Nisus Finance — Q4 FY25 earnings call

Call held 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

  • 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

  • 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.

Key financials

3 periods

Headline

  • Revenue
    ₹67.3 Cr
    YoY +56%
  • EBITDA Margin
    66%
  • EBITDA
    ₹44 Cr
    YoY +22%
  • PAT
    ₹33 Cr
    YoY +35.5%
  • AUM
    ₹1,572 Cr
    YoY +55%
  • Effective Tax Rate
    22%
  • Shareholders Fund
    ₹160 Cr

H1

  • FY25 Revenue
    ₹34 Cr
    YoY +184%

H2

  • FY25 Revenue
    ₹33 Cr
    YoY +6%

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

SegmentRevenue ContributionRevenue Growth
Transaction Advisory67%49%
Fund and Asset Management33%73%
UAE Operations30%—

Capital allocation

high confidence
  • Liquidity Cash ₹68 Cr Cash from IPO proceeds, with ₹68 crores remaining from ₹101 crores raised as of March 25.
    We were sitting on almost Rs. 67 crore of cash from Rs. 101 crores raised as of March 25.

Guidance & targets

AUM

  • AUM AUM · Upcoming period · High confidence ₹4,000 crores
    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.

    — Amit Goenka

Profitability

  • Revenue to AUM ratio Profitability · Upcoming period · High confidence 3%-3.5%
    We are estimating it will still remain in the 3%-3.5% revenue to the AUM range, thereby bringing a significant top end already to our balance sheet this year and while maintaining our PAT margins or exceeding

    — Amit Goenka

  • PAT margins Profitability · Upcoming period · Medium confidence maintaining or exceeding

    — Amit Goenka

Geographical Mix

  • AUM split India/UAE Geographical Mix · by end of this financial year · High confidence 50-50

    Previously 71-29 → 50-50

    Just a breakup of the assets under management by geography. 29% being in the UAE and 71% being in India, we expect this to become 50-50 effectively by the end of this financial year.

    — Amit Goenka

Taxation

  • Effective tax rate Taxation · current year · High confidence 18%-19%

    Previously 22% → 18%-19%

    So, we are likely to go from a current 22% effective tax rate to maybe 18%-19% tax rate as well in this current year.

    — Amit Goenka

Efficiency

  • Revenue per employee Efficiency · Upcoming period · Medium confidence ₹1.5 crores to ₹2.5 crores or beyond
    Despite that, the revenue per employee is target to move from Rs. 1.5 crores to Rs. 2.5 crores or beyond.

    — Amit Goenka

Growth

  • CAGR growth on revenues, PAT, EBITDA Growth · this year and going forward · Medium confidence similar or higher

    From 73% today

    we project a similar or higher CAGR growth on revenues, on PAT, on EBITDA, year-on-year, in this year and going forward, given what we are already looking to close and what we have already locked in in our favor.

    — Amit Goenka

Market context

  • Global AUM AUM · by 2027 · High confidence $1 billion
    Not only that we are already on track to become a global asset manager with an AUM of over $1 billion by 2028, we are likely do actually prepone this event to even 2027.

    — Amit Goenka

What to watch in Q1 FY26

AUM growth towards ₹4,000 crores

Upcoming period
Current ₹1,572 crores
Target Progress 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

  • Market volatility and geopolitical headwinds

    medium

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

    Management acknowledged

  • Slowdown in India's real estate sector

    medium

    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

  • Increased operational costs impacting margins

    medium

    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

2 min read 5 chapters

Detailed narrative

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.

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.

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.

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.

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.

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