Eldeco Housing & Industries Reports 136.92% YoY Net Profit Surge in Q3 FY26 (December 2025 Quarter)

Strong Q3 Turnaround Lifts Eldeco Housing Profit 137%

The December 2025 quarter marked a dramatic turnaround for Eldeco Housing, with the company posting its strongest quarterly performance in recent memory. Net profit jumped 136.92% year-on-year to ₹13.67 crore in Q3 FY26, announced on 10 February 2026.

Revenue Growth and Operating Margins

Net sales of ₹43.08 crore represented the highest quarterly revenue in at least seven quarters, growing 30.35% sequentially and 24.29% year-on-year. The sharp improvement in profitability reflects a significant operational shift. The operating profit excluding other income surged to ₹17.65 crores in Q3 FY26, yielding an exceptional 40.97% margin, up from prior-quarter levels.

Drivers of the Profit Surge

Net profit soaring 137.0% YoY was driven by a significant EBITDA margin expansion to 43.7% and a ₹55 crore recovery from the Bareilly project. The growth appears tied to specific project deliveries, as evidenced by the sharp sequential improvement in operating margins.

Nine-Month Performance and Booking Momentum

Eldeco Housing's 9MFY26 booking value rose 29% YoY to ₹361.2 crore. Collections increased 43% YoY to ₹255.7 crore; construction spend and deliveries also grew. This underlying operational momentum reflects sustained demand in the company's core markets.

Solano Gardens Launch and Future Pipeline

The launch of Eldeco Solano Gardens (Phase 1) in January 2026, boasting a Gross Development Value (GDV) potential exceeding ₹1,000 crore, was cited as a significant milestone and a key long-term value driver. The company is actively acquiring land (adding 2.05 acres in Q3 FY26) and advancing planning for commercial projects like Eldeco City Courtyard and Eldeco Imperia Avenue Commercial, signaling diversification and future growth avenues.

About Eldeco Group

The Lucknow-based real estate developer's stock rallied 8.69% following the results announcement, closing at ₹1,005.35 and pushing the company's market capitalisation to ₹988.56 crores. Founded in 1975 as Eldeco Construction Pvt Limited, the company has been expanding its presence across North India, having successfully completed 45 projects in Lucknow, Kanpur, Agra and Ghaziabad, with 18 more projects under construction. With over 30 million square feet of developed area, the company has created a thriving community of more than 30,000 satisfied customers.

In Noida, Greater Noida, Faridabad, Gurgaon, Sonepat, Panipat, Ludhiana, Jalandhar, Lucknow, Kanpur, Panchkula, and Sitarganj, the Group is working on 30 housing projects, including multi-story apartments, township development, shopping & office complexes, and industrial parks.

Market Position and Capital Allocation

Unlike many peers in the real estate sector, ELDEHSG maintains a debt-free balance sheet, providing it with immense flexibility for land acquisitions and shielding it from interest rate volatility. On the balance sheet front, Eldeco Housing has accumulated long-term debt of ₹98.25 crores as of March 2025, up from zero debt in March 2023. Whilst the debt-to-EBITDA ratio of 1.72 times remains manageable, and the company maintains a strong interest coverage ratio of 29.92 times, the addition of leverage during a period of declining returns raises concerns about capital allocation decisions.

The earnings per share (EPS) of Eldeco Housing & Industries stood at 13.9 during Q3 FY 2025-26.