Eldeco Housing & Industries Limited: Navigating Q2 FY26 with Strategic Foresight and Robust H1 Performance

Eldeco Housing & Industries Limited, a prominent name in North India's real estate landscape, recently unveiled its consolidated financial and operational highlights for the second quarter and half-year ended September 30, 2025. While the second quarter presented some headwinds in booking value and profitability, the broader half-year performance underscores the company's resilient operational execution and strategic vision. The management, led by Chairman & Managing Director Mr. Pankaj Bajaj, emphasized a continued momentum driven by strong collections, improved deliveries, and steady construction progress, reinforcing customer confidence and the company's ability to deliver on its commitments.

For Q2 FY26, Eldeco reported a consolidated total income of ₹35.3 crore, a marginal decrease from ₹36.4 crore in Q2 FY25. This quarter also saw a dip in profitability metrics, with EBITDA falling to ₹5.5 crore from ₹7.9 crore in the prior-year period, resulting in an EBITDA margin of 15.7% compared to 21.8%. Similarly, Profit After Tax (PAT) stood at ₹2.6 crore, down from ₹4.5 crore, with PAT margin at 7.5% versus 12.4%. The booking value for Q2 FY26 was ₹88.1 crore, a decline from ₹102.9 crore in Q2 FY25. Management attributed this quarterly dip primarily to the absence of major new project launches during the period. However, the half-year (H1 FY26) picture painted a more optimistic outlook, with bookings soaring to ₹309.2 crore, marking a robust 91% year-on-year increase, largely propelled by successful launches in Q1 FY26.

Operational Excellence and Strategic Pipeline

Despite the quarterly fluctuations, Eldeco's operational performance remained strong. The company recorded impressive collections of ₹91.3 crore in Q2 FY26, a significant 76% year-on-year increase, reflecting the robust bookings from previous quarters and efficient construction progress. Deliveries also saw substantial growth, with 90 homes handed over, totaling 1.19 lakh square feet, a remarkable 95% year-on-year surge. For H1 FY26, deliveries reached 2.03 lakh square feet across 191 homes. Construction spend for the quarter was ₹37.3 crore, an 11% year-on-year increase, demonstrating consistent execution across its project portfolio.

Eldeco's strategic focus remains firmly on expanding its project pipeline and strengthening its land bank. A major upcoming initiative is the launch of Eldeco Solano Gardens, a new township project on New Jail Road, Lucknow. Spanning over 54 acres, this project boasts an estimated Gross Development Value (GDV) of over ₹1,000 crore and is poised to be a significant growth driver for the company in the coming years. The initial phase, featuring villas, is expected to launch within the current financial year, pending final environmental clearances and RERA registration.

Financial and Operational Summary

(All values are in ₹ Crore, except percentages. Booking Value and Collections are operational metrics, not revenue.)

Market Dynamics and Future Outlook

The company's land bank strengthening efforts have seen aggregated land for new projects increase to 36.8 acres, with ongoing efforts to acquire more, ensuring a robust pipeline for future developments. Management also highlighted a strategic approach for Eldeco Trinity, where promotions are currently on hold until common areas and a sample apartment are ready. This move is expected to drive an uptick in price per square foot realization and sales numbers by February, positioning it as an ultra-luxury offering.

Eldeco is also exploring new growth avenues, with a keen eye on the Gorakhpur market. Management identified significant upside potential in Gorakhpur due to ongoing infrastructure improvements and an unorganized real estate market. The company is in the early stages of negotiating term sheets for potential projects in this region, signaling a strategic expansion beyond its core Lucknow market.

Management Confidence and Investor Trust

Eldeco's management expressed confidence in delivering growth in H2 FY26, buoyed by strong collections, accelerated construction, and the anticipated launch of Eldeco Solano Gardens. The company aims to surpass ₹500 crore in bookings this year, with management indicating that ₹500 crore could become the new normal for annual bookings on a stabilized basis. The expected EBITDA margins for Imperia Phase II are projected to be significantly higher, potentially reaching 35-40% in the next quarter, which will positively impact overall profitability.

Eldeco Housing & Industries Limited continues to demonstrate disciplined execution and a clear strategic roadmap. By focusing on strategic land acquisitions, timely project deliveries, and expanding into promising new markets, the company aims to sustain its growth trajectory and deliver enhanced value to its customers and shareholders. The emphasis on brand loyalty and prudent financial management further solidifies its position in the competitive real estate sector.