Nisus Finance

Nisus Finance achieved its strongest ever quarterly performance in Q1 FY26, reporting a revenue of INR 28.72 crores, marking a 91% year-on-year increase. Profit After Tax (PAT) surged by 103.4% year-on-year to INR 16.85 crores, with the PAT margin expanding to 59%. This exceptional growth was driven by robust performance across both fund management (38% of Q1 revenue) and transaction advisory services (62% of Q1 revenue) in India and the UAE.

The company is actively pursuing strategic growth initiatives, including the acquisition of a 69% stake in New Consolidated Construction Company Limited (NCCCL), a 75-year-old construction firm with an order book of INR 2700 crores. This acquisition, partly financed by INR 110 crores of debt secured by pledged shares, is expected to create significant synergies for urban infrastructure growth. Additionally, Nisus Finance received board approval to launch an SM REIT in India, further diversifying its product offerings and leveraging its 'Nisus first' advantage.

Nisus Finance maintains a strong and curated deal pipeline, with over INR 1000 crores of capitalizable deals in India across major metro cities, targeted for closure within the current financial year. In the UAE, the company is evaluating projects worth approximately $200 million, primarily in the mid-housing and warehousing segments, with a target to execute these assets within the next 12 months. The UAE operations contributed 58% of the Q1 revenue, highlighting its growing importance and strong market momentum.

The company is at the forefront of the digital asset revolution, partnering with Toyow to tokenize up to $500 million of real estate assets in the UAE. This initiative, expected to launch within the current financial year, is structured to generate recurring fee income, similar to a REIT model, providing 0.5% to 2% of the NAV as annuity to Nisus Finance. This strategy aims to create a unique 'blue ocean' ecosystem for fractional ownership, differentiating Nisus in the market.

Despite the record performance, management emphasized a commitment to cautious optimism, acknowledging potential impacts from global economic factors like Trumponomics and geopolitical issues. They clarified that unutilized funds for placement fees in the India Fund were a conservative measure to optimize costs, with targets remaining unchanged. The company also reassured investors about its receivables, stating they are cash positive with no delinquencies and contractual payments, ensuring financial stability.

The INR 110 crores debt taken for the NCCCL acquisition, secured by the promoter's pledged shares, is planned for significant reduction. Half of the debt and corresponding pledge are expected to be released next quarter, with the balance over the subsequent 3-4 quarters, aiming for a very small to zero net debt by the end of the financial year. This demonstrates the promoter's strong personal commitment and confidence in the acquisition's value creation and the company's financial health.