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.