PRIMAEGIS RESEARCH · COMPANY DOSSIER (FALLBACK PATH)
₹580
+2.67% · Mkt Cap ₹18,924 Cr
52W: ₹451 – ₹802

Brigade Enterprises

NSE: BRIGADE · BSE 532929 · Realty — Residential / Offices / Retail / Hospitality · Report date: 2026-08-01 · Price as of 31-Jul-2026 (screener.in)
FY26 sales +24% (standalone) OPM 21% → 12% Other income ~70% of PBT CFO −₹713 Cr · borrowings ×1.9 P/E 67 on ROE 4.5% FY27 pre-sales aim ₹9,000 Cr (IS)
Market Cap
₹18,924 Cr
CMP (31-Jul)
₹580
ROCE
5.8%
ROE
4.5%
P/E (ttm)
67.4
FY26 Sales (stdl.)
₹2,624 Cr
FY26 PAT (stdl.)
₹277 Cr
FY26 CFO
−₹713 Cr
D/E
0.48
Promoter
41.1%
Read this first — the lens problem

Everything screener.in serves for this name is the standalone P&L: FY26 revenue ₹2,624 Cr, PAT ₹277 Cr. The economics of Brigade, however, run through consolidated pre-sales — ₹7,424 Cr in FY26 per the guidance corpus guidance layer (third-party), with FY26 consolidated revenue of ₹5,697 Cr referenced in the same layer's EPS bridge. Much of the delivery sits in subsidiaries, JVs and the leasing/hospitality entities the standalone statement barely touches. Every ratio below (ROE 4.5%, P/E 67, OPM 12%) is computed on the narrow lens. That mismatch is not a footnote to this dossier — it is the analysis. The standalone numbers cannot prove the bull case, and the pre-sales number cannot excuse the standalone cash burn; both statements are held in view throughout.

1 · Business — what it sells, to whom
screener.in "about" + key points

Established 1986, Bengaluru-based South-India real estate developer expanding into other parts of India. Has completed 250+ buildings aggregating 70+ mn sq ft (company milestone counts run to 300+ buildings / 100+ mn sq ft serving 40,000+ customers) across residential, offices, retail and hospitality in Bengaluru, Mysuru, Chennai, Ahmedabad, Hyderabad and Kochi. Among the top-10 listed Indian developers by market cap.

Position

  • Geographic moat — regional: a Bengaluru-anchored land bank and brand in the strongest residential market of this cycle; not a national franchise like DLF/Lodha.
  • Mixed model: for-sale residential (cyclical, pre-sales driven) plus annuity offices/retail and hotels (capital-heavy, slower).

What the model implies

  • Revenue recognition lags pre-sales by years (possession-linked) — the P&L is a rear-view mirror of launches from 2–4 years ago.
  • Growth requires land + launch spend today against recognition later — exactly the FY26 cash-flow shape seen in §4.
2 · P&L quality — the SETL test
screener.in annual P&L (standalone lens) · SETL: is the profit operating or treasury?
FYSales ₹CrYoYOP ₹CrOPMOther Inc ₹CrPBT ₹CrPAT ₹CrEPS ₹
FY222,161+41.8%52024%14043330910.06
FY232,209+2.2%46921%24750238512.52
FY242,025−8.3%45322%19942931810.33
FY252,117+4.5%43521%267492455*13.97
FY262,624+24.0%32112%2593682778.51
*FY25 PAT flattered by an 8% effective tax year (incl. a −23% tax quarter in Mar-25). Screener flags 5-yr sales growth of just 11.5%.

SETL test — fails loudly

FY26 other income of ₹259 Cr against PBT of ₹368 Cr — ~70% of pre-tax profit is not operating profit. This is not a one-off: other income has run ₹199–267 Cr every year since FY23 while operating profit fell from ₹520 Cr to ₹321 Cr. Headline FY26 sales grew +24%, but OPM halved from 21% to 12% — so the incremental revenue came in at near-zero incremental operating margin (some of this is the standalone entity recognising low-margin projects; the consolidated picture is not visible here). 3-yr PAT CAGR is −10.4% (₹385 Cr FY23 → ₹277 Cr FY26). On the lens available, earnings are shrinking and increasingly treasury-flavoured.
3 · Balance sheet — D/E, working capital, capex bets
screener.in balance sheet + ratios · FY26
ItemFY26 ₹CrFY25 ₹CrFY24 ₹Cr
Equity capital + reserves6,3446,1154,220
Borrowings3,0641,5881,746
Other liabilities8,0626,1884,582
Fixed assets3,4602,7981,340
CWIP60670
Investments2,5112,4212,544
Other assets11,4928,6715,994
Total assets17,47013,89110,548
4 · Cash flow — the SPECTRUM test
screener.in cash flow · SPECTRUM: is growth funded by the business or by debt?
FYCFO ₹CrPAT ₹CrCFO/OPCFI ₹CrCFF ₹CrFCF ₹Cr
FY22534309118%−583123519
FY2328338581%72−360244
FY24−2531820%−120151−83
FY25332455119%−4131,096−47
FY26−713277−156%−545943−1,193

SPECTRUM test — growth is debt-funded

Five-year CFO totals ₹411 Cr against ₹1,744 Cr of reported PAT (~24% conversion), and the last three years read −25 / +332 / −713. FY26 is the clearest possible signature of a debt-funded land-and-launch cycle bet: CFO −₹713 Cr, investing −₹545 Cr, plugged by +₹943 Cr of financing while borrowings went 1,588 → 3,064 Cr. FCF −₹1,193 Cr. For a developer, spending ahead of a launch cycle is a legitimate strategy — but it means today's P&L profits are accrual, the cash is going out the door, and the bet only settles if FY27–28 pre-sales convert to collections. The FY25 equity raise plus FY26 debt doubling is two consecutive years of external funding.
5 · Returns — ROCE / ROE level and direction
screener.in ratios
MetricValueContext
ROE (FY26)4.51%3-yr average 6.8% (screener) — below fixed-deposit territory
ROCE (FY26)5.82%lowest of the eight major listed developers (peer table §7); Lodha 16.4%, Oberoi 17.3%
DirectionFallingEPS ₹12.52 (FY23) → ₹8.51 (FY26); capital base doubled (assets ₹9,142 → ₹17,470 Cr) while operating profit fell
The denominator grew through the QIP and debt while the standalone numerator shrank — returns on this lens are low and deteriorating. If consolidated recognition catches up with pre-sales, the ratios would re-rate mechanically; that is the belief being priced, not the number being reported.
6 · Shareholding — the E2E test
screener.in quarterly pattern · E2E: is the promoter selling into the price?
QuarterPromoter %FII %DII %Public %Holders
Sep-2343.7713.4025.4117.4463,535
Mar-2443.7314.8623.8417.5876,977
Sep-2441.3718.4724.0216.1486,803
Mar-2541.1420.2122.8715.771,28,008
Sep-2541.1318.6723.2816.951,74,585
Mar-2641.1116.7524.7417.401,59,254
Jun-2641.1015.6325.4617.801,62,943
7 · Valuation — what the price assumes
screener.in ratios + peer table
PeerCMP ₹P/EMkt Cap ₹CrROCE %Qtr sales var %
DLF65939.01,63,1976.3−42.0
Lodha Developers1,24430.11,24,28716.4+43.1
Prestige Estates1,61661.169,61510.4+15.9
Phoenix Mills1,89352.267,71612.8+12.8
Oberoi Realty1,82825.166,45617.3+31.7
Godrej Properties2,10639.463,4297.6+63.0
Anant Raj62540.522,47412.1+19.6
Brigade Enterprises58067.418,9245.8+31.8
Industry median (88 cos)27.07.7+22.0
Guidance & scenario
is_guidance.py / is_scenario.py · context date 2026-07-31 · not company-verified; quoted as third-party research input

What management guided

"Aiming for INR9,000 crores in FY27 pre-sales (20% growth over FY26's INR7,424 crores)" — guidance grade upgraded, management record mixed. The layer's EPS bridge (accounting identity, medium confidence): treating the ₹9,000 Cr as an absolute revenue target against FY26's ₹5,697 Cr consolidated revenue over one year implies PAT +58% · dilution +2% · EPS +56%. Note the category slip inside that bridge: pre-sales are bookings, not revenue — the identity is only as good as the conversion assumption, so treat the +56% as an upper-bound arithmetic echo of the target, not a forecast.

Scenario block — targets withheld (degenerate for this name)

The scenario model scored BRIGADE at medium confidence with its growth anchors disagreeing by ~60 percentage points (third-party corpus +23.0% · street consensus +3.9% across 13 estimates · own history +63.7%), on a collapsed exit multiple. Its bear/base/bull price targets are not printed here: the anchors disagree too widely to be usable for a realty developer whose screener P&L is standalone while pre-sales are the economic driver — the model's EPS base (standalone FY26 ₹26.36 as fed, vs ₹8.51 on the screener lens above — even the base year is contested between lenses) and its exit multiple both collapse under the standalone/consolidated mismatch. The same defect invalidates the model's "priced-in" line. Quality score from the layer: 3.0/10 (ROE and ROCE below bar) — that much, at least, agrees with §5.
8 · Quarterly cadence — the DEEPINDS test
screener.in · last 8 quarters (standalone) · DEEPINDS: recurring anomaly quarters?
QuarterSales ₹CrYoYOP ₹CrOPMOther Inc ₹CrTax %PAT ₹Cr
Jun-24534+69.0%11121%442566
Sep-24422−3.7%7217%942091
Dec-24543+31.2%10720%642591
Mar-25619−27.8%14523%65−23208
Jun-25436−18.4%4711%601955
Sep-25661+56.6%314.7%822550
Dec-25712+31.1%10615%522483
Mar-26816+31.8%13717%642889
⚡ 9 · CONSOLIDATED VIEW THESIS
Research Reference Only — Not an Investment Recommendation · Primaegis Research Pipeline

💡 THE HONEST PARAGRAPH

To own Brigade at ₹580 you have to believe three things at once: that FY26's ₹7,424 Cr of consolidated pre-sales (third-party guidance corpus) and the guided ₹9,000 Cr for FY27 will convert into consolidated revenue and collections over FY27–29; that the −₹713 Cr CFO and near-doubled borrowings are a land-and-launch cycle investment that those collections will repay; and that the standalone statements screener serves — OPM halved to 12%, other income at ~70% of PBT, 3-yr PAT CAGR −10.4%, ROE 4.5% — are a recognition-lag artefact rather than the truth of the business. None of those beliefs is disprovable today, which is precisely the problem: at 67× the market has already paid for all three, priced above every peer that has proven consolidated delivery. The guidance is "upgraded" but the management record is graded "mixed", the scenario model's anchors disagree by ~60 points, and FIIs have sold for six consecutive quarters into a register that added 100,000 retail holders. The thesis breaks if FY27 collections disappoint (debt then compounds against a 12%-OPM P&L), if the Bengaluru residential cycle cools, or if two more quarters pass without consolidated recognition visibly closing the gap.

📊 PROS (feeds weekly strip)

Pre-sales engine running hot
FY26 pre-sales ₹7,424 Cr; FY27 aim ₹9,000 Cr (+20%), guidance upgraded — third-party guidance corpus. Source: §Guidance
Recognition inflecting
standalone sales +24% FY26; Dec/Mar quarters +31% YoY with OPM recovering to 15–17%. Source: §2, §8
Leverage still moderate
D/E 0.48 post-doubling; FY25 QIP gave headroom. Promoter stake stable ex-dilution; DIIs absorbing FII exits. Source: §3, §6
Top-10 developer in the strongest micro-market
Bengaluru anchor + annuity office/retail/hotel assets now commissioned. Source: §1, §3

⚠️ CONS (feeds weekly strip)

SETL fail
other income ₹259 Cr vs PBT ₹368 Cr (~70%); OPM 21% → 12%. Source: §2
SPECTRUM fail
CFO −₹713 Cr, FCF −₹1,193 Cr, borrowings ₹1,588 → ₹3,064 Cr — growth is externally funded two years running. Source: §4
Price/quality inversion
P/E 67.4 (richest of 8 majors, median 27×) on ROCE 5.8% (lowest of 8) and ROE 4.5%. Source: §5, §7
Smart money leaving
FII 20.2% → 15.6% over six quarters; retail holders +2.6×. Source: §6
Model can't underwrite it
scenario anchors ~60 pts apart; targets unusable; management record "mixed". Source: §Guidance
Fundamentals (standalone lens) vs Economic driver (pre-sales)
DIVERGENT
The reported statements and the bull case are looking at different companies. Until consolidated recognition closes the gap, every headline ratio on this name is measuring the wrong thing — in both directions.

⚠️ PRIMARY RISKS TO THESIS

Collection shortfall
if pre-sales don't convert, FY26's debt doubling compounds against a 12%-OPM standalone P&L
Cycle turn
a Bengaluru residential cool-off hits launches, pricing and the land bank marked into "other assets" simultaneously
De-rating gravity
67× → sector-median 27× requires no bad news at all — only time without proof

🎯 RESEARCH WATCHLIST VERDICT

WATCH — DO NOT CHASE
🔑 Catalyst: Q1/Q2 FY27 consolidated collections + CFO print; pre-sales run-rate vs the ₹9,000 Cr aim
⏱ Horizon: re-assess at H1 FY27 results
Research tracking priority only — not a buy/sell/hold recommendation per SEBI (RA) Regulations 2014
Primaegis Research Opinion · Internal Analyst View
NEUTRAL (HOLD)
📊 Conviction: Low — the two data lenses contradict each other and neither can currently be verified against the other  ·  ⏱ Horizon: event-driven (H1 FY27)
🔄 Would upgrade if: consolidated CFO turns positive while pre-sales hold the ₹9,000 Cr path. Would downgrade if: borrowings rise again in H1 FY27 or another sub-5% OPM quarter prints.
⚠️ This is an internal, unregulated analytical opinion of Primaegis Research for internal pipeline use only. It does NOT constitute a SEBI-regulated investment recommendation, research report, or solicitation to buy, sell, or hold any security. Consult a SEBI-registered investment advisor before making any financial decision.
⚠️ IMPORTANT DISCLAIMER
This document is a research and educational output only, generated by the Primaegis Research company-dossier pipeline (fallback path). Neither the author nor any contributor to this report is a SEBI registered investment advisor or research analyst. Nothing in this report constitutes investment advice, a research recommendation, or a solicitation to buy, sell, or hold any security, fund, or financial instrument under SEBI (Research Analyst) Regulations, 2014 or any other applicable law. All financial data is sourced from publicly available disclosures (screener.in — standalone statements) and the third-party guidance/scenario layer as labelled; figures that could not be sourced are shown as a dash, never estimated. Guidance and pre-sales figures are third-party reported and not independently verified against company filings in this run. Always conduct your own due diligence and consult a SEBI registered investment advisor before making any financial decision.
Generated: 2026-08-01 | Primaegis Research · Not for distribution.