Eldeco Housing & Industries has reported robust performance for the first half of fiscal year 2026, with significant growth in bookings and collections. The company is also gearing up for the launch of a major township project in Lucknow.

Strong H1 FY26 Performance

Eldeco Housing delivered impressive results for H1 FY26:

The company's booking value saw a substantial increase of 91% year-on-year, reaching ₹309.00 crores in H1 FY26. Collections also showed strong growth, rising 76% to ₹91.30 crores. During this period, Eldeco Housing delivered 191 homes, totaling 2.03 lakh square feet.

Upcoming Township Project

Eldeco Housing is preparing to launch its flagship project, Eldeco Solano Gardens, a township development in Lucknow. Key details of the project include:

• Location: New Jail Road, Lucknow
• Land Area: 50 acres
• Estimated Gross Development Value: ₹1,000.00 crores
• Project Components: Plain plotted development, villas, group housing, and potentially a senior living segment

The company is awaiting final environmental clearance and RERA registration for the project. Management expects to launch the project within the current financial year, starting with the villa segment.

Management Insights

During the Q2 FY26 earnings call, Pankaj Bajaj, Chairman and Managing Director, provided additional insights:

• The company expects Eldeco Solano Gardens to be a key growth driver in the coming years.
• Management anticipates realizations for Solano Gardens to be in line with the current portfolio average of ₹5,000-6,000 per square foot.
• The project will be phased out over several years, with different components being launched sequentially.

Market Outlook

Eldeco Housing's management views Lucknow as an undersupplied market with significant demand for quality housing in the ₹60.00 lakhs to ₹1.50 crores range. The company believes there is potential for substantial growth in absorption if the right supply is introduced to the market.

Financial Performance

For Q2 FY26, Eldeco Housing reported:

• Consolidated Total Income: ₹35.30 crores (compared to ₹36.40 crores in Q2 FY25)
• EBITDA: ₹5.50 crores
• EBITDA Margin: 15.7%
• Profit After Tax: ₹2.60 crores

The company expects margins to improve in the coming quarters, particularly with the revenue recognition of Imperia Phase II, which is anticipated to have EBITDA margins of around 30-35%.

As Eldeco Housing continues to capitalize on its strong brand presence in Lucknow and expands its project portfolio, the company appears well-positioned for growth in the coming years. The launch of Eldeco Solano Gardens and the ongoing performance of existing projects will be key factors to watch in the near term.

Eldeco Housing & Industries Limited (EHIL) has reported a robust performance in Q2FY26, marked by significant growth in collections and area delivered, despite a slight dip in booking value. The company is also gearing up for a major township launch, signaling confidence in the real estate market's potential.

Key Financial Highlights

• Collections rose by 76% year-on-year to ₹91.30 crores in Q2FY26
• Area delivered increased by 95% to 1.19 lakh sq.ft.
• Construction spend grew by 11% to ₹37.30 crores
• Booking value declined by 14.4% to ₹88.10 crores

Operational Performance

EHIL demonstrated strong operational execution in Q2FY26:

The decline in booking value was attributed to the absence of major launches during the quarter. However, the company's H1FY26 bookings showed a 91% year-on-year growth, reaching ₹309.20 crores.

Financial Results

For Q2FY26, EHIL reported:

• Total income: ₹35.30 crores
• EBITDA: ₹5.50 crores
• PAT: ₹2.60 crores

Strategic Updates

EHIL is preparing to launch a significant new project:

• Eldeco Solano Gardens: A 54-acre township on New Jail Road, Lucknow
• Estimated Gross Development Value (GDV): Over ₹1,000 crores
• Expected to be a key growth driver in the coming years

The company has also strengthened its land bank, increasing aggregated land for new projects to 36.8 acres.

Management Commentary

Pankaj Bajaj, Chairman & Managing Director of EHIL, commented on the results: "While Q1 was driven by good bookings from new launches, Q2 has been characterized by healthy collections, improved deliveries, and steady construction progress, underscoring customer confidence and our ability to deliver."

He added, "With strong collections, accelerated construction, and the upcoming launch of Eldeco Solano Gardens, we are confident of delivering growth in H2FY26. Our focus remains strategic land buys, disciplined execution and delivering value to our customers in Lucknow's expanding real estate market."

Outlook

EHIL's performance in Q2FY26 reflects its strong operational capabilities and strategic focus. The significant increase in collections and area delivered indicates robust execution and customer trust. While the booking value saw a temporary dip due to the absence of new launches, the company's H1FY26 performance and the upcoming Eldeco Solano Gardens project suggest a positive outlook for the latter half of the fiscal year.

The real estate sector in Lucknow appears to be on a growth trajectory, and Eldeco Housing & Industries seems well-positioned to capitalize on this trend with its strategic land acquisitions and project pipeline. Investors and market watchers will likely keep a close eye on the launch and reception of Eldeco Solano Gardens, as it could significantly impact the company's future growth and market position.