Whalesbook
š The Financial Deep Dive
The Numbers:
Nirlon Limited has announced strong financial performance for the nine months ended December 31, 2025 (9M-FY26). Total Income stood at INR 5,090 Mn, marking a 5.1% increase year-on-year (YoY). EBITDA grew 3.5% YoY to INR 3,997 Mn, maintaining a robust EBITDA margin of 78.53%. The most significant highlight is the Profit After Tax (PAT), which surged by 67.3% YoY to INR 2,754 Mn, achieving a PAT margin of 54.10%. Consequently, Diluted EPS rose to INR 30.56.
In the third quarter of FY26 (Q3-FY26), Total Income was INR 1,731 Mn (+5.6% YoY), EBITDA was INR 1,349 Mn (+1.1% YoY), and PAT grew by 18.9% YoY to INR 693 Mn, with a PAT margin of 40.04% and Diluted EPS of INR 7.69.
For the full year FY25, Nirlon recorded a Total Income of INR 6,450 Mn, EBITDA of INR 5,117 Mn, and PAT of INR 2,182 Mn, with a strong Return on Equity (ROE) of 61.14%.
Historical data shows a healthy 3-year CAGR from 2022-2025, with revenue growing at 18.6% and PAT at 25.3%.
The Quality:
The substantial PAT growth in 9M-FY26 (+67.3%) significantly outpaced revenue growth (+5.1%). This divergence is largely attributable to tax impacts, including a substantial reversal of deferred tax liability amounting to INR 69.50 Cr in Q2 FY26, due to the company's shift to the New Tax Regime. EBITDA margins remained exceptionally strong at 78.53% for 9M-FY26, underscoring operational efficiency. The company's Return on Equity (ROE) of 61.14% in FY25 highlights efficient capital utilization.
Financially, as of H1-FY26, Total Assets stood at INR 23,057 Mn, with Investment Properties forming the largest component at INR 18,453 Mn. Non-current borrowings were INR 11,466 Mn. The Net Debt to EBITDA ratio was reported at 15.0 for FY26. While indicative of leverage common in real estate, it's a point for investors to monitor. Operating Cash Flow (CFO) for FY25 was robust at INR 4,801 Mn.
The Board of Directors declared an interim dividend of INR 15 per share for FY26. The company's secured debt facility from HSBC Bank has been reaffirmed with a āCRISIL AA+/Stableā rating by CRISIL, reinforcing financial credibility.
Risks & Outlook:
A key point for investors is the absence of specific forward-looking revenue guidance numbers. While the company operates in a stable rental income model, the lack of explicit growth targets in revenue may be a concern. The Net Debt to EBITDA ratio of 15.0 indicates significant financial leverage, which, while typical for real estate developers, requires careful management.
Nirlon's outlook remains focused on sustainable development, evidenced by its pursuit of LEED certifications for its properties. The core business model revolves around generating stable, long-term license fee income from marquee IT and Financial Services sector clients, a strategy that has led to high occupancy rates. Notably, with only approximately 7,800 sq.ft. vacant as of December 31, 2025, and major renewals like Citi's lease for 25,000 sq.ft. at Nirlon Knowledge Park (NKP), the company appears well-positioned to maintain its rental income stream.