Earning Call Transcript for the Quarter ended June 30, 2025
NIRLON · price
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Nirlon reported Q1 FY26 total income of Rs 167 crore (up 6% YoY), EBITDA of Rs 132 crore (up 8% YoY) with margins at 78.93%, and PAT of Rs 58 crore (up 17% YoY) with PAT margin at 34.95%. Average occupancy was 97.5%, down from 99.8% a year ago, mainly because Morgan Stanley fully exited the property during the quarter. The vacated ~280,000 sq ft has been re-licensed or committed to Deutsche Bank, Barclays, MUFG, Citi, EY, and Accenture at Rs 180–185 per sq ft per month with annual escalation. Citi also renewed 196,000 sq ft. The Board has proposed a final dividend of Rs 11 per share for FY25. Management offered no update on restructuring plans and declined to give specific guidance on rental growth assumptions, cash deployment, or loan prepayment strategy.
Quick re-leasing of the Morgan Stanley space at higher rates is a clear positive for rental income visibility from Q2 onwards. However, management's repeated avoidance of questions on cash deployment (~Rs 173 crore), loan prepayment, and restructuring plans may leave investors wanting more clarity on capital allocation.