Operating Leverage Inflection
Expected: CurrentHIGH confidence
What: Occupancy %: 99.7%
“we have practically 100% occupancy in NKP, which is the primary asset of Nirlon.”
Nirlon Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +16.7%Average7w StreakRe-Entry
In , Nirlon Ltd (Realty - Commercial) is outperforming Nifty 500 with +16.7% relative strength. Fundamentals: Average. On a 7-week streak.
Nirlon Ltd Key Facts
- PE Ratio
- 16.0x
- Market Cap
- ₹5,276 Cr
- PAT Growth YoY
- +19%
- Revenue Growth YoY
- +6%
- OPM
- 78.0%
- RS vs Nifty 500
- +16.7%
PE: Cycle BottomStrong Opportunity
What's Happening
💎PE falling while earnings hold — value emerging
🌐FII stake increased 2.9% this quarter
🏛️DII reducing — stake down 2.4%
💰Trading 387% below estimated fair value — significant discount
Earnings Acceleration Triggers
1. Operating Leverage Inflection
CurrentHIGH
2. Value Added Product Mix Shift
FY27MEDIUM
3. Occupancy increased to 99.7%
HIGH
Key Risks
1. Transition to the new tax regime may impact the feasibility of a REIT structure
MEDIUM2. Potential for increased maintenance and service costs
LOWSector-Specific Signals
Average Occupancy Rate99.7%
Total Vacant Area7,800 sq ft
New Renewal Rental Rate>185 per sq ft
Area Renewed in Quarter25,000 sq ft
Key Numbers
PAT Growth YoY
+19%
Stable
Revenue YoY
+6%
Stable
Operating Margin
78.0%
-300 bps YoY
PE Ratio
16.0
Current Price
₹585
Dividend Yield
4.44%
Fundamental Score
57/100
Average
3Y PAT CAGR
+25%
Market Cap
5.3K Cr
Valuation
Significantly Undervalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Nirlon Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 18, 2026
Value Added Product Mix Shift
Expected: FY27MEDIUM confidence
What: Rental Rate: >185 per sq ft
“You can really find all these details very easily, if you look at what the new numbers are, it is approximately north of 185.”
Occupancy increased to 99.7%
HIGH confidence
What: Occupancy increased to 99.7%
“On the operational front, the occupancy rate for the company as a whole comprising NKP and Nirlon House stood at 99.7% for the quarter.”
What Are the Key Risks for Nirlon Ltd?
Earnings deceleration risks from management commentary
Transition to the new tax regime may impact the feasibility of a REIT structure
MEDIUMTrigger: The taxation benefits of a REIT are largely optimized under the old tax regime.
Management view: Management is evaluating the impact with advisors but has not ruled out a REIT entirely.
Monitor: regulatory
Potential for increased maintenance and service costs
LOWTrigger: Routine capex is required to maintain A-grade standards for international clients.
Management view: Budgeted at Rs. 30 crores per annum.
Monitor: labor
What Is Nirlon Ltd's Management Saying?
Key quotes from recent conference calls
“Approximately Rs. 30 crores per annum. [Previous Repair CAPEX guidance]”
“because of our existing situation with practically (+/-1%) or 0% vacancies. [Previous Occupancy guidance]”
“majority of the license agreements that are now being signed are really with annual escalation. [Initiative: Annual Escalation Clauses]”
“Second, we agree that the benefits in a REIT are largely when companies are under the old tax regime. [Risk (regulatory): MEDIUM]”
What Did Nirlon Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
INR 173 crores
YoY +6%QoQ +2.4%
Why: Growth was driven by a combination of contracted escalations and the re-licensing of space at higher rates.
Revenue growth remains steady as the company benefits from high occupancy and annual rental escalations.
EBITDA
INR 135 crores
YoY +1%Margin 77.93%
Why: EBITDA growth lagged revenue growth slightly due to routine maintenance and operational expenses.
Margins remain high but showed a slight year-on-year compression from the 78.69% reported in Q2.
PAT
INR 69 crores
QoQ -53.4%
Why: The sharp decline from Q2 was due to the absence of a one-time deferred tax reversal of Rs. 69.5 crores recorded in the previous quarter.
Normalized PAT is more reflective of the new concessional tax regime without the one-time accounting adjustments seen in Q2.
Other Highlights
• Occupancy reached 99.7% for the quarter, up from 98.6% in Q2.
• Approximately 25,000 square feet was renewed by Citi during the quarter.
• Interim dividend of INR 15 (150%) per share declared for FY26.
What Sector Metrics Matter for Nirlon Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Average Occupancy Rate
99.7%
QoQ +110 bps
Why: Driven by successful renewals and minimal exits.
Total Vacant Area
7,800 sq ft
QoQ -12,200 sq ft
Why: Reduction from 20,000 sq ft in Q2 due to new licensing agreements.
New Renewal Rental Rate
>185 per sq ft
Why: Reflects current market demand for A-grade assets in Goregaon.
Area Renewed in Quarter
25,000 sq ft
Why: Renewal of space by Citi.
Annual Maintenance CAPEX
Rs. 30 crores
YoY 0%QoQ 0%
Why: Steady-state maintenance requirement.
Cash and Bank Balance
Rs. 325 crores
QoQ +8.3%
Why: Accumulation of operational cash flows prior to dividend payout.
Interim Dividend
Rs. 15
YoY 0%
Why: Consistent with previous interim payout policy.
Effective Borrowing Cost
7.7%
Why: Linked to 30-day T-bill plus 233 bps.
What Is Nirlon Ltd's Management Guidance?
Forward-looking targets from management for FY27
Capex Plan
₹30 Cr
Revenue Outlook
Growth to be driven by contracted escalations
Capex Plan
Rs. 30 crores per annum
Routine maintenance and up-gradation
Management Tone: BULLISH
Guidance Changes
REAFFIRMED
Tax Regime: Old Tax Regime → New Concessional Tax Regime
How Fast Is Nirlon Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +6% | +18% | Stable |
| PAT (Net Profit) | +19% | +25% | Stable |
| OPM | 78.0% | -300 bps | Stable |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Other Top Realty - Commercial Stocks Beating Nifty 500
Frequently Asked Questions: Nirlon Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Nirlon Ltd's latest quarterly results?
Nirlon Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +19.0% (stable)
- Revenue Growth YoY: +5.6%
- Operating Margin: 78.0% (stable)
Is Nirlon Ltd's profit growing or declining?
Nirlon Ltd's profit is growing with an stable trend.
- PAT Growth YoY: +19.0% (latest quarter)
- PAT Growth QoQ: -53.4% (sequential)
- 3-Year PAT CAGR: +25.2%
- Trend: Stable — consistent growth pattern
What is Nirlon Ltd's revenue growth trend?
Nirlon Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +5.6%
- Revenue Growth QoQ: +3.0% (sequential)
- 3-Year Revenue CAGR: +18.3%
How is Nirlon Ltd's operating margin trending?
Nirlon Ltd's operating margin is stable.
- Current OPM: 78.0%
- OPM Change YoY: -3.0% basis points
- OPM Change QoQ: 0.0% basis points
What is Nirlon Ltd's 3-year profit and revenue CAGR?
Nirlon Ltd's long-term compounding rates
- 3-Year Profit CAGR: +25.2%
- 3-Year Revenue CAGR: +18.3%
Is Nirlon Ltd's growth accelerating or decelerating?
Nirlon Ltd's earnings growth is stable with mixed signals on a sequential basis.
- YoY Acceleration: -81.0% bps
- Sequential Acceleration: -100.0% bps
- Margin Warning: Operating margins are under pressure
What is Nirlon Ltd's trailing twelve month (TTM) performance?
Nirlon Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹329 Cr
- TTM PAT Growth: +53.0% YoY
- TTM Revenue: ₹656 Cr
- TTM Revenue Growth: +4.0% YoY
- TTM Operating Margin: 78.0%
Is Nirlon Ltd overvalued or undervalued?
Nirlon Ltd appears significantly undervalued based on our fair value analysis.
- Valuation Signal: Significantly Undervalued
- Current PE: 16.0x
- Price-to-Book: 11.4x
What is Nirlon Ltd's current PE ratio?
Nirlon Ltd's current PE ratio is 16.0x.
- Current PE: 16.0x
- Market Cap: 5.3K Cr
- Dividend Yield: 4.44%
How does Nirlon Ltd's valuation compare to its history?
Nirlon Ltd's current PE is 16.0x.
- Current PE: 16.0x
- Valuation Assessment: Significantly Undervalued
What is Nirlon Ltd's price-to-book ratio?
Nirlon Ltd's price-to-book ratio is 11.4x.
- Price-to-Book (P/B): 11.4x
- Book Value per Share: ₹52
- Current Price: ₹585
Is Nirlon Ltd a fundamentally strong company?
Nirlon Ltd is rated Average with a fundamental score of 57.24/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +5.6% (10% weight)
- PAT Growth YoY: +19.0% (10% weight)
- PAT Growth QoQ: -53.4% (10% weight)
- Margins stable (10% weight)
Is Nirlon Ltd debt free?
Nirlon Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹1,000 Cr
What is Nirlon Ltd's return on equity (ROE) and ROCE?
Nirlon Ltd's return ratios over recent years
- FY2023: ROCE 22.0%
- FY2024: ROCE 28.0%
- FY2025: ROCE 30.0%
Is Nirlon Ltd's cash flow positive?
Nirlon Ltd's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹480 Cr
- Free Cash Flow (FCF): ₹442 Cr
- CFO/PAT Ratio: 220% (strong cash conversion)
What is Nirlon Ltd's dividend yield?
Nirlon Ltd's current dividend yield is 4.44%.
- Dividend Yield: 4.44%
- Current Price: ₹585
Who holds Nirlon Ltd shares — promoters, FII, DII?
Nirlon Ltd's shareholding pattern (Mar 2026)
- Promoters: 67.7%
- FII (Foreign): 15.8%
- DII (Domestic): 0.1%
- Public: 16.5%
Is promoter holding increasing or decreasing in Nirlon Ltd?
Nirlon Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 67.7% (Mar 2026)
- Previous Quarter: 67.7% (Dec 2025)
- Change: 0.00% (stable)
How long has Nirlon Ltd been outperforming Nifty 500?
Nirlon Ltd has been outperforming Nifty 500 for 7 consecutive weeks, indicating building momentum.
Is Nirlon Ltd a new momentum entry or an established outperformer?
Nirlon Ltd is a re-entry — it briefly dropped off the outperformance list but has now returned. Re-entries can signal renewed strength.
What are the growth catalysts for Nirlon Ltd?
Nirlon Ltd has 3 key growth catalysts identified from recent earnings analysis
- Operating Leverage Inflection — Near-total occupancy ensures that incremental revenue from escalations flows efficiently to the bottom line.
- Value Added Product Mix Shift — Newer renewals are happening at rates significantly higher than historical averages.
- Occupancy increased to 99.7% — Driven by the successful re-licensing of space and minimal vacancies at NKP.
What are the key risks in Nirlon Ltd?
Nirlon Ltd has 2 key risks worth monitoring
- [MEDIUM] Transition to the new tax regime may impact the feasibility of a REIT structure — The taxation benefits of a REIT are largely optimized under the old tax regime.
- [LOW] Potential for increased maintenance and service costs — Routine capex is required to maintain A-grade standards for international clients.
What did Nirlon Ltd's management say in the latest earnings call?
In Q3 FY26, Nirlon Ltd's management highlighted
- "Approximately Rs. 30 crores per annum. [Previous Repair CAPEX guidance]"
- "because of our existing situation with practically (+/-1%) or 0% vacancies. [Previous Occupancy guidance]"
- "majority of the license agreements that are now being signed are really with annual escalation. [Initiative: Annual Escalation Clauses]"
What is Nirlon Ltd's management guidance for growth?
Nirlon Ltd's management has provided the following forward guidance for FY27
- Revenue outlook: Growth to be driven by contracted escalations
- Margin outlook: Not Given
- Capex plan: ₹30 Cr for Routine maintenance and up-gradation
- Management tone: bullish
- Milestone: [REAFFIRMED] Tax Regime: Old Tax Regime → New Concessional Tax Regime
What sector-specific metrics matter most for Nirlon Ltd?
Nirlon Ltd's most important sub-sector-specific KPIs from the latest concall
- Average Occupancy Rate: 99.7% (QoQ +110 bps) — Driven by successful renewals and minimal exits.
- Total Vacant Area: 7,800 sq ft (QoQ -12,200 sq ft) — Reduction from 20,000 sq ft in Q2 due to new licensing agreements.
- New Renewal Rental Rate: >185 per sq ft — Reflects current market demand for A-grade assets in Goregaon.
- Area Renewed in Quarter: 25,000 sq ft — Renewal of space by Citi.
- Annual Maintenance CAPEX: Rs. 30 crores (YoY 0%) (QoQ 0%) — Steady-state maintenance requirement.
- Cash and Bank Balance: Rs. 325 crores (QoQ +8.3%) — Accumulation of operational cash flows prior to dividend payout.
Is Nirlon Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Nirlon Ltd may be worth studying
- Earnings growing at +19.0% YoY
- Valuation: appears significantly undervalued
- Cash flow is positive — CFO ₹480 Cr
What is the investment thesis for Nirlon Ltd?
Nirlon Ltd investment thesis summary:
Research Signals (Bull Case)
- Appears significantly undervalued
- Growth catalyst: Operating Leverage Inflection
Risk Factors (Bear Case)
- Margins under pressure
- Key risk: Transition to the new tax regime may impact the feasibility of a REIT structure
What is the future outlook for Nirlon Ltd?
Nirlon Ltd's forward outlook based on current data signals
- Earnings Trend: stable
- Revenue Trend: stable
- Margin Trend: stable
- Valuation: Significantly Undervalued
- Key Catalyst: Operating Leverage Inflection
- Key Risk: Transition to the new tax regime may impact the feasibility of a REIT structure
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.