Knowledge Realty Trust Q1 FY27: Revenue up 15% in 2026

Key takeaways from the Q1 FY27 update

Knowledge Realty Trust (KRT) reported a strong start to FY27, supported by higher leasing activity and improving portfolio occupancy. For the quarter ended June 30, 2026, the REIT reported revenue of ₹12,431.0 million and net operating income (NOI) of ₹11,117.0 million, both up 15% year-on-year.

KRT also declared record distributions of ₹7,516.31 million for the quarter. The payout works out to ₹1.695 per unit (also referenced as ₹1.70 per unit in the earnings call highlights) and represented a 5% quarter-on-quarter increase versus the previous quarter’s DPU of ₹1.62.

What the management highlighted on the earnings call

On the Q1 FY27 earnings call, management said the trust entered FY27 with “strong operating momentum”, pointing to growth in revenue and NOI and a higher distribution. The REIT also flagged improved occupancy and leasing volumes as key drivers through the quarter.

KRT did not issue financial guidance. But the management commentary indicated confidence on leasing momentum based on demand for premium office space and the trust’s pipeline.

Financial performance: revenue, NOI, EBITDA and profit

KRT’s operating metrics showed broad improvement year-on-year in Q1 FY27. Revenue was reported at ₹12,431.0 million and NOI at ₹11,117.0 million, each up 15% YoY.

In another reported metric set, EBITDA for the quarter rose 13% YoY to ₹10,721.0 million. Separately, the trust reported consolidated total income of ₹12,681.4 million for Q1 FY27 and net consolidated profit after tax of ₹2,507.9 million.

These figures collectively point to a quarter where operating income growth was supported by leasing and rental escalations, as described in reports around the results.

Distributions: DPU, record date, and payout mix

KRT’s manager, Knowledge Realty Office Management Services Private Limited, approved a total distribution of ₹7,516.31 million for Q1 FY27, equivalent to ₹1.695 per unit. Reported summaries also referenced DPU at ₹1.70 per unit, aligning with the call commentary.

The distribution included multiple components: ₹0.922 per unit as dividend, ₹0.494 per unit as debt repayment, ₹0.278 per unit as interest, and ₹0.001 per unit as other income. The record date was set as July 31, 2026, with payments due by August 7, 2026.

Leasing and occupancy: 1.4 million sq ft lifts utilisation

Operationally, KRT reported gross leasing of 1.4 million square feet during the quarter. This included 700,000 square feet of new leases and 700,000 square feet of renewals. The same leasing momentum improved portfolio occupancy to 93% from 92% in the previous quarter.

Management also cited a 31% rental spread alongside leasing traction and said committed occupancy improved by 100 basis points quarter-on-quarter. In city-level commentary, Mumbai occupancy was reported at 92%, up 3% from the last quarter.

Demand outlook: management expects higher leasing than FY26

KRT is co-sponsored by Sattva Group and Blackstone and described as India’s largest real estate investment trust in the coverage. The CEO, Shirish Godbole, said leasing activity in FY27 is expected to exceed last year’s total leasing of 3.5 million square feet.

He noted that KRT had already completed 1.4 million square feet of leasing early in the year, and indicated the full-year number could move beyond last year’s level, though the company refrained from issuing formal guidance.

Debt and balance sheet update

During Q1 FY27, KRT raised ₹11,000 million in debt primarily for refinancing purposes. Beyond the stated purpose, the company did not provide additional quantitative detail in the supplied text on maturity, pricing, or interest cost impact.

Given distributions include a debt repayment component, investors typically track how refinancing actions influence distributable cash flow, but any forward impact would depend on future disclosures.

Snapshot table: reported Q1 FY27 metrics

What this means for REIT investors and the office market

For unitholders, the immediate takeaway is the record quarterly distribution and the quarter-on-quarter increase in DPU, with clear dates for record and payment. The rise in occupancy to 93% also indicates improving utilisation across the portfolio, supported by leasing execution in the quarter.

For the broader office REIT landscape, KRT’s commentary reinforces an ongoing preference for premium office assets, with leasing activity split evenly between new demand and renewals in Q1 FY27. Reported rental spreads and occupancy gains provide context on how established office portfolios are seeking to grow cash flows even when guidance is not provided.

Conclusion

Knowledge Realty Trust’s Q1 FY27 results combined 15% year-on-year growth in revenue and NOI with improved occupancy and a record distribution of ₹7,516.31 million. Leasing of 1.4 million square feet helped lift occupancy to 93%, while DPU rose to ₹1.695 per unit.

The next near-term milestones for unitholders are the record date of July 31, 2026 and the distribution payment due by August 7, 2026, with further clarity on leasing momentum likely in subsequent quarterly updates.