Eldeco Housing and Industries: FY26 ends with record bookings and a bigger pipeline

Eldeco Housing and Industries Limited (EHIL) closed FY26 with record sales bookings and collections, backed by a strong Q4 launch and a visible expansion in its Lucknow development pipeline. In FY26, the company reported consolidated total income of 175.7 crore, EBITDA of 41.5 crore, and PAT of 24.3 crore. On the operating side, booking value reached 743.9 crore (up 120.4 percent YoY) and collections were 352.1 crore (up 38.7 percent YoY), as per the investor presentation.

The quarter was particularly notable for the launch of Eldeco Solano Gardens, which management described as a standout success. In the earnings call, management said the launch phase delivered bookings of about 384.5 crore, with 343 units sold out of 433 units launched. Alongside this, the company strengthened its medium-term growth runway by securing three prime land parcels in Lucknow with cumulative GDV of nearly 2,000 crore.

FY26 performance: bookings surged, income rose, margins were mixed

EHIL’s FY26 consolidated total income grew to 175.7 crore from 143.7 crore in FY25, a 22.3 percent increase. EBITDA grew to 41.5 crore from 35.6 crore, while PAT rose to 24.3 crore from 21.5 crore.

Despite the higher absolute profits, margins moderated. FY26 EBITDA margin was 23.6 percent versus 24.8 percent in FY25. PAT margin was 13.8 percent versus 15.0 percent in FY25. On the earnings call, management attributed part of the margin pressure to one-time items, including a GST input write-off of close to 11 crore and other earlier-project expenses, taking total one-time impact in other expenses to around 14 crore.

Operationally, FY26 reflected a clear step-up in business momentum. As per the presentation, area booked rose to 10.76 lakh sq ft from 5.14 lakh sq ft, and average realization increased to 6,909 per sq ft from 6,568 per sq ft.

Solano Gardens: a strong launch, but product mix matters

Solano Gardens emerged as the defining operational event of FY26. The company reported that the project launch saw exceptional traction, translating into meaningful volume bookings.

On the concall, management clarified that Solano Gardens should not be viewed as only plotted development. It includes plotted development, villas, planned group housing apartments to be launched later, and a small commercial local shopping component. This mix matters for profitability. While management indicated that plotted development can carry margins in the range of 50 to 60 percent, they also guided that the weighted average margin for Solano Gardens, including villas, should be considered around 35 to 40 percent.

This distinction is important because the FY26 pre-sales surge is not automatically a proxy for near-term reported revenue. Under Ind AS 115, the company recognizes revenue when control is passed to the customer, which is linked to possession. Management explained that even if a project is completed early and possession is offered, customers may choose to take possession later depending on their financial planning.

Execution and recognition: Imperia Phase 2 and the handover pipeline

A key execution milestone in Q4 FY26 was the receipt of the completion certificate for Eldeco Imperia Phase 2. In the earnings call, management said a large share of Q4 revenue came from Imperia Phase 2, with around 47 crore out of about 60 crore attributable to the project (described as roughly 70 to 80 percent).

Management also discussed recognition expectations for Imperia Phase 2. They stated the project has a turnover potential of about 300 crore, with 46 crore recognized in the quarter. For FY27, management projected revenue recognition from Imperia Phase 2 in the range of 130 to 150 crore, while noting that these are projections and the timing depends on customer possession.

Beyond Imperia Phase 2, management flagged Eldeco Latitude 27 as the next major project expected to enter the possession phase after Imperia, and stated on the call that the total value of the Latitude 27 project is about 270 to 280 crore. The investor presentation lists expected completion for Latitude 27 as Nov-27, while management also indicated they are trying to deliver earlier, similar to Imperia Phase 2.

Pipeline expansion: 2,000 crore GDV added, launches depend on approvals

In FY26, EHIL added three prime land parcels in Lucknow, which management stated add up to nearly 2,000 crore of GDV. Two parcels were acquired via local authority auctions, which management described as enabling lower risk and faster monetization.

However, the company also highlighted the typical real estate cycle. Management stated that these projects are in design stages, approvals and RERA registration are awaited, and launches are expected towards the end of the financial year, subject to requisite approvals. They also shared a broader view that the total GDV of unsold projects tied up or to be launched is about 4,000 crore, which could be sold over 5 to 7 years.

The management discussion also touched on the operating environment in Uttar Pradesh, indicating that policy reforms have improved predictability and speed of approvals. Management positioned this as supportive of future launches, although they also noted that land assembly remains a structural bottleneck in scaling supply.

What to watch from here

EHIL’s FY26 story is clear: strong pre-sales momentum, improving collections, and a larger pipeline that can support multi-year growth. The near-term reported financial performance, however, will be influenced by the cadence of possession and Ind AS 115 revenue recognition.

Management provided explicit guidance for FY27 margins, stating EBITDA margin could be about 30 to 35 percent and PAT margin about 25 percent, primarily due to higher-margin recognition from Imperia Phase 2. On execution intensity, management guided that construction spend could rise to around 200 crore in FY27 (about 15 to 20 percent higher than FY26).

For investors, the key monitorables over the next few quarters are the pace of Imperia Phase 2 possession and revenue recognition, the re-acceleration of bookings in projects like Trinity as relaunch efforts progress, and the translation of the newly added 2,000 crore GDV pipeline into approvals and launches. FY26 delivered the momentum. FY27 will test how smoothly that momentum converts into reported earnings and repeatable launch execution.