Nila Infrastructures Limited announced its audited financial results for the financial year ended March 31, 2026, following a Board meeting held on May 02, 2026 at the company's registered office in Ahmedabad. The Board approved the standalone and consolidated financial statements, along with the appointment of internal and cost auditors for the upcoming financial year. The statutory auditors, M B D & Co LLP, issued an unmodified opinion on the financial results, which were prepared in accordance with Indian Accounting Standards. Subsequently, pursuant to Regulation 47 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company filed the newspaper publication of the extract of audited standalone and consolidated financial results with BSE Limited and the National Stock Exchange of India Limited on May 04, 2026. The results were published in Business Standard (English) and Loksatta Jansatta (Gujarati) in the May 04, 2026 edition, as confirmed by Company Secretary Dipen Y Parikh.

Standalone Financial Performance

For the financial year ended March 31, 2026, Nila Infrastructures reported revenue from operations of ₹32,270.66 lakh, an increase from ₹24,688.10 lakh in the previous year. Total income for FY26 stood at ₹33,792.25 lakh, compared to ₹26,259.60 lakh in FY25. The company achieved a profit before tax of ₹3,757.14 lakh, up from ₹2,989.14 lakh in the preceding year. After accounting for tax expenses, the profit for the period reached ₹2,699.11 lakh, representing growth from ₹2,153.65 lakh in FY25.

The quarter ended March 31, 2026 recorded revenue from operations of ₹8,103.91 lakh, with total income of ₹8,473.26 lakh. Profit for the quarter stood at ₹654.10 lakh. Basic and diluted earnings per share for the year were reported at ₹0.69 each, compared to ₹0.55 in the previous year.

Quarterly Standalone Performance

The following table presents the quarterly standalone performance across key periods:

Consolidated Results

On a consolidated basis, the company reported total income of ₹33,721.22 lakh for FY26, compared to ₹26,203.61 lakh in the previous year. Profit before tax stood at ₹4,090.51 lakh, while profit after tax before share in joint ventures and associates was ₹3,032.48 lakh. After accounting for the share in loss of joint ventures and associates of ₹703.66 lakh, the profit for the period amounted to ₹2,328.82 lakh, compared to ₹2,049.85 lakh in FY25. Consolidated basic and diluted earnings per share were ₹0.59 each for the year.

Balance Sheet and Cash Flows

As of March 31, 2026, the company's standalone total assets stood at ₹88,753.26 lakh, an increase from ₹86,061.70 lakh in the previous year. Total equity amounted to ₹20,785.45 lakh, while total liabilities were recorded at ₹67,967.81 lakh. The company reported cash and cash equivalents of ₹26.41 lakh as of the year-end, a significant decrease from ₹2,313.93 lakh in the previous year. Net cash flow used in operating activities for the year was ₹2,520.02 lakh, while investing activities generated ₹909.98 lakh and financing activities used ₹677.48 lakh.

Board Decisions and Auditor Appointments

The Board approved the appointment of M/s Dhirubhai Shah & Co LLP as internal auditors for the financial year 2026-27. The firm, established in 1961, is registered with the Institute of Chartered Accountants of India and specializes in audit, advisory, and taxation services. Additionally, M/s Dalwadi & Associates was appointed as cost auditor for FY 2026-27. The Ahmedabad-based firm provides cost and management accounting, audit and assurance, and indirect tax services.

Regulatory Disclosures

The company disclosed that the Income Tax Department had conducted a search operation in September 2021. Subsequent to the quarter and year end, the company received appellate orders dated April 20, 2026 and April 24, 2026, whereby additions and demands for various assessment years were substantially deleted or reduced. Management believes these matters are not expected to have a material adverse impact on the company's financial position. The company also noted the impact of new labour codes that became effective on November 21, 2025, which have been evaluated and recognized in the financial results based on management estimates and actuarial valuation.

Nila Infrastructures Limited has received significant relief from the Income Tax Department through two separate appellate orders issued in April 2026. The company informed stock exchanges about these developments under Regulation 30 of SEBI Listing Regulations on 21 April 2026 and 25 April 2026 respectively.

Background of Tax Proceedings

The current developments stem from earlier tax proceedings that began with search operations conducted by the Income Tax Department, which the company had initially disclosed on 12 September 2021. Subsequently, the company provided an update on 19 June 2023 regarding the completion of income tax assessment for the block period covering multiple assessment years.

First Appellate Order - Complete Relief

The Commissioner of Income Tax (Appeal) – 12, Ahmedabad issued the first appellate order on 20 April 2026, addressing the company's appeal against income tax assessment proceedings. This order covers the search-related block period for assessment years 2014-15, 2016-17, 2017-18, and 2019-20 to 2022-23.

The appellate order has resulted in complete deletion of all additions, disallowances, demands, interest, and penalties that were previously imposed by the assessing officer on a protective basis. This comprehensive relief means that no tax liability survives against the company for these specified assessment years.

Second Appellate Order - Assessment Year 2018-19

In a separate development, the company received another order from the Appellate Authority of Income Tax Department on 24 April 2026, pertaining to assessment year 2018-19. The communication was received via email at 7:08 p.m. on the same date. The Appellate Authority has partly allowed the appeal and restricted the addition of income to INR 33.23 lac.

Financial and Operational Impact

According to the company's disclosure, the demand that was previously raised by the assessing officer and intimated on 19 June 2023 now stands completely deleted for the covered assessment years except 2018-19. For assessment year 2018-19, the addition of income stands restricted to INR 33.23 lac by the order of the appellate authority. The maximum monetary impact due to this addition shall be restricted to the amount of tax, interest and penalty, if any, at applicable tax rate on the above addition.

The company has stated that there is no adverse impact on its financials, operations, or other activities due to these appellate orders. The Company shall take appropriate action in the matter as per legal consultation from expert advisors and consultants.

Regulatory Compliance

The company has fulfilled its disclosure obligations under Regulation 30 of SEBI Listing Regulations, providing detailed information as required under SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023. The information has also been made available on the company's website at www.nilainfra.com for stakeholder access.