Nila Spaces Limited announced on August 7, 2026, that its shareholders have approved the appointment of Deep S. Vadodaria as Chairman and Managing Director (CMD) via a special resolution in a postal ballot. The outcome secures leadership continuity for the real estate developer while granting the Board expanded financial powers for borrowing, lending, and related-party transactions for the Financial Year 2026-27.

The postal ballot process, conducted under Regulation 44(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and Section 108 of the Companies Act, 2013, concluded with a cut-off date of June 26, 2026. Umesh Ved & Associates, acting as the scrutinizer, submitted its report on August 6, 2026, confirming that all resolutions passed with the requisite majority. The e-voting window ran from July 7, 2026, to August 5, 2026, with physical ballots also accepted for shareholders facing technical issues.

Key Resolutions Passed

The most significant resolution was the appointment of Mr. Deep S. Vadodaria (DIN: 01284293) as CMD. This special resolution received strong support from promoter groups, who voted exclusively in favor. Among public non-institutional shareholders, the resolution secured 53.68% support overall, driven by postal ballot voters, while e-voting public shareholders showed a split preference.

Other key approvals included:

• Re-appointment of Prashant H. Sarkhedi: Shareholders approved the re-appointment of Mr. Prashant H. Sarkhedi (DIN: 00417386) as Whole Time Director (Director Finance) with 99.98% support across all categories.
• Board Powers: The Board was granted authority under Section 180(1)(a) and borrowing powers under Section 180(1)(c) of the Companies Act, 2013, both passing with nearly unanimous support (99.98%).
• Loans and Investments: Approvals for loans and investments under Sections 185 and 186 of the Companies Act, 2013, were also passed with over 99.9% support.

Voting Breakdown for CMD Appointment

The appointment of the new CMD saw distinct voting patterns between promoter and public shareholders. Promoters held 243,825,187 shares but only cast votes via postal ballot (64,204,712 votes), all in favor. Public non-institutional shareholders held 150,049,341 shares, with significant participation via both e-voting and postal ballots.

Related Party Transactions

Two ordinary resolutions concerning material related-party transactions were also passed. These included modifications to transactions with Nila Urban Living Private Limited and new transactions with Mr. Deep S. Vadodaria for FY2026-27. Both resolutions received approximately 53.68% support. Notably, votes cast by related parties were declared invalid, totaling 64,204,712 shares, which excluded the promoter group from voting on these specific items. The pass mark was met primarily through postal ballot votes from non-promoter public shareholders.

What the Numbers Show

The voting data reveals a clear divergence in engagement methods and preferences between promoter and public shareholders. Promoters relied exclusively on postal ballots for all resolutions, ensuring uniform support for management appointments and board powers. In contrast, public non-institutional shareholders utilized e-voting extensively for contentious or complex items like related-party transactions, where opposition was higher. The high volume of invalid votes (64 million shares) on related-party resolutions underscores the strict compliance framework applied to exclude interested parties, leaving the final outcome dependent on the postal ballot participation of disinterested public shareholders.

Nila Spaces Limited reported a 22% year-on-year increase in consolidated net profit to ₹859.75 lakh for the quarter ended June 30, 2026, driven by a 14% rise in revenue from operations. The Ahmedabad-based real estate developer also recorded an improvement in EBITDA to ₹150 million from ₹121 million in the same quarter of the previous year, with EBITDA margin expanding to 32.23% from 29.61%. Standalone net profit grew by 22% to ₹730.85 lakh, reflecting improved operational efficiency and cost management across its construction and development segment.

The Board of Directors approved the unaudited standalone and consolidated financial results during a meeting held on August 03, 2026, at the company's registered office. The results were reviewed by the Audit Committee and subsequently approved by the Board in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Dhirubhai Shah & Co. LLP, the statutory auditors, conducted a limited review of the financial statements and issued their report without qualification.

Financial Performance Highlights

Consolidated revenue from operations increased to ₹4,666.85 lakh in Q1FY26, up from ₹4,083.28 lakh in the corresponding quarter of the previous year. Standalone revenue from operations stood at ₹3,911.35 lakh, compared to ₹4,083.28 lakh in Q1FY25. Total income on a consolidated basis reached ₹4,990.20 lakh, including other income of ₹323.35 lakh. The following table summarises the key financial metrics for the quarter:

Finance costs increased to ₹830.96 lakh on a consolidated basis, up from ₹508.72 lakh in Q1FY25. Depreciation and amortisation expenses remained stable at ₹147.21 lakh. The company's entire operations constitute a single segment: "Construction and Development of Building for sale and other Real Estate activities," as per Ind AS 108.

EBITDA and Margin Performance

The quarter saw a notable improvement in operating profitability, with consolidated EBITDA rising to ₹150 million from ₹121 million in the year-ago period. EBITDA margin expanded to 32.23% from 29.61% year-on-year, reflecting stronger operating leverage and improved cost management at the consolidated level.

What the Numbers Show

The divergence between standalone and consolidated performance highlights the contribution of the group structure. While standalone revenue declined slightly year-on-year, consolidated revenue grew significantly, indicating stronger performance from subsidiary entities. Nila Urban Living Private Limited remains the key subsidiary, with Megacity Cinemall Private Limited listed as an associate. The associate contributed nil share of profit for the quarter, as noted in the auditor's report.

Earnings per share (basic) rose to ₹0.21 on a consolidated basis, up from ₹0.15 in Q1FY25. Standalone EPS increased to ₹0.19 from ₹0.15. The improvement in profitability metrics occurred despite higher finance costs, suggesting effective management of project expenses and inventory changes. Changes in inventories of building material, land, and work in progress added ₹349.36 lakh to consolidated expenses, compared to a credit of ₹1,464.59 lakh in the prior year quarter.