Nirlon Limited reported a better financial performance for the quarter ended June 30, 2025. Revenue from operations rose to ₹162.996 crore from ₹156.5065 crore in the same quarter a year earlier. Profit after tax stood at ₹58.4075 crore, against ₹49.832 crore in Q1 FY25. The official results were unaudited and were reviewed by the Audit Committee before approval by the Board on August 11, 2025.
The numbers show a clear rise in both revenue and profit. Revenue from operations grew by about 4.1% on a year-on-year basis. Profit after tax rose by about 17.2%. This means profit grew at a faster rate than revenue during the quarter.
The result therefore points to a better profit outcome, although the revenue rise itself was moderate. The gap between revenue growth and profit growth is important for any assessment of the quarter because it shows that the change in profit was not only due to higher revenue.
A Note on the Reported Profit Figure
There is an important data point that needs clarification. A headline that refers to Nirlon’s Q1 profit as ₹694 million does not match the company’s official financial result for the quarter ended June 30, 2025.
The official filing reports profit after tax of ₹5,840.75 lakh. This converts to ₹584.075 million, or about ₹58.41 crore. The same filing reports profit after tax of ₹4,983.20 lakh, or ₹49.832 crore, for June 2024.
For this reason, the analysis here uses ₹584.075 million as the Q1 FY26 profit figure. This approach avoids the risk of presenting a number that is not supported by the company’s filing.
The distinction matters because a profit figure of ₹694 million would imply a much larger year-on-year increase than the company’s reported result. A financial article should rely on the filed number rather than an unverified headline figure.
Key Financial Numbers
The table below presents the main figures from Nirlon’s official Q1 FY26 result. The company reports its figures in lakh rupees, so the values are also shown in crore rupees for easier reading.
| Particular | Q1 FY26 | Q1 FY25 | YoY change |
|---|---|---|---|
| Revenue from operations | ₹162.996 crore | ₹156.5065 crore | +4.1% |
| Other income | ₹4.0513 crore | ₹1.3865 crore | +192.3% |
| Total income | ₹167.0473 crore | ₹157.8930 crore | +5.8% |
| Total expenses | ₹76.8941 crore | ₹79.9910 crore | -3.9% |
| Profit before tax | ₹90.1532 crore | ₹77.9020 crore | +15.7% |
| Total tax expense | ₹31.7457 crore | ₹28.0700 crore | +13.1% |
| Profit after tax | ₹58.4075 crore | ₹49.8320 crore | +17.2% |
| Basic EPS | ₹6.48 | ₹5.53 | +17.2% |
| Diluted EPS | ₹6.48 | ₹5.53 | +17.2% |
The table shows the main feature of the quarter. Total income rose by about 5.8%, while total expenses fell by about 3.9%. That combination helped profit before tax rise by about 15.7%.
After tax, profit rose by about 17.2%. The basic and diluted earnings per share also rose from ₹5.53 to ₹6.48.
Revenue Shows Moderate Growth
Revenue from operations increased from ₹156.5065 crore in Q1 FY25 to ₹162.996 crore in Q1 FY26. The rise was about ₹6.49 crore.
A 4.1% year-on-year revenue rise can be viewed as moderate. It does not by itself suggest a major change in the scale of the business. At the same time, the rise confirms that operating revenue was higher than it was a year earlier.
Nirlon’s reported segment is licensing of investment properties. The company states that this is its reportable segment under Ind AS 108 and that it has no other reportable segment.
This detail is useful when the revenue number is assessed. The result is not based on a wide mix of unrelated business lines. The main reportable activity is linked to investment property licensing.
The quarter also had a notable rise in other income. Other income increased from ₹1.3865 crore in Q1 FY25 to ₹4.0513 crore in Q1 FY26. That is a rise of about ₹2.66 crore.
Because other income is separate from revenue from operations, it is better not to treat the entire rise in total income as operating revenue growth. Revenue from operations rose by about 4.1%, while total income rose by about 5.8%.
Profit Rose Faster Than Revenue
The stronger part of the result was profit.
Profit before tax rose from ₹77.902 crore in Q1 FY25 to ₹90.1532 crore in Q1 FY26. This is an increase of about ₹12.25 crore, or 15.7%.
Profit after tax rose from ₹49.832 crore to ₹58.4075 crore. The increase was about ₹8.58 crore, or 17.2%.
This creates a useful difference between the revenue result and the profit result. Revenue rose at a low single-digit rate, while profit rose at a mid-teen rate.
The reported figures also show that the profit margin based on revenue improved. Profit after tax was about 35.8% of revenue in Q1 FY26, compared with about 31.8% in Q1 FY25.
This does not by itself prove that the higher margin will continue in later quarters. It only shows that the reported quarter had a stronger profit conversion than the same quarter a year earlier.
Lower Finance Cost Helped
Finance cost was ₹27.9098 crore in Q1 FY26, compared with ₹29.6698 crore in Q1 FY25. This is a decline of about 5.9%.
The lower finance cost is an important part of the quarter’s profit picture. A reduction of about ₹1.76 crore in finance cost helped reduce pressure below the operating profit level.
The company also reported finance cost of ₹28.2721 crore for the quarter ended March 31, 2025. The Q1 FY26 figure of ₹27.9098 crore was therefore lower than both the prior-year June quarter and the March quarter.
This trend can support profit if it continues. However, one quarter alone is not enough to establish a long-term direction for finance costs.
Investors who assess the result may therefore wish to compare future quarters with the same period a year earlier. That will help show whether the lower finance burden is a sustained feature or a short-term change.
Expense Profile Was Mixed
Total expenses stood at ₹76.8941 crore in Q1 FY26, compared with ₹79.991 crore in Q1 FY25. This represents a decline of about 3.9%.
The fall in total expenses is notable because total income rose during the same period. This combination helped lift profit before tax.
The expense details, however, were mixed rather than uniformly lower.
| Expense | Q1 FY26 | Q1 FY25 | YoY change |
| Employee benefits | ₹1.6287 crore | ₹1.3999 crore | +16.3% |
| Finance costs | ₹27.9098 crore | ₹29.6698 crore | -5.9% |
| Depreciation and amortisation | ₹13.7751 crore | ₹14.0992 crore | -2.3% |
| Property management expenses | ₹13.8393 crore | ₹13.0449 crore | +6.1% |
| Other expenses | ₹19.7412 crore | ₹21.7772 crore | -9.3% |
| Total expenses | ₹76.8941 crore | ₹79.9910 crore | -3.9% |
Employee benefit expense rose from ₹1.3999 crore to ₹1.6287 crore. Property management expense also rose, from ₹13.0449 crore to ₹13.8393 crore.
At the same time, other expenses fell from ₹21.7772 crore to ₹19.7412 crore. Depreciation and amortisation expense also fell slightly, from ₹14.0992 crore to ₹13.7751 crore.
The largest positive change within the expense base came from finance cost and other expenses. Their lower values helped offset the rise in employee and property management costs.
Tax Expense Also Rose
Total tax expense increased from ₹28.07 crore in Q1 FY25 to ₹31.7457 crore in Q1 FY26. This represents a rise of about 13.1%.
Current tax increased from ₹13.61 crore to ₹24.6561 crore. The company also reported an adjustment for tax related to earlier periods of negative ₹0.3272 crore in Q1 FY26. Deferred tax stood at ₹7.4168 crore, compared with ₹14.46 crore a year earlier.
The tax numbers need careful interpretation because tax expense can include both current and deferred tax components. A quarter with higher profit can also have a higher tax charge.
The company stated that it continued to measure current and deferred tax liabilities under the applicable rates under the old tax regime while it evaluated whether to shift to the new tax regime.
This disclosure is relevant because future tax treatment may affect reported profit. It would not be appropriate to assume a fixed tax rate for future periods without further company disclosure.
Earnings Per Share Improved
Basic earnings per share rose to ₹6.48 in Q1 FY26 from ₹5.53 in Q1 FY25. Diluted EPS was also ₹6.48, compared with ₹5.53 a year earlier.
The EPS rise is close to the rise in profit after tax. This is consistent with the company’s reported share capital remaining at ₹90.118 crore, with a face value of ₹10 per share.
EPS can provide a simple way to view the profit available per share for the quarter. However, it should not be used on its own to assess the value of the company or the attractiveness of the stock.
A full assessment would also require a review of the share price, valuation, debt, cash flows, dividends, property value and future business prospects.
What the Q1 Result Says About Operations
The Q1 numbers present a mixed but broadly positive picture.
Revenue rose at a moderate rate. Other income was much higher than in the prior-year quarter. Total expenses fell despite some cost increases. Finance cost declined. As a result, profit before tax and profit after tax rose at a much faster rate than revenue.
This is the main financial message from the quarter.
It would be too strong, however, to state that the result proves a permanent improvement in profitability. The available data covers only one quarter. A more reliable view would come from several quarters of comparable results.
The company’s business also has a property-linked nature. This means occupancy, lease terms, tenant demand, property costs, finance costs and asset-related expenses can affect future results. A strong quarter does not remove these factors.
Comparison With the March Quarter
The Q1 FY26 result can also be compared with the quarter ended March 31, 2025.
Revenue from operations was ₹162.996 crore in June 2025, compared with ₹158.0246 crore in March 2025. Total income rose from ₹160.6504 crore to ₹167.0473 crore.
Profit before tax rose from ₹83.9108 crore in March to ₹90.1532 crore in June. Profit after tax increased from ₹53.5426 crore to ₹58.4075 crore.
This quarter-on-quarter comparison shows that the Q1 FY26 result was also stronger than the March quarter on several key measures.
Still, quarter-to-quarter comparisons should be treated with care. Property-related income and costs can vary across periods, and a single quarter does not always provide a complete picture of the annual trend.
The year-on-year comparison remains especially useful because it compares the same quarter across two financial years.
The Main Strength of the Result
The main strength is the rise in profit relative to revenue.
A revenue increase of about 4.1% was accompanied by a profit-after-tax increase of about 17.2%. The company also recorded a decline in total expenses and finance costs.
This suggests that the reported profit increase had support from both income and cost factors.
The higher other income also contributed to total income. Since other income rose from ₹1.3865 crore to ₹4.0513 crore, part of the improvement in total income came from this line rather than from operating revenue.
That distinction is important for a careful analysis. Operating revenue remains the better measure for the core business trend, while other income should be assessed separately.
Points That Need Further Review
The Q1 result is positive on the reported numbers, but several matters deserve further review before any firm conclusion about the company’s longer-term outlook.
The first is revenue growth. A 4.1% year-on-year rise is steady but not very high. Future results will show whether this pace can improve.
The second is finance cost. The decline in finance cost helped profit. The next few quarters can show whether this reduction continues.
The third is other income. The sharp increase from ₹1.3865 crore to ₹4.0513 crore helped total income. It would be useful to assess the nature and repeatability of this income in future disclosures.
The fourth is tax. Current tax and deferred tax moved in different directions during the quarter. Future tax expense may therefore differ from the Q1 level.
The fifth is the balance between property management costs and other expenses. Property management expenses rose by about 6.1%, while other expenses fell by about 9.3%. Future results can show whether these movements were temporary or part of a wider cost trend.
A Careful View of the Result
On the reported figures, Nirlon’s Q1 FY26 result was stronger than Q1 FY25.
Revenue from operations rose from ₹156.5065 crore to ₹162.996 crore. Profit before tax rose from ₹77.902 crore to ₹90.1532 crore. Profit after tax rose from ₹49.832 crore to ₹58.4075 crore. EPS rose from ₹5.53 to ₹6.48.
The most notable point is that profit rose much faster than revenue. Lower finance costs and lower total expenses were important factors in that outcome.
At the same time, the result does not by itself establish a long-term earnings trend. The rise in other income also deserves separate attention, and some cost lines moved higher.
For that reason, the most balanced view is that Nirlon delivered a stronger Q1 FY26 result, with a clear improvement in reported profitability. The available figures support a positive quarter-on-quarter and year-on-year assessment, but they do not alone support a firm conclusion about future share performance or future returns.
Legal and Investment Context
This analysis is based on Nirlon Limited’s unaudited financial results for the quarter ended June 30, 2025. The company states that the results were reviewed by its Audit Committee and approved by its Board on August 11, 2025.
The figures and calculations above are intended to explain the reported financial data. They should not be treated as a prediction, recommendation, assurance of future performance or advice to buy or sell securities.
The use of terms such as “stronger,” “positive” or “improvement” refers only to the comparison of the reported financial figures. It does not mean that the company’s share price must rise or that future results will match the Q1 FY26 numbers.
The official filing should remain the primary source for investors who require the complete financial statement and related notes.
Conclusion
Nirlon’s Q1 FY26 numbers show a clear improvement in profitability.
Revenue from operations rose about 4.1% year on year to ₹162.996 crore. Total income reached ₹167.0473 crore. Profit before tax rose about 15.7% to ₹90.1532 crore, while profit after tax rose about 17.2% to ₹58.4075 crore.
The result was supported by lower total expenses and a decline in finance cost. Other income also rose sharply and added to total income. EPS increased from ₹5.53 to ₹6.48.
The most important caution is the difference between the headline figure of ₹694 million and the official profit figure of ₹584.075 million. The company’s filing supports the latter number. Using the official figure gives a more accurate and legally safer view of the quarter.
Overall, the Q1 FY26 result indicates better profit performance with moderate revenue growth. The next few quarters will be important to see whether the lower cost base, stronger profit margin and improved EPS can continue.
