Elevate Campuses IPO DRHP: ₹1,850 cr fresh issue; FY26 revenue ₹568.63 cr
- Elevate Campuses files DRHP for ₹1,850 crore fresh issue IPO
- Consolidated revenue rose 53.76% YoY to ₹568.63 crore in FY2026
- Net profit surged to ₹173.76 crore in FY2026 from ₹49.74 crore in FY2025
- ₹1,100 crore proceeds earmarked for K-12 acquisitions from promoter entities
- High leverage with ₹4,120.53 crore borrowings and 66.61% floating rate exposure
*this image is generated using AI for illustrative purposes only.
Elevate Campuses Limited, India's largest institutionalized student accommodation platform, has filed its Draft Red Herring Prospectus for a ₹1,850 crore initial public offering. The company operates under the 'Good Host Spaces' and 'ScholarZ' brands, managing a portfolio of over 78,500 beds across 16 cities in India and Dubai.
About the Company
Founded in 2005, Elevate Campuses owns, operates, and manages on-campus student accommodation across Higher Educational Institutions (HEIs) in India and the UAE. As of March 31, 2026, the Pre-Acquisition Group operated 20,368 owned beds and 55,487 managed beds, serving a total capacity of 80,255 students. By June 15, 2026, total beds reached 78,542. The company also owns K-12 school assets, entering this segment internationally in September 2025 with acquisitions in Dubai. Its 'Elevate Platform' integrates student accommodation and K-12 assets to engage students from pre-primary to post-graduate levels.
Financial Performance
The company reported consolidated revenue from operations of ₹568.63 crore in FY2026, up from ₹369.81 crore in FY2025 and ₹347.00 crore in FY2024. Net profit surged to ₹173.76 crore in FY2026, compared to ₹49.74 crore in FY2025 and ₹39.69 crore in FY2024. Total assets grew significantly to ₹5,773.35 crore in FY2026, driven by non-current asset acquisitions. Total borrowings stood at ₹4,120.53 crore as of March 31, 2026.
| Metric | FY2024 (₹ Cr) | FY2025 (₹ Cr) | FY2026 (₹ Cr) |
|---|---|---|---|
| Revenue from Operations | 347.00 | 369.81 | 568.63 |
| Net Profit | 39.69 | 49.74 | 173.76 |
| Total Assets | 2,104.74 | 2,421.20 | 5,773.35 |
| Total Liabilities | 1,448.97 | 1,721.42 | 4,817.06 |
Why the Company Is Raising Funds
The ₹1,850 crore fresh issue aims to fund specific strategic initiatives:
- Acquisition of K-12 Entities: ₹1,100 crore (52.38% of gross proceeds) will be used to acquire K-12 entities and campuses from fellow subsidiaries of the promoters.
- Debt Repayment: ₹750 crore (35.71% of gross proceeds) is allocated for the repayment or prepayment of outstanding borrowings by the company and its subsidiaries.
- Inorganic Growth & General Corporate Purposes: The balance of the proceeds will fund unidentified acquisitions, strategic initiatives, marketing, capital expenditure, and working capital requirements.
Business Strengths
- Market Leadership: The company operates approximately 2.1x the capacity of the next largest Private Managed Student Accommodation (PMSA) player.
- Low Market Penetration: Current penetration stands at ~0.85% of the 12.66 million total student enrollment TAM in India, indicating significant growth headroom.
- Long-Term Contracts: HEI contracts for the owned portfolio generally range from 50 to 60 years with minimum occupancy guarantees, providing cash flow visibility.
- Operational Scale: The platform facilitates over 50,000 meals daily and manages more than 1,562 service requests daily across its campuses.
Key Risks
- High Indebtedness: Total borrowings rose to ₹4,120.53 crore in FY2026, with a debt-to-equity ratio of 5.04x. Approximately 66.61% of borrowings are at floating rates with no hedging arrangements.
- Revenue Concentration: In FY2026, 61.46% of the Pre-Acquisition Group’s revenue came from just three HEIs: O.P. Jindal Global University, Manipal University Jaipur, and Shoolini University.
- Declining Occupancy: Occupancy rates in the owned portfolio declined from 99.92% in AY2024 to 89.37% in AY2026.
- Related-Party Transactions: A significant portion of IPO proceeds will be used to acquire assets from promoter-related entities, raising potential valuation and governance concerns.
- High Attrition: Full-time employee attrition surged to 56.43% in FY2026, while Key Managerial Personnel attrition reached 40.00%.
Important IPO Dates
- IPO Open Date: 23-Sep-2026
- IPO Close Date: 25-Sep-2026
- Allotment Date: 28-Sep-2026
- Listing Date: 30-Sep-2026
Offer Details
- Issue Type: Fresh Issue
- Fresh Issue Size: ₹1,850.00 Crore
- Offer for Sale: Nil
- Price Band: Not Available in DRHP
Bottom Line
Elevate Campuses presents a scale advantage in India's student accommodation sector with strong revenue growth and long-term contracted visibility. However, investors must weigh these strengths against high leverage, significant related-party acquisition risks, declining occupancy trends, and elevated employee attrition rates.
How will the repayment of ₹750 crore in debt impact Elevate Campuses' debt-to-equity ratio and interest coverage given its high exposure to floating-rate borrowings?
What valuation metrics are being applied to the K-12 assets acquired from promoter-related entities, and how will regulators assess potential overvaluation risks?
Can Elevate Campuses reverse the declining occupancy trend in its owned portfolio amidst increasing competition and changing student housing preferences?
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