NILAINFRA - Nila Infrastruct

📊 NSE: NILAINFRA 🏢 Construction 📅 Last Updated: 12/14/2025 10:32

💰 Financial Performance

Revenue Growth by Segment

Affordable Housing contributes 94% of revenue, Urban Infrastructure 5%, and others 1%. Total Operating Income grew 32.8% YoY to INR 246.88 Cr in FY2025 from INR 185.89 Cr in FY2024.

Geographic Revenue Split

Majority of projects are concentrated in the vicinity of Ahmedabad, Gujarat, with some presence in Rajasthan. This results in significant geographical concentration risk.

Profitability Margins

PAT margin improved significantly from 1.38% in FY2023 to 5.69% in FY2024 and reached 8.20% in FY2025. This sharp rise highlights consistent year-on-year profitability improvement.

EBITDA Margin

EBITDA margin improved from 1.81% in FY2023 to 5.86% in FY2024 and further to 7.88% in FY2025, driven by successful EPC project completions.

Credit Rating & Borrowing

Assigned IVR BBB/Stable for long-term and IVR A3+ for short-term bank facilities. Interest coverage ratio improved to 5.03x in FY2025 from 1.39x in FY2024 due to better profitability and debt reduction.

⚙️ Operational Drivers

Raw Materials

Steel and cement are the primary raw materials, though specific percentage of total cost for each is not disclosed.

Capacity Expansion

The company holds a land bank of approximately 300 acres at Becharaji, Gujarat, intended for industrial, logistics, and residential infrastructure development.

Raw Material Costs

Susceptible to volatility in input prices; however, price escalation clauses are present in contracts to mitigate this risk. Operating expenses were INR 760 Mn in FY2022 (Consolidated).

Manufacturing Efficiency

Operating cycle remained elongated at 126 days in FY2025 compared to 123 days in FY2024. Current ratio was 1.08x as of March 31, 2025.

📈 Strategic Growth

Expected Growth Rate

32%

Growth Strategy

Growth will be achieved by shifting focus to high-potential projects like Slum and Government Housing Redevelopment (PPP), utilizing a healthy order book of ~INR 600 Cr (1-3 year execution timeline) and developing the 300-acre land bank in Becharaji, Gujarat.

Products & Services

Affordable Housing projects, Slum Rehabilitation and Redevelopment buildings, and Industrial/Logistics Parks.

Brand Portfolio

Nila Infrastructures Limited, Sambhaav Group (flagship unit).

New Products/Services

Increased focus on Slum Rehabilitation and PPP projects, which have improved cash flows and financial health in recent years.

Market Expansion

Expansion into Rajasthan and development of the Becharaji industrial hub in Gujarat.

Strategic Alliances

The company operates several joint ventures and associates; share in profit/loss from these was a loss of INR 32 Mn in FY2022 (Consolidated).

🌍 External Factors

Industry Trends

The industry is seeing a shift toward PPP models and government-led affordable housing. Nila is positioning itself as a specialist in slum redevelopment to capture this growth.

Competitive Landscape

Highly fragmented with many organized and unorganized players competing for government tenders.

Competitive Moat

30-year track record and proven execution capability (e.g., record 18-month building completion) provide a sustainable competitive advantage in the Gujarat market.

Macro Economic Sensitivity

Highly sensitive to real estate cyclicality and government infrastructure spending levels.

Consumer Behavior

Increasing demand for affordable housing driven by urbanization and government subsidies.

⚖️ Regulatory & Governance

Industry Regulations

Subject to RERA, municipal building codes, and government tender regulations. Pollution norms for construction sites also apply.

Taxation Policy Impact

Effective tax rate was approximately 30% in FY2022 (INR 11 Mn tax on INR 36 Mn PBT).

Legal Contingencies

Not disclosed with specific case values in available documents.

⚠️ Risk Analysis

Key Uncertainties

A significant risk is the substantial exposure to group companies, which amounted to INR 190.59 Cr in FY2025. This exposure is adjusted against the book tangible net worth of INR 181.01 Cr, resulting in a negative adjusted net worth of -INR 9.59 Cr, which significantly weakens the capital structure and total indebtedness (TOL/TNW at -70.89x).