Nirlon reports strong Q2 FY26 earnings amid high occupancy

Nirlon Limited reported a total income of INR 169 crores for Q2 FY26, a 4% year-on-year increase, with EBITDA at INR 133 crores (2% growth) and PAT at INR 148 crores. For the first half of FY26, total income reached INR 336 crores (5% growth), EBITDA was INR 265 crores (5% growth), and PAT stood at INR 206 crores. The company's move to a new tax regime from Q2 FY26 led to a re-measurement of deferred tax liability and a reversal of INR 69.5 crores.

Operationally, Nirlon maintained an average occupancy rate of 98.6% across NKP and Nirlon House for the quarter. Approximately 2,60,000 square feet were licensed to key tenants including Deutsche Bank, Barclays, MUFG, Citi, and EY during Q2. This licensing primarily covered space vacated by Morgan Stanley, secured at competitive rates with annual escalations.

The company anticipates consistent demand in 2025-26 and 2026-27, particularly from GCC demand, attributing its strong position to very low vacancies. Routine annual capital expenditure for maintenance and upgrades is projected at approximately INR 30 crores, with INR 20-25 crores capitalized.