Nexus Select TrustQ4 FY26
Nexus Select Trust Q4 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 3
Fundraise
Yes
Order
N/A
Capex
Yes
2 of 4 growth signals are positive.
Full analysisRevenue guidance
Category 3- →FY27 targets 9% Distribution Per Unit (DPU) growth, indicating healthy income growth.
- →Consumption growth assumption for FY27 is around 8%, reflecting sustained demand.
- →Net Operating Income (NOI) growth guidance around 7%, with potential upside from revenue share and mark-to-market rental revisions.
- →Leasing spreads expected to sustain at 18-20%, supported by limited near-term new Grade-A retail supply.
- →Re-leasing and strategic churn to contribute incremental NOI growth, with 1.3 to 1.5 million sq.ft. of leasing activity expected annually.
- →Strong consumption momentum in key categories like jewellery, fashion, electronics, and entertainment driving volume and revenue growth.
- →Acquisition pipeline active with 2-3 new assets targeted annually, supporting inorganic growth.
- →Stable 97%+ portfolio occupancy supports robust revenue visibility.
- →Digital and experiential marketing initiatives expected to augment footfalls and consumption.
Margin guidance
Category 3- →FY27 DPU (Distribution per Unit) growth targeted at 9%, with guidance of INR 9.8-10 per unit, up from INR 9.1 in FY26.
- →NOI (Net Operating Income) growth guidance of 7% at midpoint, driven by:
- → - 4-4.5% contracted rental escalation.
- → - 2% mark-to-market (MTM) rental growth due to lease expiries and re-leasing spreads (~20%).
- → - Incremental revenue share from consumption growth assumed at ~8%.
- →Conservative guidance excludes acquisition impact; underlying model indicates potential 8-9% NOI growth.
- →Strong organic consumption momentum with retail consumption growth of 15% in FY26, supporting future profitability.
- →Portfolio expansion through strategic acquisitions expected to drive additional growth beyond guidance.
- →Continued focus on portfolio optimization and tenant mix to sustain healthy rental spreads (~18-20%).
Fundraise plans
Yes- →No explicit mention of new fundraising through debt or equity in the provided transcript.
- →Current debt profile: LTV stands at 18%, cost of debt at 7.3%, which is 60 bps lower than March 2025.
- →Debt mix: Floating portion increased from 52% to 59%, primarily due to a Bajaj Finance loan taken to repay commercial papers.
- →Interest costs budgeted at 7.5% for FY27, with expected savings due to lower interest rates.
- →The Trust has a strong balance sheet with close to USD 1 billion debt headroom, well-positioned for inorganic growth.
- →Acquisition plans are ongoing with 8 assets in pipeline but no clear indication of specific new debt/equity raising.
- →Overall, prudent stance on acquisitions and financing amid rising interest rates; focus on maintaining a 150-200 bps spread between cap rates and acquisition cost of debt.
Order book
The transcript does not provide specific details on the current or expected order book or pending orders for Nexus Select Trust. However, relevant information related to acquisitions and pipeline includes:
- Robust acquisition pipeline of 8 assets across India.
- Two assets are currently under due diligence.
- Diamond Plaza, Kolkata acquisition deal is in closing stages.
- Plan to add 2-3 assets every year to the portfolio.
- Strategic tie-ups with developers for under-construction malls (e.g., partnership with Subodh Runwal Group for a 7 lakh sq. ft. mall in MMR).
- Bolt-on acquisitions within existing malls (e.g., 60,000 sq. ft. addition in Nexus Elante, Chandigarh).
- Sponsor pipeline includes South City asset in Kolkata, potentially coming into portfolio in future.
- No exact order book or pending orders value/volume mentioned.
Capex plans
Yes- →Nexus Select Trust continues its inorganic growth strategy, aiming to add 2-3 assets every year to the portfolio.
- →They have introduced 3 strategic pillars for acquisitions:
- → - Strategic tie-ups with reputed developers for under-construction malls (e.g., partnership with Subodh Runwal Group for a 7 lakh sq ft mall in MMR).
- → - Strategic expansions within existing malls (e.g., bolt-on acquisition of 60,000 sq ft retail space in Nexus Elante complex, Chandigarh).
- → - Sponsor pipeline acquisitions, including the South City asset in Kolkata held since 2025.
- →Acquisition pipeline consists of 8 assets across India, with two under due diligence and the Diamond Plaza, Kolkata deal closing underway.
- →Focus on acquiring under-managed, under-leased, or under-invested assets to unlock value.
- →Plans to strengthen presence in Eastern India with acquisitions like Diamond Plaza and potential others.
- →Cap rates targeted for acquisitions typically range between 9-10%, maintaining a spread of 150-200 bps over trading cap rates.
- →No immediate capex figures disclosed; emphasis on strategic acquisitions and portfolio expansion over the coming years.
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Margin guidance
Category 3- →FY27 DPU (Distribution per Unit) growth targeted at 9%, with guidance of INR 9.8-10 per unit, up from INR 9.1 in FY26.
- →NOI (Net Operating Income) growth guidance of 7% at midpoint, driven by:
- → - 4-4.5% contracted rental escalation.
- → - 2% mark-to-market (MTM) rental growth due to lease expiries and re-leasing spreads (~20%).
- → - Incremental revenue share from consumption growth assumed at ~8%.
- →Conservative guidance excludes acquisition impact; underlying model indicates potential 8-9% NOI growth.
- →Strong organic consumption momentum with retail consumption growth of 15% in FY26, supporting future profitability.
- →Portfolio expansion through strategic acquisitions expected to drive additional growth beyond guidance.
- →Continued focus on portfolio optimization and tenant mix to sustain healthy rental spreads (~18-20%).
Order book
The transcript does not provide specific details on the current or expected order book or pending orders for Nexus Select Trust. However, relevant information related to acquisitions and pipeline includes:
- Robust acquisition pipeline of 8 assets across India.
- Two assets are currently under due diligence.
- Diamond Plaza, Kolkata acquisition deal is in closing stages.
- Plan to add 2-3 assets every year to the portfolio.
- Strategic tie-ups with developers for under-construction malls (e.g., partnership with Subodh Runwal Group for a 7 lakh sq. ft. mall in MMR).
- Bolt-on acquisitions within existing malls (e.g., 60,000 sq. ft. addition in Nexus Elante, Chandigarh).
- Sponsor pipeline includes South City asset in Kolkata, potentially coming into portfolio in future.
- No exact order book or pending orders value/volume mentioned.
How does Nexus Select Trust rank vs peers in Realty?
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