Knowledge Realty Trust reported a 15% year-on-year increase in Net Operating Income (NOI) to ₹1,112 crore for the quarter ended June 30, 2026, driven by improved occupancy levels and strong leasing momentum. The Trust declared a total distribution of ₹752 crore (₹1.70 per unit), marking a 5% sequential rise and signaling stable cash generation despite elevated debt servicing costs. This performance underscores the resilience of India’s office market, anchored by Global Capability Center (GCC) expansion and Grade A demand.

The Board of Directors approved the unaudited consolidated financial results on July 28, 2026. Revenue from operations stood at ₹1,243 crore, up from ₹1,197 crore in the preceding quarter. Committed occupancy reached 93%, an improvement of 100 basis points quarter-on-quarter, across its portfolio of 29 assets spanning six cities with a total leasable area of 46 million square feet. The results were prepared in accordance with SEBI (Real Estate Investment Trusts) Regulations, 2014, and Ind AS 34.

Financial Performance

The Trust recorded Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) of ₹1,072 crore for the quarter, compared to ₹976 crore in the quarter ended March 31, 2026. Profit before tax was ₹423 crore, resulting in a net profit of ₹251 crore. Earnings per unit (basic and diluted) were ₹0.57, a significant improvement from ₹0.24 in the previous quarter. Finance costs remained elevated at ₹239 crore, while depreciation and amortization expenses totaled ₹410 crore.

Distribution Details

The total distribution of ₹752 crore is structured to optimize tax efficiency, with 84% being tax-exempt or tax-deferred for unitholders. It comprises ₹409 crore as dividend, ₹123 crore as interest, ₹219 crore as repayment of debt, and ₹0.4 crore from other income. Unitholders must hold units on the record date of July 31, 2026, to be eligible, with payments scheduled by August 7, 2026. Statutory auditors S R BC&CO LLP issued a limited review report on the financial results.

Leasing and Occupancy Dynamics

Management highlighted that gross leasing for the quarter totaled 1.4 million square feet, comprising 0.7 million square feet of new leases and 0.7 million square feet of renewals. Notably, 58% of new leasing came from existing tenant expansions, including sectors such as semiconductors, lens manufacturing, travel tech, and banking. CEO Shirish Godbole noted that 93% of leases signed in the quarter included annual escalations, creating a compounding rental growth profile.

While committed occupancy stands at 93%, economic occupancy was 87% at quarter-end, rising to 88% currently. Senior Vice President, Investor Relations, Senthil Kumar explained that the 5% gap is primarily due to staggered take-ups by two large clients: a Fortune 500 company in Hyderabad and an education client in Bangalore. He projected this gap to narrow to 3% by Q4FY27 as rents commence for these spaces.

What the Numbers Show

The 15% YoY growth in NOI highlights operational leverage gained from portfolio acquisitions completed in September 2025. With comparable prior-year figures unavailable due to these acquisitions, sequential growth in revenue and EBITDA indicates strong leasing momentum. The near-full payout ratio of 99.95% underscores the Trust’s commitment to returning cash to investors, while the significant portion allocated to debt repayment suggests a strategic focus on deleveraging. CFO Neeraj Toshniwal revealed that the Trust raised ₹500 crore through commercial paper and ₹600 crore through non-convertible debentures at a blended rate of 7.2%, increasing fixed-rate debt exposure from 0% to 30% since listing.

The consolidated results include subsidiaries such as One International Center Private Limited, Cessna Garden Developers Private Limited, and Sattva Knowledge Centre Private Limited. The Trust operates in a single segment: leasing of commercial office buildings and parks. Figures for the year ended March 31, 2026, do not represent full-year data due to the mid-year acquisition of Special Purpose Vehicles.

Knowledge Realty Trust held an earnings conference call on July 28, 2026, at 4:00 PM (IST) to discuss its financial results for the quarter ended June 30, 2026. The Trust’s management engaged with investors to provide insights into the latest performance metrics and operational updates. This communication follows a prior intimation dated July 20, 2026, regarding the schedule of the event. Investors seeking detailed commentary from management can access the audio recording of the conference call via the Trust’s official website.

Conference Call Details

The earnings call was conducted by Knowledge Realty Trust, acting through its Manager, Knowledge Realty Office Management Services Private Limited. The session aimed to clarify the financial outcomes for Q4FY26 and address investor queries. The Trust has made the audio recording publicly available to ensure transparency and accessibility for all stakeholders.

Regulatory Filings

The Trust submitted the intimation to both the National Stock Exchange of India Limited and BSE Limited. The filing includes details for Units (Scrip Code: 544481), Non-Convertible Debentures (Scrip Codes: 977158, 977536, and 977888), and Commercial Papers (Scrip Code: 731643). The document was signed by Ashutosh Vaidya, Company Secretary & Compliance Officer, with Membership No. A14242, on July 28, 2026.

What the Numbers Show

While specific financial figures such as net profit or revenue were not disclosed in this particular filing, the release of the earnings call transcript indicates the Trust’s commitment to regular investor communication. The availability of the audio recording allows analysts and investors to review management’s qualitative assessment of the quarter’s performance directly.