Eldeco Housing & Industries Ltd Q3 FY2026 Concall Summary

Key Takeaways

• Sales bookings already a record, Q3 pause was launch timing: 9MFY26 bookings surpassed all of FY25 in value and area, even though Q3 had no new launch. Solano Gardens (launched in Q4) already has INR 350 crores in expressions of interest, setting up the best full year on record.
• Bareilly interparty loan unwound profitably: The entire invested amount plus interest was recovered in Q3, removing a related-party overhang and adding a profitable transaction to the books.
• Cash pile is structural, not idle: Net debt is negative, but 70% of customer receipts are locked in RERA project accounts and released only with construction progress, so large cash on the balance sheet is a permanent feature of the business model.
• Margin mix shift underway: EBITDA margin dipped as lower-margin EWS/LIG projects entered revenue recognition; management sees 30% as a fair stable-state assumption.
• What to watch next quarter: Conversion of Solano Gardens’ INR 350 crores of expressions of interest into formal allotments, the launch of two small commercial projects, and any update on the 40-plus acres of land under aggregation.

Sales Bookings & Launches

• Record 9-month run: Sales bookings in 9MFY26 already exceeded the whole of FY25 on both value and area metrics, driven by strong sustenance sales in existing projects like Trinity and Skywalk.
• Q3 lull was a launch gap: The quarter had no new project launch because Solano Gardens was pushed to Q4, so the period relied entirely on sustenance sales from projects that had already sold 30%-40% of inventory at launch.
• Solano Gardens off to a fast start: The first phase (villas and plots) launched in January 2026 and has already taken INR 350 crores in expressions of interest; formal allotments will be declared next quarter. The project carries a GDV potential above INR 1,000 crores and will be phased over five years.
• Two small commercial projects approved: Eldeco City Courtyard (37,000 sq ft saleable) and Eldeco Imperia Avenue (25,000 sq ft saleable) received approvals and await RERA clearance for a Q4 launch. Commercial remains under 10% of total area under development.
• Two more projects to be named: Management will officially declare two additional future projects in the next investor presentation.

Pankaj Bajaj: "I wish you had not asked that question. But since you have asked it, we've already launched the project, and about INR 350 crores have already been booked. So, I was hoping that I would declare it officially."

Revenue Recognition & Project Progress

• Imperia Phase 2 deliveries began: INR 38 crores of INR 45 crores booked in Q3 came from this project; a similar amount is expected next quarter, with 80%-90% of the total INR 299 crores to be booked over the next four quarters.
• Trinity flat delayed: The Eldeco Trinity flat will take another 1.5 months to be ready, after which sales efforts will resume.
• Completed-project unsold inventory is small: Management estimated roughly INR 50-odd crores in unsold value across completed projects outside Imperia Phase 2, though it noted the figure is subjective.

Balance Sheet & Cash

• Negative net debt explained: The company holds substantial cash because RERA rules trap 70% of customer receipts in project-specific accounts, released only proportionately with construction progress. Only 30% flows to free cash flow immediately, so net debt stays negative even as the company borrows for land and construction.
• Bareilly loan fully unwound: The related-party loan to an unlisted company for the Bareilly project was repaid in full during Q3, including the minimum-guarantee return. Interest had already been recognised on an accrual basis quarter by quarter, so the principal repayment as cash will not create a large book impact.
• New debt taken: An INR 110 crore loan was raised for land acquisition and construction finance.

Pankaj Bajaj: "The money, which is received from customers, 30% goes into free cash flow and 70% remains stuck in that particular project account and is released proportionately with the progress of the project and ultimately on the completion of the project."

Land & Pipeline

• Land aggregation underway: 40-odd acres are currently under aggregation, expected to rise to 60 acres in the next couple of months. All land being bid for is residential.
• Solano Gardens anchors the pipeline: The 55-acre project alone carries over INR 1,000 crores of GDV and has a large balance of inventory still to be launched in future phases.
• Management declined to quantify total pipeline GDV: When asked for a GDV estimate across all upcoming projects including undisclosed parcels, management pointed to slides 12 and 13 of the investor presentation rather than providing a number.

Market & Pricing

• Lucknow in a multi-year up cycle: Management described the market as underpenetrated with a small base, supporting consistent and strong growth for many years. The only risk flagged was overpricing beyond the common man’s affordability.
• Realisation trend is strong but not forever: Average realisation has grown from roughly INR 3,500/sq ft in FY20 to INR 6,500/sq ft currently. Management believes the market is comfortable at these levels but cautioned against extrapolating that CAGR, expecting pricing to stabilise at some point.
• Booking sustainability depends on launch cadence: Whether the elevated booking run rate becomes a new normal hinges on timely approvals and the Lucknow market view holding; the pipeline includes three projects plus unsold Solano inventory and two yet-to-be-declared projects.

Pankaj Bajaj: "It is an underpenetrated market. The overall market size is a small base. So, we look forward to consistent and strong growth over the next many years. It's a multiyear up cycle that Lucknow is in."

Margins & Mix

• EBITDA margin dipped on product mix: Lower-margin EWS/LIG projects entering the revenue recognition phase pulled margins down from their prior trajectory. Management considers 30% a fair stable-state assumption.
• Commercial exposure remains minimal: Commercial projects represent less than 10% of total area under development, and the company has nothing big in the commercial segment at the moment, evaluating opportunities only opportunistically.

Guidance & Commitments

Key Metrics