Eldeco Housing And Industries Limited — Q2 FY26 earnings call

Call held 13 Nov 2025

Management summary

Eldeco Housing reported a quarter of continued operational momentum in Q2 FY26, marked by strong collections and deliveries, and robust H1 FY26 booking growth. The company is poised for future growth with the upcoming launch of the large-scale Eldeco Solano Gardens project. While consolidated total income and realization per square foot saw a slight decline due to project mix, management anticipates improved margins and revenue recognition from higher-margin projects like Imperia 2 in the near term, alongside a commitment to better inventory disclosure.

Highlights

  • Strong H1 FY26 booking value of ₹309 crores, marking a 91% YoY growth, supported by successful Q1 launches.

  • Robust Q2 FY26 collections of ₹91.3 crores, a 76% YoY increase, driven by prior bookings and timely construction progress.

  • Significant increase in Q2 FY26 deliveries, with 90 homes totaling 1.19 lakh square feet, up 95% YoY.

  • Upcoming launch of Eldeco Solano Gardens, a 50-acre township with an estimated gross development value of ₹1,000 crores, expected to be a key growth driver.

  • Management targets a sustainable annual booking value of ₹500+ crores, up from the current normal of ₹300-300+ crores.

Concerns

  • Q2 FY26 consolidated total income decreased to ₹35.3 crores from ₹36.4 crores in Q2 FY25, a 3.02% YoY decline.

  • Realization per square foot dropped in Q2 FY26 to ₹6,000 from ₹6,500 in the previous quarter, a 7.69% QoQ decline, due to a mix of lower-realization projects.

  • The company is carrying approximately ₹600 crores of ready-to-use inventory on its balance sheet.

Key financials

  1. Consolidated Total Income ₹35.3 Cr -3%YoY
  2. Consolidated EBITDA ₹5.5 Cr
  3. EBITDA Margin 15.7%
  4. Profit After Tax ₹2.6 Cr
  5. Realization per Sq Ft ₹6,000 -7.7%QoQ

What they filed

Q1 FY27: revenue up 69.0%, net profit up 400.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue33 35 37 29 33 +0%43 +23%60 +62%49 +69%
EBITDA5 6 6 3 3 −40%18 +200%7 +17%17 +467%
Net profit5 6 3 3 3 −40%14 +133%5 +67%15 +400%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹309 Cr

as of 2025-09-30 quantified

91% YoY

Inflow this quarter

₹88.1 Cr

Execution

90 homes (1.19 lakh sq ft) delivered in Q2 FY26; 191 homes (2.03 lakh sq ft) delivered in H1 FY26.

Pipeline

other

Upcoming township project Eldeco Solano Gardens

The company is carrying approximately ₹600 crores of ready-to-use inventory on its balance sheet, with management committing to provide more granular disclosure in future presentations.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹37.3 Cr
    • Construction spend ₹37.3 Cr
    Construction spend for the quarter was Rs. 37.3 crores, up 11% from last year and H1 FY26 construction spend was Rs. 76.6 crores, indicating consistency in execution across projects.
  • M&A Land Aggregation Acquisition · Ongoing · Consideration ₹[object Object] (undisclosed)

    Adding more acreage for new projects before moving to the next stage of approvals.

    Aggregated land for new projects has increased to 36.8 acres.

    In addition to Solano Gardens, our aggregated land for new projects has now increased to 36.8 acres and we are actively working on adding more acreage before moving to the next stage of approvals in these lands.

Guidance & targets

Project Launch

  • Eldeco Solano Gardens Gross Development Value Project Launch · coming years · High confidence ₹1,000 crores
    The project is spread over 50 acres with an estimated gross development value of Rs. 1,000 crores and is expected to be a key growth driver for the coming years.

    — Pankaj Bajaj

Project Realization

  • Eldeco Solano Gardens Average Realization Project Realization · over the life of the project · Medium confidence ₹5,000-6,000 per square foot
    As far as the average realization goes, I think over the life of the project, it will match the realization that we are currently having in the other projects. We declare that every quarter. So that's about Rs. 5,000-6,000 a square foot.

    — Pankaj Bajaj

Margin

  • EBITDA Margin (Imperia 2 impact) Margin · next quarter · Medium confidence 35-40%
    But next quarter, it could be as high as 35% or 40% because of Imperia 2.

    — Pankaj Bajaj

  • Gross Profit Margin (Trinity and Solano) Margin · over project life · High confidence 25-30%
    And what is the margin we are targeting for Trinity and Solano, like at a GP level? Pankaj Bajaj: 25% to 30%.

    — Pankaj Bajaj

  • EBITDA Margin (next 12-18 months, Imperia 2) Margin · next 12 to 18 months · Medium confidence ~30%
    And there, the EBITDA margins are, Rajiv ji, about 35%? So, about 30% is what you should be looking at over the next 12 to 18 months. Because Imperia 2 is the main project which is going to get recognized.

    — Pankaj Bajaj

Booking Value

  • Annual Booking Value Booking Value · FY26 and going forward · High confidence ₹500+ crores

    Previously ₹300-300+ crores → ₹500+ crores

    This year, because Solano Gardens launch comes, then we should be crossing Rs. 500 crores, which is a statement I already made earlier. And I think that should be done. Going forward, Rs. 500 crores going to be the new normal.

    — Pankaj Bajaj

What to watch in Q3 FY26

Imperia 2 Revenue Recognition Commencement

Q3 FY26 or Q4 FY26
Current Not yet recognized in Q2 FY26
Target Revenue recognition commences

Why it matters

Imperia 2 is expected to be a major driver for revenue and significantly higher EBITDA margins (35-40%), crucial for overall profitability improvement.

So, we should start recognizing Imperia 2 this quarter or the next quarter. So, it will be touch and go, but it will start.

Risks & concerns

  • Realization drop due to project mix

    medium

    Q2 FY26 realization dropped to ₹6,000/sq ft from ₹6,500/sq ft in Q1 due to recognition of lower-realization EWS/LIG projects, though management views this as temporary.

    Analyst acknowledged

  • High ready-to-use inventory

    medium

    The company is carrying approximately ₹600 crores of ready-to-use inventory, which could impact cash flow if sales velocity does not improve, though management committed to better disclosure.

    Analyst acknowledged

  • Competition in key markets

    low

    Peers are launching projects in the Gomti Nagar extension at varying price points, but management expresses confidence in their product quality and delivery to differentiate.

    Analyst downplayed

Q&A highlights

7 direct
Eldeco Imperia Phase II Revenue Recognition Timeline Direct
I think in the quarter that we are in right now, Q3 and Q4 is when the revenue recognition starts.

Clarifies the timeline for revenue recognition from a key project, which is expected to significantly impact future financial performance and margins.

Asked by Gunit Singh

Eldeco City at Bareilly Project Profitability Status Direct
Yes, that's the status. And we are told by our partners there that that should happen in the current quarter or maximum next quarter.

Confirms that the Bareilly project is currently only covering costs, with potential for profit recognition to begin in the near future, impacting cash flow from that specific project.

Asked by Gunit Singh

Relationship with Parent Company Post-IPO Direct
There is no parent or subsidiary relationship between the two. And they are two completely separate companies with separate management and shareholding pattern.

Addresses investor concerns about potential conflicts of interest or operational overlap with the parent company after its IPO, clarifying that they operate as independent entities.

Asked by Gunit Singh

Eldeco Trinity Realization Growth and Competition Strategy Direct
We are not actively promoting the project right now. We are waiting for some of the common areas and the sample apartment to get ready... we expect an uptick both in the price per square foot realization and in the sale number there.

Explains the current slow sales for a luxury project and outlines the strategy to boost sales and realization upon completion of sample units, indicating future growth potential for this project.

Asked by Runit Kapoor

Gorakhpur Market Entry and Project Announcement Partial
It took longer than we expected, but we have a couple of term sheets out. But it's not at the stage that I would make a formal announcement on.

Reveals early-stage land acquisition activity in a new market (Gorakhpur) with potential for future project launches, but indicates that firm commitments or formal announcements are still pending.

Asked by Runit Kapoor

Q2 Realization Drop and Project Mix Explanation Direct
It primarily got to do with the mix of projects which has got recognized this quarter. In the absence of a high-end project getting recognized, I think we recognize some low realization kind of projects.

Provides a clear explanation for the decline in realization per square foot in Q2, attributing it to the mix of projects recognized (more EWS/LIG), suggesting it's a temporary effect rather than a systemic issue.

Asked by Varun Gupta

Ready-to-Use Inventory Value and Future Disclosure Direct
How much is the ready-to-use inventory sitting in our balance sheet? Because we are carrying close to 600 crores of inventory... Maybe what we will do is change our format and actually disclose that in our next presentation.

Highlights a significant amount of unsold, completed inventory and a commitment from management to provide more granular disclosure in the future, which is crucial for assessing liquidity and sales velocity.

Asked by Varun Gupta

Lucknow Market Dynamics and Volume-Led Growth Strategy Direct
I expect a huge uptake if supply gets unlocked. On the absorption side, the upside is much larger than it is on the pricing side... potentially absorption numbers should be doubling in 2-3 years if the right kind of supply came in.

Provides management's strategic view on the Lucknow market, emphasizing the potential for volume-led growth due to undersupply, rather than solely relying on price increases, which could drive significant future sales.

Asked by Faraz Ahmed

2 min read 5 chapters

Detailed narrative

Q2 FY26 Operational Performance and H1 Momentum

Eldeco Housing demonstrated continued operational momentum in Q2 FY26, with strong collections and steady project execution. Collections for the quarter stood at ₹91.3 crores, representing a 76% year-on-year increase, driven by robust bookings in prior quarters and timely construction progress. The company delivered 90 homes, totaling 1.19 lakh square feet, in Q2 FY26, marking a 95% year-on-year growth. For H1 FY26, total bookings reached ₹309 crores, a significant 91% year-on-year increase, supported by successful Q1 launches.

Strategic Project Launches and Pipeline Expansion

The company is actively expanding its project pipeline, with the upcoming launch of Eldeco Solano Gardens in Lucknow later this year. This township project spans 50 acres and has an estimated gross development value of ₹1,000 crores, positioning it as a key growth driver for the coming years. Eldeco is awaiting final environmental clearance and RERA registration for Solano Gardens, with a launch expected within 3-4 weeks of registration. Additionally, the company's aggregated land for new projects has increased to 36.8 acres, and efforts are underway to acquire more acreage for future developments.

Financial Performance and Margin Outlook

Consolidated total income for Q2 FY26 was ₹35.3 crores, a slight decrease from ₹36.4 crores in Q2 FY25. Consolidated EBITDA stood at ₹5.5 crores, resulting in an EBITDA margin of 15.7%, with profit after tax at ₹2.6 crores. The realization per square foot in Q2 FY26 dropped to ₹6,000 from ₹6,500 in the previous quarter, attributed to a project mix that included more lower-realization EWS/LIG products. However, management expects EBITDA margins to improve significantly, potentially reaching 35-40% in the next quarter due to revenue recognition from higher-margin projects like Imperia 2, and targets a 25-30% GP margin for projects like Trinity and Solano.

Lucknow Market Dynamics and Growth Strategy

Management views the Lucknow real estate market as undersupplied, particularly in the ₹60 lakh to ₹1.5 crore segment, with demand for quality housing outstripping current supply. Despite this, prices have not seen a significant increase due to limited supply at higher price points. The company anticipates a substantial uptake in absorption if supply constraints are eased, with absorption numbers potentially doubling in 2-3 years. Eldeco leverages its strong brand recognition and 30-year track record to command a premium of 20-30% over competitors, which is crucial in attracting customers and securing advances.

Inventory Management and Future Disclosures

The company is currently carrying approximately ₹600 crores of ready-to-use inventory on its balance sheet. An analyst raised a question regarding the breakdown of this inventory. In response, management acknowledged the significance of this figure and committed to changing their presentation format to provide more granular disclosure on the value of ready-to-use units in future earnings calls, enhancing transparency for investors.

This is an AI-generated summary of a publicly available earnings call transcript.
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