Event Participants
Executives
4 Manish Jaiswal, Rajiv Khurana, Vaibhav Singh (+ Investor Relations: Abhishek Bhatt)
Analysts
6 Gunit Singh (Counter Cyclical PMS), Manan Patel (Individual Investor), Nachiket (Emkay), Pratik Shah (Investing Alpha), Priyam Shah (Value Equity), VD Gupta (Malhotra Family Office)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Total Income | ₹50.3 crores | Up 62.7% YoY; driven by 85% of revenue attributable to Imperia Phase 2 horizontal development |
| EBITDA | ₹18.7 crores | Up ~240% YoY; margin of 37.1% (vs. lower-margin vertical mix in Q1 FY26) |
| Profit After Tax | ₹15.1 crores | Up ~380% YoY; PAT margin of 30.0% |
| Booking Value | ₹105.7 crores | Normalized after exceptional Q4 FY26 launch-led performance; area booked 1.26 lakh sq ft |
| Collections | ₹131.2 crores | Up 68%+ YoY; outpaced bookings, reflecting strong execution momentum |
| Construction Spend | ₹57.8 crores | Up 47.2% YoY; continued progress across ongoing projects |
| Units Delivered | 52 homes | Aggregate area of 49,400 sq ft during Q1 FY27 |
| Land Aggregation | 65+ acres | 50 acres under legally binding contract + ~15 acres completed aggregation in prime Lucknow locations |
Table Rules Applied:
- Collections growth, construction spend YoY, delivery count, land additions as operational KPIs
- EBITDA/PAT margins with YoY changes and attribution to Imperia Phase 2 mix
Geographic & Segment Commentary
Lucknow Market (Primary Geographic Focus): Lucknow is undergoing a significant development wave driven by the opening of the Kanpur-Lucknow Expressway, inbound migration, and a shift from unorganized to organized commercial supply. Residential rates are performing reasonably well with a self-sustaining ecosystem, while commercial rental rates show a steady upward incline, though management refrained from citing exact figures.
Imperia Avenue (New Launch): Successfully launched during Q1 FY27 with 44 units sold at approximately ₹14.6 crores booking value. This high-margin horizontal development (₹170-180 crore total inventory) drove 85% of quarterly revenue with ~60% gross margins.
Eldeco Trinity (Ongoing Project): The third and final tower "Faith" was launched mid-June with a pipeline of 20-25 bookings converting in July-August; full traction expected to reflect in Q2 FY27 results.
Eldeco Solano Gardens (Ongoing Project): Three stages of development - 9.5-acre group housing project, tail horizontal inventory, and a 5-acre efficient extension. Sales continue consistently month-on-month with most remainder inventory expected to liquidate within FY27; group housing launch targeted within the year.
Latitude 27 (Ongoing Project): GDV of ₹275-300 crores across approximately 8 towers. Tower-wise completion certificates and revenue recognition targeted; 15-20% expected to be recognized between March-May 2027, dependent on completion timing and potential RERA extensions (4-month extension noted from Middle East-related disruptions).
Company-Specific & Strategic Commentary
Execution Discipline: Collections (₹131.2 crores, +68% YoY) outpaced bookings (₹105.7 crores), with construction spend up 47.2% YoY to ₹57.8 crores - emphasizing the company's continued focus on project delivery over sales velocity.
Land Pipeline Expansion: Executed legally binding contract for 50+ acres of contiguous land in prime Lucknow location plus ~15 acres additional aggregation. The 50-acre parcel is expected to be a large horizontal development and management noted it will "make a distinct change in the trajectory of the financials" of the organization.
Inventory Strategy: Legacy inventory of ~₹75 crores is being actively monetized through an internal push to bring projects to closure, with 40-60% liquidation targeted in FY27. The company's strategy is to de-risk projects by booking large portions during initial launch periods, leaving tail inventory that can be sold at present-day market rates.
Product Mix Management: Management is balancing vertical (high-rise) and horizontal (township) developments opportunistically, with a growing focus on horizontal formats which deliver higher margins. The 3.4 million sq ft forthcoming pipeline (predominantly items 4-7) is nearly 100% expected to be launched within FY27, subject to approval timelines.
Capital Allocation & Shareholder Value: Management acknowledged active consideration of open market buybacks and other capital optimization instruments, stating "all these topics are under active consideration of the management." Also noted seizing of "all the methodologies... including but not limited to open market buybacks" to optimize capital structure.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Imperia Phase 2 Revenue Recognition | ~₹170-180 crore inventory, predominantly recognized in FY27 | Management expects realization this year but declined to predict exact sales timeline ("predominantly we will be able to realize the orders in this") |
| Legacy Inventory Liquidation | 40-60% of ~₹75 crores in FY27 | Internal push to close out legacy projects; not top-of-mind for brokers/channel, monetization requires dedicated effort |
| Forthcoming Project Launches | ~100% of 3.4M sq ft pipeline in FY27 | Approvals are the only variable; management believes all inventory will be launched within the fiscal year |
| Latitude 27 Revenue Recognition | 15-20% between March-May 2027 | Tower-wise completion; could book in FY27 (if March) or FY28 (if April-May); subject to RERA extension risk from Middle East disruptions |
| Solano Gardens Group Housing | Launch within FY27; extension "attempted" in FY27 | 9.5-acre group housing project plus 5-acre extension; no commitments on extension timing |
| Revenue Trajectory | FY27: reasonably strong growth; FY28 onwards: significant trajectory change | Management stated "FY28 onwards is going to be a pivotal change in the trajectory of this company, in terms of pre-sales as well as sales" |
| Booking Run Rate | FY27 strong growth; FY28-29 much larger uptick | Declined to provide quantum; pointed to presentation slides (ongoing/forthcoming projects) for launch pipeline information |
Risks & Constraints
| Risk | Context |
|---|---|
| Approval Delays | Forthcoming project launches depend on approvals; management noted approvals "can be a bit up and down," which is the only reason they don't commit to 100% of the 3.4M sq ft pipeline launching in FY27 |
| Macro/Disruption Impact on Construction Timelines | December 2025 Middle East events caused 4-month RERA extensions across projects due to commodity pressure and labor displacement; this directly affects Latitude 27 revenue recognition timing and could shift FY27 recognition into FY28 |
| Geographic Concentration in Lucknow | Analyst (Manan Patel) flagged terminal value concerns due to Lucknow-only exposure; management emphasized Lucknow's development wave but offered no 5-year roadmap or geographic diversification plan |
| Market Undervaluation / Capital Allocation | Analyst noted strong fundamentals not reflected in share price; management acknowledged consideration of buybacks but committed to "heads down" execution model, creating potential disconnect with shareholder expectations |
| Sales Velocity Uncertainty | Management declined to forecast forward sales quantum for FY27, citing unwillingness to "make a prediction" on booking run-rate despite analyst requests |
Q&A Highlights
Imperia Phase 2 Inventory & Margins
- Question: How much of Imperia Phase 2 expected revenues (~₹3 cr GDV) have been booked, and what is the legacy inventory status? (Gunit Singh)
- Answer: ~₹170-180 crore inventory is available total; predominantly recognized in FY27. Legacy inventory of ~₹75 crores, with 40-60% liquidation targeted this year. 85% of Q1 FY27 revenue is attributable to Imperia Phase 2, with gross margins of approximately 60%. (Vaibhav Singh)
Latitude 27 Revenue Recognition Timing
- Question: Will Latitude 27 (GDV ₹275-300 crores, 7-8 towers) get completion certificates tower-wise for revenue recognition? (Gunit Singh)
- Answer: Tower-wise recognition is the internal approach; targeting 15-20% recognition between March-May 2027 (potentially FY27 or FY28 depending on timing). All projects received 4-month RERA extensions due to Middle East disruptions (commodity pressure, labor displacement), which is the key variable. (Vaibhav Singh)
EBITDA Margin Drivers & Sustainability
- Question: What drove the 37.1% EBITDA margin, and will it sustain? (Nachiket, Emkay)
- Answer: The YoY margin improvement reflects product mix - Q1 FY26 was predominantly vertical/high-rise (lower margins) while Q1 FY27 was dominated by Imperia (horizontal, high-margin). Management is finding more horizontal opportunities in the land bank (including the 50-acre deal) which should deliver higher margins, while maintaining an opportunistic balance between horizontal and vertical. (Vaibhav Singh)
Forthcoming Pipeline Launch Timeline
- Question: How much of the 3.4 million sq ft forthcoming pipeline will launch in FY27? (Priyam Shah, Value Equity)
- Answer: Almost 100% of the 3.4M sq ft pipeline (predominantly items 4-7 in the presentation) will be launched within FY27; the only caveat is approvals which "can be a bit up and down." Solano Gardens has 3 stages (9.5-acre group housing, tail horizontal inventory, 5-acre extension), with group housing expected to launch this year and the extension attempted within FY27. (Vaibhav Singh)
Eldeco Trinity (Faith Tower) Sales Traction
- Question: Why did the Trinity area booked increase only 6,000 sq ft QoQ despite launching the final tower? (Manan Patel, Individual Investor)
- Answer: Faith was launched mid-June; the sample was ready June 10-15 with first customer engagements in the third/fourth week of June. 2-3 bookings were made initially with a pipeline of 20-25 bookings converting in July-August. Real traction will be visible in Q2 FY27 results. (Vaibhav Singh)
Area Booked vs. Area Allotted Reconciliation
- Question: Why does slide 13 show area booked of 15.3 lakh sq ft (cumulative) vs. Q1 booking of 1.25 lakh sq ft? (Manan Patel)
- Answer: The slide uses "area allotted" not "area booked" - allotment follows booking, so there is a spill-off from prior bookings allotted in the current quarter. These are not comparable metrics; area allotted reflects customers already in the system while booking is pre-allotment. (Rajiv Khurana, CFO)
Capital Allocation & Shareholder Returns
- Question: Should the company consider open market buybacks given the undervalued stock and strong balance sheet? (Manan Patel)
- Answer: Management appreciates the sentiment and confirmed all capital allocation tools (including buybacks) are "under active consideration." Core philosophy is to "put heads down and work hard" and let markets wake up; company is "seized of all methodologies" and will deploy capital wherever optimal, otherwise expand future development. (Vaibhav Singh)
Revenue Trajectory & 50-Acre Land Parcel GDV
- Question: How will revenue evolve from the FY26 base of ₹175 crores, and what is the GDV/timeline of the new 50-acre parcel? (Pratik Shah, Investing Alpha)
- Answer: FY27 will show reasonably strong growth from FY26; FY28 onwards is a pivotal trajectory change in pre-sales and sales ("FY28, 29... better things are in store"). For the 50-acre land, internal debate continues on vertical vs. horizontal split; management described it as "very large and very prime" that will make a "distinct change in the trajectory of the financials." (Vaibhav Singh)
Key Takeaway
Eldeco Housing delivered a strong Q1 FY27 with total income at ₹50.3 crores (+62.7% YoY), EBITDA of ₹18.7 crores (37.1% margin, up ~240% YoY), and PAT of ₹15.1 crores (+380% YoY), driven predominantly by high-margin Imperia Phase 2 horizontal sales (85% of revenue at ~60% gross margins). Collections outpaced bookings at ₹131.2 crores (+68% YoY) versus ₹105.7 crores, reflecting the management's execution-first strategy. Strategic moves during the quarter included the Imperia Avenue launch (44 units, ₹14.6 crores), the final Trinity tower "Faith" (with 20-25 bookings converting in Q2), and critically, a 50+ acre contiguous land contract in prime Lucknow plus ~15 acres additional aggregation - positioning for a "distinct change in trajectory." Management guided to near-100% launch of the 3.4 million sq ft forthcoming pipeline within FY27, 40-60% liquidation of the ₹75 crore legacy inventory, and flagged FY28 onwards as a pivotal period for revenue and pre-sales inflection. Risks center on approval timelines, RERA extension impacts from Middle East disruptions (shifting Latitude 27 recognition to FY28), and Lucknow geographic concentration. Management acknowledged shareholder-value tools like buybacks are under active consideration, but the core ethos remains disciplined execution to let markets validate the story over time.