Nila Spaces Q2 Profit Falls 31% on Quarter, Borrowings and Inventories Rise

What the results show

Nila Spaces Limited, an Ahmedabad-based developer listed on BSE and NSE, released unaudited consolidated results for the quarter ended 30 September 2026. Net profit was Rs 5.89 crore, down from Rs 8.58 crore in the June 2026 quarter. Profit before tax fell to Rs 8.15 crore from Rs 11.50 crore. Compared with the September 2025 quarter, net profit rose about 10%.

The company attributed the sequential decline to lower revenue from operations and higher finance costs. Finance costs rose to Rs 6.61 crore from Rs 3.91 crore in the prior quarter. Tax expense was Rs 2.26 crore, compared with about Rs 2.91 crore in the June quarter. Depreciation and amortisation was Rs 1.50 crore, against Rs 1.47 crore.

Revenue from operations was reported at Rs 34.18 crore for the September quarter. Figures for quarterly revenue vary between reports, so the filing itself should be checked for the exact number.

For the six months to 30 September 2026, revenue from operations was Rs 84.84 crore and net profit was Rs 14.47 crore. The auditor issued an unmodified limited-review conclusion on the consolidated results. The accompanying notes did not give a management explanation for the sequential changes.

Borrowings and inventory

Consolidated borrowings stood at Rs 348.40 crore on 30 September 2026. Borrowings rose by Rs 270.28 crore over six months, from Rs 78.12 crore. Non-current borrowings were Rs 321.69 crore, up from Rs 67.14 crore at 31 March 2026.

Inventories reached Rs 532.13 crore, more than doubling in six months. Net cash used in operating activities was Rs 255.67 crore for the six months to 30 September 2026.

Other equity rose to Rs 145.73 crore at 30 September 2026, from Rs 131.38 crore at the March 2026 year-end. The consolidated group comprises one subsidiary, Nila Urban Living Private Limited, and one associate, Megacity Cinemall Private Limited.

Share price and ratings

As of 23 October 2026, the stock fell to a 52-week low of Rs 9.96, against a 52-week high of Rs 19.48. Its one-year total return was about -46.5%, compared with -13.9% for the Sensex and -10.3% for the BSE500 over the same period. The stock closed lower for a fifth straight session and was below its 5-, 20-, 50-, 100- and 200-day moving averages. On the same day the Sensex closed at 72,821.17, down 0.58%, and the realty sector fell 2.6%.

Market capitalisation was Rs 435.25 crore as of 18 October 2026. MarketsMOJO revised its rating on the stock from Hold to Sell on 13 May 2026, with its Mojo Score falling from 58 to 46. The same research note said the company's ratios appear strong, with half-year ROCE of 26.01% and a debt-to-equity ratio of 0.09 times.

Year-on-year comparison

The September 2025 quarter was the earlier base for the year-on-year comparison. Business Standard reported that consolidated net profit rose 47.57% to Rs 5.46 crore in that quarter, and standalone net profit rose 68.64% to Rs 6.56 crore. The company is therefore reporting year-on-year growth in profit while its sequential profit and cash position have weakened.

Flagship project context

The results cover the listed company as a whole. The company's flagship residential project, PRANA, is located at Plot 26-C in GIFT City, Gandhinagar. The Gujarat RERA approved the project on 10 July 2025, and its RERA registration is valid until 31 December 2030. Planned unit types are studio, 1 BHK and 2 BHK. The project is being developed through subsidiary Nila Urban Living Private Limited.

The company also has a second GIFT City project, VIDA, which is planned in studio, 1 BHK, 2 BHK and 3 BHK configurations with 496 units and target possession in June 2028.

Governance and shareholder approvals

Shareholders approved the appointment of Deep S. Vadodaria as chairman and managing director and Prashant H. Sarkhedi as whole-time director through a postal ballot that closed on 7 August 2026. The company has also proposed raising its borrowing and investment powers to Rs 750 crore, which requires shareholder approval and is not yet in effect.

What it means for buyers, investors and the market

For investors: Profit is higher than a year ago but lower than in the June quarter, and borrowings have grown much faster than profit. The stock trades close to its 52-week low, and the share price has moved well below the level implied by the reported profit growth.

For buyers: The results describe the company's finances, not a specific project's progress. Buyers of PRANA or VIDA should confirm RERA registration details, unit sizes, pricing and possession dates directly with the developer and the relevant RERA authority before committing.

For lenders and the market: Rising borrowings and inventories raise the question of how quickly the company can convert inventory into revenue and cash. Operating cash flow was negative for the first half.

What comes next

• The next filing is expected to show whether revenue recovers and how inventories and non-current borrowings develop.
• The proposed increase in borrowing and investment powers to Rs 750 crore requires shareholder approval, and no meeting date has been reported.
• PRANA's RERA registration runs until 31 December 2030.