NIRLON Q4 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
Pending
verification pending
Revenue YoY
—
reported change
EBITDA
₹136 Cr
latest reported figure
Source
bse pending
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Nirlon Limited delivered solid Q4 FY26 results with total income of ₹174 crore (up 9% YoY) and PAT of ₹71 crore (up 32% YoY), though EBITDA growth was more modest at 8.8% YoY to ₹136 crore. The company operates at near-full occupancy of 99.7% across NKP and Nison House, with only ~8,000 sq ft vacant as of March 31, 2026. FY26 PAT of ₹346 crore includes a one-time ₹69.5 crore benefit from deferred tax liability remeasurement; excluding this, PAT growth was 27% YoY. The board announced a final dividend of ₹15 per share, a conservative increase from ₹12, leaving ~₹165 crore in idle cash. Key concerns raised by analysts include the company's decision to park ₹287 crore in FDs at 5.5% while carrying ₹1,150 crore of debt at 7.75%, potential REIT conversion being shelved, and limited near-term lease expiry visibility (~3 lakh sq ft expiring in FY27). The company deflected questions on Brookfield's promoter classification and buyback considerations.
Colored figures show movement against the previous available record.
Guidance to track
- With only ~3 lakh sq ft (approximately 1% of area) coming up for renewal in the next 12 months, re-pricing opportunities are limited until FY28 when a larger lease expiry cohort matures.
- Capex will be limited to maintaining NKP as an A-grade asset with sustainability upgrades, with no significant external capex planned. Growth will rely on contractual escalations and any future lease transactions.
Risks flagged
- Company holds ₹287 crore in FDs earning 5.5% while servicing ₹1,150 crore of HSBC debt at 7.75%, creating a ~225bps annual cost of carry loss. Analysts questioned this rationale repeatedly; management provided no concrete plan.
- Only ~1% of leasable area comes up for renewal in FY27, constraining near-term revenue growth levers beyond contractual 4-5% escalations embedded in existing leases.
- Brookfield has crossed 10% shareholding; analysts questioned whether they will seek promoter reclassification. Management declined to comment, creating ambiguity around future governance dynamics and potential exit intentions.
- Analyst pointed out that only ~50 paise of every ₹1 of PAT reaches shareholders after 20% dividend distribution tax and 25% surcharge on dividends. Management acknowledged evaluating but not pursuing REIT conversion, leaving capital return inefficient.
Key quotes
- There is no concrete decision or significant plan for this particular [cash utilization] but as and when there is something of course we will let you know.
- We are just focused on the operations to try and improve the facilities and the standards in the park in NKP to try and do what we can so that licensees will be happy or will be inclined to renew with us and pay us the best possible license fee.
- We just felt that the best thing to do would be to move to the new tax regime at this point and optimize whatever to the best possible extent whatever efficiencies we had at this point in time.
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