KRT Mumbai offices lead Q2 growth with 50% year-on-year NOI increase

Knowledge Realty Trust (KRT) reported its highest disclosed Q2 office-property net operating income (NOI) growth in Mumbai, where the combined One International Center and One Unity Center increased NOI 50% year on year to Rs 143 crore in the three months ended September 30, 2026. Revenue from the paired assets rose 40% to Rs 164.2 crore.

How did KRT's Mumbai offices perform in Q2?

KRT's Mumbai offices delivered the largest disclosed Q2 gain through One International Center and One Unity Center, whose revenue increased by Rs 47.1 crore from Rs 117.1 crore a year earlier to Rs 164.2 crore. Their NOI increased by Rs 47.4 crore from Rs 95.6 crore to Rs 143 crore, exceeding total-portfolio growth of 13% in revenue and 15% in NOI for the quarter ended September 30, 2026.

One World Center was the other Mumbai asset with substantial growth, reporting revenue of Rs 115.8 crore, up 23%, and NOI of Rs 103 crore, up 28%. The market's results were uneven across the remaining assets: One BKC reported 1% declines in both revenue and NOI, to Rs 84.4 crore and Rs 75 crore, while Prima Bay's revenue declined 2% to Rs 41.6 crore and NOI declined 1% to Rs 36.2 crore.

Which KRT assets grew while some Bengaluru properties declined?

KRT's property-level performance varied by asset and market in Q2. In Hyderabad, Sattva Knowledge City produced revenue of Rs 220.6 crore, up 14%, and NOI of Rs 216.6 crore, up 15%; Sattva Knowledge Park reported 9% revenue growth to Rs 88.1 crore and 10% NOI growth to Rs 85.6 crore. Sattva Knowledge Capital grew revenue 4% to Rs 50 crore and NOI 3% to Rs 49 crore.

In Bengaluru, Cessna Business Park and Exora Business Park reported declines in both measures. Cessna's revenue fell 3% to Rs 93.5 crore and NOI fell 4% to Rs 83.7 crore, while Exora's revenue declined 5% to Rs 57 crore and NOI declined 8% to Rs 47.5 crore. By comparison, Sattva Global City increased revenue 16% to Rs 65.4 crore and NOI 19% to Rs 57 crore.

Other Bengaluru disclosures also showed growth, including Sattva Softzone Complex, where revenue rose 17% to Rs 44.9 crore and NOI rose 13% to Rs 40.7 crore. Sattva Knowledge Court reported revenue of Rs 23.4 crore, up 18%, and NOI of Rs 22.1 crore, up 17%; the Bengaluru Others grouping increased revenue 30% to Rs 52.5 crore and NOI 37% to Rs 47.7 crore.

How did KRT's first-half results compare with Q2?

KRT's first-half results retained the same Mumbai pattern, led by the combined One International Center and One Unity Center. For the six months ended September 30, 2026, the paired assets reported revenue of Rs 317.5 crore, up 37% year on year, and NOI of Rs 274 crore, up 45%. One World Center's revenue increased 24% to Rs 227.7 crore and its NOI increased 28% to Rs 201.9 crore.

At the office-portfolio level, first-half revenue rose 14% to Rs 2,318.3 crore and NOI rose 15% to Rs 2,104.2 crore, compared with Q2 growth of 13% and 15%, respectively. Prima Bay remained lower year on year in the first half, with revenue down 2% to Rs 81.3 crore and NOI down 2% to Rs 70.5 crore, while One BKC's revenue increased 2% to Rs 169.7 crore and NOI rose 3% to Rs 151.1 crore.

Total-portfolio revenue was Rs 1,272.5 crore in Q2, versus Rs 1,123.8 crore a year earlier, while total NOI was Rs 1,140.4 crore versus Rs 988.1 crore. In the first half, total revenue increased 14% to Rs 2,515.6 crore and total NOI increased 15% to Rs 2,252.1 crore; ancillary assets recorded 24% Q2 NOI growth to Rs 71.1 crore, including solar NOI growth of 156% to Rs 8.8 crore.

What portfolio metrics distinguish KRT's Mumbai assets?

KRT's Mumbai portfolio had 6.1 million square feet of completed and total leasable area, committed occupancy of 95% and in-place rent of Rs 218 per square foot per month as of September 30, 2026. Market rent was Rs 250 per square foot per month, implying a disclosed 15% mark-to-market (MTM) measure, while Mumbai represented 32% of gross asset value (GAV), at Rs 22,038.2 crore.

Mumbai had less leasable area than Bengaluru but higher committed occupancy and rent. Bengaluru had 24.6 million square feet of total leasable area, including 9.2 million square feet of under-construction and future-development area, with committed occupancy of 86% and in-place rent of Rs 78 per square foot per month. Mumbai's weighted average lease expiry (WALE) was 3.3 years, compared with 10 years for Bengaluru.

KRT's office portfolio as a whole had 46.5 million square feet of total leasable area, 93% committed occupancy, in-place rent of Rs 101 per square foot per month and market rent of Rs 122 per square foot per month. The office portfolio's MTM was 21%, compared with Mumbai's 15%, while Hyderabad had 99% committed occupancy and a 38% MTM measure across 12.9 million square feet.

Which lease expiries could affect KRT's Mumbai results?

KRT has 562,000 square feet of Mumbai lease expiries scheduled in H2 FY27, representing 9% of base rentals, at an in-place rent of Rs 190 per square foot per month and a stated 28% MTM. One International Center accounts for 412,000 square feet, or 24% of its base rentals, while One World Center accounts for 142,000 square feet, or 8% of its base rentals.

Mumbai's scheduled expiry area rises to 744,000 square feet in FY28, representing 13% of base rentals, with in-place rent of Rs 214 per square foot per month and stated MTM of 37%. One BKC has 157,000 square feet due in FY28, equal to 21% of its base rentals and carrying a 46% MTM, while Prima Bay has 88,000 square feet due, equal to 12% of base rentals and carrying a 6% MTM.

Portfolio-wide, KRT has 1.081 million square feet scheduled to expire in H2 FY27, equal to 4% of base rentals, followed by 1.349 million square feet in FY28, or 7%. Mumbai therefore accounts for more than half of the H2 FY27 scheduled area; Bengaluru has 252,000 square feet expiring in that period and a negative 5% MTM measure.

Conclusion

KRT's Q2 disclosures show that Mumbai supplied the most pronounced office-property growth, led by the combined One International Center and One Unity Center, where revenue rose 40% and NOI rose 50%. One World Center also expanded, but lower revenue and NOI at One BKC, Prima Bay, Cessna Business Park and Exora Business Park show that portfolio growth was not uniform across assets.

The next disclosed operating test is the H2 FY27 and FY28 lease-expiry cycle. KRT has 562,000 square feet of Mumbai expiries in H2 FY27 and 744,000 square feet in FY28, with stated MTM measures of 28% and 37%, respectively. Leasing outcomes at One International Center, One World Center and One BKC will be the scheduled items to watch in subsequent property-level disclosures.