NIS Management Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, following board approval on February 12, 2026. The company, listed on the SME platform of BSE Limited, operates primarily in the facility management and manpower services sector.

Standalone Financial Performance

The company's standalone operations showed mixed performance during the third quarter of FY26. Revenue from operations declined to ₹9,716.54 lakhs compared to ₹10,718.77 lakhs in the previous quarter, though it remained higher than the ₹9,387.30 lakhs recorded in Q3FY25.

For the nine-month period ended December 31, 2025, standalone revenue from operations reached ₹30,116.85 lakhs, representing growth from ₹28,121.84 lakhs in the corresponding period of the previous year. Net profit for the nine months stood at ₹1,147.11 lakhs compared to ₹1,028.41 lakhs in the previous year.

Consolidated Financial Results

On a consolidated basis, NIS Management's performance included contributions from its five subsidiaries. The consolidated revenue from operations for Q3FY26 was ₹10,279.81 lakhs, down from ₹11,462.90 lakhs in the previous quarter but higher than ₹10,014.33 lakhs in Q3FY25.

Expense Analysis and Cost Structure

The company's major expense component remains cost to contract labour, which accounted for ₹8,613.07 lakhs in Q3FY26 standalone operations. Employee benefit expenses stood at ₹277.44 lakhs, while finance costs were ₹155.93 lakhs for the quarter. On a consolidated basis, employee benefits expense was significantly higher at ₹9,223.13 lakhs, reflecting the inclusion of subsidiary operations.

IPO Proceeds Utilization

NIS Management completed its Initial Public Offer in September 2025, raising ₹5,174.82 lakhs through the issuance of 46,62,000 equity shares at ₹111 per share. As of December 31, 2025, the company has utilized ₹1,468.45 lakhs of the IPO proceeds, with ₹3,706.37 lakhs remaining unutilized.

Subsidiary Structure and Operations

The consolidated results include five subsidiaries with varying ownership percentages. NIS Facility Management Services Private Limited is wholly owned, while NIS Ace Management Private Limited and Keertika Academy Private Limited are 99.86% owned. Keertika Education & Associates LLP has 99.97% ownership, and Achilles Resolute Private Limited is 51.00% owned.

Regulatory Compliance and Future Considerations

The company highlighted the potential impact of new Labour Codes notified by the Ministry of Labour & Employment on November 21, 2025. NIS Management is currently evaluating the implications of these codes on employee benefit obligations, including gratuity and leave encashment provisions. The company has not made any adjustments to employee benefit provisions as of December 31, 2025, pending completion of legal and actuarial assessments.

NIS Management Limited has received a credit rating upgrade from ICRA Limited, moving from BBB+/Stable to BBB+/Positive across its bank facilities. The company informed the Bombay Stock Exchange about this development on February 10, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Rating Upgrade Details

ICRA Limited communicated the rating upgrade to NIS Management Limited on February 9, 2026. The upgrade reflects an improved credit outlook for the company across multiple banking instruments.

Total Facility Coverage

The rating upgrade covers bank facilities totaling Rs. 80.37 crores across different categories. The fund-based cash credit facility represents the largest component at Rs. 71 crores, followed by the term loan facility of Rs. 5.40 crores and unallocated limits of Rs. 3.97 crores.

Regulatory Compliance

The company has fulfilled its disclosure obligations under SEBI regulations by promptly informing the stock exchange about the rating revision. The information has also been made available on the company's investor website at nis.co.in/Investors for stakeholder access.

Credit Rating Significance

The upgrade from Stable to Positive outlook indicates ICRA's improved assessment of the company's creditworthiness and financial stability. This change in rating outlook typically reflects better business fundamentals and enhanced ability to service debt obligations.