Nukleus profit rises after Rs 2.23 crore depreciation cut

Nukleus Office Solutions Limited reported profit after tax of Rs 1.44 crore for the half year ended 30 September 2026, while a switch to straight-line depreciation lowered the period’s depreciation and amortisation charge by Rs 2.23 crore. That disclosed reduction exceeded the company’s reported Rs 1.92 crore profit before tax.

What did Nukleus report for the half year?

Nukleus reported profit after tax of Rs 1.44 crore for the half year ended 30 September 2026, compared with Rs 97.20 lakh for the half year ended 31 March 2026 and Rs 1.16 crore for the half year ended 30 September 2025. Profit before tax was Rs 1.92 crore, up from Rs 1.34 crore in the preceding half year and Rs 1.51 crore in the corresponding prior-year period.

The reported profit followed revenue from operations of Rs 22.99 crore for the September 2026 half year, compared with Rs 18.56 crore in the March 2026 half year and Rs 16.91 crore a year earlier. Total income was Rs 23.17 crore, including Rs 18.06 lakh of other income, against Rs 18.88 crore in the preceding half year and Rs 17.31 crore in the September 2025 half year.

Basic and diluted earnings per share were Rs 3.57 for the half year ended 30 September 2026, versus Rs 2.41 for the six months ended 31 March 2026 and Rs 2.89 for the September 2025 half year. Nukleus said half-year earnings per share were not annualised and were calculated using weighted-average share capital of 40.32 lakh shares.

How did the depreciation-method change affect Nukleus?

Nukleus said its change from the written-down-value method to the straight-line method lowered depreciation and amortisation expense by Rs 2.23 crore in the half year ended 30 September 2026. The company made the change effective 1 April 2026 after a technical assessment, saying the straight-line method better reflected the pattern of consumption of future economic benefits from its assets.

The reported depreciation and amortisation charge was Rs 1.71 crore in the September 2026 half year, compared with Rs 3.10 crore in the March 2026 half year and Rs 2.21 crore a year earlier. The Rs 2.23 crore disclosed reduction from the accounting change was larger than the period’s Rs 1.92 crore reported pre-tax profit, making the revised depreciation estimate material to interpretation of the result.

Nukleus accounted for the revision prospectively as a change in accounting estimate under Accounting Standard 5, read with Accounting Standard 10 on property, plant and equipment and Accounting Standard 26 on intangible assets. The filing does not provide comparative profits or depreciation charges recalculated under the straight-line method, so it does not disclose a restated measure of earnings excluding the change.

M.K. Aggarwal & Company highlighted the depreciation-method change in its limited review report dated 31 October 2026. The auditor stated that the period’s depreciation was lower by Rs 2.23 crore, while noting that a limited review provides moderate assurance and does not result in an audit opinion.

What changed in Nukleus income and costs?

Nukleus increased revenue from operations by Rs 4.43 crore from the March 2026 half year to Rs 22.99 crore in the September 2026 half year. Against the September 2025 half year, revenue increased by Rs 6.08 crore, while total income rose by Rs 5.86 crore to Rs 23.17 crore.

Direct cost rose to Rs 13.21 crore in the September 2026 half year from Rs 9.36 crore in the March 2026 half year and Rs 9.11 crore a year earlier. Employee-benefit expense increased to Rs 2.41 crore from Rs 1.82 crore sequentially, while other expenses rose to Rs 3.44 crore from Rs 2.62 crore.

Total expenses reached Rs 21.25 crore, compared with Rs 17.54 crore in the preceding half year and Rs 15.80 crore in the September 2025 half year. Finance cost declined to Rs 49.21 lakh from Rs 63.87 lakh in the March 2026 half year, but was above Rs 36.64 lakh in the corresponding prior-year period.

The higher income, higher direct and operating costs, lower finance cost and lower depreciation charge resulted in the reported Rs 1.92 crore pre-tax profit. Nukleus did not disclose revenue, profit or costs by individual workspace centre or customer category in the half-year statement.

Why is Nukleus Bangalore centre still classified as CWIP?

Nukleus held Rs 7.06 crore related to its Bangalore centre in capital work-in-progress, or CWIP, at 30 September 2026 because unresolved landlord issues prevented the centre from becoming operational and from onboarding customers. The company said fit-out work had been completed during financial year 2025-26, but the expenditure had not been capitalised under the recognition principles of Accounting Standard 10.

The Bangalore balance consisted of Rs 5.50 crore at 1 April 2026 and Rs 1.56 crore of additions during the six months ended 30 September 2026. The auditor included the non-operational Bangalore centre as an emphasis-of-matter item in its 31 October 2026 review report, alongside the depreciation-method change.

Total CWIP was Rs 23.93 crore at 30 September 2026, up from Rs 12.52 crore at 31 March 2026. Nukleus disclosed neither a date for resolving the landlord matter nor a timetable for customer onboarding at Bangalore, leaving the status of the Rs 7.06 crore centre unresolved.

How did Nukleus cash, borrowings and IPO funds move?

Nukleus ended 30 September 2026 with cash and cash equivalents of Rs 5.85 crore, down from Rs 7.57 crore at 31 March 2026. Operating activities used Rs 8.06 crore of cash and investing activities used Rs 15.85 crore during the half year, while financing activities generated Rs 22.19 crore.

Long-term borrowings increased to Rs 34.35 crore at 30 September 2026 from Rs 15.73 crore at 31 March 2026, and short-term borrowings rose to Rs 6.35 crore from Rs 2.29 crore. Trade receivables increased to Rs 8.64 crore from Rs 2.14 crore, while total assets and liabilities rose to Rs 107.64 crore from Rs 76.65 crore.

Nukleus reported full utilisation of Rs 31.70 crore of gross proceeds from its March 2025 initial public offering, or IPO. Of the total, Rs 21.98 crore was allocated to capital expenditure and security deposits for new centres, Rs 5.88 crore to general corporate purposes and Rs 3.01 crore to issue-related expenses; the company reported no deviation or variation from stated IPO objects for the half year ended 30 September 2026.

Conclusion

Nukleus reported higher revenue and profit for the half year ended 30 September 2026, with revenue from operations at Rs 22.99 crore and profit after tax at Rs 1.44 crore. However, the Rs 2.23 crore reduction in depreciation and amortisation resulting from the straight-line-method change exceeded the Rs 1.92 crore reported pre-tax profit, making that accounting estimate central to the period’s reported outcome.

The next disclosed matter to watch is the Bangalore centre, where Rs 7.06 crore remained in CWIP at 30 September 2026 because landlord issues had not been resolved and customers had not been onboarded. Nukleus has not set out a resolution timetable, while its wider CWIP balance stood at Rs 23.93 crore and long-term borrowings at Rs 34.35 crore at the period end.