LANCORHOL - Lancor Holdings

📊 NSE: LANCORHOL 🏢 Construction 📅 Last Updated: 12/14/2025 9:11

💰 Financial Performance

Revenue Growth by Segment

Total operating income grew 20.5% YoY to INR 137.57 Cr in FY24 from INR 114.19 Cr in FY23. For 9MFY25, revenue reached INR 138.88 Cr, already exceeding the full-year FY24 performance. The growth is driven by residential real estate development in Chennai and improved sales momentum following legal settlements.

Geographic Revenue Split

100% of revenue is derived from the Chennai, Tamil Nadu market. There is a high geographic concentration in the Sriperumbudur region, where a significant portion of upcoming collections and projects like 'Villa Bay' (30% sold) are located.

Profitability Margins

The company turned profitable in FY24 with a Net Profit Margin of 4.9% (PAT of INR 6.76 Cr) compared to a loss in FY23 (PAT of INR -0.30 Cr). 9MFY25 PAT stands at INR 8.25 Cr, indicating a margin of approximately 5.9%.

EBITDA Margin

PBILDT margin improved to 17.6% in FY24 (INR 24.22 Cr) from 15.1% in FY23 (INR 21.66 Cr). For 9MFY25, the PBILDT margin further expanded to 20.9% (INR 29.04 Cr) due to better realization from project completions.

Capital Expenditure

While specific future CAPEX figures are not disclosed, the company is investing in the 'Harmonia Pavilion Senior Living' project and the 'Villa Bay' plot development. A major asset with a book value of INR 28.34 Cr was recently cleared for sale or lease, with a potential market value of INR 190 Cr.

Credit Rating & Borrowing

Credit rating was upgraded to CARE BB; Stable in March 2025 from CARE B+; Stable. Short-term ratings were upgraded to CARE A4+. Recent borrowing includes INR 15 Cr raised via Non-Convertible Debentures (NCDs) in November 2025 at a high interest rate of 16.5%.

⚙️ Operational Drivers

Raw Materials

Primary raw materials include cement, steel, sand, and bricks, which typically represent 60-70% of construction costs in residential projects. Specific percentage breakdowns per material are not disclosed.

Import Sources

Not specifically disclosed, but materials are primarily sourced locally within Tamil Nadu to support Chennai-based projects.

Capacity Expansion

The company has completed 78 projects totaling 53.67 lakh square feet (lsf) since inception, up from 73 projects (49.12 lsf) in previous cycles. Expansion is focused on the Sriperumbudur site and senior living segments.

Raw Material Costs

Construction costs are a major outflow; however, the company has improved its capital structure by reducing total debt from INR 206 Cr in March 2021 to INR 97 Cr in March 2024, a 53% reduction, which lowers the total cost of project financing.

Manufacturing Efficiency

Efficiency is measured by project completion and sales velocity. The 'Villa Bay' project has achieved 30% sales of its plot area.

Logistics & Distribution

Not applicable as a real estate developer; however, marketing and distribution costs are inherent in sales momentum.

📈 Strategic Growth

Expected Growth Rate

20.50%

Growth Strategy

Growth will be achieved through the launch of 'Harmonia Pavilion Senior Living Apartments', strategic suburban expansion in Sriperumbudur, and the monetization of a major property valued at INR 190 Cr. The company is also utilizing preferential allotments of equity (June 2024) to strengthen its balance sheet.

Products & Services

Residential apartments, commercial properties, senior living communities, and developed plots.

Brand Portfolio

Lancor, Harmonia (Senior Living), Villa Bay (Plots), Lancor Maintenance and Services.

New Products/Services

Harmonia Pavilion Senior Living Apartments and Villa Bay plots are the primary new offerings expected to drive FY26 revenue.

Market Expansion

Focus remains on deepening presence in Chennai and its suburbs, specifically Sriperumbudur, over the next 2-3 years.

Strategic Alliances

The company operates the 'Central Park West Venture' as a Joint Venture and uses 'Lancor Foundation' for CSR activities.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward specialized housing like senior living and plotted developments. Lancor is positioning itself by launching the Harmonia brand to capture this niche 10-15% growth segment.

Competitive Landscape

Faces intense competition from both local Chennai developers and large national real estate players.

Competitive Moat

The moat is based on a 30+ year brand legacy in Chennai and a significant land bank with low historical cost. Sustainability is challenged by intense competition from national developers entering the Chennai market.

Macro Economic Sensitivity

Highly sensitive to interest rates and GDP growth in Tamil Nadu. A 1% increase in home loan rates typically reduces affordability for the target middle-to-premium segment.

Consumer Behavior

Increasing demand for senior living and suburban plots post-pandemic is driving the company's current project mix.

Geopolitical Risks

Low direct impact, but global economic slowdowns could affect the IT/Manufacturing sectors in Chennai, indirectly reducing demand for residential housing.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to RERA (Real Estate Regulatory Authority) and local planning body approvals. Delays in getting approvals for some projects have previously constrained construction momentum.

Taxation Policy Impact

The company provided for INR 0.99 Lakhs and INR 33.18 Lakhs in taxes for its subsidiaries in FY25.

Legal Contingencies

The company recently won a significant legal dispute regarding a property with a book value of INR 28.34 Cr. The favorable judgment allows for sale (est. INR 190 Cr) or lease (est. INR 12 Cr annual income), significantly boosting liquidity.

⚠️ Risk Analysis

Key Uncertainties

Project implementation risk and slower sales/collections are key risks. Slower collections could lead to liquidity tightness, as seen in previous rating downgrades to CARE D/C in 2023.