ICICI Securities has retained its Buy rating on Brigade Enterprises with a ₹885 target. Following a soft start to FY27 with ₹1,060 crore in bookings, the company plans to launch 9.4 million sq ft of residential space. Investors will monitor if these new projects can overcome recent approval delays to hit the ambitious annual sales goal.
ICICI Securities has reaffirmed its optimistic view on Brigade Enterprises, keeping a Buy rating and a bonus-adjusted price target of ₹885 per share. This stance comes as the company navigates a period of slower growth, with FY26 sales bookings falling 5% year-on-year to ₹7,400 crore. The brokerage noted that these results were largely affected by delays in securing project approvals, a common hurdle in the real estate sector.
The first quarter of FY27 saw a similar trend, with sales bookings reaching ₹1,060 crore, down 5% compared to the same period last year. During this quarter, the company did not have any significant new residential launches to drive numbers. In real estate, sales bookings represent the total value of units sold during a period, which often serves as a leading indicator of future revenue, though it does not reflect cash collected immediately.
To bridge the gap and achieve its full-year sales booking target of ₹9,000 crore, the company has planned a substantial expansion. It intends to launch approximately 9.4 million square feet of residential space in the coming months across key markets including Bengaluru, Chennai, and Hyderabad. A major part of this strategy is the Brigade Barcelona project in Hyderabad's Neopolis, which has a gross development value of nearly ₹2,700 crore.
Beyond these upcoming launches, the company is also looking to monetize its existing unsold inventory, which is valued at roughly ₹9,000 crore. Whether this inventory moves quickly will depend on broader demand in the housing market, which remains a key variable for investors to track.
While the company holds an optimistic outlook, there are notable risks. A primary concern is the potential for slower demand in the residential segment, which could hinder the conversion of the project pipeline into actual sales. Additionally, the brokerage pointed to weakness in office leasing as another factor that could influence the company’s overall performance. Success in the upcoming quarters will likely depend on the company’s ability to secure approvals on time and execute these launches without cost overruns. Investors will watch how effectively the management can ramp up these projects to meet the stated sales guidance.