Nisus Finance Services Co Ltd Q4 FY26 Earnings Analysis

- AUM (Assets Under Management) target range for FY26 is between ₹3,000 to ₹4,000 crores, with confidence to meet or exceed this range due to a strong pipeline and ongoing deployments. - Expected AUM growth driven by multiple new product launches including tokenization, SME REIT, UAE fund, and India Credit Fund, expanding from 3 to about 6-7 products in the next year. - Revenue growth supported by increasing institutional investors willing to pay higher fees, thereby increasing revenue share even on a slightly smaller AUM base. - NCCCL (construction subsidiary) PAT margin expected to improve from about 2% to around 3.5-4% between FY27 and FY28 due to better contract pricing and non-residential mix. - The company aims for an overall 4-5x growth in AUM over the medium term, leveraging expansion in India and UAE/GCC regions. - The business remains H2 heavy, with significant order book and investment deployment planned in the second half.

- Nisus Financial Services targets Assets Under Management (AUM) between ₹3,000 to ₹4,000 crore by FY26 year-end, with potential to reach ₹8,000 crore by 2027-28, supporting revenue and earnings growth. - NCCCL's PAT margin is expected to improve from approximately 2% to 3-4% over the next 12-18 months due to better contract pricing, scale benefits, and diversification into non-residential sectors. - Expansion into new products (e.g., tokenization, SME REIT, UAE and India Credit Funds) will accelerate AUM growth and operating earnings. - The company anticipates margin expansion at the group and subsidiary level driven by portfolio revaluation and increased institutional participation. - Consolidated EBITDA margins stand at ~28.4% and PAT margins at ~16% for the nine-month FY26 period, with expectations of continued margin expansion. - Management aims for transparency and steady growth, cautiously projecting precise NAV/AUM estimates while managing valuation variances.

- The company plans new product launches and New Fund Offers (NFOs) next year to deploy available capital efficiently, indicating strategic investment in fund expansion (Page 22). - It has significant "dry powder" (uninvested capital) in its UAE fund (~$500 million with only about $130-150 million deployed) and India fund (about ₹2500-3000 crores, of which ₹1000-1500 crores deployed) suggesting capacity for further investments without immediate fundraising (Page 22). - Pipeline includes multiple AMC opportunities such as tokenization, SME REIT, UAE fund, India Credit Fund, aiming to grow from 3 to about 6-7 products next year, accelerating Assets Under Management (AUM) growth (Page 15). - The NCCCL subsidiary is undergoing financial restructuring to improve working capital efficiency, which may support future capital deployment (Page 24). - No immediate plans for further divestment of NCCCL stake; focus on capital market route for NCCCL listing in the medium term (2-3 years) suggests a strategic growth investment (Page 16).

- Currently, there is no immediate target for raising a very large multiple through fundraising. - Existing debt at NCCCL has been significantly reduced, with further repayment planned using divestment proceeds; no intent for further stake divestment immediately. - Sufficient dry powder available: - UAE fund has $500 million with only about $130 million deployed. - India fund has around ₹2,500 crores with ₹1,000-1,500 crores deployed. - These funds provide enough runway to meet capital deployment targets for this year and next. - New product launches (NFOs) are planned next year to utilize remaining capital. - No specific new fundraising currently announced, but future fundraising could occur aligned with new product launches and growth goals.

- The order book for NCCCL in H2 is significantly larger compared to H1. - NCCCL is expected to see margin expansion to about 3-4% over the next 12 to 18 months, driven by better contract pricing, scale, and diversification to non-residential projects. - There are substantial transactions planned involving partnerships with major global players, indicating a strong pipeline. - The company has over ₹1,000 crore of deployments planned or in late-stage deployment within the India Fund. - Additionally, another ₹1,000 crore deployment is planned in the current quarter, ensuring an active order pipeline. - The management does not foresee risks in meeting near-term financial targets due to these strong order inflows and deployments. - NCCCL's employee strength and operational capacity are scaling to support the increased order book.