers are likely to focus on

The Q1 FY27 update brings together three measurable operating drivers that investors commonly track in office REITs: revenue and NOI growth, occupancy movement, and leasing volumes. The reported improvement in occupancy to 93% and 1.4 million sq ft of gross leasing provides additional operating context beyond the headline financial growth.

The financing update is also relevant because the trust disclosed both the blended cost of new debt (7.2%) and the post-transaction fixed-rate exposure (30%). These datapoints help frame how distributable cash flows can behave when debt costs shift, although the trust did not provide forward guidance in the provided material.

Why this update matters in a broader FY26 to FY27 narrative

FY26 was positioned as a year of expansion in both financials and distributions, with revenue at ₹45,772 million and NOI at ₹40,484 million, and FY26 DPU at ₹4.740. Against that base, the Q1 FY27 numbers point to continued growth in the core rental engine.

The trust also reiterated compliance-related disclosure in the distribution note, stating that there was no deviation in the use of IPO proceeds. Along with updated NAV disclosure (₹123.61 per unit as of March 31, 2026), these are part of the regular information set that unitholders use to track governance and balance sheet discipline.

Conclusion

Knowledge Realty Trust reported 15% year-on-year growth in Q1 FY27 revenue and NOI, declared record distributions of about ₹7,516 million for the quarter ended June 30, 2026, and improved portfolio occupancy to 93% backed by 1.4 million sq ft of gross leasing. It also raised ₹11,000 million of debt at a 7.2% blended rate, taking fixed-rate exposure to 30%. The next immediate milestone disclosed is the record date of July 31, 2026, with distribution payments expected by August 7, 2026.