Nirlon Q1 FY27 Results (NSE: NIRLON)
Signal: Margin pressure
The read
The trajectory remains occupancy-led and recurring, with occupancy improving to 99.8% and license fees up 2.6% YoY, but Q1FY27 EBITDA margin fell 163bps to 79.3% and EBITDA growth of 1.3% lagged total-income growth of 3.4%; the 18.8% PAT increase was driven mainly by a 24.8% tax decline rather than operating acceleration.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹168.31 Cr | 3.3% | N/A |
| EBIT | ₹119.59 Cr | 1.3% | |
| Net profit | ₹69.38 Cr | 18.8% | |
| EPS | ₹7.7 | 18.8% | |
| EBIT margin | 79.3% |
P&L walk
License-fee income grew 2.6% YoY and total income grew 3.4%, while EBITDA rose 1.3% and margin compressed 163bps to 79.3%; PAT nevertheless increased 18.8% to ₹69.38 Cr as tax fell 24.8% YoY.
Key positives
- Occupancy reached 99.8% in Q1FY27 versus 99.7% in Q4FY26, supporting recurring license-fee visibility.
- License fees increased 2.6% YoY to ₹1,490 million, and approximately 1,100 sq. ft. of Nirlon House space was licensed during Q1FY27.
- Finance cost declined 5.7% YoY to ₹26.3 Cr, cushioning the 163bps EBITDA-margin contraction.
- PAT rose 18.8% YoY to ₹69.38 Cr and EPS matched PAT growth at 18.8%, indicating no material dilution.
Key concerns
- EBITDA grew only 1.3% YoY versus total-income growth of 3.4%, with EBITDA margin declining 163bps YoY to 79.3%.
- Q1FY27 PAT growth of 18.8% was materially ahead of PBT growth of 3.4% because tax fell 24.8% YoY; operating profit did not accelerate correspondingly.
- Approximately 6,900 sq. ft. remained vacant across NKP and Nirlon House as of June 30, 2026, despite 99.8% occupancy.
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