Nila Spaces profit falls 31% on quarter as borrowings and inventory climb

Nila Spaces Limited reported a consolidated net profit of ₹5.89 crore for the quarter ended 30 September 2026. That was down 31% from ₹8.58 crore in the June 2026 quarter and up about 10% from a year earlier. The results are unaudited, though the auditor issued an unmodified limited-review conclusion on the consolidated figures for the quarter and the six months.

Profit before tax fell to ₹8.15 crore from ₹11.50 crore in the June quarter. Finance costs rose to ₹6.61 crore from ₹3.91 crore, while tax expense came down to ₹2.26 crore from about ₹2.91 crore. The company said revenue from operations fell on a sequential basis. For the six months to 30 September 2026, revenue from operations was ₹84.84 crore and net profit was ₹14.47 crore, against ₹11.17 crore in the same half of the previous year.

Borrowings and inventory rise sharply

Consolidated borrowings stood at ₹348.40 crore on 30 September 2026. Non-current borrowings were ₹321.69 crore, up from ₹67.14 crore on 31 March 2026. Inventories reached ₹532.13 crore, more than double the level at the start of the half-year. Net cash used in operating activities was ₹255.67 crore for the six months. Other equity rose to ₹145.73 crore from ₹131.38 crore at the March 2026 year-end.

The accompanying notes gave no management explanation for the quarter-on-quarter changes in profit, finance costs or borrowings. The consolidated group comprises one subsidiary, Nila Urban Living Private Limited, and one associate, Megacity Cinemall Private Limited, as at 30 September 2026.

Share price and rating

The stock closed at ₹9.96 on 23 October 2026, a fresh 52-week low, and has fallen about 46.5% over the past year. Over the same year, the Sensex fell 13.86% and the BSE500 fell 10.33%. On 23 October the shares closed lower for a fifth straight session and were below their 5-, 20-, 50-, 100- and 200-day moving averages. The Sensex closed at 72,821.17 that day, down 0.58%, while the realty sector fell 2.6%.

A third-party rating service cut its rating on the company from Hold to Sell on 13 May 2026, lowering its Mojo Score from 58 to 46. The same service put the company's half-year return on capital employed at 26.01% and its debt-to-equity ratio at 0.09 times, while noting the share price weakness.

The results cover the company as a whole. Its flagship project, PRANA in GIFT City, Gandhinagar, holds a Gujarat RERA registration valid until 31 December 2030. The Gujarat RERA approval was dated 10 July 2025. The project is being executed by the 90%-held subsidiary. Possession dates and prices differ across listing sites, so buyers should check them with the developer and the RERA records.

What investors will watch

No date for the next results was found in the sources reviewed. The key questions for the next report are whether revenue from operations recovers from the September quarter and how inventories and non-current borrowings move from their 30 September 2026 levels. The company's ability to turn profit into operating cash flow will also be watched, since operating cash use was ₹255.67 crore in the first half.