NIS Management H1 revenue rises 15.8%, cash drops Rs 30.83 crore

NIS Management Limited reported standalone revenue from operations of Rs 236.18 crore for the half year ended September 30, 2026, up 15.8% year on year, while profit after tax rose 17.1% to Rs 10.69 crore; cash and cash equivalents nevertheless fell by Rs 30.83 crore to Rs 27.58 crore.

How did NIS Management perform in H1 FY27?

NIS Management increased standalone revenue from operations by Rs 32.17 crore to Rs 236.18 crore in the half year ended September 30, 2026, from Rs 204.00 crore in the corresponding period a year earlier. Total revenue, including other income, was Rs 237.10 crore, compared with Rs 204.69 crore in H1 FY26.

Profit after tax rose to Rs 10.69 crore from Rs 9.13 crore, while profit before tax increased to Rs 11.01 crore from Rs 9.40 crore. Total expenses increased to Rs 226.19 crore from Rs 195.29 crore, a rise of Rs 30.90 crore that was lower than the Rs 32.17 crore increase in revenue from operations.

NIS Management reported revenue from operations of Rs 125.65 crore for the quarter ended September 30, 2026, compared with Rs 107.19 crore in the September 2025 quarter. Quarterly profit after tax was Rs 3.75 crore, compared with Rs 1.87 crore a year earlier, while basic and diluted earnings per share were Rs 1.89, not annualised.

Why was NIS Management's operating cash flow negative?

NIS Management recorded negative operating cash flow of Rs 18.32 crore in H1 FY27 because working-capital movements exceeded the Rs 14.60 crore operating profit before working-capital changes. Trade and other receivables used Rs 28.23 crore of cash and trade and other payables used a further Rs 4.69 crore.

The operating outflow widened from Rs 6.32 crore in H1 FY26 even as operating profit before working-capital changes increased from Rs 13.27 crore to Rs 14.60 crore. Cash used by trade and other receivables rose from Rs 16.31 crore in the prior-year half, making this movement the largest identified contributor to the changed cash outcome.

The cash-flow statement, prepared under the indirect method in Accounting Standard 3, begins with Rs 11.01 crore of profit before tax. It includes Rs 0.50 crore of depreciation, Rs 4.05 crore of interest expense and Rs 1.02 crore of interest income, compared with Rs 0.49 crore, Rs 4.06 crore and Rs 0.65 crore, respectively, in H1 FY26.

What changed in NIS Management's balance sheet?

NIS Management's trade receivables increased by Rs 21.30 crore to Rs 145.46 crore at September 30, 2026, from Rs 124.16 crore at March 31, 2026. Short-term loans and advances also rose by Rs 6.00 crore to Rs 56.31 crore, while cash and cash equivalents declined from Rs 58.41 crore to Rs 27.58 crore.

Total assets increased to Rs 303.08 crore from Rs 297.97 crore over the same dates. Current assets declined to Rs 250.94 crore from Rs 253.63 crore as the decline in cash outweighed increases in receivables and loans and advances, whereas non-current assets rose to Rs 41.64 crore from Rs 34.13 crore.

NIS Management's equity increased by Rs 10.72 crore to Rs 193.31 crore, comprising Rs 19.80 crore of share capital and Rs 173.51 crore of reserves and surplus. Short-term borrowings were broadly unchanged at Rs 69.68 crore, while long-term borrowings declined to Rs 12.63 lakh from Rs 1.12 crore and current liabilities fell to Rs 90.51 crore from Rs 91.02 crore.

Where did NIS Management's cash go in H1 FY27?

NIS Management used Rs 7.29 crore in investing activities and Rs 5.22 crore in financing activities, alongside the Rs 18.32 crore operating outflow. The combined movements reduced cash and cash equivalents from an opening Rs 58.41 crore to Rs 27.58 crore at September 30, 2026.

Investing outflows included Rs 5.45 crore placed in fixed deposits, Rs 2.06 crore invested in mutual funds, Rs 0.52 crore spent on fixed assets and Rs 0.27 crore invested in intangible assets under development. Interest received of Rs 1.02 crore partly offset those outflows, resulting in net investing cash use of Rs 7.29 crore.

Financing activities included Rs 4.05 crore of interest paid and Rs 1.12 crore of net borrowing repayment. The statement also records Rs 5.94 lakh outflow from issue of share capital, compared with Rs 45.93 crore of proceeds from issue of share capital in H1 FY26, when financing activities generated Rs 45.74 crore.

What did the auditor say about NIS Management's results?

NIS Management's statutory auditor, KGRS & Co, said nothing had come to its attention indicating that the unaudited standalone financial statements did not make the required disclosures or contained a material misstatement. The review report was dated November 14, 2026, when the board approved the results for the quarter and half year ended September 30, 2026.

KGRS & Co conducted its work under Standard on Review Engagement 2410, which the report says is substantially narrower in scope than an audit. NIS Management stated that it has no more than one reportable segment under Accounting Standard 17, so segment-wise reporting was not applicable.

NIS Management completed an initial public offering of 46.62 lakh equity shares at Rs 111 each, aggregating to Rs 51.75 crore, and listed on the BSE SME Platform on September 2, 2025. As of September 30, 2026, the company reported Rs 29.39 crore of utilisation and Rs 22.36 crore unutilised, with the unutilised amount temporarily parked in fixed deposits and current accounts with scheduled banks.

Conclusion

NIS Management's H1 FY27 results show that revenue and reported profit grew while cash generation moved in the opposite direction. Revenue from operations increased by Rs 32.17 crore and profit after tax by Rs 1.56 crore, but the Rs 28.23 crore cash absorption in trade and other receivables contributed to an Rs 18.32 crore operating cash outflow.

The next disclosed item to watch is the deployment of IPO proceeds, particularly the working-capital allocation. Of Rs 36.00 crore earmarked for working-capital requirements, NIS Management reported utilisation of Rs 22.38 crore and an unutilised balance of Rs 13.62 crore as of September 30, 2026.