Nisus Finance — Q1 FY26 earnings call

Call held 13 Aug 2025

Management summary

Nisus Finance delivered its strongest ever quarterly performance in Q1 FY26, with revenue and PAT surging by 91% and 103.4% respectively, driven by robust growth in both India and UAE operations. The company is strategically expanding through the acquisition of a majority stake in NCCCL and pioneering asset tokenization in the UAE. Management acknowledged global economic uncertainties and committed to cautious optimism while maintaining strong deal pipelines and financial discipline.

Highlights

  • Q1 FY26 revenue grew 91% YoY to ₹28.72 crores, marking the strongest quarterly performance in company history.

  • Profit After Tax (PAT) increased by 103.4% YoY to ₹16.85 crores, with PAT margin at 59%.

  • Successfully secured ₹110 crores in acquisition financing for a 69% stake in New Consolidated Construction Company Limited (NCCCL).

  • Strong deal pipelines identified: over ₹1000 crores in India and $200 million in UAE, targeted for closure within the financial year.

  • Pioneering asset tokenization in the UAE, targeting up to $500 million of real estate assets, expected to launch this financial year.

Concerns

  • Analyst raised concern about prior optimistic guidance not matching Q4 FY25 results, prompting management to commit to cautious optimism.

Key financials

  1. Revenue ₹28.72 Cr +91%YoY
  2. PAT ₹16.85 Cr +103.4%YoY
  3. PAT Margin 59%
  4. PBT ₹20 Cr +71.5%YoY

What they filed

Q1 FY27: revenue up 560.7%, net profit down 29.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ1 FY25Q2 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue14 33 32 28 140 +900%225 +582%196 +513%185 +561%
EBITDA10 24 18 21 60 +500%44 +83%35 +94%32 +52%
Net profit8 19 14 17 37 +363%21 +11%25 +79%12 −29%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Fund and Asset Management
    38% Revenue Contribution
  • Transaction Advisory
    62% Revenue Contribution
  • UAE Operations
    58% Revenue Contribution
  • India Operations
    42% Revenue Contribution

Capital allocation

high confidence
  • Debt Gross ₹110 Cr Maturity: 36 months
    • New borrowing New debt for NCCCL acquisition, secured by pledging promoter's shares. Facility term is 36 months with large upfront payments in next 2 quarters. ₹110 Cr
    • Repayment Half of the debt and corresponding pledge to be released next quarter, balance over next 3-4 quarters, aiming to be largely out of pledge in ~6 quarters.
    Yes, I pledged my shareholding to secure this facility for a short period of time, so that we can complete the acquisition of the target Company.
  • M&A New Consolidated Construction Company Limited (NCCCL) Acquisition · Announced · Consideration ₹[object Object] (mixed) · AUM ₹2,700 Cr

    To create a strategic platform to drive urban infrastructure growth, leverage deep execution capabilities, and create synergies.

    Target company will have INR 80-90 crore new cash post acquisition; expected to unlock significant value.

    We have also announced some time back an acquisition of one of India's oldest construction companies, the New Consolidated Construction Company Limited, where we have signed to acquire 69% of the stake.

Guidance & targets

Strategic Initiative

  • Tokenization Platform Launch Strategic Initiative · FY26 · High confidence Launched
    Honestly, we are targeting this financial year for it to get launched.

    — Amit Goenka, Chairman and Managing Director

Deal Pipeline

  • Dubai Deal Pipeline Execution Deal Pipeline · next 12 months · High confidence $200 million
    And the target of this $200 million is to execute in the next 12 months.

    — Amit Jhunjhunwala, CIO, Dubai Fund

  • India Deal Pipeline Closure Deal Pipeline · this financial year · High confidence Over ₹1000+ crores
    When we talk about INR 1000 crore of pipeline, these are all curated, approved, and capitalizable deals. These are transactions that the team is committed to consummate within this financial year, covering both performing credit and special situations.

    — Amit Goenka, Chairman and Managing Director

Acquisition Integration

  • NCCCL Consolidation Acquisition Integration · Q3 FY26 · Medium confidence Visible
    But if it doesn't happen, then definitely, I think by Q3, it will be visible.

    — Amit Goenka, Chairman and Managing Director

Debt Management

  • Debt Reduction & Pledge Release Debt Management · next quarter · High confidence Half of debt and pledge released
    So next quarter, the debt will be halved and half the pledge will be released, and the balance pledge will be released over the next, I think 3 or 4 quarters. So effectively in about 6 quarters, I think we should be largely out of the pledge.

    — Amit Goenka, Chairman and Managing Director

Profitability

  • PAT Margin Baseline Profitability · Ongoing · Medium confidence FY25 baseline, aiming to do better
    I would tend to say that I would err on the side of conservatism and say FY'25 is a good baseline. But having said that, I guess to see if we can do better.

    — Amit Goenka, Chairman and Managing Director

AUM

  • AUM Target AUM · FY28 · Medium confidence $1 billion
    I wish it can all happen as of yesterday, because the market is very large. It's a big ocean. Can we drink the ocean overnight? I don't know. The idea is that yes, the size is very large, we are uniquely positioned. We are a front leader. There's a Nifco first advantage. All of it is there. Would like to get to it as soon as possible. But at the same time, we don't want to be foolish about it. We don't want to make stupid mistakes. So we will do it gradually. We will do it definitely. We will ensure that the foundation continues to be very strong. We are not trying to get very tall by shaking the foundations.

    — Amit Goenka, Chairman and Managing Director

What to watch in Q2 FY26

NCCCL Acquisition Consolidation

By Q3 FY26 (or H1 results in Oct/Nov)
Current In final leg of closure, statutory formalities ongoing
Target Consolidated numbers visible

Why it matters

Integration of a major acquisition is key to future growth and synergies for Nisus Finance.

But if it doesn't happen, then definitely, I think by Q3, it will be visible.

Risks & concerns

  • Global economic shocks and geopolitical issues

    medium

    Management remains mindful of potential impacts from global shocks, Trumponomics, and geopolitical issues on India's GDP, household savings, and investment imperatives.

    Management acknowledged

  • Market volatility affecting AUM and investment pace

    medium

    AUM growth is subject to market conditions and volatility, which can affect the pace of capital deployment, as seen in Q4 FY25.

    Management acknowledged

  • Delays in NCCCL acquisition consolidation

    low

    Statutory formalities for the NCCCL acquisition may delay full consolidation beyond H1 FY26, though management is confident it will be visible by Q3 FY26.

    Management acknowledged

Q&A highlights

6 direct
Management's prior optimistic guidance vs. Q4 FY25 results Direct
But just temper your optimism a bit with realism, so that we stay anchored to what is going to be delivered by you.

Highlights investor sensitivity to guidance accuracy and management's acknowledgment of external risks and commitment to cautious optimism.

Asked by Neeraj

Tokenization details and deployment timeline Direct
Tokenization is like a REIT. If you understand what a real estate investment trust is, it is a regulated framework for offering fractional ownership in a basket of assets. The manager of the REIT earns an annuity. It could be anywhere between 0.5% to 2% of the NAV of the REIT. ... Honestly, we are targeting this financial year for it to get launched.

Clarifies a new strategic initiative, its revenue model, and provides a timeline for its operationalization.

Asked by Ashish

Seasonality of business and NCCCL consolidation timeline Direct
So I don't have a doubt that H2 tends to be better unless there are larger events like what we saw in Q4 last year, which was very disruptive. So if things remain on the same trajectory without any external interventions and disruptions, then definitely, I think H2 will continue to be stronger than H1, is our belief. ... But if it doesn't happen, then definitely, I think by Q3, it will be visible.

Provides clarity on expected business performance patterns and a revised timeline for the financial integration of a significant acquisition.

Asked by Saurabh

Maintainable PAT margins and Advisory business outlook Direct
I would tend to say that I would err on the side of conservatism and say FY'25 is a good baseline. But having said that, I guess to see if we can do better. ... No one-off. It is a very large pipeline, which is under execution. Multiple projects, multiple counterparties, multiple opportunities across the UAE is what we are working with, with our clients.

Establishes a baseline for profitability expectations and confirms the sustainability of the strong Advisory segment performance.

Asked by Deepak

India Fund's unutilized placement fees and fundraising strategy Direct
Yes, we are just being conservative, if we can, Shruti. If we can raise money on our own and not pay distributors better, no.

Explains a perceived slowdown in fundraising as a strategic move to optimize costs and improve margins, rather than a lack of activity.

Asked by Shruti

Pledging of shares for acquisition financing and NCCCL margins Partial
Yes, I pledged my shareholding to secure this facility for a short period of time, so that we can complete the acquisition of the target Company. ... Janish, just to put quietness to this, as Manish mentioned, please hold this for a few days. Let us complete the acquisition. Let us come back to you with more data on this acquisition.

Reveals the promoter's personal commitment to financing a major acquisition and indicates that sensitive financial details about NCCCL are pending disclosure.

Asked by Janish

Receivables and debt levels Direct
So, Sai Kumar, no concern on receivables. Working capital is not needed; cash positive. Receivables are coming as scheduled and as per the contracted terms. So, no concern in terms of any receivable delinquencies at all. ... As far as debt is concerned, the only debt we have now will be the new debt we are taking of INR 110 crores, which will also get paid down to half in 6 months for the purpose of this acquisition. So, the net debt at the end of this financial year will be very, very small to none.

Provides strong reassurance on asset quality and debt management, crucial for a financial services company's stability and investor confidence.

Asked by Sai Kumar

2 min read 6 chapters

Detailed narrative

Record-Breaking Q1 FY26 Performance

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.

Strategic Expansion and Acquisitions

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.

Robust Deal Pipelines in India and UAE

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.

Pioneering Asset Tokenization

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.

Conservative Financial Management and Outlook

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.

Debt Management and Shareholder Commitment

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.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Financial Services earnings calls