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    Nisus Finance

    544296
    Financial Services·30 May 2025
    Management Summary

    Nisus Finance reported strong financial performance for FY25, with revenue up 56% YoY to ₹67.3 crores and PAT growing 35.5% to ₹33 crores. AUM expanded over 50% to ₹1,572 crores, driven by successful international expansion into the GCC and robust transaction advisory services. Despite a cautious approach in the last quarter due to market headwinds and increased operational expenses, the company is poised for significant future growth, targeting ₹4,000 crores in AUM and an effective tax rate reduction.

    Highlights

    5

    • Revenue of ₹67.3 crores, up 56% YoY.

    • PAT of ₹33 crores, up 35.5% YoY from ₹24 crores.

    • AUM grew over 50% to ₹1,572 crores.

    • Established strong presence in GCC with DIFC registered fund, acquiring $55 million in assets and a $200 million pipeline.

    • Received 'Excellent' rating by CareEdge and recognized by Prequin as a top-performing fund.

    Concerns

    3

    • EBITDA margin at 66% for FY25, down from 84% in the previous year, due to increased operational costs and investments.

    • Last quarter experienced slowdown in India's real estate sector, with FII sell-off of $15 billion and 23% drop in housing sales.

    • Company adopted a cautious approach and delayed full utilization of IPO proceeds due to geopolitical headwinds and market volatility.

    What Changed2

    vs Q1 FY26

    Guidance items7 → 8 (+1)Q&A highlights7 → 0 (-7)

    Key financials

    Single quarter

    09 metrics
    1. 01Revenue₹67.3 Cr+56.0%YoY
    2. 02H1 FY25 Revenue₹34 Cr+1.8%YoY
    3. 03H2 FY25 Revenue₹33 Cr+6%YoY
    4. 04EBITDA Margin66%
    5. 05EBITDA₹44 Cr+22%YoY

    Segment breakdown

    Revenue ContributionRevenue Growth
    Transaction Advisory67%49%
    Fund and Asset Management33%73%
    UAE Operations30%—
    Heatmap· 2 shared metrics

    Capital allocation

    1
    high confidence
    CategoryHeadline
    Liquidity

    Cash ₹68 crores

    Cash from IPO proceeds, with ₹68 crores remaining from ₹101 crores raised as of March 25.

    Guidance & targets

    7
    CategoryTargetPriority
    AUM
    AUM
    ₹4,000 crores
    		High
    Profitability
    Revenue to AUM ratio
    3%-3.5%
    		High
    Profitability
    PAT margins
    maintaining or exceeding
    		Medium
    Geographical Mix
    AUM split India/UAE
    50-50
    		High
    Taxation
    Effective tax rate
    18%-19%
    		High
    Efficiency
    Revenue per employee
    ₹1.5 crores to ₹2.5 crores or beyond
    		Medium
    Growth
    CAGR growth on revenues, PAT, EBITDA
    similar or higher
    		Medium

    What to watch in Q1 FY26

    5

    AUM growth towards ₹4,000 crores

    Upcoming period
    Current₹1,572 crores
    TargetProgress towards ₹4,000 crores

    Why it matters

    Indicates the company's ability to scale its core business and achieve its ambitious growth targets.

    From an AUM of Rs. 1,572 crores, as I have demonstrated to you, we are looking to lock in an AUM of Rs. 4,000 crores.

    Risks & concerns

    3
    RiskSeverity

    Market volatility and geopolitical headwinds

    Experienced volatility in India markets due to global repercussions and broader economic trends, leading to caution in capital deployment. — Management acknowledged

    medium

    Slowdown in India's real estate sector

    Last quarter saw caution in the RE sector, with FII sell-off of $15 billion and housing sales dropping 23%, leading to cautious commitments in India markets. — Management acknowledged

    medium

    Increased operational costs impacting margins

    EBITDA margin reduced from 84% to 66% due to increased employee costs (from ₹3 crores to ₹10.5 crores) and investments in new offices, licenses, and infrastructure. — Management acknowledged

    medium
    2 min read5 chapters

    Detailed Narrative

    01

    Strong Financial Performance and Growth

    Nisus Finance reported a robust financial year, with revenue increasing by 56% year-on-year to ₹67.3 crores. The company's Profit After Tax (PAT) also saw significant growth, rising by 35.5% from ₹24 crores to ₹33 crores. Assets Under Management (AUM) expanded by over 50%, reaching ₹1,572 crores, demonstrating strong business momentum despite some market headwinds🌐.

    02

    International Expansion and GCC Presence

    A key highlight was the successful international expansion, particularly into the GCC markets. The company launched a DIFC registered fund, acquiring two high-value assets worth over $55 million and building a pipeline exceeding $200 million. This strategic move has led to UAE operations contributing approximately 30% of the overall revenue, with a target to achieve a 50-50 AUM split between India and UAE by the end of the financial year.

    03

    Capital Mobilization and Fund Performance

    Nisus Finance has forged global partnerships, including with Houlihan Lokey, to raise funds for its India and UAE-focused investment vehicles. The company secured credit lines up to 150 million dirhams and is in advanced discussions with global financial institutions. It has been awarded an 'Excellent' rating by CareEdge for fund management and recognized by Prequin as one of the highest-performing funds globally in the RE credit space.

    04

    Operational Efficiency and Team Strength

    The company has significantly invested in its human capital and infrastructure, doubling its advisory strength from 22 to 44 employees. This investment, alongside new offices in Dubai and Mumbai, contributed to an increase in employee costs from ₹3 crores to ₹10.5 crores. Nisus Finance is certified as a 'Great Place to Work,' reflecting its commitment to a collaborative and innovative workplace culture.

    05

    Strategic Outlook and Future Targets

    Nisus Finance aims for continued aggressive growth, targeting an AUM of ₹4,000 crores in the near term and aspiring to become a global asset manager with over $1 billion in AUM by 2027. The company expects to maintain its revenue to AUM ratio in the 3%-3.5% range and anticipates a reduction in its effective tax rate from 22% to 18%-19% due to benefits from UAE and GIFT City operations.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.