Elevate Campuses IPO

Established Student Accommodation Platform: Elevate Campuses has developed an established presence in student accommodation, with owned and managed campuses across multiple cities. Its Pre-Acquisition Group had accommodation capacity of 80,255 students as of March 31, 2026, providing the company with a sizeable operating platform.

Expansion in Owned Capacity: The company's owned student accommodation portfolio has expanded from 9,153 beds in FY2018 to 20,368 beds as of March 31, 2026. This reflects the company's expansion in its owned asset base over the period.

High Occupancy in Owned Portfolio: The owned student accommodation portfolio reported an occupancy rate of 89.37% for Academic Year 2025-26. Occupancy levels are an important operating metric for accommodation businesses because they directly influence the utilisation of available beds.

Strong Recent Financial Growth: The company reported considerable improvement in its financial performance in FY2026. Total income increased to Rs. 603.39 crore from Rs. 394.13 crore in FY2025, while PAT increased to Rs. 173.76 crore from Rs. 49.74 crore.

Multiple Institutional Relationships: The company works with educational institutions including Manipal Academy of Higher Education, Manipal University, Jaipur and Meraki Education. Such institutional relationships form part of its operating ecosystem in the student accommodation business.

High Borrowing Levels: The company had total borrowings of Rs. 4,120.53 crore as of March 31, 2026, compared with Rs. 1,206.60 crore in FY2025. Its debt-to-equity ratio also increased from 2.71 in FY2025 to 4.98 in FY2026. Elevated leverage can increase interest and repayment obligations.

Dependence on Occupancy Levels: The company's student accommodation business is dependent on maintaining healthy occupancy across its properties. Changes in student demand, competition, institution-specific factors or local market conditions could affect occupancy and consequently operating performance.

Capital-Intensive Business: Student accommodation and education infrastructure require significant capital for developing, acquiring, maintaining and upgrading assets. Continued expansion may therefore require substantial financial resources.

Acquisition and Integration Risk: The company intends to use part of the IPO proceeds for acquiring K-12 entities and campuses and also proposes to pursue unidentified acquisitions. The eventual benefits from such acquisitions will depend on successful execution, integration and performance of the acquired assets.

Decline in ROCE: The company's ROCE declined from 9.90% in FY2025 to 6.42% in FY2026. Investors may therefore consider whether the company's growing asset base is generating sufficient returns on the capital deployed.