Nukleus Office Solutions reported a net profit of Rs 1.44 crore for H1 FY27, up from Rs 1.16 crore a year ago. Revenue rose to Rs 22.99 crore. The board approved a shift to the Straight-Line Method of depreciation and announced plans to increase authorized capital. However, auditors flagged a Rs 7.06 crore Bangalore facility stuck as Capital Work-in-Progress due to landlord disputes.
Nukleus Office Solutions H1 Profit Hits Rs 1.44 Crore; Revenue Climbs
Revenue grew to Rs 22.99 crore; Net profit increased to Rs 1.44 crore.
Reader Takeaway: Revenue growth signals operational momentum, but unresolved landlord disputes at the Bangalore facility weigh on capital efficiency.
What just happened
Nukleus Office Solutions has released its unaudited results for the half-year ended September 30, 2026. Alongside the financial results, the company announced several corporate governance and accounting changes. Key among these is a transition in depreciation accounting from the Written Down Value (WDV) method to the Straight-Line Method (SLM), effective April 1, 2026. This change significantly boosted the bottom line, resulting in a reduction of the depreciation charge by Rs 2.23 crore for the period.
Why this matters
While the company showed growth in revenue and net profit compared to the same period last year, the auditor’s emphasis of matter is critical. A facility in Bangalore, representing Rs 7.06 crore in Capital Work-in-Progress (CWIP), remains non-operational due to unresolved landlord issues. This expenditure has not been capitalized, representing potential idle capital that investors should monitor closely.
Corporate Developments
The company is realigning its business focus, with the Board approving an alteration to the Memorandum of Association to enter sectors like co-living, warehouses, and turnkey contracting. Additionally, the Board moved to increase authorized share capital from Rs 6 crore to Rs 12 crore, pending shareholder approval. Internally, the Stakeholders Relationship Committee was dissolved, as it is not mandatory for the SME platform listing, and the company noted the resignation of Anurag Gupta, the Facilities Head.
What to track next
Investors should watch for the upcoming postal ballot results regarding the capital expansion and the expansion of the business objects clause. Progress on resolving the landlord dispute for the Bangalore center will be the primary determinant of future capital efficiency.