Eleganz Interiors FY26: A H2 Ramp-Up, Strong Order Book, and a Working Capital Test

Eleganz Interiors Limited closed FY26 with consolidated net sales of INR 4,002.2 million, up marginally from INR 3,927.1 million in FY25. The year’s headline, however, was not the full-year growth rate but the shape of the year. H1 FY26 revenue was INR 1,110.1 million, followed by a sharp H2 ramp to INR 2,892.2 million. The same pattern showed up in profitability. H2 FY26 EBITDA rose to INR 296.1 million with a 10.2 percent margin, versus H1 FY26 EBITDA of INR 47.4 million and a 4.3 percent margin.

Management attributed the weaker first half to delays in project commencements on the client side, followed by accelerated execution in the second half. The company also highlighted a strategic tilt towards larger, higher-value projects, arguing that competition tends to be lower in premium and large-scale projects and that execution economics are better.

What the business does and why mix matters

Eleganz operates in two principal models. In Design and Build, the company provides an end-to-end offering from design, planning, procurement and execution through handover. In General Contracting, the client appoints the designer and the company executes on an item-rate BOQ basis across civil, interior, mechanical, electrical and finishing scopes.

The FY26 revenue mix tilted towards General Contracting. The FY26 breakup disclosed in the presentation shows 81.5 percent of revenue from General Contracting and 18.5 percent from Design and Build. Management also stated that the industry is moving towards Design and Build, and that the company has built in-house D&B capability over the last nine years.

The project portfolio described across the presentation and concall is largely corporate and commercial, spanning corporate offices, R and D facilities, laboratories, airport lounges, flexible workspaces and retail. The presentation also positions the company as a provider to Grade A corporates, often requiring LEED and WELL familiarity, backed by ISO certifications and IGBC founding member status.

FY26 financials: stronger margins, but cash conversion needs monitoring

FY26 gross margin improved to 28.3 percent from 24.9 percent in FY25. EBITDA margin improved modestly at the full-year level to 8.6 percent from 8.4 percent, but the key change was H2 strength.

The company also reported a balance sheet expansion, with total assets increasing to INR 3,325.6 million in FY26 from INR 2,295.1 million in FY25. A notable line item was sundry debtors, which increased to INR 1,509.1 million in FY26 from INR 432.5 million in FY25.

In the concall, management explained that receivables were elevated because March was the highest-ever billing month, with March billing stated as over 40 percent of H2 revenue. They indicated that about INR 130 crore of receivables were expected to be realized over the next three months under typical 45 to 90 day credit terms. They also discussed retention amounts, stating retention was about INR 30 crore and that debtors above six months were around INR 12 crore, largely linked to retention and documentation cycles.

Financial summary (Consolidated)

Order book visibility and FY27 guidance

As of 31 March 2026, the company disclosed a net order book of about INR 5,468 million excluding GST. It also disclosed bids submitted of about INR 26,000 million, with a stated success rate of 10 to 15 percent.

Management’s FY27 commentary in the presentation was explicit: revenue growth of around 25 to 30 percent, while maintaining EBITDA margins of 8 to 9 percent. During Q and A, management reiterated a minimum 25 percent growth expectation. They also stated that from the current order book of INR 546 crore, they are looking to execute about INR 377 crore, supported by the existing book and bid pipeline.

A recurring theme was seasonality. Management described the business as H2 heavy, and even more skewed towards the final quarter in many years. They did not commit to smoothing the H1 profile, citing client-driven billing and handover dynamics. For FY27 H1, management indicated at least INR 150 crore plus revenue, but avoided committing to a specific number because billing timing can shift.

Strategy: data centers, manufacturing scale, and measured international expansion

Three strategic levers stood out.

First, a data center focus. Management said the company had executed small components for two data center customers and is building capability to bid for larger work. They explained that data centers are MEP heavy and indicated they are exploring consortiums or alignment with smaller MEP-focused players to strengthen capability.

Second, manufacturing expansion. The company currently operates a 27,190 sq ft manufacturing facility in Vasai, Maharashtra. It disclosed an upcoming company-owned facility near Khopoli targeted to be operational in the next two years, with a fully automated modular production line and expansion into soft furnishing manufacturing. The presentation noted that soft furnishing is currently outsourced and is about 5 to 6 percent of contract value. Management suggested the new factory is also important for pre-qualification on very large projects.

Third, overseas expansion. The presentation states incorporation process started for a wholly owned subsidiary in UAE. On the concall, management said the UAE license has been received, bidding has started, and the operating posture is lean, with a virtual office for now. They stated they are bidding for two active projects and referenced a pipeline of about 30 million dirhams, but confirmed there were no order wins yet. For Singapore, they said a prior joint venture partner exited and the company is restarting operations, again with a lean setup.

Takeaways

FY26 for Eleganz Interiors was a year of uneven timing, where the first half was muted and the second half delivered a strong operational rebound. The company ended the year with improved gross margin, higher H2 profitability, and clear FY27 guidance of 25 to 30 percent revenue growth with 8 to 9 percent EBITDA margins.

The near-term investor debate is likely to center on cash conversion. Management has provided a factual explanation for the receivables spike and guided that collections should normalize over the next few months as the March billing cycle converts to cash. Alongside this, order book visibility remains strong, and the company’s strategic push into data centers, factory automation and selective international expansion provides a clear set of operational milestones to track through FY27.