Brigade profit drops 23.52% as costs rise despite flat revenue
Operating margin fell 3.46 percentage points YoY, while other income supplied 29.42% of pre-tax profit.
Filed 06 May 2026, 18:27 IST · after market close · Brigade Enterprises Ltd (BRIGADE)
Key takeaways
- Consolidated net profit fell 23.52% YoY to Rs 190.7 cr as expenses rose 4.64% while revenue slipped 0.19%.
- Operating margin narrowed 3.46 percentage points YoY to 25.02% as interest expense rose 4.77% and other income contributed 29.42% of pre-tax profit.
- The stock fell 4.43% in the first session after the results, a larger decline than its 2.42% median move after the past eight results.
Price around the results
Flat revenue did not prevent a 23.52% profit decline
Consolidated revenue was nearly unchanged YoY, but expenses grew 4.64%, reducing operating profit by 12.32% to Rs 364.72 cr. Net profit fell 23.52% to Rs 190.7 cr, with EPS down 42.51% to Rs 5.95. Sequentially, revenue declined 7.46% and operating profit fell 11.24%.
Higher costs and interest compressed the margin
Costs fell 6.13% QoQ but revenue fell faster at 7.46%, narrowing operating margin by 1.07 percentage points. Interest expense rose 24.29% QoQ and 4.77% YoY, adding pressure below the operating line. Other income accounted for 29.42% of pre-tax profit, while the tax rate rose 3.71 percentage points YoY to 22.13%, making the reported profit more dependent on non-operating income and less favourable tax comparisons.
Margin remains above peers but below last year
Operating margin declined from 28.48% in Q4FY25 to 25.02% in Q4FY26, although it was above the 14.81% median for the 93 Consumer Discretionary peers that had reported. The quarterly margin trend was 28.48%, 25.26%, 23.71%, 26.09% and 25.02% from Q4FY25 through Q4FY26, so the latest decline follows a Q3FY26 recovery rather than extending a continuous slide.
Management points to new launches and presales
Management said the company launched 4 mn sft across seven projects in Q4FY26 and reported real-estate presales of Rs 2,521 cr on 1.95 mn sft of volume. The company said it plans to launch about 12 mn sft over the next four quarters, including six residential projects in Bengaluru, three in Chennai, two in Hyderabad and three in Mysuru. Management also said mall footfalls rose 7% YoY, while foreign tourism was affected by ongoing geopolitical tensions.
The market reaction was unusually negative for Brigade
The stock fell 4.43% on the first session after the results and was down 13.38% after five sessions. That compares with six positive and two negative reactions across the past eight results and a median absolute move of 2.42%; the reaction record also flags a corporate-action overlap, which makes attribution less clean.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,458 cr | ₹1,575 cr | -7.46% | -0.19% |
| Other income | ₹72 cr | ₹29 cr | +151.19% | +0.19% |
| Expenses | ₹1,093 cr | ₹1,164 cr | -6.13% | +4.64% |
| Operating profit | ₹365 cr | ₹411 cr | -11.24% | -12.32% |
| Operating margin (%) | 25.02% | 26.09% | — | — |
| Interest | ₹112 cr | ₹90 cr | +24.29% | +4.77% |
| Depreciation | ₹80 cr | ₹80 cr | +0.10% | +6.02% |
| Profit before tax | ₹245 cr | ₹270 cr | -9.18% | -19.88% |
| Tax | ₹54 cr | ₹64 cr | -15.06% | -3.75% |
| Net profit | ₹191 cr | ₹206 cr | -7.35% | -23.52% |
| EPS (₹) | ₹5.95 | ₹7.63 | -22.02% | -42.51% |
Operating margin of 25.02% compares with a Consumer Discretionary sector median of 14.81% across 93 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -4.43% | -4.41% |
| Next session | -6.27% | — |
| 5 sessions | -13.38% | -10.74% |
| 15 sessions | -19.36% | — |
| 30 sessions | -10.10% | — |
Volume on the results session was 1.44× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Real estate presales reached INR 2,521 Cr with sales volume of 1.95 mn sft in Q4 FY26.
- Mall footfalls grew 7% year-on-year in Q4 FY26, supported by new store additions and churn.
Guidance & outlook
- The company plans to launch about 12 mn sft in the next four quarters.
Expansion
- The company launched 4 mn sft across seven projects in Q4 FY26.
- The upcoming projects include six residential projects in Bengaluru.
- The upcoming projects include three residential projects in Chennai.
- The upcoming projects include two residential projects in Hyderabad.
- The upcoming projects include three residential projects in Mysuru.
Problems & risks
- Foreign tourism was impacted by ongoing geopolitical tensions.
What to watch
- Whether operating margin recovers from 25.02% after the 1.07-percentage-point QoQ decline.
- Progress against the company's stated launch plan of about 12 mn sft over the next four quarters.
- Whether real-estate presales build on Rs 2,521 cr and 1.95 mn sft in Q4FY26.