Detailed Narrative
FY26 Performance Highlights and Growth Drivers
Eldeco Housing reported a milestone FY26 with record bookings of INR 744 crores, marking a 120% year-on-year increase, and area booked of 10.77 lakhs square feet, up over 100%. Collections were robust at INR 352.1 crores, a 39% rise year-on-year. The company delivered 280 homes, totaling 2.78 lakhs square feet, and incurred a construction spend of INR 177.7 crores, up 14% YoY. Total income for FY26 stood at INR 175.7 crores, with EBITDA at INR 41.5 crores and PAT at INR 24.3 crores.
Strategic Pipeline Expansion and Project Success
The company significantly strengthened its growth pipeline by adding nearly INR 2,000 crores of Gross Development Value (GDV) through 3 prime land parcels in Lucknow, two of which were secured via local authority auctions for faster monetization. A key highlight was the successful launch of Eldeco Solano Gardens, which saw 343 units sold out of 433 launched, generating over INR 384 crores in bookings. This project is a multi-year development combining plotted, villas, and future group housing components.
Revenue Recognition Dynamics and Imperia 2 Project
Management clarified that revenue recognition in real estate, governed by IndAS 115, depends on the transfer of control to the customer, often linked to possession rather than just project completion. For Imperia 2, which is substantially complete and offered for possession ahead of schedule, INR 47 crores was recognized in Q4 FY26. The company projects an additional INR 130-150 crores in revenue recognition from Imperia 2 in the next financial year, contributing to an expected EBITDA margin of 30-35% and PAT of 25%.
Lucknow Market Outlook and Regulatory Environment
The Lucknow market exhibits strong, organic demand, with supply being the primary constraint due to difficulties in land aggregation. The new UP government's urban development policy, aimed at faster approvals and increased FSI, is viewed as a very positive and progressive step for the company. This predictable and investor-friendly environment is expected to support sustained growth, despite potential impacts from geopolitical factors on stock market-connected buyers or rising construction costs.
Future Launches and Project Mix Strategy
Eldeco plans to launch new projects from its recently acquired land parcels towards the end of the current financial year, following design and approval processes. The total GDV of the combined unsold inventory and new projects is estimated at INR 4,000 crores, expected to be monetized over the next 5-7 years. The company aims for a balanced project mix, acknowledging that while plotted developments offer higher margins (50-60%), they involve more complex land aggregation, whereas group housing provides faster monetization.
Q4 Margin Impact and Cost Management
The decline in Q4 margins was attributed to approximately INR 14 crores in one-time📎 expenses. This included an INR 11 crore write-off of GST input and other expenses from earlier projects, which impacted EBITDA and PAT for the quarter and the full financial year. Management confirmed that these were one-off📎 items and no similar concerns are anticipated in the coming quarters.