Nisus Finance FY26 Results Exceed Guidance

FY26 Revenue: INR 141 crores, a 110% year-on-year (YoY) growth.
Exceeded Guidance: The company had provided revenue guidance of INR 120-140 crores for the year.
FY26 PAT: INR 68 crores, a 108% YoY growth.
PAT Margin: 48%.
FY26 EBITDA: INR 97 crores.
EBITDA Margin: 70.5%, representing a 400 basis points (bps) improvement over the previous year.
AUM: INR 261 crores, 67% higher than the previous year.
ROCE: 33.3% for the core business, a 900 bps improvement from the previous year.
Revenue Mix: Advisory and asset management revenues are now balanced at approximately 45% and 55% respectively.

Group Total Revenue/Income: INR 575 crores (consolidated from the acquisition date of NCCCL in August 2025).
Group PAT: INR 83 crores.
NCCCL PAT: Grew 4.7x from INR 3.5 crores to INR 16.4 crores.
NCCCL Order Book (as of Mar 31, 2026): INR 1,833 crores.
NCCCL New Orders (first two months of FY27): Added INR 870 crores, bringing the total order book to approximately INR 2,600-2,700 crores.
NCCCL EBITDA Margin: Improved to ~9-10%.

Acquisition Debt Repayment: 65% of the debt taken for the NCCCL acquisition was repaid. The outstanding amount stands at INR 38 crores as of March 31, 2026.
Promoter Pledge: Reduced to 18.8%.
Proprietary Book Investment: Grew 166% from INR 48 crores to INR 128 crores.
IPO Proceeds: Fully utilized against stated objects which included fund setup, GIFT City and Dubai licenses, and NBFC capitalization.

The platform performed as expected, generating requisite fee income and exiting deals profitably.
The pipeline remains strong with ready dry powder for selective deals.
A pipeline of INR 700 crores was mentioned, with 60-70% at the term sheet stage. Some transactions (~INR 300 crores) were delayed to Q1FY27 due to regulatory and lender approval processes.

The four-asset portfolio delivered a 30% NAV appreciation with no impairments.
Assets are stable, rent-generating, and financed with supportive banking partners (Emirates National Bank, Maastricht, First Abu Dhabi Bank).
Geopolitical tensions in Q4 led to the deferral of over INR 500 crores in new investment decisions.
The company is using the current environment to renegotiate entry points and terms for a strong pipeline of ~INR 2,000 crores, aiming for greater efficiency and better returns.
The company received the "Real Estate Investment Company of the Year" award in the UAE.

Focus was on stabilization, profitability improvement, and governance.
Initiatives included migrating to SAP HANA, adopting digital project management tools, and strengthening leadership.
The company received a triple BBB+ stable credit rating from CareEdge.

The company provided a scenario-based framework for FY27 instead of a single point estimate, citing the external macro environment.
The outlook is conservative and prudent due to geopolitical tensions.
The revenue-to-AUM ratio is expected to normalize to around 2.85%-3.35% from the FY26 high of 5.37%, which was an aberration due to high-margin advisory contracts and opportunistic investment exits.

Neon Fund: Received SEBI approval on June 2, 2026. It is an INR 1,800 crore fund with a INR 500 crore greenshoe option. Launch is expected in Q2FY27.
Fee Structure: Similar to previous funds; a "220 structure" with a hurdle rate of 12% without a catch-up was mentioned for the REIC Ops Fund.
REIC Ops Fund (2019 vintage): Is winding up in FY27, with management fees expected to be booked, most likely in Q2.

Tokenization Business: A digital asset class being developed in the UAE. The company is in the process of obtaining licensing and white paper (PPM) approvals, which could take 2-3 quarters. This is planned as a separate business segment.
GIFT City: Feeder structures are being developed to facilitate rupee investments into dollar-bound assets and attract global investors.
Team Expansion: The team has grown to nearly 60 professionals across India and the UAE.

First listed Alternative Investment Fund (AIF) manager in India.
First AIF business to receive a BBB+ investment grade credit rating from CareEdge.
Received "Great Place to Work" certification for the second year running.
Awarded "India's Impactful Trade Breakers CEO Award".

Employee Expenses: Increase to 32% of revenue was due to new hires, annual appraisals, and a change in bonus accounting from cash to accrual basis.
UAE Market Dynamics: The impact of geopolitical issues has been greater on the off-plan market. The company focuses on completed, income-generating assets in resilient micro-markets, which have seen price corrections of 10-15% in Dubai and 5% in Abu Dhabi, presenting a potential opportunity.
Stock Performance: Management acknowledged the stock is down ~50% from IPO but emphasized their focus is on delivering fundamental performance, transparency, and communication, noting there is no direct peer for comparison.
Asset Risk: Clarified that assets are held at the AIF (trust) level, not on the company's balance sheet. The company earns management fees, and any asset damage is covered at the fund level with standard insurance practices, not directly impacting the listed entity's income.