Eldeco Housing & Industries Ltd Management Discussions

ECONOMY OVERVIEW

Global Economy The global economy entered 2026 with improving resilience, supported by steady consumption, technology-driven investment, and gradual easing of trade policy uncertainty. However, this momentum was disrupted by the outbreak of conflict in the Middle East during the early part of the year. As a result, global growth is expected to moderate, with the International Monetary Fund projecting global GDP growth of 3.1% in 2026, down from 3.4% in 2025, before recovering to 3.4% in 2027.

Global headline inflation is projected to rise to 4.7% in 2026, reversing the disinflation trend seen since early 2024, before easing to 3.9% in 2027. While advanced economies continue to experience relatively subdued growth, emerging market and developing economies, led by India, continue to outpace advanced economy growth, supported by resilient domestic demand and ongoing structural reforms. Overall, the global economic outlook remains positive but sensitive to geopolitical and macroeconomic developments.

Indian Economy India continued to be among the worlds fastest-growing major economies in FY26, demonstrating resilience despite a volatile global environment. Growth was supported by sustained government investment in infrastructure, increasing domestic demand, and a broadly supportive policy framework. As per the IMF report (April 2026), Indias real GDP growth stood at 7.6% in 2025 and is expected to moderate to 6.5% in 2026 amid rising global uncertainties and cost pressures. During the year, the monetary policy environment became more supportive with inflation moderating and the Monetary Policy Committee reducing the repo rate by 100 basis points, while maintaining a neutral stance from June 2025.

This is positive for investment-led sectors such as real estate, particularly residential development, as lower interest rates improve housing affordability, support buyer sentiment, and ease financing conditions. Overall, these factors are expected to strengthen economic activity, reinforce investment momentum, and support Indias position as a key driver of global growth.

Indian Real Estate Market

The Indian real estate sector continued to demonstrate healthy momentum, supported by rising disposable income, urbanisation, infrastructure-driven development, and evolving consumer preferences. Within this environment, residential real estate continues to account for the largest share of overall sector activity, with demand supported by both end-user purchases and growing aspirations for home ownership. Mid-segment housing continued to account for a significant share of residential sales, contributing nearly 52% of total sales over the last four years. At the same time, premiumization emerged as a key trend, with rising demand for luxury and high-end homes driven by lifestyle upgrades, increasing NRI participation, and preference for premium living spaces.

With lower interest rates, improving connectivity, and rising per capita income levels, the sector remains well positioned for long-term growth. According to IBEF, the Indian real estate market is expected to grow by 54% to USD 1,000 billion by 2030.

Growing Income levels & employment opportunities is fuelling urbanisation & strengthening purchasing power, thereby improving the affordability of urban real estate.

Sales Trend Residential real estate is entering a more mature phase, with sales remaining strong while buyer preferences become increasingly selective. Premium housing continues to witness healthy demand, supported by evolving lifestyle aspirations, while developers have largely maintained pricing discipline.

Indian Residential Real Estate Market Indias residential real estate market remained steady in 2025, transitioning from volume-led expansion to value-driven growth. The sector was increasingly characterized by rising ticket sizes, premiumization and stronger pricing power, even as overall housing sales moderated amid price inflation and macroeconomic uncertainties. During H1 CY2026, housing sales across the countrys remained broadly stable at 171,471 units, reflecting consolidation rather than correction after four years of strong post-pandemic growth. Affordable housing supply has remained constrained relative to demand, pushing an increasing share of transaction value towards the premium and luxury segments. Additionally, Tier II cities, including Lucknow, have been highlighted by industry research as gaining a growing share of national residential demand, driven by affordability, improving connectivity and accelerating infrastructure investments, supporting long-term sector growth prospects.

After muted growth between 2015 and 2019, residential prices rose by over 50% during 2019-24 and moderated to a sustainable 8% growth in 2025. At the same time, the sales mix shifted towards larger ticket-size homes, indicating an increase in demand for premium housing.

House Price Index Residential real estate prices continued to strengthen during FY26. The All-India House Price Index (HPI) increased from 110.00 in Q4FY25 to 115.85 in Q4FY26, indicating sustained demand & continued resilience across major residential real estate markets. Lucknow witnessed even stronger price appreciation, with its HPI rising from 100.00 to 125.78 during the same period, supported by improving infrastructure, rising homebuyer demand and limited quality supply. These trends underscore the citys emergence as a key growth market and provide a supportive backdrop for premium residential developments.

LUCKNOW - North Indias Emerging Growth Hub & Real Estate Destination

Lucknows residential real estate market has demonstrated a distinctive growth trajectory over the last five years, with housing demand consistently exceeding new supply, setting it apart from several larger and more mature metropolitan markets. According to Anarock Research, the city absorbed 27,640 residential units between 2021 and 2025, average residential prices in Lucknow rose from ? 3,890 per square foot in 2021 to ? 6,380 per square foot in 2025, an increase of nearly 64%, with the sharpest gains recorded during the post pandemic recovery and steadier appreciation since. The ? 80 lakh to ? 1.5 crore price bracket accounted for the largest share of new launches over the period, reflecting Lucknows positioning as an aspirational, primarily end user driven market rather than a speculative one. Infrastructure investment, including the ongoing second phase of the Lucknow Metro, the outer ring road, airport connectivity, expressway networks and the developing defence corridor, continues to expand the citys addressable growth corridors and has boosted investor confidence.

The Uttar Pradesh governments urban development policy, introduced in February 2026, liberalises floor area ratio norms and is intended to shorten project approval timelines, a change management believes will benefit established, well capitalised developers such as Eldeco Housing and Industries Limited disproportionately.

Company Overview

Eldeco Housing and Industries Limited (EHIL or The Company) is a prominent real estate developer in Uttar Pradesh since 1985. With a significant presence in the rapidly growing city of Lucknow, EHIL operates in both the segments, the horizontal township format and vertical group housing, with a focus on middle income segment. The Company has been growing steadily for the past 40 years, with an expertise in construction, development, promotion and sale of townships, residential and developed plots. EHILs success is driven by its timely delivery of quality projects and exceptional customer service.

Furthermore, it integrates sustainability into its business plan by incorporating eco-friendly practices into a variety of projects, such as battery-operated E-Rickshaws for reduced carbon footprints, solar panels to increase energy efficiency and solar water heaters, ensuring unwavering commitment to both its customers and the environment. Over the years, EHIL has become a brand leader in real estate development in Lucknow.

Operational Performance

During FY26, the Company delivered its strongest operational performance to date, driven by record sales bookings, robust collections, continued construction progress, and strategic expansion of its development pipeline. The successful launch of Eldeco Solano Gardens, strong demand across ongoing projects, and disciplined execution enabled EHIL to achieve its highest-ever booking value and collections during the year. Simultaneously, the Company strengthened its future growth platform by securing three strategic land parcels in Lucknows key growth corridors, adding nearly ? 2,000 crore of Gross Development Value (GDV) to its pipeline.

The year witnessed the successful launch of Eldeco Solano Gardens, which recorded bookings of approximately 5.11 lakh sq. ft. with a booking value of ? 384.5 crore, reflecting strong market acceptance and reinforcing the Companys integrated township development strategy. In addition, ongoing projects such as Eldeco Latitude 27, Eldeco Trinity, Eldeco Hanging Gardens and Eldeco Skywalk continued to progress as planned, supported by steadily increasing construction activity.

The Company booked 10.77 lakh sq. ft. during FY26, more than double the previous year, while average realization improved to ? 6,909 per sq. ft., driven by a favourable product mix and growing demand for premium residential developments. During the year, EHIL delivered 2.78 lakh sq. ft. across 280 homes and received the Completion Certificate for Eldeco Imperia Phase 2, further strengthening its execution track record.

Total income for FY26 stood at ? 175.7 crore compared with ? 143.7 crore in FY25, reflecting growth of 22.3% year-on-year. The Lucknow residential real estate market continued to benefit from strong underlying demand, rising infrastructure investments, and increasing preference for quality developments, supporting both sales momentum and realization growth.

Key operational highlights of FY26:

? Strengthening Growth Pipeline: The Company secured three strategic land parcels during FY26, adding nearly ?2,000 crore of GDV to its future development portfolio and enhancing long-term growth visibility.

? Successful Project Launches: Eldeco Solano Gardens received an exceptional response from homebuyers, recording bookings of approximately 5.11 lakh sq. ft. with a booking value of ?384.5 crore.

? Construction Progress: Construction expenditure during FY26 stood at ?177.7 crore, reflecting continued progress across the Companys project portfolio and a sustained focus on execution.

? Record Sales Performance: Area booked during FY26 stood at 10,76,654 sq. ft., while booking value reached a record ?743.9 crore, representing growth of 110% and 120% respectively, over FY25.

? Improved Realizations: Average realization increased to ?6,909 per sq. ft. during FY26 compared to ?6,568 per sq. ft. in FY25, supported by premium product offerings and strong market demand.

? Robust Collections: Collections during FY26 grew by 39% year-on-year to ?352.1 crore, demonstrating strong customer demand and healthy cash conversion across projects.

? Project Deliveries: The Company delivered 280 homes covering 2.78 lakh sq. ft. during FY26 and received the Completion Certificate for Eldeco Imperia Phase 2, reinforcing its commitment to timely execution and customer satisfaction.

On-going Projects

Sr. No.	Ongoing Projects	Project Area (sq. ft.)	Saleable Area (sq. ft.)	Area Launched (sq. ft.)	Area Booked (sq. ft.)	Area Allotted to partner (sq. ft.)	Area Available (sq. ft.)	Area Value of Available ( \u20b9 cr.)	Collection Received ( \u20b9 cr.)	Balance Pending ( \u20b9 cr.)	Expected Completion
1	Eldeco Latitude 27	1,537,675	5,16,712	5,16,712	3,76,514	45,013	95,185	194,91	23,8	71,1	Nov-27
2	Eldeco Trinity	1,34,987	5,13,880	3,76,666	2,23,206	-	2,90,674	182,67	75	105,1	May-28
3	Eldeco Hanging Gardens	1,00,788	2,72,332	2,72,332	2,48,210	-	24,122	163,84	32	120,6	Jun-28
4	Eldeco Skywalk	1,08,706	3,39,463	3,39,463	1,21,799	-	2,17,664	63,3	18,4	44,9	Jun-28
5	Eldeco Gardens	18,52,217	8,66,722	6,58,925	4,07,993	-	4,58,729	296,03	37	262,3	Jun-29
	Total	23,50,465	25,09,109	21,64,098	13,77,722	45,103	10,86,374	900,62	96,6	604,0

Eldeco Solano Gardens: The above figures represent allotments made up to 31 Mar 26. However, actual booking numbers stand at 5,11,319 sq. ft. of area booked against a booking value of 384.50 crores.

Financial Highlights (Consolidated)

Particulars ( \u20b9 in Cr)	FY26	FY25	YoY
Total Income	175.7	143.7	22.3%
EBITDA	41.5	35.6	16.5%
Finance Cost	3.1	4.3	(26.4%)
PBT	37.5	30.5	22.9%
PAT	24.3	21.5	12.9%
EBITDA Margin (%)	23.6%	24.8%	(117) bps
PBT Margin (%)	21.4%	21.2%	11 bps
PAT Margin (%)	13.8%	15.0%	(115) bps

Total Income stood at ? 175.7 crore in FY26 compared to ? 143.7 crore in FY25. The EBITDA was ? 41.5 crore in FY26 compared to ? 35.6 crore in FY25. The EBITDA margin stood at 23.6% in FY26. The PAT (profit after tax) stood at ? 24.3 crore in FY26 compared to ? 21.5 crore in FY25. The PAT margin was 13.8% in FY26. The Board considered and recommended a final dividend for financial year ended March 31, 2026, of 450% i.e. ? 9/- per equity share of face value of ? 2/- each.

Details of Key Consolidated Financial Ratios during FY 26

EXISTING STRENGTHS AND FUTURE GROWTH

Market Leadership in Lucknow

? Trusted brand built over four decades with a strong track record of quality and timely delivery.

? Well-positioned in one of Indias fastest-growing Tier-II real estate markets, supported by expanding infrastructure and strong housing demand.

? Strong presence across key residential corridors of Lucknow with a portfolio of premium residential, township, and mixed-use developments.

Scalable Execution Platform

? Proven execution capabilities developed through more than 40 years of operating experience in Uttar Pradesh.

? Ability to execute multiple large projects simultaneously while maintaining quality and delivery standards.

? Five ongoing projects, a growing development pipeline, and 69 completed projects delivered to date.

? Strong track record of construction execution, customer deliveries, and project monetization.

Prudent Financial Management

? Self-funded and debt-light business model supported by customer advances and internal accruals.

? Conservative capital structure and disciplined capital allocation approach.

? Strong collection, low finance costs, and the financial flexibility to support future growth initiatives.

Growth pipeline strengthened through strategic land acquisitions adding nearly ? 2,000 crore of GDV during FY26.

Financial Highlights Consolidated

Particulars	Consolidated FY26	Consolidated FY25	YoY
Debtors Turnover (x)	143.7	576	149%
Inventory Turnover (x)	0.3	0.3	(0.6%)
Interest Coverage Ratio (x)	12.9	8.15	58.8%
Current Ratio (x)	1.9	2.2	(11.8%)
Debt Equity Ratio (x)	0.4	0.32	28.8%
Operating Profit Margin (%)	25.2%	26.6%	(140) Bps
Net Profit Margin (%)	14.7%	16.1%	(133) Bps
Return on Net Worth (%)	6.1%	5.6%	48 Bps

Human Resources

Our employees are at the heart of everything we do. Their commitment, expertise, and ownership mindset drive our success and help us deliver lasting value. We continue to invest in building their technical and leadership capabilities through focused training and upskilling programmes. These efforts ensure our people are equipped to meet evolving business needs while staying true to our values and vision. As on March 31, 2026, the Company had 85 employees on the payroll out of which 33 employees have been rendering services for more than 5 years.

QUALITY

EHIL is committed to best-in-class quality control processes and systems to attain maximum customer satisfaction. The Company undertakes the highest quality and timely delivery in all its projects. It has a capable and skilled project management team of engineers, site managers, associated employees, and a robust IT platform. The Company uses benchmarked technology tools to augment quality in planning, assurance, control, and improvement and strives to build a quality system for delivering defect free products to its customers.

ENVIRONMENT, HEALTH AND SAFETY (EHS)

EHIL is committed to taking an appropriate approach to the health and safety management of its human assets. The Company adopts rational procedures and has adequate safety measures for all its workers at the construction site, thereby reducing worksite injuries. The Company also works towards employee wellbeing while ensuring diversity, zero discrimination, and other attributes essential to a healthy and beneficial working environment. EHIL puts great emphasis on a fraud-free and corruption-free work culture. The Company has various policies in place such as the Code of Conduct, Policy on Prevention of Sexual Harassment at Workplace, and Vigil Mechanism that ensure overall welfare of all the employees. The Company aims for continuous improvement in EHS performance by designing end-to-end business processes and requirements systematically and integrating them with Enterprise Resource Planning (ERP) to achieve overall sustainability.

Some significant features of the internal control systems are:

? Preparation of annual budgets for all operating and service functions and periodical review of the same.

? Regular internal audits and checks carried out by an internal audit team to ensure responsibilities are executed effectively and that the systems are adequate.

? The Audit Committee of the Board reviews the adequacy and effectiveness of the internal control systems and suggests improvements for strengthening them.

? Periodic reviews of important audit findings, accuracy of internal controls, compliance with Accounting Standards and the reasoning for changes in accounting policies and practices (if any).

CAUTIONARY STATEMENT

Certain Statements found in the Management Discussion and Analysis may constitute Forward-looking Statements within the meaning of applicable securities laws and regulations. These forward-looking statements involve known and unknown risks, uncertainties and other factors that are difficult to predict, and which may cause our actual results, performance, or achievements to be different from any future results, performance and achievements expressed or implied by these statements. In accordance with the Code of Corporate Governance approved by the Securities and Exchange Board of India, shareholders and readers are cautioned that in the case of data and information external to the Company, no representation is made on its accuracy or comprehensiveness though the same are based on sources thought to be reliable. The Company does not undertake to make any announcement in case any of these forward-looking Statements become materially incorrect in future or any update made thereon.