Nisus Finance — Q2 FY26 earnings call

Call held 13 Nov 2025

Management summary

Nisus Finance delivered strong H1 FY26 results, driven by robust standalone growth and the strategic acquisition of NCCCL. The company reported significant revenue and profit growth, maintained high margins, and is on track to meet its ambitious AUM targets. Management is focused on integrating NCCCL, optimizing its balance sheet, and leveraging its cross-border platform and new tokenization initiatives for future growth.

Highlights

  • Consolidated revenues of INR142 crores for H1 FY26, including NCCCL consolidation from August 27, 2025.

  • Standalone revenues (Nisus Finance Group) rose 118% year-on-year to INR75 crores, with Q2 revenue up 61% sequentially.

  • Consolidated EBITDA grew 117% year-on-year to INR56 crores, maintaining EBITDA margins over 76%.

  • Consolidated PAT stood at INR36.5 crores, up 94% year-on-year, with PAT margins close to 50%.

  • Acquisition of NCCCL, bringing an active order book of nearly INR2,350 crores, expected to scale to INR5,000 crores.

  • Promoter share pledge reduced to 18.5% from an initial ~45-50% for the acquisition debt of INR110 crores, of which INR50 crores has been repaid.

  • AUM stands at nearly INR1,900+ crores, compounded at 95% CAGR since FY22, on track to reach INR4,004 AUM outlook by FY26 end.

Concerns

  • NCCCL's low PAT margin of 1% (after tax) due to working capital and interest costs, though management has a plan for improvement.

  • High trade receivables of INR303 crores for NCCCL, which management clarified is typical for the construction industry and is being addressed by cash unlocking.

Key financials

2 periods

Headline

  • Consolidated Revenue
    ₹142 Cr
  • Consolidated EBITDA
    ₹56 Cr
    YoY +117%
  • Consolidated EBITDA Margin
    76%
  • Consolidated PAT
    ₹36.5 Cr
    YoY +94%
  • Consolidated PAT Margin
    50%
  • Standalone Revenue
    ₹75 Cr
    YoY +118%
  • Standalone Q2 Revenue Growth
    61%
    QoQ +61%
  • Standalone EBITDA Margin
    74%
  • Standalone PAT
    ₹26.5 Cr
  • Standalone PAT Margin
    50%
  • AUM
    ₹1,900 Cr

since FY22

  • AUM CAGR
    95%

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

  • NCCCL (H1 FY26)
    ₹300 Cr Revenue₹30 Cr EBITDA10% EBITDA Margin1% PAT Margin

Capital allocation

high confidence
  • Debt Debt disclosed
    • Repayment Repaid part of the INR110 crores acquisition debt for NCCCL. ₹50 Cr
  • M&A New Consolidated Construction Company Limited (NCCCL) Acquisition · Closed · Consideration ₹[object Object] (mixed)

    Strategic acceleration, operational excellence, deep value, high conviction entry, continuity, unlocking value, building synergies.

    Consolidation from August 27, 2025; blended margins will look slightly different due to NCCCL being a deep operating entity.

    A key highlight of the period was our acquisition of India's foremost and oldest legacy construction powerhouse, New Consolidated Construction Company Limited, which has been overtaken over at a fraction of its FY '25 revenue, which stood at about INR600 plus crores, representing a very deep value, high conviction entry.
  • Liquidity Liquidity disclosed Management plans to unlock approximately INR250 crores of cash from NCCCL's balance sheet in the next few quarters to reduce debt and improve margins.
    So, our endeavor is to bring back almost INR250 crores of cash back on the balance sheet of this company in the next few quarters.

Guidance & targets

AUM

  • Total AUM AUM · End of FY26 · High confidence INR4,004 crores
    Our AUM or asset under management today stands at nearly INR1,900 plus crores, having compounded at 95% CAGR since FY '22, and we feel to be well on track to reach the 4,004 AUM outlook by the end of this financial year.

    — Amit Goenka

Pipeline Conversion

  • Pipeline conversion to AUM Pipeline Conversion · FY26 · High confidence INR2,000+ crores
    I just mentioned that, that given the strong pipeline of over INR4,300 crores of conversion, we just need to be able to close INR2,000 plus crores to be able to achieve that annual AUM target. So that doesn't look very difficult.

    — Amit Goenka

Revenue Mix

  • Advisory to Asset Management Ratio Revenue Mix · Annual basis · High confidence 60% Advisory, 40% Asset Management
    So we tend to believe that we will be able to maintain the ratio between advisory to asset management as 60%-40%. 60% being from advisory, 40% being from asset management.

    — Amit Goenka

NCCCL Order Book

  • NCCCL Order Book Scale NCCCL Order Book · Very short term · High confidence INR5,000 crores
    NCCCL brings an active order book of nearly INR2,350 crores, across 30 plus high quality day-to-day developer contracts, and is expected to scale to about INR5,000 crores in the very short term.

    — Amit Goenka

NCCCL Profitability

  • NCCCL PAT Margin NCCCL Profitability · Next financial year (FY27) · High confidence Improvement

    From 1% today

    So the real impact of PAT margins will really be seen in next financial year.

    — Sunil Maheshwari

New Business

  • Tokenization Income Recognition New Business · FY27 · High confidence Income recognition starts
    Also, I had another question that if the tokenization income will be recognized from -- will start from FY 2027, correct, sir? Amit Goenka: Yes, that is the expectation.

    — Amit Goenka

What to watch in Q3 FY26

NCCCL PAT Margin Improvement

Next financial year (FY27)
Current ~1%
Target Improvement towards industry average (3-5%)

Why it matters

Improvement in NCCCL's PAT margin is key to its value unlocking and contribution to consolidated profitability.

So the real impact of PAT margins will really be seen in next financial year.

Risks & concerns

  • High trade receivables in NCCCL

    medium

    NCCCL has INR303 crores in trade receivables, which is typical for the construction industry (3-6 months cycle). Management has performed due diligence and plans to unlock INR250 crores of cash.

    Analyst acknowledged

  • Low PAT margin for NCCCL

    medium

    NCCCL's PAT margin is currently around 1%, lower than the industry average of 3-5%, due to working capital and interest costs. Management expects improvement by FY27 through cash unlocking and debt reduction.

    Analyst acknowledged

Q&A highlights

7 direct
Impact of NCCCL consolidation on blended margins Direct
Obviously, when we consolidate the balance sheet at the end of NCCCL, which is a deep operating entity compared to a financial services platform, the blended margins will look slightly different, which is the reason why we continue to present these two set of numbers, Nisus Finance Group on a continuous basis, comparing our history with our present and with consolidating NCCCL numbers.

Clarifies why consolidated margins appear different from standalone and the rationale for presenting both sets of numbers.

Asked by Shashank Jha

Rationale and pricing for NCCCL acquisition Direct
So while they did have significantly better offers, to be honest, I think what the promoter really said is, who's going to be able to build my legacy of my family, as opposed to who's going to pay me the most. And I think that is where between Mr. Mahesh Mudra, who's been in the company for 40 years, and me, who have known the company for 20 years, we're able to find synergy with the promoter founders, and therefore lock in a price that makes sense for us.

Explains the strategic, non-financial considerations (legacy, continuity, synergy) that influenced the acquisition price, rather than just the highest bid.

Asked by Shashank Jha

Source of NCCCL acquisition (NCLT vs. Promoters) Direct
No, that's wrong. It was acquired from promoters. NCLT had nothing to do with it. It's a solid, healthy profitable... The second statement is correct. The first statement is erroneous. Thank you for pointing it out.

Corrects a significant factual error from a credit rationale report, clarifying that NCCCL was acquired from its promoters and is a healthy, profitable company, not a distressed asset from NCLT.

Asked by Rajagopal Ramanathan

High trade receivables in NCCCL's balance sheet Direct
That is to do with NCCCL. You have to look at the balance sheet in two ways. One is our own Nisus Finance balance sheet, right, which has hardly any trade receivables. And then there is the NCCCL balance sheet, which is a term consolidation because when you're doing a turnover of INR600 crores, INR650 crores, INR700 crores, you will see receivables of three to six months, depending upon the age of the receivables and the final time of construction. So, it does not relate directly to Nisus Finance's operations, but to NCCCL's operations.

Provides context for NCCCL's high trade receivables, explaining it as a characteristic of the construction industry and distinct from Nisus Finance's core operations, with due diligence already performed.

Asked by Ankur Aggarwal

Low PAT margin of NCCCL and plans for improvement Direct
So, to be very simple, we are in the process of unlocking value, right? So, typically PAT margins in this industry tend to be between 3% to 5%. So, companies are roughly, it has been at 3% to 5%. However, with the sudden expansion in the order book, it has taken on certain working capital limits and has been paying a certain interest cost for that. We are rationalizing that very quickly by unlocking almost INR250 crores worth of assets on the books and releasing that cash on the balance sheet, which will effectively kill the debt and translate the EBITDA margin of 9% to the PAT margin, which is higher than industry.

Addresses the analyst's concern about NCCCL's low PAT margin, explaining the underlying reasons (working capital, interest) and outlining a clear strategy to improve it by unlocking cash and reducing debt.

Asked by Shruti Malpani

Promoter share pledge for the acquisition Direct
Yes, I did. I pledged almost about, yeah, I pledged almost about 50% or 45% of my shares. And now, it's 18.5% pledged.

Discloses the initial extent of promoter share pledging for the acquisition and its subsequent significant reduction, indicating management's commitment to prudent balance sheet management.

Asked by Rajagopal Ramanathan

Outlook for Nisus Finance standalone revenue in H2 FY26 Partial
So I do see the acceleration of that happening every quarter. So I don't think that there's going to be any worry in terms of maintaining the momentum over the next two quarters or in the next few years, to be honest.

Provides qualitative assurance of continued strong growth momentum for the standalone business in the coming quarters, even without providing specific numerical guidance for H2.

Asked by Vaibhav Lohia

Synergies and cross-pollination of fund flows between India and GCC platforms Direct
So therefore we do see a very huge amount of synergies as more and more global capital come to us for either of the strategies and then migrating to the other strategy very quickly.

Highlights the strategic advantage of the integrated cross-border platform in attracting global capital and facilitating seamless investment across different strategies and geographies.

Asked by Bhuvan MG

2 min read 6 chapters

Detailed narrative

Strong H1 FY26 Performance and Strategic Acceleration

Nisus Finance reported consolidated revenues of INR142 crores for H1 FY26. Excluding the recent acquisition, standalone revenues grew 118% year-on-year to INR75 crores, with Q2 revenue up 61% sequentially. Consolidated EBITDA grew 117% year-on-year to INR56 crores, maintaining a 76% margin, while PAT stood at INR36.5 crores with a 50% margin, reflecting strong operational efficiency and disciplined capital deployment.

Strategic Acquisition of NCCCL

A key highlight was the acquisition of New Consolidated Construction Company Ltd. (NCCCL), a 78-year-old construction firm. NCCCL brings an active order book of nearly INR2,350 crores, with an expectation to scale to INR5,000 crores in the short term. The acquisition was strategic, focusing on continuity and unlocking value, rather than just the highest bid, and was funded by INR110 crores of debt, of which INR50 crores has already been repaid.

AUM Growth and Pipeline Visibility

The company's Assets Under Management (AUM) currently stand at over INR1,900 crores, demonstrating a 95% CAGR since FY22. Management is confident in achieving its FY26 AUM target of INR4,004 crores, supported by a combined India and GCC pipeline exceeding INR4,600 crores. They expect to convert over INR2,000 crores from this pipeline into AUM this financial year.

Cross-Border Platform and Tokenization Opportunity

Nisus Finance has established itself as a cross-border asset management franchise, licensed in the GCC (DIFC and ISDA authority). This platform facilitates capital flow between India and GCC, with the UAE/Dubai operations performing strongly. The company is also actively pursuing tokenization of real estate investments, a market projected to reach $5 trillion, which is expected to generate annuity income starting from FY27.

NCCCL Margin and Balance Sheet Optimization

While NCCCL's H1 FY26 revenue was INR300 crores with a 10% EBITDA margin, its PAT margin was a lower 1%. Management attributed this to working capital and interest costs, and plans to improve it by unlocking approximately INR250 crores of cash from NCCCL's balance sheet in the next few quarters. This is expected to reduce debt, improve PAT margins, and bring them closer to the industry average of 3-5% by FY27.

Credit Rating and Share Pledge Reduction

Nisus Finance became the first EIS business and fund manager to receive a KPMG Plus credit rating from KRH, recognizing its governance and processes. Furthermore, the promoter's share pledge, initially around 45-50% for the NCCCL acquisition, has been reduced to 18.5%, demonstrating prudent balance sheet management and cost controls.

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