At a Glance
Nila Infrastructures clocked Q1 FY26 revenue of ₹92.6 crore (up 124% YoY) and PAT of ₹6.7 crore (up 34% YoY). Margins improved to ~10%, and the stock bounced 2.7% to ₹11.8. But investors are still squinting: is this a micro-cap with mega ambitions or just another “affordable housing” promise machine?
Introduction
Think of Nila Infra as the underdog contractor building homes for the masses while the giants like DLF and Lodha build skyscrapers for the elite. It plays in government-backed affordable housing and urban EPC, a space where payment delays are as common as political promises. Yet, the company keeps reporting profits, cutting debt, and quietly expanding.
Business Model (WTF Do They Even Do?)
Nila’s bread and butter:
- Affordable Housing EPC: Government schemes under PMAY.
- Real Estate Development: Mid-income and premium flats.
- Commercial Leasing: Owns a prime property in Ahmedabad generating rental income.
Low glamour, steady demand – but with risks tied to government projects and receivable cycles.
Financials Overview
- Revenue (Q1 FY26): ₹92.6 crore (+124% YoY)
- EBITDA: ₹8.8 crore (margin 9.5%)
- PAT: ₹6.7 crore (+34% YoY)
- EPS: ₹0.17
- ROE: 13%
- ROCE: 19%
Commentary: Explosive revenue growth this quarter, but sustainability depends on order flow and execution.
Valuation
- P/E Method:
- EPS ₹0.56, Industry P/E 25 → ₹14
- EV/EBITDA:
- EBITDA ₹27 cr, EV/EBITDA 10x → ₹12–13
- DCF:
- Growth 12%, WACC 11% → ₹12
Fair Value Range: ₹12 – ₹14
CMP ₹11.8 = mildly undervalued.
What’s Cooking – News, Triggers, Drama
- Tax search ongoing, but management says “no material impact”.
- Strong order pipeline in Gujarat housing projects.
- Debt reduction continues; other income still playing hero in earnings.
- Any government housing budget boost = direct benefit.
Balance Sheet
| Particulars | ₹ Cr |
|---|---|
| Total Assets | 870 |
| Liabilities | 745 |
| Net Worth | 164 |
| Borrowings | 26 |
Auditor’s Quip: Debt down, but liabilities still heavier than a contractor’s toolbox.
Cash Flow – Sab Number Game Hai
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | 58 | 65 | 60 |
| Investing | -3 | -28 | -25 |
| Financing | -54 | -39 | -12 |
Takeaway: Operations generate cash, financing is bleeding out slowly – good sign for balance sheet.
Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 13% |
| ROCE | 19% |
| P/E | 22.8 |
| PAT Margin | 7.3% |
| D/E | 0.16 |
Verdict: Decent ratios for a microcap – not a stress case.
P&L Breakdown – Show Me the Money
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 115 | 185 | 247 |
| EBITDA | 3 | 11 | 22 |
| PAT | 2 | 11 | 20 |
Comment: Margins climbed back from the dead – if it stays above 9%, investors might finally notice.
Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| DLF | 7,994 | 4,657 | 42 |
| Lodha | 14,425 | 2,964 | 42 |
| Brigade | 5,074 | 680 | 36 |
| Nila Infra | 298 | 22 | 23 |
Comment: Tiny compared to peers, but growth rate is spicy.
Miscellaneous – Shareholding, Promoters
- Promoter Holding: 61.9% (stable)
- FIIs: negligible, almost vanished.
- Public: 37.6%
- Buzz: Tax queries ongoing; appeals filed.
EduInvesting Verdict™ (500 words)
Nila Infra is the small cap that refuses to die. Over the last three years, it crawled out of losses, posted consistent profits, and expanded its EPC order book. The company thrives on affordable housing demand and has a lean balance sheet, but faces risks from government payment cycles and project delays.
Strengths:
- Debt-light, strong ROCE.
- Government housing pipeline.
- High revenue growth momentum.
Weaknesses:
- Low margins, dependency on other income.
- Tax proceedings may spook investors.
- No dividend, despite profits.
Opportunities:
- Budget allocations for housing.
- Expansion into premium residential and commercial leasing.
Threats:
- Policy changes, delayed subsidies.
- Rising input costs.
Final Word: At ₹11.8, Nila Infra is like that contractor uncle who shows up on time, finishes the job, but charges just enough to survive. A hold for value-watchers, a punt for risk-takers.
Written by EduInvesting Team | 30 July 2025
SEO Tags: Nila Infrastructures, Affordable Housing, Urban EPC, Small Cap Real Estate
