Eldeco Housing & Industries Adds Three Prime Land Parcels in Lucknow, Expanding Pipeline by ₹2,000 Crore GDV in FY26
Eldeco Housing Expands Lucknow Pipeline with ₹2,000 Crore Land Acquisition
Eldeco Housing and Industries secured three prime land parcels in Lucknow with a cumulative Gross Development Value of nearly ₹2,000 crore during fiscal year 2026, the company disclosed during its fourth quarter earnings call in late May. Two of these land parcels were secured via local authority auctions, enabling lower acquisition costs.
The expansion marks a significant step forward for the Lucknow-headquartered developer. The company reported a 13% year-on-year increase in consolidated net profit to ₹24.3 crore for the financial year ended March 31, 2026, driven by record sales bookings and robust operational performance. It achieved its highest-ever annual booking value of ₹743.9 crore, a surge of 120.4% compared to the previous year.
Strong FY26 Performance Underpins Growth Strategy
The successful launch of Eldeco Solano Gardens contributed significantly to quarterly performance, with a booking value of ₹384.5 crore from 5.11 lakh sq. ft. sold. This flagship project validated the company's product-market fit in Lucknow and shaped its strategy for future launches from the newly acquired land.
The company delivered 2.78 lakh sq. ft. during the year, while maintaining robust collections. Collections for FY26 were robust at Rs. 352.1 crores, reflecting a 39% year-on-year improvement in cash flows.
The company plans to focus on scaling execution across ongoing projects and converting its expanded pipeline into launches, indicating a strong growth outlook. Construction spend for FY27 is estimated to be 15% to 20% higher than FY26, reaching around ₹200 crore.
Lucknow Market Strength Provides Foundation
Demand in Lucknow remains strong and largely insulated from geopolitical uncertainties, according to management commentary. The real estate market of Lucknow has experienced positive growth, especially after 2021. Reports published by Knight Frank and JLL reveal that Tier-2 cities including Lucknow are gaining popularity with rising demand owing to their affordability and infrastructure.
While India's tier-2 real estate market faced an overall decline of 8% in Q1 2025, Lucknow emerged as the undisputed champion of regional property investment. The capital of Uttar Pradesh recorded a spectacular 48% jump in sales value, reaching ₹1,797 crore in Q1 2025—the highest growth among all tier-2 cities in India.
Lucknow presents a compelling investment case as multiple growth drivers are converging simultaneously. Infrastructure upgrades, expanding commercial activity, the Defence Corridor, educational institutions and an improving social ecosystem are collectively reshaping Lucknow's urban landscape.
Developer Scale and Track Record
Incorporated in 1985, EHIL has been, for over 3 decades, the market leader in Lucknow- UP's capital and fastest-growing city. EHIL is listed on the Bombay Stock Exchange and has an uninterrupted dividend paying record since inception.
The Eldeco Group has been at the forefront of Real Estate development since 1985. The Group is synonymous with timely and quality delivery in 20 cities in North India and has already handed over 200 projects spanning large-format integrated townships, high-rise condominiums, industrial estates, malls and office buildings.
Over 35 years of operation in North India has established Eldeco as a household name associated with reliability and luxury. By dominating the Lucknow and Kanpur markets, the company leverages deep local expertise, regulatory relationships, and brand recall that national players often lack.
Pipeline and Outlook
The company's total project value—comprising launched and pipeline projects—stands at approximately ₹4,000 crore. Management has indicated a focus on replicating the Solano Gardens model, which blends plotted developments, villas, and group housing formats. The main concern is the rising cost of construction, which could impact project economics, management noted during the earnings discussion.
The Board of Directors approved a final dividend of ₹9 per equity share, or 450% of the face value of ₹2 each, subject to shareholder approval.