Nirlon Limited , a prominent player in the commercial real estate sector, has reported a solid performance for the second quarter, demonstrating resilience in its operations and financial metrics.

Financial Highlights

The company posted a total income of Rs. 169.00 crores for Q2, marking a 4% year-on-year growth. The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) stood at Rs. 133.00 crores, with EBITDA margins at a robust 78.69%. Notably, the profit after tax (PAT) for the quarter reached Rs. 148.00 crores, translating to an impressive PAT margin of 87.45%.

For the first half, Nirlon Limited reported:

Occupancy and Leasing Activity

Nirlon Limited continues to maintain high occupancy rates, with the average occupancy for the company's properties, including Nirlon Knowledge Park (NKP) and Nirlon House, standing at an impressive 98.6% for the quarter. As of September 30, only about 20,000 square feet of area remained vacant across both properties.

The company reported significant leasing activity during the quarter, with approximately 2,60,000 square feet being licensed to major tenants including Deutsche Bank, Barclays, MUFG, Citi, and EY. This robust leasing performance underscores the continued demand for Nirlon's premium commercial spaces.

Tax Regime Change and Financial Impact

In a strategic move, Nirlon Limited has decided to transition to the new tax regime from Q2 onwards. As a result, the company has re-measured its opening deferred tax liability and reversed Rs. 69.50 crores in the current quarter. This transition is expected to have positive implications for the company's tax expenses going forward.

Dividend Announcement

The company has paid out the final dividend of Rs. 11.00 (110%) per share, as approved by shareholders in the Annual General Meeting.

Management Commentary

Rahul Sagar, Chief Executive Officer and Executive Director of Nirlon Limited, commented on the results, stating, "We are pleased with our performance this quarter, which reflects the strength of our portfolio and the quality of our tenant base. The high occupancy rates and successful leasing activities demonstrate the continued demand for our properties. Our transition to the new tax regime is a strategic decision that we believe will benefit both the company and our shareholders in the long run."

Future Outlook

While the company maintains a cautious approach to future projections, the management expressed confidence in the ongoing demand for their properties, particularly from Global Capability Centers (GCC). The company continues to focus on maintaining its high-quality asset base and exploring opportunities for value creation for its shareholders.

Nirlon Limited's strong performance in Q2, coupled with its strategic tax regime change and robust occupancy rates, positions the company well for continued growth in the competitive commercial real estate market.

Nirlon Limited , a prominent player in the commercial real estate sector, has announced significant changes to its board composition and committee structures. The company's Nomination and Remuneration Committee (NRC) and Board of Directors have approved the appointment of Mr. Chandresh Haridas Ruparel as an additional Non-Executive Independent Director for a five-year term, effective September 26, 2025, subject to shareholder approval.

Board Appointment and Expertise

Mr. Ruparel brings a wealth of experience in corporate finance to Nirlon's board. His appointment is pending shareholder approval through a special resolution via postal ballot. Ruparel's extensive background includes:

• 22 years with Rothschild & Co. India, where he served as a director and senior advisor, leading the India business.
• Prior experience with Lazard India Ltd (3 years) and SBI Capital Markets (5 years).
• Expertise in capital raising, partnerships, acquisitions, and divestitures.

Professional Background

Chandresh Ruparel's career highlights include:

• Advising on significant transactions such as Carlyle's capital infusion into Piramal group's Pharma business.
• Facilitating partnerships like Coca-Cola's induction of Jubilant group as a partner for their India bottling business.
• Overseeing divestitures including Aadhaar Housing's sale to Blackstone.
• Managing cross-border acquisitions, including TVS Motor's purchase of Norton Motorcycles UK.

Committee Restructuring

Coinciding with Ruparel's appointment, Nirlon Limited has announced a comprehensive restructuring of its board committees, effective September 26, 2025:

1. Audit Committee: Ruparel joins as a member, alongside Mr. Rajinder Pal Singh (Chairman), Ms. Anjali Seth, and Mr. Sridhar Srinivasan (until September 28, 2025).

2. Stakeholders Relationship Committee: Ruparel becomes a member, with Ms. Anjali Seth as Chairperson.

3. Nomination and Remuneration Committee: Ruparel is added as a member, with Ms. Anjali Seth continuing as Chairperson.

4. Corporate Social Responsibility Committee: Ruparel joins as a member, with Mr. Sridhar Srinivasan as Chairman until September 28, 2025, after which Ms. Anjali Seth will assume the role of Chairperson.

5. Risk Management Committee: Ruparel becomes a member, with Mr. Rajinder Pal Singh as Chairman.

Corporate Governance Implications

The appointment of Chandresh Ruparel and the subsequent committee reshuffles underscore Nirlon Limited's commitment to robust corporate governance. By bringing in Ruparel's extensive experience in corporate finance and advisory roles, the company aims to strengthen its strategic decision-making capabilities and enhance shareholder value.

Nirlon Limited's proactive approach in restructuring its board committees aligns with best practices in corporate governance, ensuring a balanced mix of expertise across critical areas of oversight.

As the company awaits shareholder approval for Ruparel's appointment, these changes signal Nirlon's focus on maintaining strong leadership and governance structures in an evolving real estate market landscape.