Nila Spaces Q1 FY27 Results (NSE: NILASPACES)
Signal: Margin expansion
The read
Q1FY27 consolidated results show strong YoY margin expansion (EBITDA margin 45.6% vs 35.3%) driven by input-cost tailwind (cost of materials + inventory change fell to 19.8% of revenue from 34.7%) and operating leverage (EBITDA grew 46.6% vs revenue 14.3%). However, QoQ revenue dropped 74.8% due to Q4FY26 seasonality (full-year bookings), and other income constituted 28.1% of PBT, tempering earnings quality. The PAT growth of 44.5% YoY continues the margin expansion trajectory seen over the past year, but sequential volatility suggests project-based lumpiness.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹0.47 Cr | 14.3% | -74.8% |
| EBIT | ₹0.2 Cr | 50.1% | |
| Net profit | ₹0.08 Cr | 44.5% | |
| EPS | ₹0.21 | 40.0% | |
| EBIT margin | 42.4% |
P&L walk
Revenue grew 14.3% YoY to ₹46.67 Cr, while cost of materials and inventory changes plunged to 19.8% of revenue from 34.7% YoY, driving gross margin expansion of ~1450bps. Employee costs and other expenses were well-controlled, leading to EBITDA margin surging to 45.6% from 35.3% YoY — a combination of input-cost tailwind and operating leverage. Depreciation rose marginally. Finance cost increased to ₹8.11 Cr from ₹4.87 Cr YoY, partly offsetting gains. PAT at ₹8.47 Cr grew 44.5% YoY, but other income contributed 28.1% of PBT, tempering earnings quality.
Segments
The filing reports a single operating segment — real estate development. Consolidated revenue exceeded standalone by ₹7.56 Cr, indicating subsidiary Nila Urban Living contributed meaningfully to group revenue and profit.
Key positives
- Consolidated EBITDA margin expanded to 45.6% from 35.3% YoY (+1030bps) — input-cost tailwind and operating leverage.
- Revenue grew 14.3% YoY to ₹46.67 Cr, driven by project deliveries.
- PAT grew 44.5% YoY to ₹8.47 Cr, continuing the improving profit trajectory.
- EPS grew 40.0% YoY to ₹0.21, tracking PAT without dilution.
- Gross margin improved ~1450bps YoY — cost of materials and inventory change as % of revenue fell to 19.8% from 34.7%.
Key concerns
- QoQ revenue declined 74.8% from ₹185.01 Cr in Q4FY26 — realty seasonality causes sharp sequential swings.
- Other income at ₹3.23 Cr constituted 28.1% of PBT — earnings quality impacted by non-operating income.
- Finance cost rose materially (₹8.11 Cr vs ₹4.87 Cr in prior comparable period) — higher borrowing costs.
Earnings quality: includes non-operating other income
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