Brigade Enterprises aims for ₹6,300-6,500 crore sales in FY25 with strong H2 performance
Team FS
04/Dec/2024

What's covered under the Article:
- Brigade Enterprises aims for ₹6,300-6,500 crore sales in FY25, with a focus on Bengaluru and strategic launches.
- 40% of the sales target has been achieved in H1 FY25, with Q2 driven by luxury project Brigade Insignia.
- The company is also working on a hospitality IPO with a Draft Red Herring Prospectus filed for its hotels.
Brigade Enterprises, one of the leading real estate developers in India, is setting its sights on achieving significant growth for the fiscal year 2024-2025 (FY25). The company aims to reach an ambitious sales target of ₹6,300-6,500 crore, showcasing its robust pipeline of projects and demand in key real estate markets. The company has already achieved 40% of its annual booking target in the first half of FY25, and it expects the second half of the year to see even stronger performance, supported by strategic project launches and approvals.
Strong Performance in the First Half
As of the end of Q2 FY25, Brigade Enterprises has demonstrated solid growth, primarily driven by the luxury residential project Brigade Insignia, which has contributed heavily to its Bengaluru market. Bengaluru remains the cornerstone of the company's real estate portfolio, accounting for 90% of bookings during the July-September quarter of FY25. This performance underscores the city's continued demand for high-end real estate developments and luxury housing options.
In addition to Brigade Insignia, the company launched three residential projects covering a total area of 2.2 million square feet during the quarter. These launches have further bolstered the company's presence in the region, particularly in Bengaluru, a key market where the demand for residential properties remains strong. According to Pavitra Shankar, Managing Director of Brigade Enterprises, the market is still favorable, with home loan rates in the range of 8.5-9%, which although higher than post-COVID levels, are still considered competitive by homebuyers. These stable rates contribute to financial predictability, supporting sustained demand for residential properties in the region.
Strategic Expansion in Key States
The company is focused on expanding its reach across key Southern Indian states, with particular emphasis on Karnataka, Telangana, and Tamil Nadu. These states are central to Brigade’s strategy for growth, with the company’s future performance largely dependent on the timely approvals for its planned launches. Despite challenges, the demand for residential properties in these states is strong, especially in Bengaluru, which continues to be a high-growth market.
Brigade Enterprises' strategic push in these states is expected to yield substantial growth in the latter half of FY25, as approvals for new projects are finalized. This growth will be supported by residential real estate, where Brigade continues to see a strong appetite from homebuyers, thanks to its well-timed launches and the availability of financing options.
Plans for Hospitality Sector Expansion
In addition to its real estate developments, Brigade Enterprises is expanding its portfolio to include the hospitality sector. As of October 30, 2024, the company filed a Draft Red Herring Prospectus (DRHP) for its hospitality business, marking the next phase of its diversification efforts. The company operates a total of nine hotels across major cities in India, including Bengaluru, Chennai, Mysore, Kochi, and the GIFT City in Gujarat. These hotels have a combined total of 1,600 keys, contributing to the company's hospitality revenue. The DRHP is expected to take around 3-4 months to process, and the company is hopeful that it will significantly enhance its valuation once the offering is completed.
Real Estate Outlook and Future Plans
Despite concerns around rising interest rates and inflationary pressures, Brigade Enterprises remains optimistic about the outlook for residential real estate, especially in Bengaluru, which continues to see strong demand for both luxury and mid-market housing. The company's forward-looking sales target of ₹6,300-6,500 crore for FY25 is a reflection of this optimism, with Shankar pointing to the positive outlook for the second half of the year.
Additionally, the hospitality IPO is expected to further boost the company’s valuation, giving it a competitive edge in the real estate and hospitality sectors. Brigade's focus on both these segments positions it well for continued growth and strong financial performance.
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