Nexus Select — Q3 FY26 earnings call

Call held 2 Feb 2026

Management summary

Nexus Select Trust delivered a robust Q3 FY26, marked by 15% YoY Retail NOI growth and a record quarterly distribution. Consumption momentum remained strong at 16% YoY, driven by broad-based growth across categories, notably Jewellery and Fashion. The company continued its strategic inorganic growth with a key acquisition in Nexus Elante and a healthy pipeline, while also demonstrating strong financial discipline through debt cost reduction and efficient working capital management. Despite a slight, temporary moderation in like-for-like consumption due to store churn, the outlook remains positive with firm guidance for FY26.

Highlights

  • Retail NOI grew 15% year-on-year in Q3 FY26, with like-for-like NOI growth at 9%.

  • Q3 FY26 distribution of INR 359 crores (INR 2.367 per unit) is the highest ever quarterly distribution since listing.

  • Overall consumption grew 16% year-on-year in Q3 FY26, with strong performance in Jewellery (57% YoY sales growth) and Fashion.

  • Leasing demand remained robust, releasing approximately 2 lakh square feet during the quarter at 20% spreads.

  • Completed the acquisition of 60,000 square feet in Nexus Elante and maintains a robust acquisition pipeline of 11 assets, with 4 under due-diligence.

Concerns

  • Like-for-like consumption growth showed a slight moderation compared to Q2, attributed to temporary store fit-outs and tenant churn in top malls like Select Citywalk and Elante.

Key financials

2 periods

Headline

  • Retail NOI Growth
    15%
    YoY +15%
  • Like-for-like Retail NOI Growth
    9%
    YoY +9%
  • YTD Cumulative Distribution
    ₹1,029 Cr
  • YTD Cumulative Distribution Per Unit
    ₹6.795
  • Overall Consumption Growth
    16%
    YoY +16%
  • Jewellery Sales Growth
    57%
    YoY +57%
  • Footfall Growth
    6%
    YoY +6%
  • Current Occupancy
    97%

Q3

  • Distribution
    ₹359 Cr
  • Distribution Per Unit
    ₹2.367

What they filed

Q1 FY27: revenue down 17.3%, net profit down 24.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue307 348 332 371 317 +3%382 +10%433 +30%307 −17%
EBITDA302 343 327 366 311 +3%376 +10%427 +31%300 −18%
Net profit254 281 259 290 232 −9%297 +6%349 +35%220 −24%
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

  • Fashion
    50% Share of Overall Consumption6% Sales Growth LFL
  • Entertainment
    17% Share of Overall Consumption
  • F&B
    12% Share of Overall Consumption
  • Jewellery
    7% Share of Overall Consumption57% Sales Growth

Order book

high confidence

Inflow this quarter

2,00,000 sq ft

Pipeline

other

Robust pipeline of 11 assets across India, with 4 assets under due-diligence.

Strong demand for leasing, with 2 lakh sq ft released at 20% spreads. Robust acquisition pipeline with 11 assets, 4 under due-diligence.

Source: Prepared remarks

Capital allocation

high confidence
  • Debt Debt disclosed
    • New borrowing Raised INR 700 crores through a 10-year sustainability-linked bond, with a floating rate of INR 200 crores, expected to result in an annualized savings of INR 6 crores. ₹700 Cr
    • Refinance Refinanced INR 700 crores this quarter, resulting in a 90 bps reduction in interest cost. ₹700 Cr
    Since listing, our proactive debt management has resulted in approximately 120 basis points reduction in debt costs. In addition, I am also pleased to report that our average outstanding receivables remain at a historic low of approximately three days, reflecting strong operational discipline and tenant relationships.
  • Dividend ₹2.367/share (interim)
    On the back of this strong performance, we are announcing a distribution of INR 359 crores, translating to INR 2.367 per unit. This marks our highest ever quarterly distribution since listing, underscoring the robustness and consistency of our cash flow generation.
  • M&A Nexus Elante complex Acquisition · Closed

    Enable activation of high-street frontage within the courtyard and lease space with couture brands, replicate acquisition-led expansion strategy.

    Acquisition of 60,000 square feet of prime retail space.

    We are delighted to have successfully completed a strategic bolt-on acquisition of 60,000 square feet of prime retail space within the Nexus Elante complex. This will enable activation of high-street frontage within the courtyard and we expect to lease this space with couture brands, the best in the country. We intend to selectively replicate this acquisition-led expansion strategy across our portfolio, where similar opportunities exist.
  • Liquidity Liquidity disclosed Average outstanding receivables at a historic low of approximately three days. Close to USD 1 billion of debt headroom.
    In addition, I am also pleased to report that our average outstanding receivables remain at a historic low of approximately three days, reflecting strong operational discipline and tenant relationships. ... Supported by a strong balance sheet, low leverage and close to USD 1 billion of debt headroom, we are very well positioned to execute the next phase of our inorganic growth strategy.

Guidance & targets

NOI

  • FY26 NOI Guidance NOI · FY26 · High confidence on track
    We remain firmly on track to achieve our FY 26 NOI and distribution guidance.

    — Dalip Sehgal

Distribution

  • FY26 Distribution Guidance Distribution · FY26 · High confidence on track
    We remain firmly on track to achieve our FY 26 NOI and distribution guidance.

    — Dalip Sehgal

Inorganic Growth

  • Annual NOI Addition from Acquisitions Inorganic Growth · every year for the next five years starting FY26 · High confidence INR 150 crores
    We had earlier guided that we would add close to about INR 150 crores of annual NOI through inorganic growth every year starting FY 26. We did a couple of acquisitions this year and are broadly on track with that guidance. Accordingly, we expect to add around INR150 crores of NOI every year for the next five years through acquisitions.

    — Pratik Dantara

Portfolio Size

  • Total Malls Portfolio Size · by 2030 · High confidence 30-35 malls

    From 19 malls today

    If you recall, our overall objective for 2030 was to reach around 30-35 malls from 19 malls today and we believe this is still very much achievable.

    — Dalip Sehgal

Sustainability

  • Lakes Restoration Sustainability · by 2026 · High confidence 15 lakes

    From 10 lakes today

    Under our Lakes of Happyness initiative, we have now rejuvenated 10 lakes and are targeting a total of 15 lakes restoration by 2026.

    — Dalip Sehgal

NOI Growth

  • Steady State NOI Growth NOI Growth · steady state · High confidence 8.5% to 9%
    Our NOI grows typically for a business like us would be anywhere between 8.5% to 9%.

    — Pratik Dantara

  • Steady State NOI Growth (incl. cost savings, hotels/offices) NOI Growth · steady state · High confidence 8.5% - 9%
    That takes it to about 7.5% - 8% and then cost saving measures, growth from hotels and offices, some of these things put together add another 0.5% to a 1% on our NOI growth. So, I think on a steady state basis, you should see about 8.5% - 9% NOI growth in this business.

    — Rajesh Deo

NOI to Consumption

  • NOI to Consumption Ratio NOI to Consumption · always · High confidence 10% to 12%
    And I think just to add, your NOI to consumption will always kind of remain between 10% to 12% in a business like this, which is 12% for this quarter.

    — Rajesh Deo

Occupancy

  • Increased Occupancy Impact Occupancy · Medium confidence 100 bps increase will result in better cash flows
    from where we are in this quarter, which is 97%, I think there is another 100 bps of increased occupancy that will result in better cash flows.

    — Dalip Sehgal

What to watch in Q4 FY26

Closing of 4 assets under due diligence

next 4-6 months
Current 4 assets under due diligence
Target Closing of these assets within 4-6 months

Why it matters

These acquisitions are expected to contribute INR 150 crores of annual NOI, crucial for inorganic growth targets.

Over the next four to six months, we are looking to close the four assets which are currently under diligence. So hopefully over the next few months, you will see us signing and closing some of these deals.

Risks & concerns

  • Temporary dip in like-for-like consumption growth

    low

    Attributed to store fit-outs and tenant churn in top malls, described as a transitional phase expected to normalize.

    Analyst downplayed

Q&A highlights

4 direct
Like-for-like consumption vs. rental growth and category performance Direct
retail NOI growth is about 9% like-for-like versus reported of 15% and rental growth broadly replicates these numbers. ... While fashion at 6% may appear to be a laggard, it is important to note that over the last four to five quarters, fashion growth was either flat or in low single digits. In that context, 6% represents a meaningful improvement.

Clarifies the difference between reported and like-for-like NOI growth and provides context on the performance of key retail categories, particularly fashion's recovery.

Asked by Mohit Agrawal

Moderation in like-for-like consumption growth and reasons Direct
Couple of our top malls - Select Citywalk and Elante, we had certain stores were under-fit out and were in the process of churning a few tenants. As a result, there was some temporary impact on occupancy, which led to slightly lower growth. However, this is largely a transitional phase. So this should come back as things normalize.

Explains a temporary dip in consumption growth, attributing it to specific operational factors rather than broader market weakness, and indicates a future normalization.

Asked by Pritesh Sheth

Opportunities for further acquisitions within the existing portfolio Direct
Across our top five malls, we see similar opportunities in at least two to three assets. While we cannot go into too much detail at this stage given the conversations are confidential. I'd say that we are seeing this potential across two to three of our top five malls.

Highlights potential for future bolt-on acquisitions within existing high-performing assets, indicating continued inorganic growth strategy.

Asked by Pritesh Sheth

Status of Hyderabad portfolio in the acquisition pipeline Partial
The five to six month timeline and the four assets that we're looking to close, that doesn't include the Hyderabad one. The Hyderabad malls are part of our pipeline, but currently at this point of time, not part of the diligence list.

Clarifies the status of a specific set of potential acquisitions, distinguishing between those under active diligence and those in the broader pipeline.

Asked by Jatin

Greenfield acquisition plans by the sponsor Partial
As of now, we're evaluating the whole process of doing a Greenfield. This is still under discussion and you'll probably hear about it from us over the next few months.

Indicates potential future greenfield development strategy, which could be a significant long-term growth driver, but is still in early stages.

Asked by Sarvesh Gupta

NOI lagging consumption growth and rental contract structure Direct
So, we'll always see NOI lagging consumption growth because of the way contracts are structured and the fact that a large part of our rentals are fixed rentals. ... Our NOI grows typically for a business like us would be anywhere between 8.5% to 9%.

Provides a fundamental explanation for why NOI growth may lag consumption growth in the REIT model, crucial for investor understanding of revenue dynamics.

Asked by Gaurav Khandelwal

2 min read 5 chapters

Detailed narrative

Robust Q3 FY26 Performance and Record Distribution

Nexus Select Trust reported a strong Q3 FY26, achieving a 15% year-on-year Retail Net Operating Income (NOI) growth. This performance enabled the company to announce its highest-ever quarterly distribution since listing, totaling INR 359 crores, which translates to INR 2.367 per unit. Cumulatively for the year, distributions reached INR 1,029 crores or INR 6.795 per unit, putting the company firmly on track to meet its full-year FY26 NOI and distribution guidance.

Strong Consumption Momentum Across Categories

The company witnessed robust consumption momentum in Q3 FY26, with overall year-on-year growth of 16%, following 12% in Q1 and 16% in Q2. This growth was broad-based, with Fashion (50% of consumption) showing strong performance for the second consecutive quarter, and Jewellery (7% of consumption) recording a very strong 57% year-on-year sales growth. Family Entertainment Centres and Beauty also sustained healthy momentum, contributing to a diverse and resilient consumption trend that continued into January 2026.

Strategic Leasing and Asset Management

Leasing activity remained strong, with approximately 2 lakh square feet released during the quarter at healthy 20% spreads. Over the past nine months, 3 lakh square feet of space was strategically churned ahead of expiry out of 8 lakh square feet released, demonstrating proactive asset management. Key initiatives included the opening of Foot Locker's first South India flagship store at Nexus Koramangala and the curation of a high-end jewellery zone spanning over 30,000 square feet at Nexus Elante, housing 10+ marquee brands including Forevermark's first store in that market.

Balance Sheet Strength and Inorganic Growth Strategy

Nexus Select Trust reinforced its robust balance sheet by raising INR 700 crores through a 10-year sustainability-linked bond, expected to yield annualized savings of INR 6 crores. Proactive debt management has led to a 120 basis points reduction in debt costs since listing. The company successfully acquired 60,000 square feet of prime retail space in Nexus Elante and maintains a robust acquisition pipeline of 11 assets, with 4 under due-diligence. With low leverage and close to USD 1 billion in debt headroom, the company is well-positioned to execute its inorganic growth strategy, targeting INR 150 crores of annual NOI addition from acquisitions for the next five years.

Sustainability and Talent Development Initiatives

The company continues to lead in sustainability, recognized as a 'Regional Sector Leader - Retail, Asia' by GRESB. Under its 'Lakes of Happyness' initiative, 10 lakes have been rejuvenated, with a target to restore 15 lakes by 2026. Nexus also launched 'Aarunya,' an education program for frontline staff in collaboration with Medhavi Skills University, India's first higher education program in mall management, underscoring its commitment to talent development and long-term vision.

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