Nirlon Q2 FY27 profit plunges 51% to ₹71.9 crore despite revenue growth
Synopsis
Nirlon Limited's net profit more than halved in Q2 FY27 — down 51.3% to ₹71.9 crore — even as revenue and EBITDA grew modestly. The divergence between a healthy 77.8% EBITDA margin and a collapsing bottom line points to below-the-line cost pressure that the company has yet to fully explain. Shares, however, shrugged it off, rising nearly 2.6% on Monday.
Key Takeaways
Nirlon Limited reported Q2 FY27 net profit of ₹71.9 crore , down 51.3 per cent year-on-year from ₹147.7 crore in Q2 FY26.
Revenue from operations grew 2.3 per cent to ₹169.1 crore , while EBITDA rose 1.7 per cent to ₹131.6 crore .
EBITDA margin edged down to 77.8 per cent from 78.3 per cent a year ago.
Diluted EPS dropped to ₹7.98 in Q2 FY27 from ₹16.39 in Q2 FY26.
Total expenses rose 4.4 per cent to ₹37.6 crore during the quarter.
Nirlon shares were up 2.57 per cent at ₹647.50 during Monday's session, with a YTD gain of 19.95 per cent .
Nirlon Limited, the Mumbai-based real estate company, on Monday, 2 November 2026 reported a sharp year-on-year contraction in its bottom line for the second quarter of FY27 (Q2 FY27), with net profit falling 51.3 per cent to ₹71.9 crore from ₹147.7 crore in Q2 FY26. The steep earnings decline came even as the company's top line continued to grow modestly, according to its stock exchange filing.
Revenue and Operating Performance
Revenue from operations rose a modest 2.3 per cent year-on-year to ₹169.1 crore in Q2 FY27, up from ₹165.3 crore in the corresponding quarter of the previous year. Earnings before interest, taxes, depreciation and amortisation (EBITDA) also edged higher by 1.7 per cent to ₹131.6 crore, compared with ₹129.4 crore a year ago. However, the EBITDA margin slipped marginally to 77.8 per cent from 78.3 per cent in Q2 FY26, indicating a slight increase in operating cost pressure.
Where the Profit Pressure Came From
Total expenses for the quarter rose 4.4 per cent to ₹37.6 crore, from ₹36 crore in the year-ago period. The divergence between a stable operating performance and a sharply lower net profit suggests that below-the-EBITDA items — likely higher depreciation, interest costs, or tax provisions — drove the earnings erosion. The company's regulatory filing did not detail the specific below-the-line factors, but the pattern is consistent with firms managing larger asset bases or financing costs.
Earnings Per Share Hit Hard
The decline in profitability was reflected directly in per-share returns. Diluted earnings per share (EPS) fell to ₹7.98 in Q2 FY27 from ₹16.39 in Q2 FY26 — a drop of nearly 51 per cent — according to the company's stock exchange filing. This is a meaningful signal for retail investors who track EPS as a valuation benchmark.
Stock Performance Stays Resilient
Despite the profit fall, Nirlon's shares showed resilience in Monday's trading session, rising 2.57 per cent or ₹16.20 to trade at ₹647.50 in the latter part of the day. Over the past five trading days, the stock has delivered a positive return of 2.78 per cent (₹17.50), while a one-month gain stands at 5.22 per cent (₹32.10). On a longer horizon, the stock has risen 13.28 per cent in six months and posted a year-to-date (YTD) gain of 19.95 per cent (₹107.71), suggesting investor confidence in the firm's underlying business despite the quarterly earnings setback.
What to Watch Next
Analysts and investors will be closely watching whether the below-the-line pressures that compressed net profit in Q2 FY27 are structural or one-off in nature. With revenue and EBITDA both growing, any normalisation of financing or tax costs in Q3 could support a profit recovery. Management commentary on project pipeline and lease renewals at its flagship Mumbai properties will be key in the quarters ahead.
Point of View
Yet net profit has been cut in half. This gap almost certainly lies below the operating line — in depreciation, interest, or tax — and the company owes shareholders a clear explanation of what changed year-on-year. The stock's resilience suggests the market is treating this as a one-off, but without management clarity, that confidence is speculative. Real estate income trusts and office landlords like Nirlon are navigating a post-pandemic leasing reset; the durability of that 77%-plus EBITDA margin, not a single quarter's profit swing, is the real metric to watch.
NationPress
2 Nov 2026
Frequently Asked Questions
What were Nirlon Limited's Q2 FY27 results?
Nirlon Limited reported a net profit of ₹71.9 crore in Q2 FY27, down 51.3 per cent from ₹147.7 crore in Q2 FY26. Revenue from operations grew 2.3 per cent to ₹169.1 crore, according to the company's stock exchange filing.
Why did Nirlon's net profit fall so sharply in Q2 FY27?
The company's operating metrics — revenue and EBITDA — both grew modestly, suggesting the profit decline was driven by below-the-line factors such as higher depreciation, interest charges, or tax provisions, though the filing did not specify the exact cause. Total expenses rose 4.4 per cent to ₹37.6 crore during the quarter.
How did Nirlon's EBITDA perform in Q2 FY27?
EBITDA rose 1.7 per cent year-on-year to ₹131.6 crore in Q2 FY27, from ₹129.4 crore a year earlier. The EBITDA margin came in at 77.8 per cent, slightly below the 78.3 per cent recorded in Q2 FY26.
What happened to Nirlon's earnings per share in Q2 FY27?
Diluted EPS fell to ₹7.98 in Q2 FY27 from ₹16.39 in Q2 FY26, a decline of nearly 51 per cent, mirroring the drop in net profit as per the regulatory filing.
How has Nirlon's stock performed recently?
Despite the profit decline, Nirlon shares rose 2.57 per cent to ₹647.50 during Monday's session. The stock has gained 5.22 per cent over one month and delivered a year-to-date return of 19.95 per cent as of 2 November 2026.
