Nexus SelectQ1 FY26
Nexus Select Q1 FY26 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹167P/E: 57.4Market Cap: ₹25.3K CrSector: Realty
Management growth scorecard
Revenue
Category 3
Margin
Category 1
Fundraise
Yes
Order
N/A
Capex
Yes
3 of 4 growth signals are positive.
Full analysisRevenue guidance
Category 3- →Like-for-like consumption growth showed sequential improvement, with 4.6% growth this quarter and 11% year-on-year including acquisitions, indicating positive momentum.
- →Management expects consumption growth to improve further in coming quarters, supported by a good monsoon and income tax relief measures boosting disposable income.
- →Strong recovery observed in categories such as Jewellery, Watches, Beauty & Personal Care, and Family Entertainment; Jewellery category sales are expected to double over the year.
- →Leasing occupancy is high (97.2%) with healthy rental spread growth of over 20% anticipated on renewals, supporting rental revenue growth.
- →New malls show strong NOI and tenant sales growth, with a 12% overall NOI year-on-year increase and continued integration expected to drive further growth.
- →Greenfield developments and acquisitions pipeline are robust, supporting medium-term portfolio and revenue expansion goals.
Margin guidance
Category 1- →Nexus Select Trust expects continued strong NOI (Net Operating Income) growth, targeting 15% NOI growth for the full fiscal year 2026.
- →Q1 FY26 NOI grew 12% year-on-year, with 6% like-for-like growth, signaling robust operational performance.
- →DPU (Distribution per Unit) growth was 4% in Q1, expected to improve as newly acquired malls mature and integrate.
- →Consumption growth trends are positive, with an 11% year-on-year consumption increase (5% like-for-like), expected to strengthen further in coming quarters.
- →Repo rate reductions are driving cost of debt down, with benefits to accrue more fully in upcoming quarters, supporting margin expansion.
- →The acquisition pipeline and Greenfield development projects, including strategic expansions into underserved markets, are expected to contribute to portfolio and earnings growth over time.
- →Management maintains full-year guidance confidently, supported by sequential consumption improvements and operational efficiencies.
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Fundraise plans
Yes- →Nexus Select Trust has a strong acquisition pipeline with around 10+ assets under consideration, including greenfield developments.
- →They have about USD 1 billion of debt headroom available before reaching their 49% leverage cap.
- →The company does not intend to reach the 49% leverage level despite having unitholder approval up to 49% loan-to-value (LTV).
- →Recent refinancing included INR 3,500 million at a competitive rate of 6.67%, with an average cost of debt reduced to 7.5%.
- →Greenfield development strategy involves partnerships with reputable developers, committing to future purchase but no immediate large equity fundraising mentioned.
- →Overall, future fundraises are likely to be driven by acquisitions and Greenfield projects with a strategic focus on maintaining a balanced and prudent leverage position.
Order book
The transcript does not explicitly provide details on the current or expected order book or pending orders for Nexus Select Trust. However, related information about acquisitions and development pipeline includes:
- Acquisition pipeline remains robust with around 10+ assets in the pipeline across different states in India.
- Multiple ongoing conversations for asset acquisitions.
- Several discussions underway for greenfield developments.
- Expectation to complete Hyderabad acquisition shortly.
- Active pursuit of strategic transactions, including greenfield development projects.
- Focus on partnering with reputed developers for greenfield projects.
- Plans to expand presence in tier 1 and tier 2 cities where market opportunities exist.
No specific figures or formal order books are mentioned in the transcript.
Capex plans
Yes- →Nexus Select Trust is actively pursuing Greenfield developments through a partnership model with reputed developers who handle land acquisition and construction, while Nexus manages leasing, operations, and marketing.
- →The Trust has multiple conversations ongoing related to Greenfield development, targeting markets with strong consumption and underserved by existing Grade-A malls, including cities beyond their current presence.
- →There is a strong pipeline of strategic transactions including asset acquisitions and Greenfield projects, with around 10+ assets in the pipeline across various Indian states.
- →The strategy focuses on both organic growth (e.g., leasing, tenant mix) and inorganic growth (acquisitions and Greenfield developments).
- →No specific new capex amounts disclosed, but emphasis on continuous upgrades, tenant additions (e.g., launching new international brands), and targeted marketing campaigns to improve asset value.
How does Nexus Select rank vs peers in Realty?
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