Eldeco Housing And Industries Limited — Q3 FY26 earnings call

Call held 11 Feb 2026

Management summary

Eldeco Housing reported a strong 9M FY26, surpassing previous year's sales with significant growth in booking value and area. Despite a lower Q3 booking value due to a delayed launch, profitability remained robust with high EBITDA and PAT margins. The company maintains a healthy net cash position and has a strong pipeline of new projects, including the recently launched Solano Gardens, poised for future growth.

Highlights

  • 9M FY26 booking value of INR 361.2 crores, up 29.1% YoY, exceeding entire FY25 sales.

  • 9M FY26 area booked of 5.62 lakh sq ft, up 30% YoY.

  • Q3 FY26 collections of INR 86 crores (up 21%) and 9M FY26 collections of INR 255 crores (up 43%).

  • Q3 FY26 EBITDA margin at 43.7% and PAT margin at 30.2% reflect strong profitability.

  • Net debt is negative, with a net cash position of INR 72 crores.

  • Bareilly project investment fully recovered with interest.

  • Strong launch pipeline with Solano Gardens (GDV > INR 1,000 crores) and 40-60 acres under aggregation.

Concerns

  • Q3 FY26 booking value was lower at INR 52 crores due to the Solano Gardens launch being pushed to Q4.

  • Eldeco Trinity project completion is delayed by 1.5 months.

  • Commercial portfolio scaling is not significant, remaining predominantly residential (less than 10% of total area under development).

Key financials

2 periods

Headline

  • Booking Value
    ₹52 Cr
  • Area Booked
    81,000 sq ft
  • Collections
    ₹86 Cr
    YoY +21%
  • Construction Spend
    ₹39.9 Cr
    YoY +11%
  • Total Income
    ₹45 Cr
  • EBITDA
    ₹19.8 Cr
  • EBITDA Margin
    43.7%
  • PAT
    ₹13.7 Cr
  • PAT Margin
    30.2%

9M FY26

  • Booking Value
    ₹361.2 Cr
    YoY +29.1%
  • Area Booked
    5.62 lakh sq ft
    YoY +30%
  • Collections
    ₹255 Cr
    YoY +43%

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

₹361.2 Cr

as of 2025-12-31 quantified

29.1% YoY

Inflow this quarter

₹52 Cr

Execution

Trinity and Skywalk projects expected to complete in 3-3.5 years, with 60% inventory to sell gradually.

Pipeline

other

Solano Gardens (55 acres, 20 lakh sq ft saleable area, GDV > INR 1,000 crores, INR 350 crores EOI booked in Q4). 40-60 acres under aggregation. 4 forthcoming residential projects (Eldeco City Residential, Solano Gardens, City Courtyard, Imperia Avenue) with 24 lakh sq ft saleable area. 2 commercial projects (Eldeco City Courtyard 37,000 sq ft, Eldeco Imperia Avenue 25,000 sq ft) awaiting RERA approvals.

Cancellations & deferrals

  • deferred: Solano Gardens launch pushed from Q3 to Q4.
The company has a strong launch pipeline and expects to record its best year in terms of sales bookings in FY26, with 9M FY26 already surpassing full FY25 sales.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹39.9 Cr
    • Construction spend for Q3 FY26 ₹39.9 Cr
    • Construction spend for 9M FY26 ₹116.5 Cr
    • Land acquisition (2.05 acres added in Q3)
    • Land acquisition (Piramal loan for Trinity project)
    Construction spend for the quarter was INR 39.9 crores, up 11% from last year. And for the 9MFY26 stood at INR 116.5 crores, reflecting consistent execution across projects. During the quarter, we also added 2.05 acres of land at other locations where land aggregation is going on. [...] we have taken a loan from Piramal, which has been invested for the acquisition of Trinity project.
  • Debt Gross ₹106 Cr · Net cash ₹72 Cr
    • Repayment Recovery of investment and interest from Bareilly project, unwinding related party transaction. ₹55 Cr
    • New borrowing Loan from Piramal to bridge RERA cash flow issues and fund Trinity project acquisition, used for land acquisition and construction finance. ₹110 Cr
    So net debt is actually negative. Rajiv ji is on the line; he would be able to give you the actual debt.. It is INR 106 crores as of now. INR 106 crores, but we have cash on balance sheet of about INR 160 crores or INR 170 crores. Yes, INR178 crores. Yes, INR178 crores. So net debt is negative.
  • Liquidity Cash ₹178 Cr Cash on balance sheet is INR 178 crores, contributing to a net cash position.
    Yes, INR178 crores. So net debt is negative. The only thing is the question will arise that why you have a negative net debt. So, because of the way RERA is structured, the money, which is received from customers, 30% goes into free cash flow and 70% remains stuck in that particular project account and is released proportionately with the progress of the project and ultimately on the completion of the project. So, we have a lot of cash on the balance sheet, which will get released soon.

Guidance & targets

Volume

  • Annual Booking Value Volume · FY26 · Medium confidence INR 500 crores
    During the 9MFY26 of the year, we have already surpassed the sales bookings achieved in the entire FY25, both in terms of value and in area. With the launch of Solano Gardens in Q4, we are poised to record our best year in terms of sales bookings in FY26. [...] Yes. And I expect that we will cross INR 500 crore of booking value.

    — Pankaj Bajaj

Margin

  • Sustainable EBITDA Margin Margin · long term · High confidence 30-35%
    Generally, about 30% to 35% would be a fair assumption on a blended basis over many years. Coming year, I think it will be a little higher. Rajiv ji, do you think that's right to say? Yes, it is in the range of 30%, yes on a stable basis. Yes. So, on a stable basis, 30% is a fair assumption.

    — Pankaj Bajaj

What to watch in Q4 FY26

Solano Gardens Official Bookings & Allotments

next quarter
Current INR 350 crores booked as EOI in Q4 (Jan 26)
Target Official declaration of bookings and conversion to allotments

Why it matters

This will confirm the conversion of EOI into firm sales and contribute significantly to Q4 FY26 booking value.

I'll be able to declare this data next quarter when this all gets converted into allotments.

Risks & concerns

  • RERA-mandated cash flow restrictions

    medium

    RERA structure ties up 70% of customer money, creating working capital challenges for new acquisitions, necessitating external loans.

    Management acknowledged

  • Project launch and completion delays

    low

    Solano Gardens launch pushed from Q3 to Q4, and Eldeco Trinity project delayed by 1.5 months, impacting immediate sales and deliveries.

    Management acknowledged

  • Sustainability of current pricing growth

    low

    Significant price increases in Lucknow (from INR 3,500/sq ft in FY20 to INR 6,500/sq ft currently) are not expected to continue indefinitely and will likely stabilize.

    Management acknowledged

Q&A highlights

7 direct
Net Debt Position & RERA Cash Flow Management Direct
So net debt is actually negative. Rajiv ji is on the line; he would be able to give you the actual debt.. It is INR 106 crores as of now. INR 106 crores, but we have cash on balance sheet of about INR 160 crores or INR 170 crores. Yes, INR178 crores. Yes, INR178 crores. So net debt is negative. The only thing is the question will arise that why you have a negative net debt. So, because of the way RERA is structured, the money, which is received from customers, 30% goes into free cash flow and 70% remains stuck in that particular project account and is released proportionately with the progress of the project and ultimately on the completion of the project. So, we have a lot of cash on the balance sheet, which will get released soon. As of now, there's nothing to worry about on the debt. It's less than the cash that we are carrying.

Clarifies the company's net cash position despite gross debt and explains the impact of RERA regulations on cash flow, which necessitates external financing for new projects.

Asked by Priyank Gupta

Land Acquisition & Future Launch Pipeline Direct
So, we have given it on Slide #13 in our investor presentation. So, Solano Gardens is a big acquisition, 55-odd acres that has got launched, but it got launched in Q4, so we have not given the numbers in this presentation. In addition to that, we have about 40-odd acres in various locations, which is under aggregation. We expect it to go up to 60 acres in the next couple of months. Apart from that, what we're not mentioning in the presentation is that we have won a couple of auctions with the Lucknow Development Authority, but since we have not received an official communication from them, we will be disclosing that in the next presentation. So, enough pipeline for the next year, 1.5 years.

Provides a detailed overview of the company's land bank and upcoming project pipeline, indicating strong future growth potential for the next 1-1.5 years.

Asked by Priyank Gupta

Solano Gardens Launch & Monetization Potential Direct
Well, I wish you had not asked that question. But since you have asked it, we've already launched the project, and about INR 350 crores have already been booked. So, I was hoping that I would declare it officially. But this is expression of interest. Officially, I'll be able to declare this data next quarter when this all gets converted into allotments. And then subsequent phases, we will come up with some group housing and stuff, which will happen later this year.

Confirms the successful soft launch of Solano Gardens, its significant GDV potential, and the strong initial booking response, which will be officially reported next quarter.

Asked by Advitia Kumar

EBITDA Margin Sustainability and Outlook Direct
So, I've answered this question many times earlier. Earlier, our EBITDA margins used to be about 45%-50%, but that was primarily because of the monetization of our historical land banks. Even this quarter, it went to a lower trajectory because of the change in product mix. We had some economically weaker section, LIG kind of projects getting recognized. Now Imperia Phase 2 is a high-margin project. So, in the next year, the EBITDA margin, which will get recognized will be of a much higher order. Generally, about 30% to 35% would be a fair assumption on a blended basis over many years. Coming year, I think it will be a little higher. Rajiv ji, do you think that's right to say? Yes, it is in the range of 30%, yes on a stable basis.

Clarifies the drivers of current and historical EBITDA margins and provides a long-term sustainable margin guidance, indicating future margin expansion from specific projects.

Asked by Anjali Singh

Lucknow Real Estate Market Outlook and Pricing Trends Direct
So it's looking great. I don't see any slowdown. In fact, there is the market for quality homes at reasonable prices, is only expanding, because of the accumulated increase in wages across board over the years and real estate prices have not risen that much. In spite of the recent rise in prices, it is still strong. Specifically in Lucknow, I've watched it many times earlier. It is an underpenetrated market. The overall market size is a small base. So, we look forward to consistent and strong growth over the next many years. It's a multiyear up cycle that Lucknow is in. [...] Not on the plot side. In fact, the pricing again, this is slide number 10. So, it has not been stable. FY20 was INR 3,500. It's been going up every year. Then it was INR 3,700. By FY23, it was INR 4,500 a square foot. FY24 INR 5,000. And this year, we are averaging about INR 6,500. So, it's a very significant CAGR year-on-year. I do not foresee it to be continuing like this forever. It doesn't make sense. It will stabilize at some point.

Provides management's optimistic view on the Lucknow market as a multiyear growth cycle, while also acknowledging significant past price increases and the expectation of future stabilization.

Asked by Shanaya Jain

Bareilly Related Party Transaction and Piramal Loan Direct
Yes, the Bareilly transaction, I said in my comments that the money has been received back and it was an equity with a minimum guarantee. And if you remember that project faced some troubles. So, the related party, which is unlisted company, it honoured its minimum guarantee comment and returned the money back with whatever the minimum guarantee was. So, it has been a profitable transaction for the company. The money is back. And as far as the Piramal loan is concerned, that's a cash flow issue because as I explained to Priyank earlier, the money which the company is stuck in various RERA accounts, it's a common working capital management problem with many real estate companies face these days. So, to bridge for the period that amounts stuck in RERA accounts because unblocked, we have taken a loan from Piramal, which has been invested for the acquisition of Trinity project.

Clarifies the resolution of a past related party transaction and the strategic use of the Piramal loan for project acquisition amidst RERA-induced cash flow constraints.

Asked by Karan Gupta

Eldeco Trinity Project Delay Direct
Okay. And you show flat for Eldeco Trinity was supposed to be ready, which was supposed to drive the sales, like so is it ready as such? No, it is delayed a bit. So, it will take another 1.5 months, and that's when we start driving sales again.

Reveals a delay in a key project, Eldeco Trinity, which will impact its sales contribution in the immediate future.

Asked by Runit Kapoor

Commercial Portfolio Scaling Strategy Partial
Not a lot. So if you look again, look at the slide, both these projects are not very big. In fact, they constitute less than 10% of our total area under development. Predominantly, our portfolio is still residential at the moment. [...] Yes, these kinds of small commercial projects have a higher EBITDA margin, but it's doesn't move the needle a lot at the company level.

Indicates that the company's commercial portfolio will not scale significantly in the near term, reinforcing its primary focus on residential development despite higher margins in commercial projects.

Asked by Isha Shah

3 min read 6 chapters

Detailed narrative

Q3 FY26 Operational Performance and 9M FY26 Growth

Eldeco Housing reported a stable operational performance in Q3 FY26, with booking value at INR 52 crores and 81,000 sq ft area booked. Collections for the quarter stood at INR 86 crores, marking a 21% year-on-year growth. For the nine months ending December 2025 (9M FY26), the company achieved a booking value of INR 361.2 crores, representing a 29.1% year-on-year increase, and booked 5.62 lakh sq ft, up 30% year-on-year, surpassing the entire FY25 sales. Collections for 9M FY26 were INR 255 crores, a 43% increase year-on-year.

Financial Highlights and Profitability

The company's consolidated total income for Q3 FY26 was INR 45 crores. Eldeco reported a strong EBITDA of INR 19.8 crores, leading to an impressive EBITDA margin of 43.7%. Profit after tax (PAT) for the quarter was INR 13.7 crores, with a PAT margin of 30.2%. Construction spend for Q3 FY26 was INR 39.9 crores, up 11% from the previous year, and for 9M FY26, it totaled INR 116.5 crores, indicating consistent project execution.

Robust Launch Pipeline and Land Bank Expansion

Eldeco launched the first phase of Solano Gardens in Q4 (January 2026), a project with a GDV potential exceeding INR 1,000 crores, and has already secured INR 350 crores in Expressions of Interest. The company added 2.05 acres of land in Q3 and is aggregating another 40-odd acres, expected to reach 60 acres soon. Two small commercial projects, Eldeco City Courtyard (37,000 sq ft saleable area) and Eldeco Imperia Avenue (25,000 sq ft saleable area), are awaiting RERA approvals for launch next quarter.

Net Cash Position and Debt Management

The company maintains a healthy financial position with negative net debt. It reported gross debt of INR 106 crores against a cash balance of INR 178 crores, resulting in a net cash position of INR 72 crores. The investment in the Bareilly project, amounting to INR 55 crores, was fully recovered with interest, unwinding a related party transaction. A loan of INR 110 crores from Piramal was taken to fund the acquisition of the Trinity project and manage working capital challenges arising from RERA-mandated cash flow restrictions.

Lucknow Market Outlook and Pricing Trends

Management characterized the Lucknow real estate market as an 'underpenetrated' and 'multiyear up cycle,' anticipating consistent strong growth. Property prices have seen significant appreciation, rising from INR 3,500 per square foot in FY20 to INR 4,500 in FY23, and currently averaging INR 6,500 per square foot. While this represents a substantial CAGR, management expects prices to stabilize at some point, indicating that such rapid growth may not be sustainable indefinitely.

EBITDA Margin Outlook and Commercial Portfolio Strategy

While Q3 FY26 saw a high EBITDA margin of 43.7% influenced by product mix, management projects a sustainable EBITDA margin range of 30-35% for the long term, with the next fiscal year potentially seeing higher margins due to high-margin projects like Imperia Phase 2. The company's commercial portfolio remains small, constituting less than 10% of its total area under development, and its scaling will be opportunistic, with the primary focus remaining on residential projects.

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