Q1 2027 Nirlon Ltd Earnings Call

August 11, 2026

Operator 3: Ladies and gentlemen, good day and welcome to Nirlon Limited Q1 FY27 earnings conference call hosted by Valorem Advisors. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Purvangi Jain from Valorem Advisors. Thank you, and over to you, Ms. Jain.

Operator: Ladies and gentlemen, good day and welcome to Nirlon Limited Q1 FY 2027 Earnings Conference Call hosted by Valorem Advisors. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Purvangi Jain from Valorem Advisors. Thank you, and over to you, Ms. Jain.

Speaker #1: Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded.

Speaker #1: I now hand the conference over to Ms. Purvangi Jain from Valrum Advisors. Thank you, and over to you, Ms. Jain.

Speaker #2: Thank you. Good afternoon, everyone. My name is Purvangi Jain from Valrum Advisors. We represent investor relations for Nirlon Limited. On behalf of the company, I would like to thank you all for participating in the company's earnings call.

Purvangi Jain: Thank you. Good afternoon, everyone. My name is Purvangi Jain from Valorem Advisors. We represent the investor relations for Nirlon Limited. On behalf of the company, I would like to thank you all for participating in the company's earnings call for the first quarter of the financial year 2027. Before we begin, let me mention a short cautionary statement. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from those anticipated. Such statements are based on management's belief as well as assumptions made by and information currently available to the management. Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decisions.

Speaker #2: For the first quarter of the financial year 2027, before we begin, let me mention a short cautionary statement. Some of the statements made in today's earnings call may be forward-looking in nature.

Speaker #2: So, forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from those anticipated. Such statements are based on management's beliefs, as well as assumptions made by and information currently available to the management.

Purvangi Jain: Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from those anticipated. Such statements are based on management's belief as well as assumptions made by and information currently available to the management. Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decisions.

Speaker #2: Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decisions. The purpose of today's earnings call is purely to educate and bring awareness about the company's fundamental business and the financial quarter under review.

Purvangi Jain: The purpose of today's earnings call is purely to educate and bring awareness about the company's fundamental business and financial quarter under review. Now let me introduce you to the management participating with us in today's earnings call and hand it over to them for their opening remarks. We have with us Mr. Rahul B. Sagar, Chief Executive Officer and Executive Director; Mr. Manish B. Parikh, Chief Financial Officer, VP Finance; Mr. Jasmin K. Bhavsar, Company Secretary, Vice President, Legal and Compliance Officer; and Mr. Ashish Bharadia, VP, Business Development and Investor Relations, Nirlon Management Services Private Limited. Without any delay, I request Mr. Rahul B. Sagar to start with his opening remarks. Thank you, and over to you, sir.

Speaker #2: Now, let me introduce you to the management participating with us in today's earnings call and hand it over to them for their opening remarks.

Speaker #2: We have with us Mr. Rahul V. Sagar, Chief Executive Officer and Executive Director; Mr. Manish B. Parik, Chief Financial Officer and VP Finance; and Mr. Jasmin K.

Purvangi Jain: We have with us Mr. Rahul B. Sagar, Chief Executive Officer and Executive Director; Mr. Manish B. Parikh, Chief Financial Officer, VP Finance; Mr. Jasmin K. Bhavsar, Company Secretary, Vice President, Legal and Compliance Officer; and Mr. Ashish Bharadia, VP, Business Development and Investor Relations, Nirlon Management Services Private Limited. Without any delay, I request Mr. Rahul B. Sagar to start with his opening remarks. Thank you, and over to you, sir.

Speaker #2: Bhavsar, Company Secretary; Vice President, Legal and Compliance Officer; and Mr. Ashish Bharadiya, VP, Business Development and Investor Relations, Nirlon Management Services Private Limited. Without any delay, I request Mr. Rahul V.

Speaker #2: Sagar, to start with his opening remarks. Thank you, and over to you, sir.

Speaker #3: Thank you. Thank you, Purvangi. It is a pleasure to welcome you all to our earnings conference call for the first quarter of financial year 2027.

Rahul Sagar: Thank you. Thank you, Purvangi. It is a pleasure to welcome you all to our earnings conference call for the first quarter of financial year 2027. Let me begin by taking you through the company's financial performance for the quarter. For the first quarter, the company reported a total income of INR 173 crores.

Rahul V. Sagar: Thank you. Thank you, Purvangi. It is a pleasure to welcome you all to our earnings conference call for the Q1 of financial year 2027. Let me begin by taking you through the company's financial performance for the quarter. For the Q1, the company reported a total income of INR 173 crores.

Speaker #3: Let me begin by taking you through the company's financial performance for the quarter. For the first quarter, the company reported a total income of profit at ₹73 crores.

Speaker #1: Speakers, sorry for interrupting. Could you please speak a little louder? Thank you.

Operator 3: Speakers, sorry for interrupting. Can you speak a little louder?

Operator: Speakers, sorry for interrupting. Can you speak a little louder?

Rahul Sagar: Yeah.

Rahul V. Sagar: Yeah.

Operator 3: Thank you.

Operator: Thank you.

Purvangi Jain: Can you?

Speaker #3: For the first quarter, the company reported total income of ₹173 crore, representing year-on-year growth of 3%. EBITDA stood at ₹134 crore, reflecting year-on-year growth of 1%, with EBITDA margins of 77.3%.

Rahul Sagar: For the first quarter, the company reported a total income of INR 173 crores, representing a year-on-year growth of 3%. EBITDA stood at INR 134 crores, reflecting a year-on-year growth of 1%, with EBITDA margins of 77.30%. Profit after tax for the first quarter stood at approximately INR 69 crores, registering a 19% year-on-year growth, while PAT margin stood at 40.19%. On the operations front, the average occupancy across our portfolio comprising Nirlon Knowledge Park and Nirlon House stood at 99.8% during the first quarter of the financial year 2027. As of 30 June 2026, the combined vacant area across both properties was approximately 6,900 square feet. With that, we conclude our opening remarks and would now like to open the floor for questions. Thank you.

Rahul V. Sagar: For the Q1, the company reported a total income of INR 173 crores, representing a year-on-year growth of 3%. EBITDA stood at INR 134 crores, reflecting a year-on-year growth of 1%, with EBITDA margins of 77.30%. Profit after tax for the Q1 stood at approximately INR 69 crores, registering a 19% year-on-year growth, while PAT margin stood at 40.19%.

Speaker #3: Profit after tax for the first quarter stood at approximately ₹69 crore, registering a 19% year-on-year growth, while PAT margins stood at 40.19%. On the operational front, the average occupancy across our portfolio, comprising NKP and Nirlon House, stood at 99.8%.

Rahul V. Sagar: On the operations front, the average occupancy across our portfolio comprising Nirlon Knowledge Park and Nirlon House stood at 99.8% during the Q1 of the financial year 2027. As of 30 June 2026, the combined vacant area across both properties was approximately 6,900 square feet. With that, we conclude our opening remarks and would now like to open the floor for questions. Thank you.

Speaker #3: During the first quarter of the financial year 2027, as of June 30, 2026, the combined vacant area across both properties was approximately 6,900 square feet.

Speaker #3: With that, we conclude our opening remarks and would now like to open the floor for questions. Thank you. Thank you.

Operator 3: Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles.

Operator: Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles.

Speaker #1: Thank you. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star one on your touchtone telephone.

Speaker #1: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles.

Speaker #3: Thank you.

Rahul Sagar: Thank you.

Rahul V. Sagar: Thank you.

Speaker #1: The first question comes from the line of Dilip Jain, an individual investor. Please go ahead.

Operator 3: The first question comes from the line of Dilip Jain, an individual investor. Please go ahead.

Operator: The first question comes from the line of Dilip Jain, an individual investor. Please go ahead.

Speaker #4: Yeah. Good afternoon, sir. Am I audible?

Dilip Jain: Yeah. Good afternoon, sir. Am I audible?

Speaker #3: Yes.

Rahul Sagar: Yes.

Rahul V. Sagar: Yes.

Speaker #4: Yeah. Sir, recently, there's been an amendment proposed in the income tax laws, and it's very close to enactment. It's already been passed in the Lok Sabha.

Dilip Jain: Yeah. Sir, recently there has been an amendment proposed in the income tax law, and it is very close to enactment. It has been already passed in the Lok Sabha. So it states that the dividend component of income distribution of a REIT will remain tax-free in the hands of shareholders, even if the underlying SPV of a REIT opts for the new tax regime. So, we recently converted from the old to the new tax regime. So sir, given the favorable income tax treatment now even to a new tax regime SPV of a REIT, do we have any plans of converting to a REIT that are probably under discussion, or is some headway being made in those discussions? I would request you to kindly share whatever you can with us.

Speaker #4: So, it states that the dividend component of income distribution of a REIT will remain tax-free in the hands of shareholders, even if the underlying SPV of a REIT opts for the new tax regime.

Speaker #4: So, we recently converted from the old to the new tax regime. Sir, given the favorable income tax treatment now—even to a new tax regime SPV of a REIT—do we have any plans of converting to a REIT that are probably under discussion, or is some headway being made in those discussions?

Dilip Jain: So, we recently converted from the old to the new tax regime. So sir, given the favorable income tax treatment now even to a new tax regime SPV of a REIT, do we have any plans of converting to a REIT that are probably under discussion, or is some headway being made in those discussions? I would request you to kindly share whatever you can with us.

Speaker #4: I would request you to kindly share whatever you can with us.

Speaker #3: Okay. So essentially, as of now, we have no concrete plans to convert to a REIT. As we’ve said in the past, if we have anything significant to share on this front, in terms of any major change in the structure of the company or any restructuring, we will let you know.

Rahul Sagar: Okay. Essentially, as of now, we have no concrete plans of converting to a REIT. As we said in the past, if we have anything significant to say on this front in terms of any significant change in the structure of the company or restructuring, we will let you know.

Rahul V. Sagar: Okay. Essentially, as of now, we have no concrete plans of converting to a REIT. As we said in the past, if we have anything significant to say on this front in terms of any significant change in the structure of the company or restructuring, we will let you know.

Speaker #4: Okay.

Dilip Jain: Okay.

Speaker #3: Yeah.

Rahul Sagar: Yeah.

Rahul V. Sagar: Yeah.

Speaker #4: Okay, so as far as the Nirlon House goes, is there any headway being made in the ongoing discussion to probably redevelop it? Because we had discussed along those lines a couple of years ago.

Dilip Jain: Okay. As far as the Nirlon House goes, is there any headway being made in the ongoing discussion to probably redevelop it? Because we had discussed on those lines a couple of years ago. Is the discussion stuck in limbo still, or is anything happening?

Speaker #4: So, is the discussion stuck in limbo still, or is anything happening?

Speaker #3: So, okay. So just to refresh your just to refresh you, you may be aware, so you may need you may not need to be refreshed.

Rahul Sagar: Okay. Just to refresh you may be aware, so you may not need to be refreshed. There are 12 other co-owners in the building. There are 12 other co-owners in the building as well. Anything that happens in Nirlon House will obviously need consent and/or approval of the other owners. As you know, these processes and these things take a significant amount of time. We don't have anything significant to say at this point in time. When we do, we will tell you. But you must keep in mind the structure of the building in terms of the number of owners, et cetera. And you know the issues always associated with strata-owned assets all over Mumbai and India as well.

Rahul V. Sagar: Okay. Just to refresh you may be aware, so you may not need to be refreshed. There are 12 other co-owners in the building. There are 12 other co-owners in the building as well. Anything that happens in Nirlon House will obviously need consent and/or approval of the other owners. As you know, these processes and these things take a significant amount of time.

Speaker #3: There are 12 other co-owners in the building, okay? There are 12 other co-owners in the building as well. So anything that happens in Nirlon House will obviously need the consent and/or approval of the other owners.

Speaker #3: So, as you know, these processes and these things take a significant amount of time. You don't have anything significant to say at this point in time.

Rahul V. Sagar: We don't have anything significant to say at this point in time. When we do, we will tell you. But you must keep in mind the structure of the building in terms of the number of owners, et cetera. And you know the issues always associated with strata-owned assets all over Mumbai and India as well.

Speaker #3: When we do, we will tell you. But you must keep in mind the structure of the building in terms of the number of owners, etc., etc., and you know the issues always associated with state-owned assets, all over Mumbai and India as well.

Speaker #4: Okay. Okay, all right. And, sir, we had a small office that was leased this quarter at Nirlon House, right? About 1,100 square feet. So, what was the leasing rate per square foot per month?

Dilip Jain: Okay. All right. And sir, we had a small office that was leased this quarter at Nirlon House, about 1,100 square foot. What leasing rate per square foot per month?

Speaker #3: So that was around 200, approximately, and the area was about ₹250 per square foot.

Rahul Sagar: That was around 200 approx on the area. It was about INR 250 a square foot.

Rahul V. Sagar: That was around 200 approx on the area. It was about INR 250 a square foot.

Speaker #4: Okay. So that's pure carpet, or is it?

Dilip Jain: Okay. So that's pure carpet or is it-

Speaker #3: See, now basically, these are old buildings. You don't have these loadings and efficiencies and all, as you well know. So, it will be essentially maybe plus-minus carpet, but not extensive loadings, as you know.

Rahul Sagar: Well, now it is basically, these are old buildings. You don't have these loadings and efficiencies and all, as you well know. It will be essentially maybe plus/minus carpet, but not extensive loadings, as you know. You can consider it to be an older building from the '60s or '70s or whenever it was, somewhere around that time, late '60s. The carpet and the chargeable ratios, et cetera, are very different from what the newer constructions and buildings are today.

Rahul V. Sagar: Well, now it is basically, these are old buildings. You don't have these loadings and efficiencies and all, as you well know. It will be essentially maybe plus/minus carpet, but not extensive loadings, as you know. You can consider it to be an older building from the '60s or '70s or whenever it was, somewhere around that time, late '60s. The carpet and the chargeable ratios, et cetera, are very different from what the newer constructions and buildings are today.

Speaker #3: I mean, you can consider it to be an older building from the '60s or '70s, or whenever it was—somewhere around that time, late '60s.

Speaker #3: So the carpet and the chargeable ratios, etc., etc., are very different from what the newer constructions and buildings are.

Speaker #4: Okay. Okay. So this is at, I mean, at near about the same 90% or 100% efficiency of carpet area, or a little bit less.

Dilip Jain: Okay. So this is at near about the same 90% or 100% efficiency of carpet area or a little bit lesser? Just to get a ballpark of where-

Speaker #4: I mean, just to get a ballpark of where.

Speaker #3: I'm not, I mean, nothing. The difference from carpet to chargeable in older buildings is nothing very significant. It's really approximately 100%, 95% efficiency somewhere.

Rahul Sagar: It is not. The difference from carpet to chargeable in older buildings is nothing very significant.

Rahul V. Sagar: It is not. The difference from carpet to chargeable in older buildings is nothing very significant.

Dilip Jain: Okay.

Rahul Sagar: Approximately 100%, 95% efficiency somewhere there.

Rahul V. Sagar: Approximately 100%, 95% efficiency somewhere there.

Speaker #4: Okay. Okay.

Speaker #3: Somewhere there.

Speaker #4: Okay. All right, sir. Okay. Congratulations. Yeah, yeah. On a good set of numbers.

Dilip Jain: Okay. All right, sir. Okay, congratulations sir.

Rahul Sagar: Thank you.

Rahul V. Sagar: Thank you.

Dilip Jain: Yeah, on a good set of numbers.

Speaker #3: Thank you, Mr. Jain, for your nice question. Thank you.

Rahul Sagar: Thank you, Mr. Jayant, for your nice question. Thank you.

Rahul V. Sagar: Thank you, Mr. Jayant, for your nice question. Thank you.

Speaker #4: Yeah. Yeah. Thank you.

Dilip Jain: Yeah, thank you.

Speaker #3: Thank you.

Rahul Sagar: Thank you.

Rahul V. Sagar: Thank you.

Speaker #1: Thank you. Next question comes from Namman Jain, Individual Investor. Please go ahead.

Operator 3: Thank you. Next question comes from the line of Naman Jain, an individual investor. Please go ahead.

Operator: Thank you. Next question comes from the line of Naman Jain, an individual investor. Please go ahead.

Naman Jain: Hello, sir. Thank you for the opportunity, firstly. I just want to know specifically of the Goregaon office micro market, what is the rental rate square foot there? And how does it compare with your realized rentals?

Speaker #5: Hello, sir. Thank you for the opportunity, firstly. I just want to know, specifically for the Gurgaon office Micro Market, what is the rental rate per square foot there?

Speaker #5: And how does it compare with your realized rentals?

Speaker #3: Okay. So we don't really want to we don't really want to speculate and comment on some other asset rentals because we don't really know the terms and conditions, etc., etc., in much ingrained detail.

Rahul Sagar: Okay. We don't really want to speculate and comment on some other asset rentals because we don't really know the terms and conditions, et cetera, in great detail. We don't want to say anything which is not complete information in terms of a comparison. In terms of our rentals, of course, you can see very clearly from the quarterly numbers and from the transactions that have been done in the recent past what the existing rentals are. We can just say that we feel that we are very competitive and consistent with regards to the competition or with regards to the other assets in the micro area of western suburbs or Goregaon or whatever you want to call it. It's not really a straightforward comparison of number to number. You have to look at a lot of other factors, efficiency, rent-free, security deposit, escalations.

Rahul V. Sagar: Okay. We don't really want to speculate and comment on some other asset rentals because we don't really know the terms and conditions, et cetera, in great detail. We don't want to say anything which is not complete information in terms of a comparison. In terms of our rentals, of course, you can see very clearly from the quarterly numbers and from the transactions that have been done in the recent past what the existing rentals are.

Speaker #3: So, we don't want to say anything that is not complete information in terms of a comparison of our rentals. Of course, you can see very clearly from the quarterly numbers and from the transactions that have been done.

Speaker #3: In the recent past, what the existing rentals are. And yeah, I mean, we can just say that we feel that we are very competitive and consistent with regard to the competition, or with regard to the other assets in the micro area of Western suburbs or Gurugram, or whatever you want to call it.

Rahul V. Sagar: We can just say that we feel that we are very competitive and consistent with regards to the competition or with regards to the other assets in the micro area of western suburbs or Goregaon or whatever you want to call it. It's not really a straightforward comparison of number to number. You have to look at a lot of other factors, efficiency, rent-free, security deposit, escalations. We can only say that we feel that our license fees are steady and consistent compared to the other assets.

Speaker #3: It's not really a straightforward comparison of number to number. You have to look at a lot of other factors: efficiency, rent-free period, security, deposit, escalations. So we can only say that we feel that our license fees are steady and consistent compared to the other assets.

Rahul Sagar: We can only say that we feel that our license fees are steady and consistent compared to the other assets.

Speaker #5: Yeah, I understood, sir. My next question is: what are the standard escalation clauses and license-free periods in new agreements?

Naman Jain: Yeah, I understood, sir. My next question is what are the standard escalation clauses and license-free periods in new agreements? Yes.

Speaker #3: Yes, sir. Okay. So initially, Mr. Jain, we had a 15% escalation in license fees every three years. Very often, that also meant a 15% increase in the security deposit.

Rahul Sagar: Okay.

Rahul V. Sagar: Okay.

Naman Jain: License fee also.

Rahul Sagar: Initially, Mr. Jain, we had 15% every three years. We had 15% escalation in license fees every three years. Very often that also meant 15% increase in security deposits. Now we are more focused, as we have said in the past, on annual escalations, which are about approximately 4.5 to somewhere there, plus/minus a few basis points.

Rahul V. Sagar: Initially, Mr. Jain, we had 15% every three years. We had 15% escalation in license fees every three years. Very often that also meant 15% increase in security deposits. Now we are more focused, as we have said in the past, on annual escalations, which are about approximately 4.5 to somewhere there, plus/minus a few basis points.

Speaker #3: Now, we are more focused, as we have said in the past, on annual escalations, which are approximately 4.5%, plus or minus a few basis points.

Speaker #5: Yes, sir. Yeah, yeah. Thank you, sir.

Naman Jain: Yes, sir. Understood.

Rahul Sagar: Okay.

Rahul V. Sagar: Okay.

Naman Jain: Yeah. Thank you, sir.

Speaker #3: Thank you.

Speaker #1: Thank you. Next question comes from Sampritidatta, an individual investor. Please go ahead.

Rahul Sagar: Thank you.

Rahul V. Sagar: Thank you.

Operator 3: Thank you. Next question comes from the line of Sampriti Dutta, an individual investor. Please go ahead.

Operator: Thank you. Next question comes from the line of Sampriti Dutta, an individual investor. Please go ahead.

Speaker #5: Hello, sir. Am I audible? Yeah. Thank you for giving this opportunity. So, my question is, sir, given the high occupancy levels, are there any planned capex investments, like any redevelopment initiatives or expansion opportunities for the existing properties?

Sampriti Dutta: Hello, sir. Am I audible?

Rahul Sagar: Yes.

Rahul V. Sagar: Yes.

Operator 2: Yeah. Thank you for giving this opportunity. My question is, sir, given the high occupancy levels, are there any planned CapEx investments, like any redevelopment initiatives or expansion opportunities for the existing properties?

Sampriti Dutta: Yeah. Thank you for giving this opportunity. My question is, sir, given the high occupancy levels, are there any planned CapEx investments, like any redevelopment initiatives or expansion opportunities for the existing properties?

Speaker #3: Nothing significant in NKP apart from the routine capex that we have—upgradations to ensure that the licensed premises and the park, in general, are of international quality, international standard, Grade A office standard.

Rahul Sagar: Nothing significant in Nirlon Knowledge Park apart from the working CapEx that we have for upgradation and to ensure that the licensed premises and the park in general is of an international quality, international standard, Grade A office standard. Nothing significant or additional apart from the regular CapEx, which is very important for improvement and maintenance of the licensed premises and the park as a whole.

Rahul V. Sagar: Nothing significant in Nirlon Knowledge Park apart from the working CapEx that we have for upgradation and to ensure that the licensed premises and the park in general is of an international quality, international standard, Grade A office standard. Nothing significant or additional apart from the regular CapEx, which is very important for improvement and maintenance of the licensed premises and the park as a whole.

Speaker #3: Nothing significant or additional apart from these, apart from the regular capex, which is very important for improvement and maintenance of the licensed premises and the park as a whole.

Speaker #5: Okay, sir. Understood. And my second question is, will the company consider prepaying their debt given that it has a healthy cash balance as of now?

Operator 2: Okay, sir. Understood. My second question is, will the company consider prepaying their debt given that it has a healthy cash balance as of now?

Sampriti Dutta: Okay, sir. Understood. My second question is, will the company consider prepaying their debt given that it has a healthy cash balance as of now?

Speaker #3: The company has not taken any decisions so far, nor had any serious discussions with the lenders with regard to prepaying any debt at this point in time.

Rahul Sagar: The company has not taken any decisions thus far or had any serious discussion with the lenders with regard to prepaying any debt at this point in time.

Rahul V. Sagar: The company has not taken any decisions thus far or had any serious discussion with the lenders with regard to prepaying any debt at this point in time.

Speaker #5: Okay, sir. Understood. That is all from my end. Thank you.

Operator 2: Okay, sir. Understood. That is all from my end. Thank you.

Sampriti Dutta: Okay, sir. Understood. That is all from my end. Thank you.

Speaker #3: Thank you.

Rahul Sagar: Thank you.

Rahul V. Sagar: Thank you.

Speaker #1: Thank you. Next question comes from the line of Suhag Patel, an individual investor. Please go ahead.

Operator 3: Thank you. Next question comes from the line of Suhag Patel, with an individual investor. Please go ahead.

Operator: Thank you. Next question comes from the line of Suhag Patel, with an individual investor. Please go ahead.

Speaker #5: Hello, can you hear me? Okay, sir. First of all, thank you for the opportunity. My question is: how should we think about rental growth over the remaining quarters of FY27?

Suhag Patel: Hello, can you hear me?

Rahul Sagar: Yes.

Rahul V. Sagar: Yes.

Suhag Patel: Okay, sir. First of all, thank you for the opportunity. My question is, how should we think about rental growth over the remaining quarters of FY27?

Speaker #3: So, rental growth over the remaining quarters of FY27, as of now, will predominantly be based on contracts in place. So, whatever the contracted terms and conditions are, they will be followed, as is usually happening in NKP.

Rahul Sagar: So, rental growth over the remaining quarters of FY27 as of now will predominantly be based on contracts in place. So whatever the contracted terms and conditions are, they will be followed, as is usually happening in Nirlon Knowledge Park. We do not see anything significant happening outside of contracted growth. As per the existing lease and license agreements, we have not heard anything significant from any of the larger licensees for 2026, 2027. And we just expect things will continue as per the existing lease and license and contracts in place.

Rahul V. Sagar: So, rental growth over the remaining quarters of FY27 as of now will predominantly be based on contracts in place. So whatever the contracted terms and conditions are, they will be followed, as is usually happening in Nirlon Knowledge Park. We do not see anything significant happening outside of contracted growth. As per the existing lease and license agreements, we have not heard anything significant from any of the larger licensees for 2026, 2027. And we just expect things will continue as per the existing lease and license and contracts in place.

Speaker #3: Yeah. I mean, we don't see anything significant happening outside of contracted growth as per the existing license agreements. We've not heard anything significant from any of the larger licensees for '26 or '27.

Speaker #3: And we just expect things will continue as per the existing, even license and contracts in place.

Speaker #5: Okay, understood. My second question is regarding any lease renewal schedule over the next few quarters, like in FY27?

Suhag Patel: Okay. Understood. My second question is regarding any lease renewal schedule over the next few quarters, like in FY26.

Speaker #3: Renewal? Yeah. So, I think '26 and '27 are fairly quiet years in terms of any significant even license agreements expiring or getting, or in terms of any of the existing even license agreements expiring.

Rahul Sagar: Renewal?

Rahul V. Sagar: Renewal?

Operator 3: Renewal.

Operator: Renewal.

Rahul Sagar: Yeah. So I think 2026, 2027 is a fairly quiet year in terms of any significant lease and license agreements expiring or getting. In terms of any of the existing lease and license agreements expiring. And as I said, we have not heard anything to the contrary. We have not heard anything significant that would make us think otherwise. So we have not heard anything really apart from what is contracted with any of the larger licensees.

Rahul V. Sagar: Yeah. So I think 2026, 2027 is a fairly quiet year in terms of any significant lease and license agreements expiring or getting. In terms of any of the existing lease and license agreements expiring. And as I said, we have not heard anything to the contrary. We have not heard anything significant that would make us think otherwise. So we have not heard anything really apart from what is contracted with any of the larger licensees.

Speaker #3: And as I said, we've not heard anything to the contrary. We've not heard anything significant that would make us change, that would make us think otherwise.

Speaker #3: So we've not heard anything, really, apart from what is contracted with any of the larger licensees.

Speaker #5: Oh, okay. Thank you. Understood. That's it from my side. Thank you.

Suhag Patel: Okay. Thank you. Understood. That's it from my side. Thank you.

Speaker #3: Thank you.

Rahul Sagar: Thank you.

Rahul V. Sagar: Thank you.

Speaker #1: Thank you. Next question comes from the line of Rishabh Jain, an Individual Investor. Please go ahead.

Operator 3: Thank you. Next question comes from the line of Rishabh Jain, an individual investor. Please go ahead.

Operator: Thank you. Next question comes from the line of Rishabh Jain, an individual investor. Please go ahead.

Speaker #5: Hello. Hello. Audible? Okay. Thank you, sir, for the opportunity. I just had two questions. Can you provide an update on any tenant additions that you had this quarter?

Rishabh Jain: Hello. Am I audible?

Rahul Sagar: Yes.

Rahul V. Sagar: Yes.

Rishabh Jain: Thank you, sir, for the opportunity. Just had two questions. Can you provide an update on any tenant additions that you had this quarter?

Speaker #3: Any tenant additions this quarter?

Rahul Sagar: Any tenant addition this quarter?

Rahul V. Sagar: Any tenant addition this quarter?

Speaker #5: Yes. Yeah.

Rishabh Jain: Yes.

Speaker #3: So I don't really think there were any significant additions in NKP or anything in NKP in '26, '27 Q1.

Rahul Sagar: I do not really think there were any significant additions in Nirlon Knowledge Park or anything in Nirlon Knowledge Park in 2026, 2027 Q1.

Rahul V. Sagar: I do not really think there were any significant additions in Nirlon Knowledge Park or anything in Nirlon Knowledge Park in 2026, 2027 Q1.

Speaker #5: Okay. Okay, got it. Thank you. That is from—

Rishabh Jain: Okay. Got it. Thank you. That is all, bye.

Speaker #1: Thank you. Next question comes from the line of Naman Jain, individual investor. Please go ahead, Mr. Jain.

Operator 3: Thank you. Next question comes from the line of Naman Jain, an individual investor. Please go ahead. Mr. Jain, please go ahead.

Operator: Thank you. Next question comes from the line of Naman Jain, an individual investor. Please go ahead. Mr. Jain, please go ahead.

Speaker #5: Hello, sir. I just have one more follow-up question. The license fee income grew by only 0.9% quarter on quarter. So, what limited the growth in this quarter?

Naman Jain: Hello, sir. I just had one more follow-up question. That license fee income grew by only 0.9% quarter on quarter. So what limited the growth in this quarter?

Speaker #3: Mr. Jain, these are contracted—these are all contracted license agreements, contracted terms and conditions. So, as and when there are escalations, you may see some increases in the revenues or the license fees. Or, as and when licenses are expiring and we are renewing and/or getting new licensees, you may see some change in the revenue for that particular quarter.

Rahul Sagar: Mr. Jain, these are all contracted license agreements, contracted terms and conditions. As and when the escalations are, you may see some increases in the revenues or the license fees, or as and when licenses are expiring and we are renewing or getting new licensees. You may see some change in the revenue for that particular quarter. But these are all contracted licenses with the existing licensees. So, it will be exactly as per the contracted relevant license agreements.

Rahul V. Sagar: Mr. Jain, these are all contracted license agreements, contracted terms and conditions. As and when the escalations are, you may see some increases in the revenues or the license fees, or as and when licenses are expiring and we are renewing or getting new licensees. You may see some change in the revenue for that particular quarter. But these are all contracted licenses with the existing licensees. So, it will be exactly as per the contracted relevant license agreements.

Speaker #3: But these are all contracted licenses with the existing licensees, so it will be exactly as per the contracted even license agreements.

Speaker #5: Yes, sir. And one more question: have EBITDA margins moderated sequentially? Should we expect margins to remain around the current levels?

Naman Jain: Yes, sir. One more question. Our EBITDA margins are moderated sequentially, so should we expect margins to remain around the current levels?

Speaker #3: EBITDA margins? EBITDA margins—are you saying they are steady, or what's your question?

Rahul Sagar: EBITDA margins.

Rahul V. Sagar: EBITDA margins.

Naman Jain: Yes.

Rahul Sagar: EBITDA margins you are saying are steady, or what is your question?

Rahul V. Sagar: EBITDA margins you are saying are steady, or what is your question?

Speaker #5: Basically, our EBITDA margins continue to remain healthy? I mean, on a sequential basis.

Naman Jain: Basically, our EBITDA margins are continuing to remain healthy. It is in sequentially.

Rahul Sagar: We hope they will continue to. Our course is always as a management is to increase all the relevant numbers we want to improve. While our endeavor is always to improve the relevant numbers, including the EBITDA margins, which is a very important number, we feel that based on the contracts we have in place, they should not fluctuate greatly. Yeah, fairly steady. Thank you. It is a good question. Thank you.

Rahul V. Sagar: We hope they will continue to. Our course is always as a management is to increase all the relevant numbers we want to improve. While our endeavor is always to improve the relevant numbers, including the EBITDA margins, which is a very important number, we feel that based on the contracts we have in place, they should not fluctuate greatly. Yeah, fairly steady. Thank you. It is a good question. Thank you.

Speaker #3: We hope they'll continue to are of course, it's always as a management is to increase all the relevant want to improve. So while our endeavor is always to improve the relevant numbers including the EBITDA margins, which is a very important number, we feel that based on the contracts we have in place, they should not be very they should not fluctuate greatly.

Speaker #3: Yeah, fairly steady. Thank you. It's a good question. Thank you.

Speaker #5: Yes, sir. Understood. Thank you.

Naman Jain: Yes, sir, understood. Thank you.

Speaker #1: Thank you. The next question comes from the line of Akshay Savla, an individual investor. Please press star and one to ask a question. Thank you.

Operator 3: Thank you. Next question comes from the line of Akshay Savla, an individual investor. Please press star and 1 to ask a question. Thank you.

Operator: Thank you. Next question comes from the line of Akshay Savla, an individual investor. Please press star and 1 to ask a question. Thank you.

Speaker #5: Hello. Am I audible?

Akshay Savla: Hello, am I audible?

Speaker #3: Yes.

Rahul Sagar: Yes.

Rahul V. Sagar: Yes.

Speaker #5: Yeah, thank you for the opportunity. I just wanted to ask, is growing VCC a big issue for us going forward?

Akshay Savla: Yeah. Thank you for the opportunity. I just wanted to ask that is growing GCC a big issue for us going forward?

Speaker #3: What is a big issue? Is it growing?

Rahul Sagar: What is a big issue? Growing?

Rahul V. Sagar: What is a big issue? Growing?

Speaker #5: GCCs.

Akshay Savla: GCCs.

Speaker #3: Growing GCCs.

Rahul Sagar: Growing GCC as in-

Rahul V. Sagar: Growing GCC as in-

Speaker #5: Global Capability Centers, I mean.

Akshay Savla: Global Capability Centers.

Speaker #3: Yeah, yeah. No, no. Understood. Understood. So basically, what we are, of course, trying to do is get as much information and detail, etc., etc., with regards to GCCs, because GCCs, as you know, are a very good source of real estate—they are a very important source of real estate demand in Mumbai, in Maharashtra, as well as in India.

Rahul Sagar: Yeah. Understood. So basically, we of course are trying to get as much information and details, et cetera, with regards to GCCs. Because GCCs, as you know, are a very important source of real estate demand in Mumbai, Maharashtra, as well as in India. And we feel that any growth in the number of GCCs in India is only going to help the office market significantly, and this would really be the right direction to go and grow. As in terms of increase in the number of GCCs in India, as well as increase in the number of functions, an increase in the scope of work of existing GCCs in India, increase in the scope of work of future GCCs in India. All these we feel are very important and would be positive.

Rahul V. Sagar: Yeah. Understood. So basically, we of course are trying to get as much information and details, et cetera, with regards to GCCs. Because GCCs, as you know, are a very important source of real estate demand in Mumbai, Maharashtra, as well as in India. And we feel that any growth in the number of GCCs in India is only going to help the office market significantly, and this would really be the right direction to go and grow.

Speaker #3: And we feel that any growth in the number of GCCs in India is only going to help the office market significantly, and this would really be the right direction to go in for growth.

Speaker #3: In terms of the increase in the number of GCCs in India, as well as the increase in the number of functions and the increase in the scope of work of existing GCCs in India, and the increase in the scope of work of future GCCs in India, all these we feel are very important and would be positive.

Rahul V. Sagar: As in terms of increase in the number of GCCs in India, as well as increase in the number of functions, an increase in the scope of work of existing GCCs in India, increase in the scope of work of future GCCs in India. All these we feel are very important and would be positive. As you know, GCCs compromise a large part of the office market, of the office demand in India, in Mumbai, and in Maharashtra as well. Thank you.

Speaker #3: As you know, there are significant GCCs that comprise a large part of the office market—of the office demand—in India, in Mumbai, and in Maharashtra as well.

Rahul Sagar: As you know, GCCs compromise a large part of the office market, of the office demand in India, in Mumbai, and in Maharashtra as well. Thank you.

Speaker #3: Thank you.

Speaker #5: Okay, yeah. Okay, thank you for that. The next question I had is regarding any other specific trends you may be seeing in the Goregal micro market.

Akshay Savla: Okay, sir. Yeah, okay. Thank you for that. Next question I had is regarding basically any other specific trend maybe you are seeing in the Goregaon micro market. Can you basically throw some light on that?

Speaker #5: Can you basically throw some light on that?

Speaker #3: Yeah, so, I mean, look, the issue for us really is that because our occupancy is plus or minus full, we have no significant vacancies. A lot of the demand is obviously going somewhere else.

Rahul Sagar: Yeah, so look, the issue for us really is that because our occupancy is just minus full, we have no significant vacancies. A lot of the demand is obviously going somewhere else. And because of this fact, we don't get a lot of the live inquiries or the serious inquiries as well, because there's no space here. So obviously, we are aware that there are other real estate assets, other commercial assets in the micro market of Nirlon Knowledge Park, as well as for the north, for the east, southeast. And we can only monitor them on a general basis, not very specifically, because it's more important to look at our business and the trends that are going to affect our business. So yes, of course, there will always be other assets, there will always be other commercial complexes wherever you are. This is perfectly normal.

Rahul V. Sagar: Yeah, so look, the issue for us really is that because our occupancy is just minus full, we have no significant vacancies. A lot of the demand is obviously going somewhere else. And because of this fact, we don't get a lot of the live inquiries or the serious inquiries as well, because there's no space here. So obviously, we are aware that there are other real estate assets, other commercial assets in the micro market of Nirlon Knowledge Park, as well as for the north, for the east, southeast.

Speaker #3: And because of this fact, we don't get a lot of the live inquiries or the serious inquiries as well, because there's no space here.

Speaker #3: So, obviously, we are aware that there are other real estate assets, other commercial assets in the micro market of NKP, as well as for the north, for the east, and southeast.

Rahul V. Sagar: And we can only monitor them on a general basis, not very specifically, because it's more important to look at our business and the trends that are going to affect our business. So yes, of course, there will always be other assets, there will always be other commercial complexes wherever you are. This is perfectly normal.

Speaker #3: And we can only monitor them on a general basis, not very specifically, because it's more important to look at our business and the trends that are going to affect our business.

Speaker #3: So yes, of course, there will always be other assets. There will always be other commercial complexes wherever you are. This is perfectly normal. And we feel also that if Goregal or Western suburbs is growing as a micro market for office for as an office location as a commercial office slash IT location, it's very positive for the area, for the region as well as for a lot of the companies here.

Rahul Sagar: We feel also that if Goregaon or Western Suburbs is growing as a micro market for office, as an office location, as a commercial office/IT location, it is very positive for the area, for the region, as well as for a lot of the companies here. The fact that Western Suburbs and Goregaon are growing well as an international office location hub to get the right international companies, to get the right MNCs into this area, whether they come to our complex or somebody else's office asset or development. In general, it is extremely positive if the micro area grows as well.

Rahul V. Sagar: We feel also that if Goregaon or Western Suburbs is growing as a micro market for office, as an office location, as a commercial office/IT location, it is very positive for the area, for the region, as well as for a lot of the companies here. The fact that Western Suburbs and Goregaon are growing well as an international office location hub to get the right international companies, to get the right MNCs into this area, whether they come to our complex or somebody else's office asset or development. In general, it is extremely positive if the micro area grows as well.

Speaker #3: The fact that the Western suburbs and Goregaon are growing well as an international office location hub, to get the right international companies, to get the right MNCs into this area, whether they come to our complex or somebody else's office asset or development.

Speaker #3: In general, it's extremely positive if the micro area grows as well.

Speaker #5: Okay, okay. That was helpful. So yeah, that's it from my side. Thank you for the opportunity.

Akshay Savla: Okay. That was helpful. So yeah, that is it from my side. Thank you for the opportunity.

Speaker #3: Thank you.

Rahul Sagar: Thank you.

Rahul V. Sagar: Thank you.

Speaker #1: Thank you. A reminder to all participants that you may press star and one to ask a question. The next question comes from the line of Shyam Khan, an individual investor.

Operator 3: Thank you. A reminder to all the participants that you may press star and 1 to ask a question. Next question comes from the line of Shyam Khan, an individual investor. Please go ahead. Mr. Khan, please go ahead with the question. Mr. Khan, please unmute yourself and go ahead with the question. Since there is no reply from the line of Mr. Khan

Operator: Thank you. A reminder to all the participants that you may press star and 1 to ask a question. Next question comes from the line of Shyam Khan, an individual investor. Please go ahead. Mr. Khan, please go ahead with the question. Mr. Khan, please unmute yourself and go ahead with the question. Since there is no reply from the line of Mr. Khan

Speaker #1: Please go ahead. Mr. Khan, please go ahead with the question. Mr. Khan, please unmute yourself and go ahead with the question. Since there is no reply from the line of Mr. Khan.

Speaker #1: Yeah, please go ahead.

Shyam Khan: Hello.

Operator 3: Yeah, please go ahead.

Operator: Yeah, please go ahead.

Speaker #2: Yeah. So, basically, now am I audible? Right?

Shyam Khan: Yeah. Basically, now I am audible, right?

Speaker #3: Yes. Yes.

Rahul Sagar: Yes.

Rahul V. Sagar: Yes.

Speaker #2: Yeah, so my question was regarding the dividend. So we, in FY26, gave a really good dividend. And moving forward, what is the guidance on the dividend basis?

Shyam Khan: Yeah. My question was regarding the dividend. We in FY26 gave a really good dividend. Moving forward, what is the guidance on the dividend basis? Will it improve or be stable at the current level? Or it will reduce down back how it was in FY25. Can you just throw some light on the dividend front?

Speaker #2: So, will it improve or remain stable at the current level? Or do you know if it will reduce back to how it was in Q1 FY25?

Speaker #2: Can you shed some light on the dividend front?

Speaker #3: Yeah. So firstly, we don't want to make a comment on what the dividend will be for the future years. As you know, in the past few years, we have been paying an interim dividend and then a final dividend after the AGM in September as well.

Rahul Sagar: Firstly, we do not want to make a comment on what the dividend will be for the future years. As you know, in the past few years, we have been paying an interim dividend and then a final dividend after the AGM in September as well. Over the past few years, it was INR 26 a share. This year, for the financial year 2025/2026, we have increased it to INR 30 a share. Going ahead, 2026/2027, Mr. Khan, we just do not want to specifically say what the dividend will be. It has not been internally discussed as well. Our focus is just improving the park and improving the rentals, et cetera.

Rahul V. Sagar: Firstly, we do not want to make a comment on what the dividend will be for the future years. As you know, in the past few years, we have been paying an interim dividend and then a final dividend after the AGM in September as well. Over the past few years, it was INR 26 a share. This year, for the financial year 2025/2026, we have increased it to INR 30 a share. Going ahead, 2026/2027, Mr. Khan, we just do not want to specifically say what the dividend will be. It has not been internally discussed as well. Our focus is just improving the park and improving the rentals, et cetera.

Speaker #3: Over the past few years, it was ₹26 a share. This year, for the financial year 2025–26, we have increased it to ₹30 a share.

Speaker #3: And going ahead, Q2, Q3, Mr. Khan, it says it is a bit—we just don't want to specifically say what the dividend will be.

Speaker #3: It has not been internally discussed as well. Our focus is on the improving the is just improving the park and improving the rentals, etc., etc., what any other management would do.

Rahul Sagar: What any other management would do, what a management should do to improve the performance of the numbers and keep the park at an international level so that we are in a position to do the best we can for the shareholders. Thank you.

Rahul V. Sagar: What any other management would do, what a management should do to improve the performance of the numbers and keep the park at an international level so that we are in a position to do the best we can for the shareholders. Thank you.

Speaker #3: What should management do to improve the performance of the numbers and keep the park at an international level, so that we are in a position to do the best we can for the shareholders?

Speaker #3: Thank you.

Speaker #2: Hello. So, I also have another question.

Shyam Khan: Hello. Sir, I also have another question.

Speaker #3: Yeah, go ahead. Go ahead, please.

Rahul Sagar: Yeah, go ahead please.

Rahul V. Sagar: Yeah, go ahead please.

Speaker #2: Yeah. So regarding the recent days, the stock also went up very well. And looking at the commercial real estate trends, we are getting results somewhere around 79% overall in India as well.

Shyam Khan: Yeah. So, regarding the recent days, the stock also went very well up. Looking at the commercial real estate trends, we are getting yield somewhere around 7% to 9% overall in India as well. So what is the current rental yield that we are seeing in the properties that we have? What is the market value of our property and what exactly is the scenario over there?

Speaker #2: So, what is the current rental yield that we are seeing in the properties that we have? What is the market value of our property, and what exactly is the scenario over there?

Speaker #3: So, basically, Mr. Khan, if you look at the numbers—FY26 and Q1 '27 also—you can see that NKP NL is fairly consistent, and occupancies are high.

Rahul Sagar: Basically, Mr. Khan, if you look at the numbers, FY26 and Q1 FY27 also, you can see that Nirlon Knowledge Park is fairly consistent and occupancies are high. The numbers are consistent, vacancies are low. The cost base is steady and consistent. The interest cost is well under control and is being carefully monitored. No exponential issues there in terms of any of the cost. This is really our focus to ensure that we get the best possible Grade A licensees, who are going to really ensure that our numbers continue to look strong and positive and increase as well. In terms of the yield or whatever calculation that is, you have all the numbers. You can look at the numbers, and you can make any calculation in terms of yield, in terms of the dividend, et cetera, fairly easily.

Rahul V. Sagar: Basically, Mr. Khan, if you look at the numbers, FY26 and Q1 FY27 also, you can see that Nirlon Knowledge Park is fairly consistent and occupancies are high. The numbers are consistent, vacancies are low. The cost base is steady and consistent. The interest cost is well under control and is being carefully monitored. No exponential issues there in terms of any of the cost.

Speaker #3: The numbers are consistent. Vacancies are low. Costs are basically steady, and the cost base is consistent. The interest cost is well under control and is being carefully monitored.

Speaker #3: No exponential issues there in terms of any of the costs. So this is really our focus: to ensure that we get the best possible, A-grade licenses who are going to really ensure that our numbers continue to look strong and positive, and increase as well.

Rahul V. Sagar: This is really our focus to ensure that we get the best possible Grade A licensees, who are going to really ensure that our numbers continue to look strong and positive and increase as well. In terms of the yield or whatever calculation that is, you have all the numbers. You can look at the numbers, and you can make any calculation in terms of yield, in terms of the dividend, et cetera, fairly easily. I am not exactly sure what yield you were asking, but I think all the numbers are there in the disclosures in the investor report. I think you can get any yield to choose to from the existing numbers.

Speaker #3: In terms of the yield, or whatever calculation that is, I mean, you have all the numbers. You can look at the numbers and you can make any calculation in terms of yield, in terms of the dividend, etc., fairly easily.

Speaker #3: So, I'm not exactly sure what yield you were asking about, but I think it's not—once all the numbers are there in the disclosures in the investor report.

Rahul Sagar: I am not exactly sure what yield you were asking, but I think all the numbers are there in the disclosures in the investor report. I think you can get any yield to choose to from the existing numbers.

Speaker #3: So, I think you can get any yield you choose from the existing numbers.

Speaker #2: Thank you, sir. That is from my side.

Shyam Khan: Thank you, sir. That is from my side.

Speaker #3: Thank you.

Rahul Sagar: Thank you.

Rahul V. Sagar: Thank you.

Speaker #1: Thank you. Next question comes from the line of Pranay Jain from Deal Wealth Capital. Please go ahead.

Operator 3: Thank you. Next question comes from the line of Pranay Jain with Deal Wealth Capital. Please go ahead.

Operator: Thank you. Next question comes from the line of Pranay Jain with Deal Wealth Capital. Please go ahead.

Speaker #2: Good afternoon. Am I audible?

Pranay Jain: Good afternoon. Am I audible?

Speaker #3: Yes.

Rahul Sagar: Yes.

Rahul V. Sagar: Yes.

Pranay Jain: My question is regarding the net debt position. How would you guide for the next couple of years? Currently, we are at INR 1.81. So how do you see this trajectory moving forward?

Speaker #2: My question is regarding the net debt position. How would you guide for the next couple of years? Currently, we are at 1.81. So how do you see this trajectory moving forward?

Speaker #3: This net debt position—so, net debt should be, I think, approximately as of date 115, 1.81 net debt to our net debt. Oh, okay.

Rahul Sagar: Net debt.

Rahul V. Sagar: Net debt. Net debt position. Net debt should be, I think, approximately as on date INR 115. 1.81 net debt to EBITDA. On net debt. You are talking of just ratio net debt to EBITDA. We do not really see anything significant. We hope, and it is our endeavor to maintain healthy EBITDA margins. Of course, our endeavor is to improve them, but also to make sure that they remain healthy.

Pranay Jain: Net debt position. Net debt should be, I think, approximately as on date INR 115.

Rahul Sagar: 1.81 net debt to EBITDA.

Pranay Jain: On net debt. You are talking of just ratio net debt to EBITDA. We do not really see anything significant. We hope, and it is our endeavor to maintain healthy EBITDA margins. Of course, our endeavor is to improve them, but also to make sure that they remain healthy.

Speaker #3: You're talking. Okay. So, I mean, we don't really see anything significant. We hope, and we hope, and it is our endeavor to maintain healthy EBITDA margins because our endeavor is to improve them.

Speaker #3: But also to make sure that they remain healthy. In terms of the debt, of course, as per the agreement, we have to start paying back in May.

Rahul Sagar: In terms of the debt, of course, as per the agreement, we have to start paying back on 27 May. As per the existing agreement with the lender, we have to pay back for the next few years, 5% annually, and then 25%. To that extent, we will be guided by the terms and conditions of the agreement with the lender, and that may or may not have some impact on the EBITDA margins. Basically, we will be guided by the terms and conditions we have with the existing lender.

Rahul V. Sagar: In terms of the debt, of course, as per the agreement, we have to start paying back on 27 May. As per the existing agreement with the lender, we have to pay back for the next few years, 5% annually, and then 25%. To that extent, we will be guided by the terms and conditions of the agreement with the lender, and that may or may not have some impact on the EBITDA margins. Basically, we will be guided by the terms and conditions we have with the existing lender.

Speaker #3: On May 27, as per the existing agreement with the lender, we have to pay back, for the next few years, 5% annuity and then 25%.

Speaker #3: So, to that extent, we will be guided by the terms and conditions of the agreement with the lender, and that may or may not have some impact on the EBITDA margins.

Speaker #3: But basically, we'll be guided by the terms and conditions we have with the existing lender.

Speaker #2: So, as per this agreement, should we be around 1.5 in the next couple of years, down from 1.8 where we are?

Pranay Jain: So, as per this agreement, should we be around 1.5 in the next couple of years from 1.8?

Speaker #3: I've not done that calculation, and I can't do it right now. But I think it's not a very difficult calculation, theoretically. Of course, we don't want to speculate on what any numbers will be going ahead.

Rahul Sagar: I've not done that calculation, and I can't do it right now, but I think it's not a very difficult calculation theoretically. But of course, we don't want to speculate on what any numbers will be going ahead. It's a little bit not practical or really we're not comfortable making any speculative remarks with regard to any of the numbers. As I said earlier, we can only try our best and hope that the numbers remain healthy, and of course, all management will endeavor to improve the numbers.

Rahul V. Sagar: I've not done that calculation, and I can't do it right now, but I think it's not a very difficult calculation theoretically. But of course, we don't want to speculate on what any numbers will be going ahead. It's a little bit not practical or really we're not comfortable making any speculative remarks with regard to any of the numbers. As I said earlier, we can only try our best and hope that the numbers remain healthy, and of course, all management will endeavor to improve the numbers.

Speaker #3: It's a little bit not practical, or really, we are not comfortable making any speculative remarks with regard to any of the numbers. As I said earlier, we can only try our best and hope that the numbers remain healthy. And, of course, all management will endeavor to improve the numbers.

Speaker #2: There's no doubt that the numbers will remain healthy. We are very well placed. My second question is about the hope on restructuring and whatever options we have been evaluating, and the discussions that we have been having.

Pranay Jain: There's no doubt that the numbers will remain healthy. We are very well-placed. The second question is the hope on restructuring and whatever options that we have been evaluating, the discussions that we have been having. I understand it takes time, and we've been hearing this for a couple of years that efforts are on, but nothing significant is moving forward. So I really just wanted to understand the challenge or hurdle where we are at, and what will help us move to the next stage of the favorable options on our table.

Speaker #2: I understand it takes time, and we've been hearing this for a couple of years, that efforts are on, but nothing significant is moving forward.

Speaker #2: So, I really just wanted to understand the challenge or hurdle where we are at, and what will help us move to the next stage of the favorable options on our table.

Speaker #3: Okay, so firstly, it really depends on what you consider as the next stage or what you consider is a favorable option. As you know, in 2025–26, we have moved to the new tax regime, which was fairly significant.

Rahul Sagar: Okay. Firstly, really, it depends on what you consider as the next stage or what you consider is a favorable option. As you know, in 2025/2026, we had moved to the new tax regime, which was fairly significant. And we will keep you closely informed of any significant developments like these in the existing year and in the future as well. But it's a little bit hard for us to specifically say what is there, what is favorable, what is significant. So, as and when we have something to say, we'll tell you. Thank you.

Rahul V. Sagar: Okay. Firstly, really, it depends on what you consider as the next stage or what you consider is a favorable option. As you know, in 2025/2026, we had moved to the new tax regime, which was fairly significant. And we will keep you closely informed of any significant developments like these in the existing year and in the future as well. But it's a little bit hard for us to specifically say what is there, what is favorable, what is significant. So, as and when we have something to say, we'll tell you. Thank you.

Speaker #3: And we will keep you closely informed of any significant developments like these in the existing year, and in the future as well. But it's a little bit hard for us to specifically say what is fair, what is favorable, what is significant.

Speaker #3: So, yeah. I mean, it's really as in, when we have something to say, we'll tell you. Thank you.

Speaker #2: I meant to ask from the co-promoter point of view. We've had talks earlier with GIC and also at Nirlon House. We've been looking at some discussions that help us develop the space a little better among the different owners.

Pranay Jain: I meant to ask from the co-promoter point of view. We have had talks earlier with GIC and also at Nirlon House, where we have been looking at some kind of talks that helps us develop the space a little better amongst the different owners. Just wanted to know on these two bits, is there anything to look forward to from your discussions compared to last year, or there is not really anything to speak?

Speaker #2: So just wanted to know, on these two points, is there anything to look forward to from your discussions compared to last year, or is there not really anything?

Speaker #2: To speak.

Speaker #3: As of right now, to answer your question very frankly, there's nothing very significant to say. If there is something significant, of course, we have these calls every quarter, and we'll keep you closely informed.

Rahul Sagar: As of right now, to answer your question very frankly, there is nothing very significant to say. If there is something significant, of course, we have these calls every quarter, and we will keep you closely informed.

Rahul V. Sagar: As of right now, to answer your question very frankly, there is nothing very significant to say. If there is something significant, of course, we have these calls every quarter, and we will keep you closely informed.

Speaker #2: Thank you. I wish you all the best for that.

Pranay Jain: Thank you and wishing you all the best for that.

Speaker #3: Thank you. Thank you. Thank you for your wishes. Thank you.

Rahul Sagar: Thank you. Thank you. Thank you for your wishes. Thank you.

Rahul V. Sagar: Thank you. Thank you. Thank you for your wishes. Thank you.

Speaker #1: Thank you. Next question comes from Jay Jain, an individual investor. Please go ahead.

Operator 3: Thank you. Next question comes from the line of Jai Jain, an individual investor. Please go ahead.

Operator: Thank you. Next question comes from the line of Jai Jain, an individual investor. Please go ahead.

Speaker #4: Hello.

Jai Jain: Hello.

Speaker #3: Hi.

Rahul Sagar: Hi.

Rahul V. Sagar: Hi.

Speaker #4: Sir, just one question. What is your average remaining lease tenure across your portfolio right now?

Jai Jain: Sir, just one question. What is your average remaining lease tenure across your portfolio right now?

Speaker #3: Average remaining lease tenure across the portfolio. So offhand, we may not want to.

Rahul Sagar: Average remaining lease tenure across the portfolio. So offhand, we may not want to

Rahul V. Sagar: Average remaining lease tenure across the portfolio. So offhand, we may not want to

Operator 3: Speakers, we cannot hear you. Can you come a little closer to the mic and speak?

Operator: Speakers, we cannot hear you. Can you come a little closer to the mic and speak?

Speaker #1: Speakers, we cannot hear you. Can you come a little closer to the mic and speak?

Speaker #4: Hello.

Jai Jain: Hello.

Speaker #3: Yeah, so it's a little bit tough for us to answer that right now because there are so many assumptions associated with that number and associated with that question.

Rahul Sagar: Yeah. It is a little bit tough for us to answer that right now because there are so many assumptions associated with that number and associated with that question. Just to answer right now on the spot will be a little bit challenging because we do not want to give any misleading statements or anything which is-

Rahul V. Sagar: Yeah. It is a little bit tough for us to answer that right now because there are so many assumptions associated with that number and associated with that question. Just to answer right now on the spot will be a little bit challenging because we do not want to give any misleading statements or anything which is-

Speaker #3: So, just to answer right now on the spot will be a little bit challenging because we don't want to give any misleading statements or anything like that.

Speaker #4: Understandable. Understandable, sir. I understand.

Jai Jain: Understandable. Understandable, sir. I understand.

Speaker #3: Thank you.

Rahul Sagar: Thank you.

Rahul V. Sagar: Thank you.

Speaker #4: And just a small idea on that. So, any such large leases that are due for renewal in the near term, like, let's say, a year or two down the line?

Jai Jain: Just a small idea on that. Any such large leases that are due for renewal in the near term, let us say a year or 2 down the line?

Speaker #3: I think '27, nothing.' So, not much in '26, '27.

Rahul Sagar: 26/27, nothing. Not much in 26/27.

Rahul V. Sagar: 26/27, nothing. Not much in 26/27.

Speaker #4: Okay. All right. Thank you so much. Thank you.

Jai Jain: Okay. All right. Thank you so much. Thank you.

Speaker #3: Thank you for your question. Thank you.

Rahul Sagar: Thank you for your question.

Rahul V. Sagar: Thank you for your question.

Jai Jain: All the best.

Speaker #1: Thank you. Ladies and gentlemen, as there are no further questions, we have reached the end of the question and answer session. I now hand the conference over to Mr. Rahul Sagar from Nirlon Limited for closing comments.

Rahul Sagar: Thank you.

Rahul V. Sagar: Thank you.

Operator 3: Thank you. Ladies and gentlemen, as there are no further questions, we have reached the end of question and answer session. I now hand the conference over to Mr. Rahul Sagar from Nirlon Limited for closing comments.

Operator: Thank you. Ladies and gentlemen, as there are no further questions, we have reached the end of question and answer session. I now hand the conference over to Mr. Rahul Sagar from Nirlon Limited for closing comments.

Speaker #3: Sorry. Thank you. Thank you all for participating in this earnings conference. I hope we were able to answer your questions satisfactorily and, at the same time, offer insights into our business.

Rahul Sagar: Thank you. Thank you all for participating in this earnings con call. I hope we were able to answer your questions satisfactorily and at the same time offer insights into our business. If you have any further questions or would like to know more about the company, please reach out to our investor relations managers at Valorem Advisors. Thank you, and thank you once again for all your questions. It is greatly appreciated, and we look forward to seeing you again next quarter. Thank you again, everybody. Thank you. Thank you.

Rahul V. Sagar: Thank you. Thank you all for participating in this earnings con call. I hope we were able to answer your questions satisfactorily and at the same time offer insights into our business. If you have any further questions or would like to know more about the company, please reach out to our investor relations managers at Valorem Advisors. Thank you, and thank you once again for all your questions. It is greatly appreciated, and we look forward to seeing you again next quarter. Thank you again, everybody. Thank you. Thank you.

Speaker #3: If you have any further questions or would like to know more about the company, please reach out to our Investor Relations Manager's advisor and advisors.

Speaker #3: Thank you, and thank you once again for all your questions. It's greatly appreciated, and we look forward to seeing you again next quarter. So, thank you again, everybody.

Speaker #3: Thank you. Thank you.

Operator 3: Thank you. On behalf of Nirlon Limited, that concludes this conference. Thank you for joining us. You may now disconnect your line.

Operator: Thank you. On behalf of Nirlon Limited, that concludes this conference. Thank you for joining us. You may now disconnect your line.

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Q1 2027 Nirlon Ltd Earnings Call

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