Motilal Oswal sees strong growth visibility for Brigade Ent; retains 'Buy'

Motilal Oswal Financial Services has retained its ‘Buy’ rating on Brigade Enterprises with a target price of ₹1,338 per share, implying a 52 per cent upside from current levels. The revised target is based on a gross asset value (GAV) of ₹33,900 crore and net asset value (NAV) of ₹32,700 crore, after netting off an estimated FY26 net debt of ₹1,200 crore.

Launch pipeline and presales underpin core residential growth

Brigade Enterprises has already demonstrated strong execution in its core South markets. Presales grew at a 30 per cent compound annual growth rate (CAGR) over FY21–25, and Motilal Oswal expects them to rise a further 19 per cent CAGR during FY25–28 to ₹13,300 crore by FY28.

 

 

In FY25, the company clocked bookings of ₹7,850 crore, with 54 per cent of sales coming from new launches. In H1FY26, it launched 4.3 msf (3.5 msf Brigade share) across eight projects in Bengaluru, Chennai and Gujarat, with new launches contributing 40 per cent of sales. The upcoming residential pipeline of around 11 msf spans Bengaluru, Chennai, Hyderabad and Mysuru, with about 7 msf (gross development value (GDV) ₹8000–8,300 crore) slated for launch in H2FY26.

 

Motilal Oswal notes that Bengaluru will remain the key driver, contributing roughly 50–80 per cent of presales, but expects geographic diversification to Chennai, Hyderabad and Mysuru to account for 30–40 per cent of presales in the near term.  ALSO READ | Axis Securities keeps 'Buy' on Arvind Smartspaces post management overhaul

Poised for strategic market expansion

Motilal Oswal believes Brigade Enterprises is now entering a new phase of geographic and asset-class expansion, led by fresh residential, commercial and hospitality bets beyond its Bengaluru core.

 

The company is planning a premium residential project on Bogadi Road in Mysuru, near the proposed Outer Ring Road, spanning about 0.45 msf with an estimated GDV of around ₹300 crore. Positioned with modern amenities and senior-living options, this project is aimed at the luxury housing segment and is currently in the planning stage, strengthening Brigade’s foothold in Mysuru’s emerging upscale market.

 

Post-September 2025, Brigade has also filed an Expression of Interest to invest ₹1,500 crore in Kerala, targeting residential, commercial, IT office and hospitality assets as part of its medium-term expansion strategy. The focus is on leveraging Kerala’s urban growth hubs and upcoming infrastructure corridors.  ALSO READ | Ajanta Pharma to generate healthy margins from Biocon deal: PL Capital

Rentals and hospitality to drive the next leg of growth

Beyond residential, Motilal Oswal sees Brigade’s annuity and hospitality businesses as important value drivers in the updated model.

 

In hospitality, following the listing of Brigade Hotel Ventures Ltd (BHVL), Brigade plans to expand from 1,604 keys currently to around 3,300 keys by FY30. Motilal Oswal expects average room rate (ARR) to reach ₹7,002 by FY28 and ₹10,000 by FY35, with hotel revenue growing at a 6 per cent CAGR over FY25–28 to ₹560 crore and further to ₹1,500 crore by FY35.

 

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