Eldeco Housing and Industries Limited ($523329)

Ladies and gentlemen, good day, and welcome to Eldeco Housing & Industries Limited Q4 and FY '26 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Abhishek Bhatt from EY. Thank you, and over to you, Mr. Abhishek.

Thank you. Thank you, everyone, for joining us on the call. Before we proceed to the call, let me remind you that today's discussion may contain forward-looking statements that may involve known and unknown risks, uncertainties and other factors. It must be viewed in conjunction with the business risk that could cause future results, performance or argument to differ significantly from what is expressed and implied by such forward-looking statements. Please note, the results and presentation are available on the exchanges. Should you need any assistance to receive them, you can write to us, and we'll be happy to send them over. Today on the call, we have the senior management of Eldeco Housing and Industries Limited, which is represented by Mr. Pankaj Bajaj, Chairman and Managing Director; Mr. Manish Jaiswal, Group CEO, Mr. Rajiv Khurana, Group Vice President, Accounts and Taxation. We will begin with the highlights of the quarter, followed by Q&A. Now I would like to hand over the call to Mr. Pankaj Bajaj for his opening remarks. Over to you, sir.

Thank you, Abhishek. Good afternoon, everyone, and thank you for joining us today. So FY '26 has been a milestone year for EHIL with record booking. a standout launch and most importantly, a meaningful expansion of our growth pipeline that significantly enhances our medium-term visibility. During the quarter, we strengthened our growth pipeline by adding nearly INR 2,000 crores of gross development value GDV through 3 prime land parcels in key growth corridors of Lucknow. Two of these land parcels were secured via local authority options, enabling lower risk and faster monetization. Combined with the steady business at Eldeco Solano Gardens, this provides us with a strong and visible runway for sustained growth over the coming years. Importantly, this growth is supported by healthy demand and strong execution demonstrated in the year. Coming to our operational performance. In Q4 FY '26, we recorded booking value of INR 382.7 crores an area booked of 5.13 lakhs square feet. For the entire FY '26, the booking value stood at INR 744 crores, up 120% year-on-year. with area booked of 10.77 lakh square feet, up over 100%. Collections remained robust. In Q4 FY '26, collections were INR 96.5 crores and for FY '26, the collections were INR 352.1 crores, up nearly 39% year-on-year, reflecting steady improvement in cash flows. On execution, the construction spend was INR 177.7 crores in FY '26, up 14% year-on-year. We delivered 280 homes during the year with delivered area of 2.78 lakhs square feet. A key highlight for us was the launch of Eldeco Solano Gardens project which saw an excellent response with 343 units sold out of 433 units launched, translating into booking of over INR 384 crores in the launch phase itself. FY '26 total income stood at INR 175.7 crores. EBITDA was INR 41.5 crores and PAT profit after tax was INR 24.3 crores. Going forward, our focus remains on, one, scaling execution across ongoing projects; two, driving corrections through timely milestones, construction milestones and handovers, and three, converting our expanded pipeline into launches. To conclude, we believe that the combination of growing demand, steady execution and a robust project pipeline position EHIL well for the next phase of growth. I thank you all for your continued support. We will now open the floor for questions if there are any.

[Operator Instructions] We have first question from the line of Ashish Bansal from AB Family Office.

First of all, I wanted to talk about Solano Gardens. So I think the plotted development will really carry a higher margin. So can you quantify what would be the margin profile as compared to the other projects?

You're right about plotted developments carrying higher margins. So the margins are very different across various asset classes. Group housing has a different margin. Horizontal development with villas is something is and completely plotted is, obviously, the margins are the highest. Solano Gardens is a combination of all the asset classes. Let me clarify. It's not only plotted. It has some villas, it has group housing plots, which means vertical development, apartments, which we are going to launch later. And it also has a small commercial component where we are going to build some local shopping. In terms of margins, Rajiv-ji, can you give an idea of average margins in plotted over horizontal developments?

Our margins are basically vary from 50% to 60%...

For plotted development.

Yes. And in the range of -- I think almost in the range of 50% to 60%...

But just to clarify, Ashish, the bookings which have happened are not only plotted. There are lower-margin product there also, which is villas. Villas is also part of that INR 380-odd crores that we booked.

Sure. So on a consolidated basis, what would be the profile basis the current bookings, the margin profile?

Rajiv-ji, do you have that number approximately?

We talk about this year itself, we basically...

No, no. So he is talking about Solano Gardens.

Solano, it will be in the range of 50% to 60%...

Including villas. Not including villas. I think you should please take it at about 35% to 40%, including villas. 50% to 60% is the plotted component, but the weighted average will be 35%, 40%.

Sure. That's helpful. And on a macro basis, so looking at the current pipeline, the mix and can you help us understand what would be the likely margins for the year to come?

So for the years to come, a lot of our pipeline...

[indiscernible] yes, '25 and '28.

Ashish, it mostly depends on which projects are getting recognized for revenue in that particular year. And I believe that next year, our main recognition will happen in Imperia 2 project, which is a high-margin project. So I think we'll see a bump in our margins there. And EBITDA margin should be in the range of about 30%, 35%. Profit after tax should be about 25% next year, but that will be because of Imperia 2.

That's helpful. And so regarding the launches, so how do we see the revenue visibility over, let's say, next 2, 3 years? I mean, if you can just talk about the plans in brief.

So 2, 3 years is too early in terms of revenue recognition because the life cycle of our real estate project is typically 4 to 6 years. And we tied up these massive projects in the context of our balance sheet in the last 5 to 6 months. They will enter the -- we are in the process of designing them, then there will be the approval process and sometime later this financial year, they should get launched. But over the next 5, 6 years, I think that given what we have already launched and given the value of unsold inventory that we have and the third category is projects which are yet to be launched, some breakup is there in the presentation. All of them put together should have a value of about INR 4,000 crores. Now that will get recognized on completion as and when the projects get completed over the next 5 to 6, 7 years. Now difficult to say which -- how much gets completed. But over the period, this is the number we are looking at, and this is with land parcels that we already have.

The next question from the line of Gunit Singh from Counter Cyclic PMS.

I would like to understand how much of revenues in Q4 came from Imperia Phase 2?

Rajiv-ji, can you help with that?

If I say that Imperia Phase 2 is almost out of INR 60 crores, around INR 47 crores, which is almost 70% to 80% is from Imperia 2.

So why have the margins in Q4 fallen because Imperia Phase 2 was a higher-margin project because I guess some costs were covered in Imperia Phase 2 construction itself. So -- and what was the other expense which doubled in Q4 to about INR 20 crores?

Rajiv-ji, please respond.

Yes. Basically, in this year, we have some kind of a onetime expense. Like we have basically write-off GST input close to INR 11 crores, which is expensed in this year itself. And there are some expenses of earlier projects, which came up in this year, which we have to basically bear that. So around INR 14 crores is onetime kind of expense in the other expenses, which is hitting our EBITDA and the PAT for this quarter and the financial year. That is the reason for...

Got it. So how much of the total revenue of Imperia Phase 2, I mean, can the company realize say, in FY '27? And what should be the value of unsold inventory in Imperia Phase 2 currently?

Imperia Phase 2 next year will be on the basis of the delivery itself, but close to, you can say, around...

INR 140 crores is the number for next year. But you do understand, Gunit, that these are projections. Like one does not know when exactly it will happen. But according to our projection, about INR 130 crores, INR 150 crores, between that number should be the recognition of Imperia 2 next year.

Got it. So I have another thing that I want to understand. So we delivered 280 homes this year, but our revenues are about INR 140 crores. So we recognize revenues on delivery of homes? Or I mean, how does the revenue recognition work?

We basically follow the Ind AS 115, which clearly says the control has been passed on to the customer. So once we are ready with our dispatch in terms of giving possession, then we recognize...

Got it. So 280 homes which were delivered this year, is it that -- I mean, upon delivery of those INR 140 crores or the top line this year that was realized, which is about INR 165 crores.

Yes.

Got it. My last question would be regarding any projects which have planned handovers in FY '27 and FY '28, if you can help us understand and the GDV or the revenue potential of those projects?

Imperia 2 continues, the possession will continue in the -- we have already shared the numbers with you for '26, '27. The next big project which will enter the pool of possession will be Latitude 27. So I think sometime later this year, hopefully, or maybe early next year, we will start that. The total value of that particular project is about INR 270 crores, INR 280 crores.

[Operator Instructions] We have next question from the line of Rohan Shah from RS Ventures.

The first phase of Solano Garden saw strong response, approximately INR 384 crores to INR 350 crores bookings range. So how should we think about absorption for the remaining inventory in upcoming phases?

So as far as the horizontal development goes, I think the project, as I earlier explained, is a combination of horizontal and vertical development. Horizontal is plotted and villas and vertical is group housing, which is basically multi-storied apartments. So in the whole planning, we had left 4 parcels for multi-storied apartments to be launched later as we have done -- we followed the same format in Eldeco City earlier, where we did the plotted and villas first and then it was followed by launches of group housing projects, which are continued like Latitude 27, Skywalk, et cetera, even Quint. These are all part of the Eldeco City project, the mother project. So in the mother project of Solano Gardens, about 75% to 80% of the horizontal development component, the villas and plots has been absorbed and launched. We are letting -- I think towards the -- in another couple of quarters or towards the end of the year, we will be launching the first of our multi-storied apartment projects there. And then depending on the response, we will keep bringing more parcels to the market after that. It will be a multiyear project.

Got it, sir. That's helpful. Then one more question. It's about actually average realization. Actually, it has moved up around 6,500 square feet range. Do you see further pricing headroom in Lucknow? Or is it -- or is growth now likely to be driven more by volumes?

So your per square foot realization also depends on your product mix. So what we're presenting here is nothing but a weighted average of our sale prices across projects and divided by the area across projects. So in the coming years, the new projects that we tied up are more city centric and hence, the per square foot pricing will be a little higher. And so this is good, there's going to be an upward movement in this. This does not mean that there will be higher margin, but it's just that they are more -- they're not on the outskirts as much as some of the current projects are. So some of the launches like Trinity already is at about 8, 9, 10, 11, that's the range, which is higher than your weighted average. And the new projects which have been tied up are also in that range. So generally, we will see that in the case of Eldeco housing, particularly per square foot pricing that we will be reporting will probably be higher in the coming years. But as a general comment, yes, prices are kind of stagnating across because they have risen quite a lot.

The next question from the line of Suhas Khullar, an individual investor.

Congratulations on the exceptional operating performance. My question was on Imperia Phase 2. I understand the total face value of the project is around INR 300 crores and we have recognized around INR 47 crores this quarter. I was assuming that most of the INR 300 crores will get recognized in next 2 or 3 quarters. But now you mentioned that during the year, we are expecting around INR 130 crores, INR 140 crores of recognition. So just wanted to understand is there something I'm missing? Or is it that the deliveries will take more time?

You can't really predict when a customer will come over for possession. The project is substantially complete. We got completion certificate. I think that's the main thing. So the revenue recognition, whether it happens in real estate in one quarter or next quarter is going to -- majority of it is going to get recognized over the next 2, 3 quarters. Rajiv-ji, you can supplement my answer if you want to.

Yes. It basically depends on when the customer will move on for the possession is that how -- it links with their interest to take the possession and...

One more thing I would like to say in the context of Imperia 2, actually, I don't know if you realize we have completed an offered possession before time, which is a marvelous achievement for the Eldeco team and my compliments to our very hard-working members of the team. So what happened is like, say, somebody booked a house last year in January, and he was told that it's going to take 2 years. So he's planned his finances for the next 2 years. And now because the company has offered -- got completions underway at an offered position before time, it is not necessary that he will accept that position. Are you with me? So he might still continue with these installments and then come in December. And so that's when it gets recognized.

Understood.

So even though we've completed, it's not that we will recognize all of it right now. It is like Rajiv-ji said that it is a -- the accounting standard we are following is that when substantial control of the property gets passed over to the customer. If the installments are still earning, then the control is still with us. So we are not able to recognize that revenue. But on the ground, the project is complete.

I agree. I think performance has been exceptional on all accounts, be it construction progress or on sales. I just not expecting that 50% of revenue will only get recognized during the year. Maybe you are being a little conservative as well.

I don't have the exact number. Rajiv-ji can throw some light on it. Of the total revenue potential of how much is getting recognized in this year.

Okay. So more or less, I think Imperia 2 is almost a turnover of INR 300 crores, out of which you rightly said INR 46 crores we have done in this quarter. So almost INR 150 crores we will be doing -- INR 140 crores to INR 150 crores in the next year itself close to INR 200 crores. Then INR 100 crores might be left for the next year. It might be conservative or it can be pre also. It all depends.

Yes. Probably it might get recognized in the current year. So we are not able to -- obviously, our numbers that we are putting out are always on the conservative side.

The next question from the line of Shivam Gulati from Desi Ventures.

So my first question is what percent of FY '26 bookings came from Solano versus legacy projects? So could you throw some light on that?

That number, we already shared, total bookings of about INR 750 crores and booking about 300-odd something. So that number is there in the presentation.

Okay. noted, sir. So my second question is on Solano Gardens. The strong response to the Solano Gardens seems to validate your product market in Lucknow. So do you see this as a template for future last scale developments?

That's what the idea is that we build on -- it's a great success for the company. We would like to build on its success. I think 1 of the slides in the presentation talks about our future forthcoming projects model. Is this a template which is already there. It started with Eldeco City, then there's a Eldeco Regalia, then there is Imperia. Solano Gardens, template is getting extended and we're attempting to do it at 2 or 3 more locations. The details are there in the presentation.

We have next question from the line of.

Congratulations on the great set of presale for the quarter. So the question was given the high base that we have this year, what are we planning for FY '27?

The high base is -- I didn't realize it will become a problem. So we are -- we have projects in the pipeline. And yes, we would like to launch them, but we would like to also time the launches a little bit. But I don't think any major launches are coming up in this quarter or maybe even in the next quarter. There will be some [Foreign Language] launches, but the big launches will come after approvals, as I mentioned in 1 of the earlier answers towards the end of the year.

Given that...

But having said that, in an earlier answer, I did give a guidance over the next 5, 6 years. I can't say for the current year, but for the next 5, 6 years, value of our unsold projects to be launched, projects tighter that whole GDV is about INR 4,000 crores. And it would be reasonable to assume that we will be able to sell it over the next 5 to 7 years.

Okay. And secondly, you spoke about launching some projects in the second half of the year. So I want to know like what is the launch pipeline like how many -- how much square feet are you planning to launch?

They're in designing right now. So maybe in the next quarterly presentation, we'll give you more clarity there. We have not got the approvals. The designs are not final. The architects are working on it. So I would request you to hold on for 3 months for this.

Okay. And one more question is regarding like your earlier calls, you had mentioned that you're looking for parcels around Gorakhpur. So any update on that?

Yes. We are working actively there. But -- and we had a couple of term sheets out. But they are not -- nothing substantial to report in short. If there was, we would have declared it, but it's not something that we can say that we'll tie it up. We're still in talks.

And lastly, is there any business development, like any plans to add more land parcel during this year?

So we've done substantial business development in this quarter, and we would like to bring them closer to launches before we do some big business development this year. But there are in our presentation we've declared I think, 3 or 4 locations, which we have mentioned under the category undisclosed locations. So land aggregation is continuing in those locations. So we would like to bring those land parcels to a meaningful size. So that is organic land aggregation is continuing. But as of now, I think our hands are full for the next couple of quarters.

Okay. And this new parcel you have added in Shaheed Path. So what would be the approx realization you're looking at that?

So I think I mentioned in my opening remarks, between the 2 land parcels auctioned by Lucknow Development Authority, they have mentioned in the presentation and the Shaheed Path, the total saleable area would be about 2 million square feet between the 3 projects put together. And total GDV would be about INR 2,000 crores.

[Operator Instructions] The next question is from the line of Isha Shah from Family Office.

Sir, you have added INR 2,000 crores GDV pipeline by 3 new land parcels. What is the expected launch time line for these projects? And how much can be monetize in FY '27 and FY '28?

No. I will -- we will be answering this question in the next quarter because the projects are still under designing. But very vaguely, I think it will be towards the end of this financial year, the launches. It does take that kind of time to get the designs right and get the approvals and then get the RERA registration. So it will be towards the end of the year, if at all. But I hope that we will launch it.

And sir, given the ongoing geopolitical uncertainties globally, are you witnessing any impact on the buyer sentiment due to higher borrowing costs on macro concerns? Or has demand remained largely insulated?

Nothing -- no great impact in Lucknow. The demand is very organic. It does not depend so much on the linkages, the geopolitical factors are not that great. As far as if there are certain people who are connected to the stock markets and the stock markets are not doing well, so they tend to hold back on big decisions. So that could be there. The bigger impact that we think will come will be on the cost of construction side. That transmission is still not there fully. So I think that will be the bigger impact. We don't know -- we don't have full clarity on that right now.

And sir, one last question, if you permit, please. Sir, can you please provide a broad GDV estimate for the total pipeline ongoing plus forthcoming plus the land bank, if possible?

I already answered it twice, INR 4,000 crores.

The next question from the line of Manan Patel, an individual investor.

Congratulations for a great launch. Sir, first question is sort of bookkeeping. We have booked INR 64 crores revenue, but in your presentation, it shows only 18,000 square feet delivered and 26 units. So it doesn't seem to fit in. So can you just throw some light on that?

Rajiv-ji, would you like to take that up? I don't know which slides are being referred to here.

Can you [indiscernible]?

So total revenue book is around INR 64 crores for this quarter. And if I go to operational -- quarterly and yearly operational highlights slide, I think Slide 7, the delivered area is 18,530 square feet and 26 units delivered. So the amount of per square feet revenue recognized seems to be very high. So just wanted to get your understanding, get your -- some clarity on that.

See, basically, you are talking about the deliveries, right? And we are talking 2 different things. One is recognition and one is delivery. Delivery is a part of recognition also, but we recognize when the control has been passed on. When we give the possession even the deliveries are not being done, we have offered possession and collection has been completely received. So then on that basis, we recognize revenue. So delivery is something which is related to your part.

Understood. So you mean the possession or the revenue recognized area would be much higher than delivered area?

Yes, yes. To that extent. Yes.

Okay. Sir, second question is, again, you mentioned around INR 14 crores one-off this quarter. So do we expect any more one-offs in coming quarters or...

No, no, no. We have done more or less debt and took all the call as is in this quarter itself. We're not hoping any other concern in the next coming quarters.

Got it. Sir, a larger question on -- I think UP launched the urban development policy in February, I think. So can you explain the impact of the same on our company? I understand policy aimed at approving projects faster and increasing FSI. So can you throw some highlights of that and the impact of the same on our company?

It's a very progressive step. The impact on us will be positive. I don't know if people outside UP are realizing how things are changing so rapidly in UP over the last 5, 7 years or 10 years. The ease of doing business is really good. The policies are clear, they're predictable. They are investor-friendly. So -- and for a real estate development company, the demand is there. We could not address that demand in the earlier years because we had so many supply constraints. We had to run around for our approvals and they were not predictable, the norms were not predictable. So the approval process become easier, it become predictable, it's become more liberalized and the project economics are -- if not better, they are predictable. So that's a very great thing. There were so many questions on what can you say about this year and when will you launch. If you had asked me 10 years ago, when would you launch this project, I would have been not sure. But now I can say I would launch it in 3 quarters from now because we know that once you put your application for approval, it does come around in some reasonable time. And the other thing they will ease the norms and other planning norms, which is also great positive. So overall, it's a very positive impact on a company which is totally working only in UP.

Got it. And sir, do you expect competition also to increase because of this?

Maybe. I don't know. We don't -- we are well entrenched in Lucknow. We are the oldest player in Lucknow. We are probably the most recognized player in Lucknow. So if national players come in, welcome, but we don't feel any adverse impact of that. If that does happen, I think it will be a positive for the Lucknow market and indirectly for us also. Mind you -- I don't know, I would invite you to visit our website and see some real picture. The product that we put out is as good as anything that any player does it in the country, if not better.

Absolutely. Sir, that your track record also shows that. And sir, the last question on Eldeco Trinity. So the actual amount booked has decreased slightly. So we were supposed to launch a sample flat. So what is the status there?

So the sample flat is ready. There are some minor work going on in the lobby and some joining areas, et cetera, et cetera. We're going to relaunch the project in about 3 weeks' time. Hopefully, we'll get a good response because we made a phenomenal sample apartment. If you visiting Lucknow, we invite you to please visit the sample apartment, give us a feedback. But fingers crossed, we should do well now.

Absolutely, sir. I would love to if I-- I'll get it to come.

[Operator Instructions] The next question from the line of Gunit Singh from Counter Cyclical PMS.

So I just want to understand more about Eldeco Latitude 27 handover and development. So in the previous remark, you mentioned that by year-end, we can expect this to start handovers in this but in the presentation, it says November '27. So can you please just...

You've been following very closely all my answers. You should have also noticed that we offered position for Imperia before time. Yes. So there was a hint there that probably we will do Latitude before time. Our official position remains in November 27. hopefully, because the way the site is working, we may do it much earlier than that. even so early that it could be within this financial year, but that's -- we don't know. Our commitment to our customers is November 27.

Got it. So is this project in phases or I mean, are you saying that the entire project is ahead of time. Or are you launching it -- I mean are you doing the handover in phases if you can help us understand?

There are 5 towers. I think 4 of them will get finished in the first phase itself. There is one tower which we launched later, so that's going to lag by about 6 to 9 months.

Got it. All right. Perfect. And we'll keep on traction this in the...

Don't hold me to it. before time delivery. We may not do it, but we are trying.

We have next question from the line of Sanya Malhotra from Malhotra.

Congratulations on good set of numbers. I just have 2 questions. First, could you please shed some light on whether a reversal in the interest rate cycle would impact demand? Like can you give your view on the same?

No, we don't think it is going to impact demand. We did an internal analysis depend on just about 30% to 40% is deferred through home loans, let's say self-funded. So -- and even the 30% to 40%, I think the market is mature enough to realize currently the customers do understand that they could for which is it could come down very fast. So I don't think that really impacts the decision to that large an extent.

Okay. Got it. And also, given that plotted developments and villas typically offer better margins compared to the group housing. Are you consciously moving your project mix over in that direction? And if so, how are you thinking about the balance between these segments going forward?

No, we are not consciously moving into that direction. Yes, of course, the margins are much higher in plotted and villas but also the pain is much higher. The pain happens in the land aggregation, in assembling the land, which is large enough to have a meaningful number. That it does take a lot of time and group housing projects, like the ones I mentioned earlier that the ones we won in the Lucknow Development Authority auction. You can -- your time to the market is very quick. From the moment you win the auction to the time you launch it can be as quickly as 6 to 8 months. And then plotted and villa development horizontal, mini township sort of development, the land aggregation itself takes some time more than 2 years. So one has to find a balance between these high margins, these are high-margin projects, but they are long gestation projects. So one has to find a mix and it's not on over, I think it has to be and, both have to work together for a good mix in your portfolio.

Got it. Got it. And sir, just 1 last question. You have consistently highlighted strong end user demand in Lucknow. So after a very strong quarter 4, driven by launches, how do you see demand shaping up in quarter 1 and quarter 2 of FY '27? Like are trends continuing at similar intensity?

So Sanya, there's no problem with the demand. The problem, as I've always highlighted is the supply. Are we able to supply houses, good quality houses in the numbers that Lucknow is demanding. No. The answer is no. We are not able to, whether Eldeco, whether our peers in the industry, whether it is the government sector, the demand is many times what the supply is. So not only are we doing business and we are running this commercially, there's also a social need for the kind of housing shortage there is. It's a growing city, infrastructure is booming, population is booming. and people incomes are going up, but the housing supply is just not keeping pace for many reasons. And what I hinted at one of the which is land assembly so difficult land parcels are fragmented, they're disputed. So demand is -- I don't think it's so the demand supply gap is so skewed that we don't even worry about demand anymore. We just worry about supply. Can we put this through, can we put through a nice project at a reasonable price, of course. There's no fun in putting through overpriced project because that does not really address the gap. Reasonable price product, a reasonably designed product, can we put it through in large enough numbers. So there, the runway for growth is very, very large.

[Operator Instructions] Next question from the line of Karan Gupta from Capital.

Just 1 question. If you could just share the construction expense budget for FY '27 and '28, that would be very helpful.

So the construction number spend are increasing organically. I think last year, we did about INR 150 crores, INR 160 crores than previous year. This year, we've done at INR 177 crores. I think in the current year, we'll close at -- the current financial year it will be about 15% to 20% higher to about INR 200 crores, maybe.

Okay. so what does your budget depending on the construction expense? Is there an opportunity to increase so that you can speed it up or...

There is a time line to construction spend. If there is a project which is 4 years long, then it will be done in 4 years, right? So it does not depend on what your market condition is and what your -- whether you did the entire booking. Like in Solano Gardens, we did the entire booking upfront, the plotted development and the villas, the majority of it got sold out within 10 days of launch. So in each quarter, we would see, oh, my God, we did INR 400 crores of sales. But it's not that we can do INR 400 crores of construction in that quarter. the construction of the sale that we've done in -- or these bookings that we've done in Solano Gardens will happen at an organic pace over the next 10 or 12, 13 quarters. So it increases gradually as you launch more projects. I'm saying that whatever is in the current financial year, financial year ended '26 , our numbers were about 15% higher than the numbers before. And in the current year, I think it will be out 15%, 20%, even higher. So that's the rate of growth. It will keep increasing as we launch more projects.

Okay. And just finally, for the expense, is that also recognized along with the revenue? Or do you expect -- you equity expense as and when you do something and then the revenue later.

So nondirect costs are period costs like salaries and overhead, they are period cost. They do not depend on the project execution or sales. Please comment on this.

Rightly said, all project costs, they are basically But other than the advertising your and all other revenues, they are on the basis.

To that extent, see, we did great sale in Solano Gardens, but all the cost of advertising and everything was -- has been expensed. But the revenue will get recognized in the later years.

That's right. So just so my understanding is correct, so the direct construction costs related to, for example, Phase 2 that you're going to recognize this year a big chuck of it, so the direct construction cost related to that revenue will also be recognized along with the revenue. Is that right?

Absolutely. Yes.

[Operator Instructions] As there are no further questions from the participants, I now hand conference over to management for closing comments.

Thank you. I can see that people are really following the numbers that we put out with a fine tooth comb, and that's great, and we hope that you continue with the support in the coming time also. And we hope that we continue to put out good numbers in the coming quarters. Thank you for your support.

On behalf of Eldeco Housing and Industries Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.