Eldeco Housing (ELDEHSG) Q2 FY27 Profit Halves Even as Revenue Jumps 57%
The North Indian developer posted robust revenue growth but saw its net profit margin plunge sequentially due to a sharp tax provision and project mix.
Eldeco Housing's Q2 FY27 revenue grew 57% year-on-year, yet net profit fell 51% from the previous quarter. The squeeze came from a high tax rate and a shift in project mix, even as collections surged.
For a real estate developer, a strong quarter is often measured by cash collected and units delivered. Eldeco Housing delivered on both fronts in the September quarter, but a sharp profit drop revealed the underlying volatility of project-based earnings.
Revenue rose 57% year-on-year to ₹51.8 crore, while net profit fell 51% sequentially to ₹7.4 crore. The net profit margin compressed to 14.2%, down from 30.8% in the June quarter.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
Metric
CurrentQ2 FY27
PreviousQ1 FY27
Same quarter LYQ2 FY26
Revenue (₹ Cr)
51.84YoY +57%
49.07
33.05
Profit (₹ Cr)
7.38YoY +181%
15.11
2.63
PAT Margin (%)
14.2YoY +77%
30.8
8.0
Why the profit margin collapsed
Two forces drove the margin squeeze. First, the effective tax rate spiked to 42% from 15% in Q1, a move MarketsMojo called an unusually elevated provision. Second, the revenue mix shifted away from higher-margin plots and villas.
Management explained on the AlphaStreet earnings call that gross margin fell as the quarter recognized more of the Imperia project's villa and plot mix. This is the natural ebb and flow of a project portfolio, but it hit profitability hard this time.
The operational engine is still running
Beneath the profit volatility, key operational metrics were strong. Collections jumped 38% year-on-year to ₹125.6 crore, according to ETRealty. Construction spend rose 61%, signaling active progress on sites.
The company delivered 125 units and acquired 9.7 acres of land for its pipeline. With no new launches in Q2, booking value still grew 8% to ₹94.9 crore from existing projects.
A pipeline waiting to launch
Management's confidence stems from a ready launch pipeline. On the call, they indicated three projects could launch before March 2027, broadening salable inventory.
The ongoing project portfolio holds about ₹1,600-1,700 crore of future revenue potential. This provides visibility, but realizing it depends on timely launches and sustained demand in its North Indian markets.
Key Points
Net profit fell 51% quarter-on-quarter despite 5.6% revenue growth, driven by a high tax rate and a less profitable project mix.
Underlying operations were healthy, with a 38% year-on-year surge in collections to ₹125.6 crore and a 61% rise in construction spend.
The company has a robust project pipeline with several launches planned before FY27-end, aiming to boost sales momentum.
Institutional investor participation remains minimal at 1.1%, reflecting skepticism over earnings volatility.
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Hexa Perspective
Eldeco's quarter illustrates the core tension in project-based real estate: cash collection and execution can be robust while reported profits swing wildly. The 42% tax rate is a near-term weight, but the larger question is margin sustainability.
The upcoming launches will test whether the company can convert its pipeline into steady, higher-quality earnings. For now, the stock's rich valuation at a P/E of 30.6x seems to demand more predictability than the quarterly results provide.
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Frequently asked questions
What were Eldeco Housing's Q2 FY27 results?
For Q2 FY27 (September 2026), Eldeco Housing reported revenue of ₹51.84 crore, a 57% increase year-on-year. Net profit was ₹7.38 crore, which was up 181% from a low base last year but down 51% from the previous quarter. The net profit margin for the quarter was 14.2%.
Why did Eldeco Housing's Q2 FY27 profit drop 51% from Q1?
Eldeco's Q2 profit fell sharply due to two main factors. First, the effective tax rate jumped to 42%, which MarketsMojo noted was unusually high. Second, the revenue recognized in Q2 came from a different mix of projects with lower gross margins compared to the prior quarter, as explained by management on the earnings call.
What was Eldeco Housing's net profit margin in Q2 FY27?
Eldeco Housing's net profit margin, or PAT margin, was 14.2% for Q2 FY27. This represents a significant decline of 1,660 basis points from the 30.8% margin achieved in the previous quarter (Q1 FY27).
What drove Eldeco Housing's 57% revenue growth in Q2 FY27?
The strong 57% year-on-year revenue growth was driven by progress on ongoing projects and robust cash collections, which surged 37.5% to ₹125.6 crore according to ETRealty. This growth occurred despite a 16.6% decline in area booked, as the company had no new project launches during the quarter.
What is the status of Eldeco Housing's order book and project pipeline?
Eldeco's booking value for Q2 was ₹94.9 crore. Management, on the AlphaStreet call, stated the ongoing project portfolio represents about ₹1,600-1,700 crore of future revenue. They plan to launch three new projects before March 2027 to broaden inventory and support future sales.
What was Eldeco Housing's management commentary on the Q2 FY27 results?
Management highlighted strong execution, with collections up 37.5% and construction spend up 60.7%. They acknowledged the sequential profit drop was due to project mix and expect upcoming launches to support sales. The company remains focused on building its pipeline with capital discipline.
Did Eldeco Housing's Q2 FY27 results beat analyst estimates?
Specific consensus estimates were not widely cited in available research. However, analysis from MarketsMojo framed the results as a paradox of strong revenue growth coupled with concerning profit volatility, noting the quarterly profit was 19% below the previous four-quarter average.
How did Eldeco Housing's stock price react to the Q2 FY27 results?
Based on reports near the results date, the stock showed a muted reaction. MarketsMojo noted the stock traded at ₹801 on November 6, 2026, reflecting a modest 0.75% gain on the day but remained 24.5% below its 52-week high.
Have institutional investors changed their stake in Eldeco Housing recently?
Institutional participation remains very low. Data cited by MarketsMojo shows total institutional holding was just 1.14% as of September 2026, with Foreign Institutional Investors at 0.82% and mutual funds holding 0%. Other domestic institutions slightly reduced their stake.
What is Eldeco Housing's valuation after Q2 FY27 results?
Eldeco Housing trades at a P/E ratio of 30.6 based on the payload data, which is slightly below the industry average P/E of 32.8. Analysis from MarketsMojo has previously classified the stock as 'Very Expensive' based on its valuation metrics.
Eldeco Housing Q2 profit drop
Eldeco Housing's Q2 FY27 net profit was ₹7.38 crore, a drop of 51.2% from the ₹15.11 crore profit in Q1 FY27. This decline was primarily due to a sharp increase in the effective tax rate to 42% and a change in the project revenue mix recognized during the quarter.
Eldeco Housing September quarter profit
For the September 2026 quarter (Q2 FY27), Eldeco Housing reported a net profit of ₹7.38 crore. This represents a strong 180.6% increase from the ₹2.63 crore profit in the same quarter last year (Q2 FY26), but a 51.2% decline from the immediately preceding June 2026 quarter.
