Earning call transcript of the Investors call held on Tuesday, May 26, 2026
NIRLON · price
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Nirlon reported strong Q4 FY26 results with total income of Rs. 174 crores (up 9% YoY) and EBITDA of Rs. 136 crores with 77.85% margins. For full year FY26, total income was Rs. 683 crores and PAT was Rs. 346 crores including a one-time Rs. 69.5 crore benefit from switching to the new tax regime; excluding this, PAT growth was 27% YoY. Occupancy stood at 99.7% with only 8,000 sqft vacant. The Board proposed a final dividend of Rs. 15 per share. Investors pressed management on Rs. 165 crore of idle cash (total ~Rs. 300 crores) sitting in FDs at 5.5% while paying 7.75% interest on Rs. 1,150 crore HSBC debt. Management declined to comment on plans for cash deployment, potential special dividends, buybacks, or debt prepayment. Nirlon House sale remains stalled due to 12-13 co-owners. Management also declined to comment on REIT restructuring plans, promoter reclassification from public category, and Brookfield's 10%+ shareholding classification.
Strong operational performance with near-full occupancy and high margins, but management's evasiveness on cash deployment strategy and multiple unanswered questions about capital returns may concern investors seeking clearer shareholder value plans.