Brigade Enterprises Ltd, a southern India-focused realty developer, has hit a rough patch. The stock has declined 28% over the past year, far steeper than the Nifty Realty index’s 4% fall. Pre-sales, or bookings, fell 9% year-on-year in the nine months ended December (9MFY26) to ₹4,902 crore. Slower launches, hurt by approval delays, have kept pre-sales subdued and clouded growth outlook. Sales in existing projects, too, have also been lower than expected.
The March quarter (Q4) is unlikely to materially change the pre-sales trajectory for FY26. Management said during the Q3FY26 earnings call that FY26 pre-sales would likely be similar to FY25 levels.
Estimates by Antique Stock Broking Ltd suggest Brigade may clock pre-sales of about ₹8,000 crore compared with ₹7,850 crore in FY25, falling short of its 15% growth guidance for FY26. By comparison, larger listed peers are targeting 18-20% pre-sales growth this year. Brigade, however, has maintained its medium-term target of 15% compounded annual growth in pre-sales over the next few years.
“Regulatory headwinds have posed a significant challenge to near-term momentum, with project approval delays linked to municipal transitions directly impacting sales growth and forcing key launch postponements into Q4FY26 (gross development value of around ₹5,500 crore) and early FY27,” said HDFC Securities.
For the next four quarters, Brigade has a launch pipeline of 12.45 million square feet (msf) across Bengaluru, Chennai, Hyderabad, and Mysuru, of which 4.3 msf is slated for Q4. At the start of FY26, the company had guided for launches of 12.3 msf, a target it is now set to miss.
Amid these operational challenges, demand dynamics are also shifting. Home buyers are showing greater sensitivity to rising property prices, pointing to a more value-conscious buying environment, HDFC Securities noted.
In response, Brigade is making changes to its product portfolio. Several recent launches by Brigade were in higher ticket sizes of around ₹5 crore, but the company now plans to focus more on mid-income projects priced at ₹2-3 crore. Management believes this segment currently sits in a sweet spot in its key markets of Bengaluru and Chennai, with lower-ticket homes continuing to see faster sales momentum. While conversion timelines have lengthened as ticket sizes increased, footfalls remain strong, it added. Overall housing demand across its markets remains healthy despite an increase in prices.
A 2 February report by Nuvama Research said that although industry-wide volumes appear to be peaking, the Bengaluru realty market remains resilient, and Brigade’s pivot towards mid-income housing could help address softer sales velocity and volumes.
In 9MFY26, Bengaluru accounted for the bulk of pre-sales, with Hyderabad contributing 15% and Chennai 20%. The concentration, however, creates geographic risk, underscoring the need for expansion into newer markets. On the business development front, Brigade spent ₹2,100 crore in 9MFY26 on land acquisitions with a potential gross development value of ₹16,000 crore. Bengaluru accounts for 54% of this pipeline, Hyderabad 30%, and Chennai 16%. Management said it is exploring opportunities in additional geographies.
On the positive side, a healthy balance sheet, decent collections from residential projects and traction in annuity assets do provide some cushion. But they are unlikely to move the needle on the stock’s performance unless residential bookings pick pace. From its 52-week high of ₹1,332 in June 2025, the stock is down around 45%.
