Eldeco Housing and Industries Ltd. Q1 FY27 Earnings Conference Call Transcript

Operational Performance Highlights

Bookings and Collections:

  • Q1 FY27 booking value: ₹105.7 crores
  • Total area booked: 1.26 lakh square feet
  • Collections: ₹131.2 crores, showing 68% year-on-year growth
  • Construction spend: ₹57.8 crores, up 47.2% year-on-year
  • Homes delivered: 52 homes with aggregate area of 49,400 square feet

Project Launches:

  • Successfully launched Eldeco Imperia Avenue with sales of 44 units
  • Booking value from Imperia Avenue: approximately ₹14.6 crores
  • Launched final tower (Faith) at Eldeco Trinity project

Land Acquisition:

  • Executed legally binding contract for more than 50 acres of contiguous land in prime Lucknow location
  • Land aggregation approximating 15 acres also completed
  • These additions enhance long-term growth visibility and provide multiple future monetization opportunities

Financial Performance

Q1 FY27 Financial Results:

  • Total income: ₹50.3 crores, reflecting 63% year-on-year growth
  • EBITDA: ₹18.7 crores, up 243% year-on-year
  • EBITDA margin: 37.1%
  • Profit After Tax: ₹15.1 crores, up 382% year-on-year
  • PAT margin: 30.0%

Margin Drivers:

  • 85% of Q1 revenue attributable to Imperia Phase 2
  • Gross margins of approximately 60% on Imperia Phase 2
  • Margin improvement due to shift toward horizontal developments (higher margin) versus vertical developments

Project-Specific Details

Imperia Project:

  • Estimated GDV: approximately ₹300 crores
  • ₹170-180 crores of inventory still available for recognition
  • Predominantly expected to be recognized in current financial year (FY27)

Legacy Inventory:

  • Approximately ₹75 crores of ready inventory available in legacy projects
  • Internal target to liquidate 40-60% of this inventory in current financial year

Latitude 27 Project:

  • Scheduled for completion certificate in November 2027
  • GDV: ₹275-300 crores across 8 towers
  • Internal endeavor to complete towers for revenue recognition within FY27 or April-May 2027
  • Expected to recognize 15-20% of project value between March-May 2027

Solano Gardens:

  • 9.5 acres for group housing project
  • Additional 5-acre extension recently added
  • Expected launches within FY27

Future Pipeline and Strategy

Development Pipeline:

  • Total pipeline: 3.4 million square feet
  • Majority (serial numbers 4 through 7) to be launched within FY27
  • 100% of forthcoming project inventory expected to launch within FY27, subject to approvals

Strategic Focus:

  • Sustaining execution momentum across ongoing projects
  • Progressing forthcoming projects toward launch readiness
  • Converting expanded land pipeline into value-accretive development opportunities
  • Disciplined execution and improved profitability

50-acre Land Parcel:

  • Prime Lucknow location under contract
  • Internal debate on vertical vs horizontal development mix
  • Expected to significantly impact future financial trajectory

Market Context and Outlook

Lucknow Market Dynamics:

  • City undergoing tremendous wave of development
  • Gomti Nagar and Shaheed Path areas seeing top investor/occupier interest
  • Residential rates performing reasonably well with self-sustaining ecosystem
  • Inbound migration increasing with Kanpur-Lucknow Expressway opening

Future Outlook:

  • FY27 expected to show strong growth from FY26 base of ₹176 crores topline
  • FY28 onwards expected to be pivotal change in company trajectory
  • Significant uptick in presales and sales expected from FY28

Capital Allocation Considerations

  • All steps including open market buybacks under active management consideration
  • Objective to optimize capital structure while expanding future development
  • Focus on creating shareholder value alongside customer delight

Management Participants

  • Mr. Vaibhav Singh – Group Chief Executive Officer (primary speaker)
  • Mr. Manish Jaiswal – Chief Executive Officer
  • Mr. Rajiv Khurana – Group Vice-President (Accounts & Taxation)
  • Mr. Pankaj Bajaj – Unable to attend due to personal medical emergency