ELDEHSG - Eldeco Housing

📊 NSE: ELDEHSG 🏢 Construction 📅 Last Updated: 12/13/2025 21:46

💰 Financial Performance

Revenue Growth by Segment

Consolidated total income for Q2 FY26 was INR 35.3 Cr, representing a 3.02% decrease from INR 36.4 Cr in Q2 FY25. Standalone total income for H1 FY26 was INR 120.04 Cr (1200.39 million), while consolidated total income for H1 FY26 reached INR 199.77 Cr (1997.67 million).

Geographic Revenue Split

The company primarily operates in Lucknow, Uttar Pradesh, which serves as its core market. It also has exposure to Bareilly through the Eldeco City project, which is expected to return INR 65-70 Cr in principal and IRR.

Profitability Margins

Standalone Net Profit for Q2 FY26 was INR 4.5 Cr (45.02 million), down from INR 9.11 Cr in Q2 FY25. Consolidated Profit After Tax for Q2 FY26 stood at INR 2.6 Cr. ROE is reported at 7.89%.

EBITDA Margin

Consolidated EBITDA margin for Q2 FY26 was 15.7% (INR 5.5 Cr). Management expects margins to improve to 30-35% over the next 12-18 months as high-margin revenue from the Imperia 2 project is recognized.

Capital Expenditure

Not explicitly disclosed in available documents, though the company is actively working on adding more acreage to its current 36.8-acre land bank.

⚙️ Operational Drivers

Raw Materials

Standard construction materials including steel, cement, and bricks are the primary inputs, though specific percentage breakdowns per material are not provided in the text.

Import Sources

Sourced locally within India, primarily in the North Indian region (Delhi NCR and Uttar Pradesh) to support projects in Lucknow and Bareilly.

Capacity Expansion

The company currently has 36.8 acres of land and is actively working on adding more acreage before moving to the next stage of approvals. It has delivered approximately 200 projects and has 32 projects currently under execution.

Raw Material Costs

Not explicitly disclosed as a percentage of revenue, but management noted that realizations dropped from INR 6,500 to INR 6,000 per sq. ft. in Q2 FY26 due to the specific mix of projects recognized.

Manufacturing Efficiency

The company focuses on 'disciplined execution' and 'steady construction progress' to ensure timely delivery of projects like Eldeco Solano Gardens.

📈 Strategic Growth

Expected Growth Rate

35%

Growth Strategy

Growth will be driven by the recognition of revenue from the Imperia 2 project, which carries higher EBITDA margins (35-40%), and the upcoming launch of Eldeco Solano Gardens. The company is also focusing on strategic land additions in Lucknow's expanding market.

Products & Services

Residential townships, premium mid-income housing, plotted developments, and commercial/retail properties.

Brand Portfolio

Eldeco

New Products/Services

Upcoming launch of Eldeco Solano Gardens and the continued development of the Imperia 2 project.

Market Expansion

Focusing on expanding acreage in Lucknow and completing the Eldeco City project in Bareilly.

Strategic Alliances

The company operates the Bareilly project with partners, expecting a cash return of INR 65-70 Cr.

🌍 External Factors

Industry Trends

There is a notable shift in project mix towards plotted developments and premium mid-income housing in Tier I, II, and III towns.

Competitive Landscape

The company competes with other regional and national developers in the North Indian residential and commercial real estate sectors.

Competitive Moat

The 'Eldeco' brand serves as a moat, particularly in the Lucknow market, providing stability and trust which becomes more important during market downturns.

Macro Economic Sensitivity

Highly sensitive to the real estate market cycle; management notes that brand value is critical during 'soft' market conditions to maintain demand.

Consumer Behavior

Increasing demand for plotted developments and premium mid-income housing in expanding urban centers like Lucknow.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the SEBI Listing Regulations (Regulations 17 to 27) and the Companies Act, 2013. The company has a formulated policy for 'Material Subsidiaries' and 'Related Party Transactions'.

Taxation Policy Impact

The company follows standard Indian corporate tax rates; standalone tax expense for H1 FY26 was approximately INR 3.25 Cr (based on PBT of 11.85 Cr and PAT of 8.61 Cr).

Legal Contingencies

The company reports no instances of non-compliance or penalties imposed by Stock Exchanges, SEBI, or any statutory authority regarding capital markets in the last three years.

⚠️ Risk Analysis

Key Uncertainties

Revenue recognition timing is a key uncertainty, as margins can fluctuate significantly (from 15.7% to an expected 35-40%) based on which specific projects reach the recognition threshold.