Nirlon Q2 FY27 Results (NSE: NIRLON)
Signal: Steady quarter
The read
The operating trajectory remains stable rather than accelerating: Q2 total income grew 3.1% YoY to INR 1,741 million and occupancy held at 99.8%, while EBITDA margin improved 110bps sequentially to 78.40% but remained 29bps below the year-ago level. The 51.3% PAT decline to INR 719 million is primarily a tax-comparison effect, as Q2FY26 benefited from a INR 695 million deferred-tax reversal.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹174.1 Cr | 3.1% | 0.8% |
| Net profit | ₹71.9 Cr | -51.3% | |
| EPS | ₹7.98 | -51.3% | |
| EBIT margin | 78.40% |
P&L walk
Q2FY27 total income increased 3.1% YoY to INR 1,741 million, while EBITDA rose 2.7% to INR 1,365 million and margin softened 29bps to 78.40%; PAT declined 51.3% to INR 719 million because the prior-year tax expense included a INR 695 million deferred-tax reversal.
Segments
No operating segment table was disclosed; consolidated momentum remains tied to the single commercial real-estate platform, where 99.8% occupancy and INR 1,499 million of license fees supported 3.1% total-income growth.
Key positives
- Occupancy remained near full at 99.8% in Q2FY27 versus 99.7% in Q1FY27 and Q2FY26.
- License-fee income grew 2.4% YoY to INR 1,499 million, while the company renewed approximately 37,000 sq. ft. at NKP expiring in FY28.
- EBITDA increased 2.7% YoY to INR 1,365 million and margin improved 110bps sequentially to 78.40%.
- Finance cost rose only 1.5% YoY to INR 265 million, broadly consistent with stable borrowings.
Key concerns
- Total expenses increased 4.4% YoY to INR 376 million, faster than total-income growth of 3.1%, contributing to a 29bps YoY EBITDA-margin contraction.
- H1FY27 EBITDA margin declined to 77.88% from 78.83% in H1FY26, indicating modest erosion despite near-full occupancy.
- PAT declined 51.3% YoY to INR 719 million because the prior-year tax reversal created an unusually high comparison base.
- Operating growth remains low at 3.1% YoY in Q2FY27 after 3.3% in Q1FY27, leaving the trajectory dependent on rental resets and occupancy retention.
Research and educational content only. Not investment advice.