Brigade Enterprises Sees Revenue Doubling By FY26, Says CFO Atul Goyal
Bulk of the company's inventory is in premium and mid-income housing, and both are doing well, Goyal says.
Brigade Enterprises Ltd.'s expects to double its revenue in the next four fiscal as the developer expects the demand for real estate to grow.
"Our revenue should multiply by two to three times. We are seeing a 20% increase in real estate on a year-on-year basis, which comes around 40–50% of the presale, that we are doing after three years," Chief Financial Officer Atul Goyal told BQ Prime's Niraj Shah. He expects the revenue to rise from Rs 3,600 crore to Rs 7,000 crore by the financial year 2026.
"Bulk of our inventory is in premium and mid-income housing, and both are doing well," Goyal said.
According to the most recent Anarock report, 67–68% of all sales in India are in mid-income or premium housing, and "we are primarily in mid-income and premium, but we also have some plot launches coming this quarter," said Goyal.
"We have plots, mid-income and premium housing that are going to be launched in the coming four quarters," Goyal said.
Real estate will continue to be stable, said the CFO of the company that earns 70% of its revenue from real estate.
"Hospitality will do very well in the next four years," he said. "The results from the hospitality business are only from domestic travel, international travel has yet to start."
"The occupancy has returned," Goyal said. "People have become more efficient in operating hospitality businesses... because this was one of the sectors that experienced the greatest difficulty during the pandemic."
Brigade Enterprises is very positive about hospitality, and whatever construction was stopped during Covid has been started again, Goyal said.
On the company's net debt ratio, Goyal said, "For the last two years, we have not taken a single loan in any residential project launch. We have been trying to use the project cycle cash flow to do the construction, and we have been successful in that."
"If sales continue as they are, we may not need to take any loans for residential projects. We are very confident that our residential loans will be low," Goyal said.
