Any current/future new fundraising through debt or equity?

No immediate requirement for equity partnership with HDFC Capital as the company can manage CAPEX through internal resources and some debt. Expectation of increased debt going forward primarily for business development, despite having cash on the balance sheet, due to RERA escrow account restrictions. Cash available is largely locked in RERA escrow accounts and not freely usable. Debt levels expected to rise to support land acquisition and business development, but no granular projections provided. No plans for high-cost equity fundraising or merger with unlisted entities at this stage.

Any current/future capex/capital investment/strategic investment?

No current need for equity partnership with HDFC Capital; CAPEX can be managed with internal resources and some debt. Significant land acquisitions planned: 31 acres acquired with a target of reaching 100 acres this year, including the large Solano Garden project. Major project Solano Garden (50 acres) expected to launch in Q3 FY26 after approvals; no utilization of land yet. Business development expenses and land acquisition expected to increase with new projects under planning. Construction financed largely by advances from customers, so lesser need for construction loans. Increase

Future growth expectations in sales/revenue/volumes?

Targeting Rs.3,000-3,500 crore GDV over the next five to six years from current projects and new launches. Pre-sales guidance for FY26 expected to be around Rs.500 crore, higher than previous year’s Rs.340 crore. Launching large projects like Eldeco Solano Garden (Rs.1,000 crore GDV) in phases, with revenue recognition expected starting FY28-FY29. Focus on continued launches such as Hanging Garden, Skywalk, and Solano Garden to drive sales momentum. Expecting stable realizations of Rs.6,000-6,500 per sq ft for most projects, with premium projects like Trinity having higher rates. Gross margins

Future growth expectations in earnings/operating earnings/profits/EPS?

Eldeco expects a strong growth trajectory driven by ongoing and upcoming projects, including the Rs.1,000 crore Eldeco Solano Garden and other land acquisitions in Lucknow. Total GDV over the next 5-6 years is projected at Rs.3,000-3,500 crore, implying gross margins of about 30%, translating to Rs.600-800 crore gross margin. Revenue recognition from large projects like Solano Garden will likely begin from FY28-29, with staggered recognition over 3-4 years. Pre-sales guidance for FY26 is around Rs.500 crore, exceeding Rs.400 crore prior targets, indicating growing sales momentum. Opera

Current/ Expected Orderbook/ Pending Orders?

Total GDV (Gross Development Value) of ongoing and upcoming projects is approximately Rs. 3,000 to 3,500 crore to be recognized over the next five to six years. Unsold and sold value for projects where revenue is yet to be recognized is about Rs. 1,600 to 1,700 crore. New launches have a GDV of around Rs. 1,000 crore. The company plans to increase its land bank from 31 acres to approximately 100 acres this year, which will support future projects. Key projects include Eldeco Hanging Garden and Skywalk with GDVs of about Rs. 180-190 crore each and Solano Garden scheduled for launch in Q3. Pre-s

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Eldeco Housing & Industries LtdQ1 FY25Realty

Eldeco Housing & Industries Ltd Q1 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹805P/E: 36.1Market Cap: ₹818 CrSector: Realty

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Targeting Rs.3,000-3,500 crore GDV over the next five to six years from current projects and new launches.
→Pre-sales guidance for FY26 expected to be around Rs.500 crore, higher than previous year’s Rs.340 crore.
→Launching large projects like Eldeco Solano Garden (Rs.1,000 crore GDV) in phases, with revenue recognition expected starting FY28-FY29.
→Focus on continued launches such as Hanging Garden, Skywalk, and Solano Garden to drive sales momentum.
→Expecting stable realizations of Rs.6,000-6,500 per sq ft for most projects, with premium projects like Trinity having higher rates.
→Gross margins guided around 30%, with Imperia Phase-2 targeted margins upwards of 40%.
→Concentrated growth strategy focusing primarily on Lucknow and expansion to Gorakhpur.
→Sales velocity expected to improve, with goal to complete inventory sell-out over 2.5-3 years post-launch.

Margin guidance

Category 3

→Eldeco expects a strong growth trajectory driven by ongoing and upcoming projects, including the Rs.1,000 crore Eldeco Solano Garden and other land acquisitions in Lucknow.
→Total GDV over the next 5-6 years is projected at Rs.3,000-3,500 crore, implying gross margins of about 30%, translating to Rs.600-800 crore gross margin.
→Revenue recognition from large projects like Solano Garden will likely begin from FY28-29, with staggered recognition over 3-4 years.
→Pre-sales guidance for FY26 is around Rs.500 crore, exceeding Rs.400 crore prior targets, indicating growing sales momentum.
→Operational margins were low in FY25 due to Imperia Phase-1 but expected to improve with Phase-2 commencements and new launches like Hanging Garden and Skywalk.
→EBITDA margins guided around 30% gross margin, signalling healthy profitability ahead.
→Dividend payouts remain strong, reflecting confidence in earnings growth.
→Debt levels may rise due to business development spends, but construction largely funded by customer advances.

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Fundraise plans

Yes

→No immediate requirement for equity partnership with HDFC Capital as the company can manage CAPEX through internal resources and some debt.
→Expectation of increased debt going forward primarily for business development, despite having cash on the balance sheet, due to RERA escrow account restrictions.
→Cash available is largely locked in RERA escrow accounts and not freely usable.
→Debt levels expected to rise to support land acquisition and business development, but no granular projections provided.
→No plans for high-cost equity fundraising or merger with unlisted entities at this stage.

Order book

→Total GDV (Gross Development Value) of ongoing and upcoming projects is approximately Rs. 3,000 to 3,500 crore to be recognized over the next five to six years.
→Unsold and sold value for projects where revenue is yet to be recognized is about Rs. 1,600 to 1,700 crore.
→New launches have a GDV of around Rs. 1,000 crore.
→The company plans to increase its land bank from 31 acres to approximately 100 acres this year, which will support future projects.
→Key projects include Eldeco Hanging Garden and Skywalk with GDVs of about Rs. 180-190 crore each and Solano Garden scheduled for launch in Q3.
→Pre-sales guidance for the current year is over Rs. 500 crore.
→Imperia Phase 2 is expected to contribute with higher margins, revenue recognition anticipated from Q4 FY25 onwards.

Capex plans

Yes

→No current need for equity partnership with HDFC Capital; CAPEX can be managed with internal resources and some debt.
→Significant land acquisitions planned: 31 acres acquired with a target of reaching 100 acres this year, including the large Solano Garden project.
→Major project Solano Garden (50 acres) expected to launch in Q3 FY26 after approvals; no utilization of land yet.
→Business development expenses and land acquisition expected to increase with new projects under planning.
→Construction financed largely by advances from customers, so lesser need for construction loans.
→Increase in company loans anticipated primarily for business development rather than construction finance.
→Cash largely stuck in RERA accounts, not immediately available for use.
→Focus on growth within Lucknow and expansion planned into Gorakhpur in near future.

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