Nirlon Limited keeps 99.8% occupancy after NIUM renewal

Nirlon Limited reported 99.8% occupancy across Nirlon Knowledge Park (NKP) and Nirlon House (NH) in Q2-FY27, with approximately 6,800 square feet vacant as of 30 September 2026. The position included NIUM India Pvt Ltd’s renewal of about 37,000 sq ft at NKP that had been due to expire in FY28.

What is Nirlon’s current occupancy?

Nirlon’s occupancy was 99.8% in Q2-FY27 across NKP and NH combined. As of 30 September 2026, the company reported approximately 6,800 sq ft of vacancy across the two properties, comprising about 1,800 sq ft at NKP and 5,000 sq ft at NH.

The Q2-FY27 rate was unchanged from Q1-FY27 and matched the 99.8% reported in Q4-FY24 and the first two quarters of FY25. Occupancy had fallen to 98.2% in Q4-FY25 and 97.5% in Q1-FY26 before recovering to 98.6% in Q2-FY26, 99.7% in both Q3-FY26 and Q4-FY26, and 99.8% in Q1-FY27.

NKP is the larger asset, with approximately 3.08 million sq ft of chargeable area across five phases. NH is a Worli property in which Nirlon holds a 75% undivided interest in approximately 0.05 million sq ft; the vacancy disclosure combines both properties, while the renewal schedule includes only Nirlon’s share of NH.

How significant is the NIUM renewal for Nirlon?

NIUM India Pvt Ltd renewed approximately 37,000 sq ft at NKP that had been scheduled to expire in FY28. Nirlon disclosed the renewal in its operational update for 30 September 2026, when combined vacancy at NKP and NH stood at approximately 6,800 sq ft.

The presentation does not state the renewed license fee, tenure, escalation, reset terms or the FY28 renewal balance after the NIUM transaction. It establishes that the renewed area had been an FY28 expiry, but does not provide enough information to quantify the transaction’s financial effect on license-fee income.

The renewed 37,000 sq ft is equivalent to about 13% of the 290,000 sq ft shown in the FY28 renewal or reset schedule. It is smaller than the 573,000 sq ft listed for FY29 and the 612,000 sq ft listed for FY30, which are the two largest annual renewal buckets in the disclosed calendar.

When are Nirlon’s office licenses due for renewal?

Nirlon’s largest disclosed license renewal or reset requirements fall in FY29 and FY30, at 573,000 sq ft and 612,000 sq ft respectively. The schedule, reported as of 30 September 2026, assumes licenses continue for their full license or notice-period tenure, including renewal options.

The renewal profile is concentrated in the FY28 to FY30 period, which totals 1.48 million sq ft, compared with 468,000 sq ft scheduled from FY31 through FY35. FY27 contains only 3,000 sq ft, while FY34 has no area shown, illustrating the difference between the near-term and later renewal requirements.

Phase V is NKP’s largest phase by chargeable area, at 1.16 million sq ft, and was completed in FY22. Phase I has 790,000 sq ft, followed by Phase IV with 430,000 sq ft, Phase III with 400,000 sq ft and Phase II with 310,000 sq ft; Nirlon does not assign renewal buckets to individual phases or licensees.

How are Nirlon’s license fees changing?

Nirlon’s Q2-FY27 license fees increased 2.4% year on year to Rs 149.9 crore from Rs 146.4 crore in Q2-FY26. They also rose 0.6% from Rs 149 crore in Q1-FY27, while Q2-FY27 total income reached Rs 174.1 crore.

Q2-FY27 total income included Rs 19.1 crore of other operating income, including common area maintenance income, and Rs 5.1 crore of other income. License fees accounted for the largest component, with Q2-FY27 earnings before interest, tax, depreciation and amortisation (EBITDA) of Rs 136.5 crore and an EBITDA margin of 78.40%.

For H1-FY27, license fees rose 2.5% year on year to Rs 298.9 crore, while total income increased 3.2% to Rs 346.8 crore. Other operating income rose 4.9% to Rs 38.5 crore and other income increased 23.7% to Rs 9.4 crore, causing total income to grow faster than license fees over the six-month period.

Across completed financial years, license fees increased from Rs 534.8 crore in FY24 to Rs 560.7 crore in FY25 and Rs 590.1 crore in FY26. In H1-FY27, EBITDA margin was 77.88%, down from 78.83% in H1-FY26, as total expenses increased 7.9% to Rs 76.7 crore against a 3.2% rise in total income.

Conclusion

Nirlon’s 99.8% Q2-FY27 occupancy, 6,800 sq ft of combined vacancy and NIUM’s 37,000-sq-ft renewal show that its disclosed office portfolio was almost fully occupied at 30 September 2026. License-fee income rose 2.4% year on year in Q2 and 2.5% in H1, while other operating and other income lifted total income growth above the rate of license-fee growth.

The next disclosed operating issue is the renewal and reset calendar, particularly the 1.48 million sq ft scheduled across FY28, FY29 and FY30. Nirlon’s schedule lists 290,000 sq ft for FY28, 573,000 sq ft for FY29 and 612,000 sq ft for FY30, and assumes licenses continue through their full contractual or notice-period tenure, including renewal options.