Summary
Eldeco Housing and Industries Limited - Q3 FY26 Earnings Call Summary Wednesday, February 11, 2026 03:30 p.m. IST
Event Participants
Executives 3 Manish Jaiswal (Group COO), Pankaj Bajaj (Chairman and Managing Director), Rajiv Khurana (Group VP, Accounts and Taxation)
Analysts 8 Advitia Kumar, Anjali Singh, Gunit Singh, Isha Shah, Karan Gupta, Priyank Gupta, Runit Kapoor, Suhas (Individual Investor)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Booking Value (Q3) | ₹52 crores | -58.7% QoQ; lower due to no new launches and reliance on sustenance sales. |
| Booking Value (9M) | ₹361.2 crores | +29.1% YoY; already surpassed the total booking value of the entire FY25. |
| Area Booked (Q3) | 0.81 lakh sq. ft. | Sustenance sales from existing inventory; down from previous quarters due to launch delays. |
| Area Booked (9M) | 5.62 lakh sq. ft. | +30% YoY; reflects strong momentum and appetite in the Lucknow market. |
| Collections (Q3) | ₹86 crores | +21% YoY; steady progress in realization from ongoing projects. |
| Collections (9M) | ₹255 crores | +43% YoY; strong cash flows supported by construction progress. |
| Revenue (Q3) | ₹45 crores | Driven largely by delivery and revenue recognition in Eldeco Imperia Phase 2. |
| EBITDA | ₹19.8 crores | Margin at 43.7%; driven by high-margin project mix (Imperia Phase 2). |
| Profit After Tax | ₹13.7 crores | Margin at 30.2%; consistent with the high-margin delivery cycle. |
| Cash & Bank Balances | ₹178 crores | Includes funds restricted in RERA accounts (70% of customer receipts). |
| Gross Debt | ₹106 crores | Borrowings primarily from Piramal for Trinity project acquisition and working capital. |
| Average Realization | ₹6,500 per sq. ft. | Significant CAGR from ₹3,500 in FY20; management expects pricing to stabilize. |
Geographic & Segment Commentary
Lucknow (Primary Market): Management views Lucknow as an underpenetrated, multi-year upcycle market driven by organic demand and infrastructure. Demand remains resilient to interest rate fluctuations and IT sector trends, focusing on quality housing at reasonable price points.
Residential (Villas/Plots/Apartments): Remains the core focus (90%+ of portfolio) with a major tilt toward horizontal developments (plots/villas) which offer higher margins. The segment saw 254 home deliveries (2.6 lakh sq. ft.) in 9MFY26, a 23% YoY increase.
Commercial: Currently represents less than 10% of the portfolio with two small upcoming projects: City Courtyard (37k sq. ft.) and Imperia Avenue (25k sq. ft.). While offering higher margins, management views this segment as opportunistic rather than a primary growth driver.
Company-Specific & Strategic Commentary
Project Launch Pipeline: Successfully launched Solano Gardens in Q4 (post-quarter) with a GDV potential of ₹1,000+ crores. Management noted strong initial response with ₹350 crores in Expressions of Interest (EOI).
Land Aggregation: Added 2.05 acres in Q3, with 40 acres currently under aggregation (expected to reach 60 acres shortly). Management also emerged as the highest bidder for new residential land auctions via the Lucknow Development Authority.
Asset Recovery: Fully recovered the invested capital and interest (approx. ₹55 crores) from the Bareilly project, which was a related-party transaction with a minimum guarantee.
Financial Structuring: Utilized a loan from Piramal to bridge cash flow gaps caused by RERA-restricted funds (70% lock-in), specifically to fund the Trinity project acquisition.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Sales Bookings | Best year in company history (FY26) | Driven by the “blockbuster” launch of Solano Gardens in Q4. |
| EBITDA Margins | 30% - 35% (Sustainable) | Normalization expected as product mix shifts between plots (high margin) and group housing. |
| Revenue Recognition | ₹299 crores from Imperia Ph 2 | Expected to be recognized over the next 4-5 quarters as deliveries progress. |
| New Normal Sales | ₹500 crores+ annual run rate | Management aims to establish the current high sales velocity as the permanent baseline. |
Risks & Constraints
| Risk | Context |
|---|---|
| Regulatory/Approvals | Launch timelines for the 2.4 million sq. ft. pipeline are heavily dependent on timely RERA and local authority approvals. |
| Pricing Pressure | Rapid price appreciation (₹3.5k to ₹6.5k per sq. ft. in 5 years) may hit affordability limits; management warns against aggressive CAGR assumptions. |
| Cash Liquidity | While cash-rich (₹178cr), 70% is trapped in project-specific RERA accounts, necessitating external debt for new acquisitions. |
Q&A Highlights
Project Solano Performance
- Question: What is the GDV and launch roadmap for Solano Gardens? (Advitia Kumar)
- Answer: Total GDV is ~₹1,000 crores over 20 lakh sq. ft. Initial EOI bookings reached ₹350 crores. It involves horizontal development (plots/villas) followed by group housing (Pankaj Bajaj).
Debt & Related Party Transactions
- Question: What is the status of the related party loan and the Piramal borrowing? (Karan Gupta)
- Answer: The Bareilly transaction is fully unwound and money (principal + interest) is recovered. Piramal loan of ₹106cr is for working capital/Trinity acquisition because cash is restricted in RERA accounts (Pankaj Bajaj).
Margin Sustainability
- Question: Why did EBITDA margins expand so sharply this quarter? (Anjali Singh)
- Answer: Driven by Imperia Phase 2 deliveries. Historical margins were 45%+, but a 30-35% range is more sustainable on a blended basis for future projects (Pankaj Bajaj/Rajiv Khurana).
Future Growth & Strategy
- Question: Is there a plan to merge with the unlisted group entity ahead of its IPO? (Runit Kapoor)
- Answer: The unlisted company is a separate entity, not a parent. Any merger is a matter for the respective boards; no comment at this stage (Pankaj Bajaj).
Key Takeaway
Eldeco Housing delivered a transitionary Q3 FY26, characterized by high-margin revenue recognition from its Imperia Phase 2 project despite a sequential dip in new bookings due to launch delays. The company effectively cleared its balance sheet of related-party exposure by recovering ₹55 crores from the Bareilly project and maintains a negative net debt position when accounting for ₹178 crores in total cash. Strategically, the firm has shifted to a higher growth orbit, with 9M FY26 sales bookings of ₹361.2 crores already exceeding the full-year performance of FY25. Looking ahead, the Q4 launch of the ₹1,000-crore GDV Solano Gardens project, which saw ₹350 crores in EOIs, serves as the primary catalyst for FY26 to be a record-breaking year. While management targets a new annual sales baseline of ₹500 crores+, they remain cautious regarding future price hikes to maintain affordability in the Lucknow market.
Want more insights like this?
Subscribe to get deep dives delivered to your inbox.
More Earnings Summaries
Explore more Q3 FY26 earnings call analyses: