Eldeco Housing & Industries Limited has executed a comprehensive term loan facility agreement worth Rs 110.00 crore with Piramal Finance Limited on February 11, 2026. The agreement follows the Board's approval granted on February 10, 2026, and represents a significant financial arrangement for the real estate developer.

Loan Structure and Participants

The facility agreement involves Eldeco Housing & Industries as the primary borrower, along with five wholly-owned subsidiaries serving as co-borrowers:

Facility Breakdown and Purpose

The Rs 110.00 crore rupee term loan has been structured to address three specific business requirements:

• Facility 1: Land acquisition in Lucknow
• Facility 2: Group project expenses
• Facility 3: Project expenses

Security and Collateral Framework

Piramal Finance Limited has secured the loan through a comprehensive collateral structure designed to mitigate lending risks:

Special Rights and Terms

The loan agreement includes specific provisions that grant Piramal Finance Limited certain rights in case of default. The lender reserves the right to appoint a nominee director on the Board of Eldeco Housing & Industries at its sole discretion in the event of payment default.

Financial Details

The transaction does not involve any related party relationships, as Piramal Finance Limited is not connected to the promoter, promoter group, or group companies of Eldeco Housing & Industries. The company has confirmed that this arrangement will support its ongoing real estate development activities and expansion plans in the Lucknow market.

Source:

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.