Business Overview
Elevate Campuses Limited owns and runs hostels on college campuses across India. It also owns two school buildings in Dubai, and it plans to buy 16 more in India with the issue money. The firm began in April 2005 and is based in Lower Parel, Mumbai. It was called Good Host Spaces Limited until September 8, 2025. Its two hostel brands are Good Host Spaces and ScholarZ. It is owned by Genius Bidco Holdings Pte Ltd and Genius Rajkot Investment Holdings Pte Ltd. Both are Singapore firms held by funds of Hillhouse Investment.
The business has three distinct parts. In the owned book, the firm buys or builds the hostel and then signs a long deal with the college. These deals run 50 to 60 years, and most carry a yearly fee rise and a floor on how many beds are paid for. That floor stood at about 87.55% on a blended basis on March 31, 2026, but the figure leaves out County and Woodstock. In the managed book, the firm runs beds it does not own and earns a fee for the work. In the school business, it owns the building and leases it out. The school pays tax, upkeep and cover on top of the base rent.
The owned book held seven hostel campuses with 20,368 beds on March 31, 2026, plus two schools in Dubai with room for 4,400 pupils. The managed book held 14 campuses with 55,487 beds. Total capacity was 80,255 pupils across 15 cities in India and one city in the UAE, and the firm worked with 17 colleges, among them O.P. Jindal Global University, Sonipat, Manipal University Jaipur and Shoolini University. Revenue from operations for the Financial Year 2026 was ₹ 568.63 Crore, and the staff count stood at 460 full-time employees and 154 on fixed-term contracts.
IPO Details
| IPO Date | September 23, 2026 to September 25, 2026 |
|---|---|
| Tentative Listing Date | September 30, 2026 (BSE and NSE) |
| Face Value | ₹ 1 per Equity Share |
| Price Band | ₹ 343 to ₹ 362 per Equity Share |
| Lot Size | 41 Equity Shares |
| Minimum Retail Investment | ₹ 14,842 (1 lot at the Cap Price) |
| Issue Size | 5,80,11,049 Equity Shares aggregating up to ₹ 2,100.00 Crore (Fresh Issue: ₹ 2,100.00 Crore; Offer for Sale: Nil) |
| Post-Issue Market Cap | ₹ 6,100.82 Crore (at the Cap Price) |
| Promoter Holding (Pre-Issue) | 100.00% |
| Promoter Holding (Post-Issue) | 65.58% |
Objects of the Offer
| Issue Objects | Est. Amt (₹ Cr.) |
|---|---|
| Payment of the purchase consideration for the acquisition of the K-12 Entities and Campuses from the fellow subsidiaries of the Promoters | 1,100.00 |
| Repayment and / or prepayment, in full or in part, of certain outstanding borrowings and prepayment penalties of the Company and its wholly-owned Subsidiaries GHS Shoolini, GHS Sonipat, Data Ram Sons Private Limited, Souk HIS UAE and Souk NLCS UAE, through investment in such Subsidiaries | 750.00 |
| Funding inorganic growth through unidentified acquisitions, other strategic initiatives and general corporate purposes | Balance* |
| Net Proceeds (total of the above) | Not quantified* |
| Add: Issue related expenses | Not quantified* |
| Gross Proceeds | 2,100.00 |
Key Strengths and Opportunities
-
1. India's largest institutional hostel platform
The hostel book held 78,542 beds on June 15, 2026. The CBRE Report puts that at about 2.1 times the next largest player and about 6.2 times the third largest. Even so, it served only about 0.85% of its target market. That market held 12.66 million pupils in Academic Year 2025-2026, so there is room to grow. Owned and managed beds rose to 75,855 on March 31, 2026 from 53,717 in Academic Year 2024. Owned hostels gave 65.74% of revenue from operations in the Financial Year 2026, while managed hostels added 4.92%. -
2. Strong record in running and upgrading assets
The firm keeps the whole chain in house, from sourcing deals to building, buying and running the sites. It also flexes bed count to meet demand. At Manipal University Jaipur it raised beds to 6,646 from 5,920 at the start of Academic Year 2026. It turned double rooms into triple rooms and freed 80 staff beds. At Shoolini University it redid two hostel blocks in the Financial Year 2024. That work lifted beds in those blocks by 19% and earned a 20% return on the money spent. Spending on plant, property and other assets came to ₹ 2,441.95 Crore between the Financial Years 2024 and 2026. Of that, ₹ 2,137.75 Crore went to buy Souk HIS UAE and Souk NLCS UAE. -
3. Scale in pupil services supports the fee level
The firm serves over 50,000 meals a day across its owned hostels. It handles over 1,562 service calls a day on a term that runs about 300 days a year. That works out to one pupil helped about every 1.08 minutes. It ran 17 colleges with room for 75,855 pupils on March 31, 2026. At Manipal University Jaipur, gym use rose to 3,343 pupils and laundry use to 6,575 pupils in Academic Year 2025-2026, from 2,159 and 3,439 in Academic Year 2023-2024. Three of its schools, St. Andrews Suchitra High School, St. Andrews Keesara and St. Michaels, hold the WELL Health-Safety Rating, which only five schools in India held in Academic Year 2024-2025. -
4. Well placed and well rated sites
Occupancy across the owned book was 89.37% in Academic Year 2025-2026, up to March 31, 2026. The CBRE Report puts the national rate at 85% to 90% for the same year. The hostel block at Manipal University Jaipur holds a 5-star rating from the GRIHA Council. The firm entered the Gulf in September 2025 by buying HIS Dubai. British Schools Overseas rated HIS Dubai Outstanding in April 2025, and the Dubai regulator rated it Very Good for Academic Year 2023-2024. The other schools sit in Hyderabad, Chennai and Pune, all close to dense housing and good transport links. -
5. Long contracts give clear cash flow
Owned hostel contracts with colleges run 50 to 60 years. They carry a yearly fee rise during the guaranteed period, and the firm has collected these rises for eight years. Most contracts also bar the college from using rivals, and some give the firm first call on new beds. Pupils pay fees up front each year or term, so the working capital cycle is negative. Total income rose 53.10% to ₹ 603.39 Crore in the Financial Year 2026 from ₹ 394.13 Crore, a CAGR of 29.00% from ₹ 362.61 Crore in the Financial Year 2024. Profit for the year rose to ₹ 173.76 Crore from ₹ 49.74 Crore, while return on adjusted capital employed fell to 6.42% from 9.72% over the same span.
Key Risks
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1. Owned hostels drive revenue and occupancy has fallen
Owned hostels gave 65.74%, 99.24% and 99.72% of revenue from operations in the Financial Years 2026, 2025 and 2024. Occupancy on owned beds fell to 89.37% in Academic Year 2026 from 99.47% and 99.92% in the two years before. The County lease ended on June 30, 2025 and Woodstock fell empty on September 28, 2025. -
2. Three colleges account for most of the revenue
Three colleges gave 61.46%, 89.00% and 88.60% of revenue from operations in the Financial Years 2026, 2025 and 2024. O.P. Jindal Global University, Sonipat alone gave ₹ 210.22 Crore, or 36.97% of revenue in the Financial Year 2026, with Manipal University Jaipur adding 20.54%. Any break in these ties would hurt revenue badly. [Risk Factor 2] -
3. Over half the issue money goes to promoter firms
About 52.38% of the gross proceeds, or ₹ 1,100.00 Crore, will buy the K-12 Entities and Campuses. The sellers are the K-12 HoldCos, which are fellow units of the promoters. The firm may not get the gains it expects from that purchase. -
4. Failure to meet debt covenants or repayments would hurt the business
Total borrowings rose to ₹ 4,120.53 Crore on March 31, 2026, from ₹ 1,206.60 Crore a year before and ₹ 984.71 Crore in 2024, and stood at ₹ 4,832.25 Crore on a pro forma basis. The loan papers need the firm to tell lenders, or get their consent, before it changes its capital structure, ownership, control or rule book. If the firm fails to service this debt, lenders can enforce their security and sell the assets.
Financial Snapshot
| Key Performance Indicator | Units | FY 2026 | FY 2025 | FY 2024 |
|---|---|---|---|---|
| Revenue from Operations | ₹ Cr. | 568.63 | 369.81 | 347.00 |
| Revenue Growth | % | 53.76 | 6.57 | NA |
| Total Income | ₹ Cr. | 603.39 | 394.13 | 362.61 |
| EBITDA | ₹ Cr. | 545.00 | 256.40 | 220.13 |
| EBITDA Margin | % | 90.32 | 65.06 | 60.71 |
| EBITDA before Exceptional Items | ₹ Cr. | 440.08 | 267.08 | 230.20 |
| EBITDA Margin before Exceptional Items | % | 72.93 | 67.76 | 63.48 |
| Profit before Exceptional Items and Tax | ₹ Cr. | 98.84 | 90.30 | 72.20 |
| Exceptional Items (Gain / (Loss)) | ₹ Cr. | 104.92 | (10.67) | (10.07) |
| Restated Profit for the Year | ₹ Cr. | 173.76 | 49.74 | 39.69 |
| Profit Margin for the Year | % | 28.80 | 12.62 | 10.95 |
| Basic Earnings per Equity Share | ₹ | 19.65 | 5.63 | 4.49 |
| Diluted Earnings per Equity Share | ₹ | 17.47 | 5.63 | 4.48 |
| Return on Net Worth | % | 18.17 | 7.11 | 6.05 |
| Return on Adjusted Capital Employed | % | 6.42 | 9.90 | 9.72 |
| Net Worth | ₹ Cr. | 956.29 | 699.78 | 655.77 |
| Total Borrowings | ₹ Cr. | 4,120.53 | 1,206.60 | 984.71 |
| Debt to Equity | (x) | 4.31 | 1.72 | 1.50 |
| Net Debt | ₹ Cr. | 2,712.90 | 695.29 | 730.31 |
| Net Debt to EBITDA | (x) | 4.98 | 2.71 | 3.32 |
| Interest Coverage | (x) | 1.41 | 1.72 | 1.66 |
| Current Ratio | (x) | 0.93 | 1.29 | 0.91 |
| Cash Flow from Operating Activities | ₹ Cr. | 297.08 | 218.72 | 264.45 |
| Purchase of Property, Plant and Equipment, Investment Property and Intangible Assets | ₹ Cr. | 2,424.81 | 7.02 | 10.13 |
| Owned Beds (Average for the Academic Year) | Number | 20,368 | 17,995 | 17,995 |
| Occupancy on Owned Beds | % | 89.37 | 99.47 | 99.92 |
| Managed Beds | Number | 55,487 | 47,377 | 3,783 |
| Number of HEIs | Number | 17 | 15 | 4 |
| Number of K-12 Assets | Number | 2 | NA | NA |
Peer Comparison
The prospectus states that no listed Indian company has a comparable business or scale. So it offers no peer table and no industry price to earnings ratio.
| Company | Revenue from Operations (₹ Cr.) | P/E (x) | RoNW (%) |
|---|---|---|---|
| Elevate Campuses Limited | 568.63 | 35.11 | 18.17 |
| Listed Peers | NA | NA | NA |
Valuation
| Valuation Metric | At the Cap Price of ₹ 362 |
|---|---|
| Post-Issue Market Capitalisation (at the Cap Price) | ₹ 6,100.82 Crore |
| Post-Issue Market Capitalisation (at the Floor Price) | ₹ 5,890.83 Crore |
| Market Capitalisation to Revenue from Operations (FY 2026, restated) | 10.73 times |
| Post-Issue P/E | 35.11 times |
| EV / EBITDA (FY 2026, pro forma) | 11.94 times |
| EV / EBITDA (FY 2026, pro forma, before exceptional items) | 13.23 times |
| Net Asset Value per Equity Share as on March 31, 2026 (as disclosed) | ₹ 432.62 |
| Post-Issue Book Value per Equity Share | ₹ 243.65 |
| Price to Book (at the Cap Price) | 1.49 times |
| Industry P/E | NA |
Conclusion
Elevate Campuses operates a differentiated institutional hostel platform with a strong presence across leading educational institutions. The company has demonstrated healthy business growth, with revenue from operations rising 53.76% in FY26 and profit increasing to Rs 173.76 crore. Its long-term contracts of 50–60 years, high owned-bed occupancy of 89.37%, and sizeable addressable market provide visibility for future expansion. The company also has a large managed-bed portfolio, which offers scope to grow without owning all the underlying assets.
However, there are some concerns. The balance sheet remains highly leveraged, with borrowings of Rs 4,120.53 crore and debt-to-equity at 4.31x in FY26. Interest coverage of just 1.41x highlights the pressure of servicing this debt, while return on adjusted capital employed remains in single digits at 6.42%. The company is also allocating Rs 750 crore of IPO proceeds towards debt repayment, indicating the importance of deleveraging.
Further, owned-bed occupancy has declined from 99.92% in FY24 to 89.37% in FY26, while revenue remains concentrated among a few institutions. The absence of directly comparable listed peers also makes relative valuation assessment difficult.
Overall, considering the business quality and growth potential against the high leverage and operational risks, we recommend subscribing to the IPO for listing gains. Long-term investors can keep the company on their watchlist and reassess its performance after listing, particularly its occupancy, debt reduction and return ratios.
