Nirlon September-quarter profit falls 51% after tax reversal

Nirlon Limited reported profit after tax of Rs 71.89 crore for the quarter ended September 30, 2026, down 51% from Rs 147.66 crore a year earlier, although revenue from operations rose 2% to Rs 169.08 crore. The decline chiefly reflected the absence of a Rs 69.51 crore deferred-tax reversal recorded in the September 2025 quarter.

Why did Nirlon's September-quarter profit fall 51%?

Nirlon's reported quarterly profit fell because the year-earlier result included a one-time tax credit, rather than because pre-tax earnings declined. Profit before tax increased to Rs 96.10 crore in the September 2026 quarter from Rs 93.03 crore in the September 2025 quarter. Total tax expense changed to Rs 24.21 crore from a tax credit of Rs 54.63 crore, producing profit after tax of Rs 71.89 crore rather than Rs 147.66 crore.

The September 2025 tax credit included a Rs 69.51 crore remeasurement of deferred tax following Nirlon's election of the new tax regime under Section 115BAA of the Income Tax Act, 1961, during financial year 2025-26. Nirlon remeasured its opening deferred-tax liability and reversed that amount, according to the notes to the results. In the September 2026 quarter, current tax was Rs 22.58 crore and deferred tax was Rs 1.95 crore, with a Rs 0.32 crore adjustment relating to earlier periods.

How did Nirlon's revenue and costs change in the September quarter?

Nirlon's revenue from operations rose Rs 3.77 crore year on year to Rs 169.08 crore in the quarter ended September 30, 2026. Other income increased to Rs 5.05 crore from Rs 3.55 crore, taking total income to Rs 174.13 crore from Rs 168.85 crore. Nirlon disclosed one reportable operating segment under Indian Accounting Standard 108, Operating Segments, and did not provide a segment-wise revenue split.

Total expenses rose to Rs 78.03 crore from Rs 75.82 crore, an increase of Rs 2.21 crore that was smaller than the Rs 5.28 crore increase in total income. Finance costs were Rs 26.48 crore, compared with Rs 26.09 crore a year earlier, while depreciation and amortisation rose to Rs 13.95 crore from Rs 13.79 crore. Property-management expenses declined to Rs 14.64 crore from Rs 14.88 crore, whereas other expenses rose to Rs 21.37 crore from Rs 19.50 crore.

What do Nirlon's six-month results show?

Nirlon's profit after tax for the six months ended September 30, 2026 fell 31% to Rs 141.27 crore from Rs 206.07 crore a year earlier, again reflecting the prior-period tax reversal. Revenue from operations increased to Rs 337.39 crore from Rs 328.30 crore, while profit before tax increased to Rs 189.41 crore from Rs 183.19 crore. Both revenue and pre-tax profit therefore advanced over the comparable six-month period while reported profit was lower.

The six-month tax position changed from a Rs 22.89 crore credit in the prior period to an expense of Rs 48.14 crore in 2026. Current tax increased to Rs 44.48 crore from Rs 36.61 crore, while deferred tax was Rs 3.98 crore compared with Rs 10.34 crore. Basic and diluted earnings per share, which are not annualised, were Rs 15.68 for the 2026 half year, compared with Rs 22.87 in the preceding-year period.

Nirlon's net cash flow from operating activities increased to Rs 237.74 crore in the six months to September 30, 2026 from Rs 199.91 crore in the six months to September 30, 2025, after Rs 45.38 crore of income taxes paid. Net cash used in investing activities was Rs 39.73 crore, compared with Rs 20.00 crore a year earlier. The 2026 investing outflow included Rs 20.33 crore spent on property, plant, equipment and investment properties, including capital work in progress.

What changed in Nirlon's balance sheet and borrowings?

Nirlon's total assets stood at Rs 2,261.27 crore on September 30, 2026, compared with Rs 2,249.69 crore on March 31, 2026. Investment properties decreased to Rs 1,792.04 crore from Rs 1,831.43 crore, while capital work in progress increased to Rs 23.26 crore from Rs 7.02 crore. Cash and cash equivalents rose to Rs 30.95 crore from Rs 9.95 crore, and bank balances other than cash equivalents increased to Rs 315.37 crore from Rs 287.83 crore.

Non-current borrowings decreased to Rs 1,089.59 crore at September 30 from Rs 1,146.67 crore at March 31, but current borrowings increased to Rs 57.58 crore from Rs 0.23 crore. Total liabilities were Rs 1,786.58 crore, marginally higher than Rs 1,781.09 crore at the financial year-end. Total equity increased to Rs 474.70 crore from Rs 468.60 crore, comprising unchanged share capital of Rs 90.12 crore and other equity of Rs 384.58 crore.

The six-month financing cash outflow was Rs 177.01 crore, compared with Rs 144.08 crore in the prior-year period. Nirlon paid a final dividend of Rs 15 per share, aggregating Rs 135.18 crore, on September 21, 2026, after shareholders approved it on September 18 for financial year 2025-26. Interest and other borrowing costs paid in the half year were Rs 41.83 crore, compared with Rs 44.95 crore a year earlier.

Was Nirlon's September 2026 result reviewed by auditors?

Nirlon's September 2026 quarterly and half-year results received a limited review from S R B C & Co. LLP, which reported on November 2, 2026 that nothing had come to its attention to suggest the statements were materially misstated. The auditor stated that a review is substantially less extensive than an audit and therefore does not provide an audit opinion.

Nirlon's board approved the unaudited results at its November 2, 2026 meeting, which began at 12.05 p.m. Indian Standard Time and concluded at 12.45 p.m. The results were prepared under Indian Accounting Standard 34, Interim Financial Reporting, and submitted under Regulation 33 of the Securities and Exchange Board of India listing regulations. Nirlon said it would upload the results to its website and file them in eXtensible Business Reporting Language format with BSE.

Conclusion

Nirlon's September-quarter comparison separates growth in revenue and profit before tax from a tax-driven change in reported profit. Revenue rose to Rs 169.08 crore and profit before tax reached Rs 96.10 crore, but the absence of the prior year's Rs 69.51 crore deferred-tax reversal reduced profit after tax to Rs 71.89 crore and earnings per share to Rs 7.98.

The filing does not disclose a revenue target, project completion date, earnings guidance or scheduled future event. The disclosed matters to watch in later results are the Rs 23.26 crore capital work in progress balance and the increase in current borrowings to Rs 57.58 crore at September 30, 2026, alongside non-current borrowings of Rs 1,089.59 crore.