Brigade Group is expanding beyond Karnataka. But amid stiff regional competition, will its strategy deliver?From left: Nirupa Shankar and Pavitra ShankarAFTER FOUR DECADES OF OPERATIONS IN BENGALURU, REAL ESTATE MAJOR BRIGADE GROUP IS EXPANDING BEYOND KARNATAKA. BUT IT FACES STIFF REGIONAL COMPETITION AMID BROADER SECTORAL HEADWINDS. WILL ITS STRATEGY DELIVER?

WHEN PAVITRA SHANKAR took charge as Managing Director of Brigade Enterprises in 2022, the real estate company was confined mainly to Bengaluru, the information technology capital of India where her father M.R. Jaishankar had built it into a household name in its nearly 40 years of existence.

Pavitra Shankar, who has an MBA in real estate and finance from Columbia University, and her younger sister Nirupa Shankar, who studied management in hospitality at Cornell University, were tasked with powering Brigade Enterprises's next phase of growth. Nirupa was named joint MD the same year her sister became MD.The sisters ascended to the top management at a particularly sensitive time. Real estate was picking up the pieces after the Covid-19 pandemic, which had scarred the industry like many others. When the worst of Covid eventually blew over, property companies struggled with a shortage of construction workers who had deserted urban areas and towns and fled to the hinterland. Against that backdrop, by all accounts, Brigade hasn't done too badly under Pavitra and Nirupa Shankar. Take Brigade's performance over the last three years. From ₹2,999 crore in FY22, net sales grew 70% to ₹5,074 crore in FY25. Overall sales value of its real estate projects grew 160% to ₹7,800 crore from about ₹3,000 crore. The company's Ebitda (earnings before interest, tax, depreciation and amortisation) margin, an indicator of operating profitability, improved by 12 percentage points, rising from 13% to 25% in the period. And from a net loss of ₹65 crore in FY22, Brigade swung to a net profit of ₹686 crore last year. No wonder founder and Group patriarch Jaishankar is a proud father today, having retired at the age of 65 and placed his bets on a pair of untested young women to steer Brigade. "Under the leadership of the new management, the company has strategically navigated the challenges and opportunities within the Indian real estate market," Jaishankar, the Executive Chairman, tells Business Today. "This strategic realignment ensures that organisations like Brigade remain resilient and adaptive, poised to navigate the complexities of a rapidly changing world," he adds. EXPANSION What's perhaps most remarkable is that from being a Bengaluru-centric company, Brigade has ventured into markets elsewhere in the South-to Hyderabad, Chennai, Mysuru, Kochi, and Thiruvananthapuram-and UNIT ECONOMICS Higher revenue per unit is boosting Brigade's profitability "Under the leadership of the new management, the company has strategically navigated the challenges and opportunities within the Indian real estate market" M.R. JAISHANKAR EXECUTIVE CHAIRMAN, BRIGADE ENTERPRISES NOTE FIGURES IN CRORE SOURCE COMPANY, MOSL - AVG RATE/ SQ. FTWith new bets in senior living, residential, commercial, hospitality and retail segments, Bengaluru's share in Brigade's property portfolio has dropped to 70% from as much as 95% and is expected to fall more going ahead. This expansion, however, brings intensified competition from local and regional real estate entities, as well as cyclical challenges inherent to the Indian real estate sector. That doesn't worry Pavitra Shankar, who tells BT that meticulous planning and financial prudence had ensured Brigade never loses control in the process of accelerating growth. "The focus is on growing in a stable, sustainable manner-not chasing growth at the cost of adding more risk," she says. "This business is inherently risky. So why add more layers of risk-like inventory or financial exposure unnecessarily?" That philosophy has kept Brigade grounded and discouraged reckless expansion outside of Bengaluru. Pavitra Shankar says Bengaluru's share of Brigade's property portfolio may drop to 60% next year with major launches planned in growth markets like Hyderabad and Chennai. One of the reasons that led her to focus beyond Bengaluru was the hyper competition in the city's real estate market. "Everyone wants a piece of it. It already has many large, established players in residential, office, and hospitality." Analysts at Geojit Financial Services say Brigade has performed strongly over the past year. "Looking ahead, Brigade is well-positioned to sustain sales momentum with a robust pipeline and solid inventory. Further, the company's strategic land acquisitions in prime areas enhance its ability to tap into long-term demand, while upcoming annuity projectsIMPROVING NUMBERS

PAT is expected to rise 3x by FY27 end

REALTY BRIGADE |

approach is always to start small-test the waters before going big. Like my dad always says, there's no rush. Do it right the first time. Mistakes in real estate are costly."

The company is still seeking a more balanced mix, "Ideally 50% Bengaluru, 25% Chennai, and 25% Hyderabad within this decade," says Nirupa Shankar.

COMMERCIAL AND HOTELS

Brigade's success in recent years has hinged on its ability to expand all its business verticals. The three important segments-residential, commercial (including retail) and hospitality (hotels and resorts) -have grown steadily. It recently re-entered the senior living space.

Since early 2023, the hospitality business-led by Nirupa Shankar-has turned into a business earning 150 crore quarterly from 110 crore earlier. Quarterly rental income from the commercial segment has surged by 65% to 350 crore by March 2025.

The younger Shankar is bullish about the emerging and fast-growing segments.

"One major trend in office spaces is the rise of managed offices and co-working. Before Covid, they made up just 5% of the market, now it's 25-30%. We had a small co-working brand, BuzzWorks, which began around 2019. It started modestly, with 2,000-3,000 seats. Now we're at 8,000 billable seats and aiming for 80,000 to 100,000 over the next five years," says Nirupa Shankar.

Brigade runs nine hotels with about 1,600 keys, and Nirupa Shankar is looking to add at least 1,000 more. She has already identified sites for 1,000 keys in Bengaluru, Chennai and Kochi.

THE WAY TO GO

In Brigade's core segment-residential space-prices have surged rapidly and so have per-unit sales. From average per square-foot sales of ₹6,822 in June 2023, the figure had nearly doubled by end-March 2025 to 12,083.

The jump carries with it the risk of warding off potential small-ticket buyers. That is likely a temporary hurdle, says Pavitra Shankar.

"Don't worry about short-term fluctuations. They'll always be there. Just be cautious with how you run your business-don't overstretch on loans or take on more than you can handle. If you're conservative, you'll weather the storm. And when the next up-cycle comes, you'll be ready for it," she adds. BT

Business Today | 20 July 2025