What drove the 59% jump in profit after tax?

The primary driver was a one-time deferred tax benefit of ₹69.5 crore resulting from the company's shift to the new tax regime.

How much is the company paying out in dividends?

Nirlon proposed a final dividend of ₹15 per share, which brings the total dividend for FY26 to ₹30 per share.

What is the status of the Nirlon House redevelopment?

The project remains stalled. Management cited multi-owner complexity as the primary reason for the lack of progress.

How is the company managing its liquidity?

Management intends to maintain a cash reserve of ₹300 crore to ensure financial flexibility.

Did margins change during the year?

Yes, the company experienced EBITDA margin compression of 97 bps during the period.

Earnings · Real Estate · Mid cap

Nirlon hits 99.7% occupancy as tax shift boosts annual profit by 59%

Rental growth and a one-time tax benefit drove FY26 profit to ₹346 crore, though redevelopment plans for Nirlon House remain stalled.

— 1 earlier story on Nirlon Ltd. →

NIRLON 26 May 2026 · 12:53 PM IST Verify on BSE · NSE

Mkt cap₹5,633 cr

P/E16.28×

ROE61.13%

Debt / eq.3.21

Div yld4.16%

99.7% Occupancy rate reported for the fiscal year.

What's new

Annual income rose 6% to ₹683 crore on the back of rental escalations.
A shift to the new tax regime provided a one-time benefit of ₹69.5 crore.
Final dividend of ₹15 per share brings the total annual payout to ₹30 per share.

Why this matters

The company is generating steady cash from its existing assets with near-full occupancy. The inability to resolve multi-owner complexity at Nirlon House remains a persistent drag on long-term growth. The next test is whether management can resolve this deadlock to deploy its ₹300 crore cash reserve.

What we're watching

Any resolution to the multi-owner deadlock at Nirlon House.
Sustainability of the current rental yield as leases come up for renewal.
Management's use of the ₹300 crore cash reserve.

The full read

Nirlon Ltd. finished FY26 with 99.7% occupancy, reflecting strong demand for its commercial space. Annual income climbed 6% to ₹683 crore, supported by rental escalations and new leasing activity at rates exceeding ₹185 per sq ft. While reported profit after tax surged 59% to ₹346 crore, this was largely inflated by a one-time ₹69.5 crore deferred tax benefit from a change in the tax regime. Operational performance showed some friction, with EBITDA margins contracting by 97 bps. Shareholders will receive a total dividend of ₹30 per share for the year. Despite the healthy cash flow, the company's growth remains constrained by the stalled redevelopment of Nirlon House. Management is keeping a ₹300 crore cash reserve on hand. Until the ownership complexity at Nirlon House is resolved, the company's ability to deploy capital into new projects remains limited.

Questions answered

What drove the 59% jump in profit after tax?: The primary driver was a one-time deferred tax benefit of ₹69.5 crore resulting from the company's shift to the new tax regime.
How much is the company paying out in dividends?: Nirlon proposed a final dividend of ₹15 per share, which brings the total dividend for FY26 to ₹30 per share.
What is the status of the Nirlon House redevelopment?: The project remains stalled. Management cited multi-owner complexity as the primary reason for the lack of progress.
How is the company managing its liquidity?: Management intends to maintain a cash reserve of ₹300 crore to ensure financial flexibility.
Did margins change during the year?: Yes, the company experienced EBITDA margin compression of 97 bps during the period.

Mentioned: Nirlon Ltd. · Nirlon House

Primary source BSE · NSE

An independent reading of the company's own disclosure — the primary filing above is the final word.

Story so far

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26 May 2026 · 12:53 PM IST Nirlon hits 99.7% occupancy as tax shift boosts annual profit by 59%
today Nirlon profit jumps 58% on tax reversal as dividend hits ₹30