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.