Brigade's margin reaches 35.48% despite a 13.52% revenue decline
Costs fell faster than revenue year on year, while a higher tax rate limited profit conversion; sequentially, margin improved for a third straight quarter.
Filed 29 Oct 2026, 17:59 IST · after market close · Brigade Enterprises Ltd (BRIGADE)
Key takeaways
- Operating margin rose 3.08 percentage points sequentially to 35.48% as revenue growth of +7.24% outpaced expense growth of +2.35%.
- Net profit increased +28.51% year on year despite revenue falling -13.52%, but the tax rate rose 11.00 percentage points to 23.92%.
- Management said it plans to launch about 13 million sq. ft. across Bengaluru, Chennai, Hyderabad and Mysore over the next four quarters.
Price around the results
Costs fell faster than revenue year on year
Brigade Enterprises reported consolidated results. Revenue declined -13.52% year on year, but expenses fell faster at -26.86%, lifting operating margin by 11.77 percentage points to 35.48%. Sequentially, revenue grew +7.24% while expenses rose only +2.35%, widening margin by 3.08 percentage points.
Higher tax and interest costs diluted operating gains
Profit before tax rose +47.07% year on year, while net profit grew a slower +28.51% as the tax rate increased 11.00 percentage points. Interest expense also rose +8.09% year on year. Other income accounted for 18.62% of pre-tax profit, so reported earnings included a material non-operating contribution.
Margin has improved for three consecutive quarters
Operating margin increased from 25.02% in Q4FY26 to 32.40% in Q1FY27 and 35.48% in Q2FY27. Brigade's margin was 22.74 percentage points above the 12.74% median for the 105 Consumer Discretionary peers that had reported the quarter. The results were filed after market close; across the last eight result reactions, the stock rose five times and fell three times, with a median absolute move of 2.42%.
Management points to launches and hospitality execution
Management said it plans to launch about 13 million sq. ft. over the next four quarters, including 7 million sq. ft. in Bengaluru, 3 million sq. ft. in Chennai, 2 million sq. ft. in Hyderabad and 0.8 million sq. ft. in Mysore. The presentation said the company is expanding across luxury, leisure and business hospitality, while asset upgrades and brand repositioning are intended to improve realizations and operating performance. Management reported retailer sales growth of 16% year on year, driven by electronics and restaurants, and said hospitality portfolio ARR reached Rs 7,876 with occupancy at 75%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,196 cr | ₹1,116 cr | +7.24% | -13.52% |
| Other income | ₹54 cr | ₹106 cr | -49.40% | +15.81% |
| Expenses | ₹772 cr | ₹754 cr | +2.35% | -26.86% |
| Operating profit | ₹425 cr | ₹361 cr | +17.46% | +29.40% |
| Operating margin (%) | 35.48% | 32.40% | — | — |
| Interest | ₹111 cr | ₹109 cr | +1.26% | +8.09% |
| Depreciation | ₹80 cr | ₹73 cr | +9.15% | +4.51% |
| Profit before tax | ₹288 cr | ₹285 cr | +0.96% | +47.07% |
| Tax | ₹69 cr | ₹68 cr | +1.25% | +172.18% |
| Net profit | ₹219 cr | ₹217 cr | +0.87% | +28.51% |
| EPS (₹) | ₹5.94 | ₹6.14 | -3.26% | -10.68% |
Operating margin of 35.48% compares with a Consumer Discretionary sector median of 12.74% across 105 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Retailer sales increased 16% in Q2 FY27 year over year, driven by stronger electronics and restaurant sales.
- Hospitality portfolio ARR reached INR 7,876 and occupancy was 75% in Q2 FY27.
Guidance & outlook
- The company plans to launch about 13 million sq. ft. over the next four quarters across Bengaluru, Chennai, Hyderabad and Mysore.
Expansion
- The company is expanding across luxury, leisure and business hospitality to diversify its portfolio.
New initiatives
- The hospitality business is upgrading assets and repositioning brands to improve realizations and operating performance.
- The company used cross-functional collaboration and technology-enabled recovery and reuse to reduce landfill disposal.
Problems & risks
- Ongoing geopolitical tensions weighed on international tourism during the quarter.
What to watch
- Whether operating margin holds above 35.48% after its third consecutive quarterly increase.
- Whether revenue growth sustains after the +7.24% sequential increase in Q2FY27.
- Progress on management's planned 13 million sq. ft. of launches over the next four quarters.