Can Elevate Campuses IPO deliver long-term growth for high-risk investors?
Elevate Campuses is set to generate ₹2,100 crore via an initial public offering aimed at fueling its expansion plans and repaying existing debts. The firm specializes in managing student accommodations under its brands Good Host Spaces and Scholar...
ET Intelligence Group: Elevate Campuses, an education infrastructure company, plans to raise ₹2,100 crore through a fresh issue towards capital expenditure, repayment of debt and funding inorganic growth. The promoter group's stake will fall to 65.6% after the IPO from 100%. The company operates the student accommodation business under the Good Host Spaces and ScholarZ brands. As of March 2026, the company had a benefit of minimum occupancy guarantee of about 88% for owned portfolio under higher education institutions (HEIs). About 62% of revenue was derived from its three largest HEI partners, creating dependence on a handful of institutions. The benefits of recent acquisitions are expected to reflect in the coming years. Given these factors, investors with high-risk appetite may apply for the IPO.
Business
Incorporated in 2005, Elevate Campuses is engaged in owning, operating and managing on-campus student accommodation for HEIs and owning K-12 school assets. It has presence across 15 cities in India and one city in United Arab Emirates. Its portfolio includes seven owned student accommodation campuses with 20,368 beds across six Indian cities and 14 managed campuses with 55,487 beds. Occupancy dropped to 89.4% in academic year 2026 from 99.9% in 2024 largely due to temporary vacancies at the County and Woodstock properties following lease terminations; occupancy began to recover after new agreements and refurbishment initiatives.
Revenue from operations increased 28% annually to ₹568.6 crore and net profit surged 109.2% annually to ₹173.8 crore between FY24 and FY26. The company had a one-time gain of ₹104.9 crore in FY26 from the sale of a hostel undertaking. Operating profit before interest, tax, depreciation and amortization (Ebitda) jumped 57.3% to ₹545 crore while Ebitda margin improved to 90.3% from 60.7% during the period. The company has stated that on proforma basis, revenue grew to ₹806.9 crore in FY26 from ₹561.7 crore in FY24 and net profit soared to ₹207 crore from ₹10.3 crore, during the same period. The proforma financials assume that certain acquisitions were part of the company for the entire reporting period, to provide a better view of the combined business's scale and earnings potential after these acquisitions. Net debt rose to ₹2,712.9 crore in FY26 from ₹730.3 crore in FY24. However, interest outgo relative to EBIT declined to 54% in FY26 from 63.7% in FY24.
The company has no listed comparable peer. Considering the post-IPO equity and financials of FY26, it demands a price-earnings multiple of 35 and a price-sales multiple of 11.
Elevate Campuses IPO price band set at Rs 343–362; Rs 2,100 crore issue opens September 23
