Eldeco lifts Solano Gardens margin target after a 10-day sell-out
Record FY26 bookings of ₹744 crore were driven by a single project that sold 79% of units in 10 days. Management now expects that project to earn 35-40% margins.
— 3 earlier stories on Eldeco Housing & Industries Ltd. →What's new
- Solano Gardens margin guidance lifted to 35-40% from 25-30% six months ago.
- Imperia Phase 2 near-term revenue recognition cut to ₹130-150 cr due to customer possession deferrals.
- Company added three Lucknow land parcels, expanding total pipeline to ~₹4,000 cr.
Why this matters
Eldeco is raising profit expectations on the launch that worked while pushing back revenue on another. The combination points to strong pricing power on Solano Gardens, but a more cautious view on projects that rely on construction completion. The near-term cash flow mix is what matters now.
What we're watching
- Actual Solano Gardens execution against the new 35-40% margin band.
- Customer response to the Imperia Phase 2 possession delay.
- Timeline for monetising the new Lucknow land parcels.
The full read
Eldeco Housing's record ₹744 crore in FY26 bookings, a 120% jump, was a one-project story. Solano Gardens absorbed 79% of its units in 10 days, contributing ₹384 crore. The call's main move was a sharp upgrade to that project's profit outlook. Management lifted Solano Gardens blended margin guidance to 35-40% from the 25-30% range it flagged six months ago. At the same time, the company tempered expectations on Imperia Phase 2, cutting near-term revenue recognition to ₹130-150 crore from a prior run-rate implying 80-90% of ₹299 crore. The reason: customers want to delay taking possession. The pipeline story is expanding, with three new Lucknow parcels adding ₹2,000 crore in development value to a total ~₹4,000 crore stock over 5-7 years. The call reprices the winner higher and the slower project lower.
Questions answered
- How much did Solano Gardens contribute to the record FY26 bookings?
- Solano Gardens generated ₹384 crore of the total ₹744 crore in FY26 bookings, accounting for over half of the record year. The project sold 79% of its units within 10 days of launch.
- Why was Imperia Phase 2 revenue guidance reduced?
- Management lowered the near-term revenue recognition for Imperia Phase 2 to ₹130-150 crore because customers requested possession deferrals. The prior expectation was to recognize 80-90% of the ₹299 crore project value.
- What is the scale of Eldeco's new land additions?
- The company added three land parcels in Lucknow with a combined gross development value of ₹2,000 crore. This takes the total pipeline to roughly ₹4,000 crore to be monetized over five to seven years.
- What changed in the Solano Gardens profit guidance?
- Management increased the blended margin guidance for Solano Gardens to 35-40%, up from the 25-30% range indicated six months earlier. This upward revision reflects the project's strong sales performance.
Eldeco Housing & Industries Ltd.
Latest quarter · Mar 2026
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All notes on ELDEHSG →- 26 May 2026 · 5:07 PM IST Eldeco lifts Solano Gardens margin target after a 10-day sell-out
- 53d ago Eldeco's FY26 bookings jump 120% to a record ₹743.9 cr
- 53d ago Eldeco Housing posts 24% revenue growth, but profit lags
- 53d ago Eldeco Housing posts ₹164.9 cr revenue, hikes dividend to ₹9 per share