Brigade FY26 Results – Investor Brief

Key Highlights

• Total Income: ₹543 cr (+15% YoY)
• EBITDA: ₹192 cr (+15% YoY) – margin stable at 35.4%
• PAT: ₹65 cr (+174% YoY) – margin 11.9%
• ARR: ₹7,453 (↑11% YoY) | RevPAR: ₹5,670 (↑10% YoY)
• Occupancy: 76.1% (flat YoY)
• Debt Reduction: Borrowings fell from ₹617 cr (FY25) to ₹141 cr (FY26)
• Equity: Rose from ₹102 cr to ₹981 cr, driven by IPO proceeds and retained earnings.
• Cash Flow: Operating cash generation ₹200 cr; net cash position ₹20 cr at March 2026.

Financial Performance

• Revenue Mix: Room revenue grew 15% YoY to ₹332 cr; F&B modestly up to ₹176 cr; other income up 71% to ₹36 cr.
• Profitability: EBITDA margin improved 170 bps YoY to 39.7% in Q4; PAT margin more than doubled to 17.2% in Q4.
• Cost Discipline: Operating expenses as % of revenue rose slightly (66.9% FY26 vs 64.9% FY25) due to higher employee costs, but utilities remained stable.
• Leverage: Net‑debt turned negative (‑₹0.1 x equity) after aggressive debt repayment funded by IPO proceeds.

Balance Sheet & Liquidity

Item	Mar‑25 (₹ cr)	Mar‑26 (₹ cr)
Total Equity	102	981
Borrowings (short + long)	617	141
Net Debt/Equity	5.8 x	–0.1 x
Cash & Cash Equivalents	11	22
Total Assets	948	1,382

The sharp equity boost and debt pay‑down dramatically improve solvency and lower financing costs (finance cost fell to ₹9.8 cr in Q4 FY26).

Operational Metrics

• ARR growth: 11% FY26 YoY, driven by Bengaluru (+13% YoY) and other markets (+11% YoY).
• RevPAR: 10% FY26 YoY, with Bengaluru up 12% and other markets up 9%.
• Occupancy: Slight decline to 76.1% FY26, reflecting macro‑headwinds (airfare, gas supply) despite stable demand.

Strategic Initiatives & Expansion

• Pipeline: ~1,700 new keys by FY30, expanding total portfolio to ~3,300 keys.
• Capex: ₹3,600 cr planned; 60% debt‑financed, 40% internal accruals. IPO proceeds (~₹886 cr) largely used for debt repayment.
• Key Projects: Courtyard Marriott Chennai (45 keys, FY27), Fairfield Marriott Bengaluru Airport (224 keys, FY28), Grand Hyatt Chennai ECR (211 keys, FY29), InterContinental Hyderabad (300 keys, FY29), Ritz‑Carlton Vaikom (70 keys, FY29).
• Market Positioning: Focus on high‑growth IT corridors, airport locations, and leisure destinations to capture demand‑supply mismatch; luxury segment to rise from 14% to >38% of keys by FY31.

Risks & Considerations

• Occupancy Pressure: Flat/declining occupancy could limit top‑line upside if travel demand softens further.
• Cost Inflation: Gas supply constraints affecting F&B margins; higher employee costs as staff‑to‑room ratio rises.
• Execution Risk: Large capex program and multiple new openings increase project‑delivery and cost‑overrun risk.
• Funding Mix: 60% of expansion financed by debt; any deterioration in credit markets could raise financing costs.
• Regulatory: Delays in CRZ approvals (e.g., Grand Hyatt Chennai) and land acquisition timelines may affect schedule.

Outlook

Brigade’s FY26 results demonstrate a strong turnaround with profitability and balance‑sheet de‑risking. The aggressive expansion plan aligns with macro‑level hospitality tailwinds in South India, offering significant upside. However, occupancy stagnation and execution risk temper the enthusiasm. Overall, the outlook is moderately positive with a score of 8/10.

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Prepared on 29‑Apr‑2026 based on the latest corporate announcement.