NXST - Nexus Select

📊 NSE: NXST 🏢 Construction 📅 Last Updated: 12/14/2025 10:31

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations reached INR 6,309 M in Q2 FY26. Retail Net Operating Income (NOI) grew 14% YoY (INR 4,675 M). Hospitality revenue grew 33% YoY (INR 410 M) with 9% LFL growth. Office revenue grew 12% YoY (INR 328 M).

Geographic Revenue Split

The portfolio is diversified across 14 cities. Key contributors include Delhi (Nexus Select Citywalk with INR 4,714 M tenant sales) and Chandigarh (Nexus Elante with INR 4,239 M tenant sales).

Profitability Margins

NOI margin is approximately 74% of revenue. EBITDA margin stands at 71% (INR 4,500 M EBITDA on INR 6,348 M SPV-level revenue). Retail NOI growth was 14% YoY, while LFL NOI growth was 8% YoY.

EBITDA Margin

Consolidated EBITDA was INR 4,475 M in Q2 FY26. Hospitality EBITDA grew 11% YoY to INR 136 M. Office NOI grew 18% YoY to INR 247 M.

Capital Expenditure

Committed INR 253.7 Cr for the acquisition and expansion of 60,000 sq. ft. at Nexus Elante. The trust maintains a robust acquisition pipeline of 10 assets to drive future inorganic growth.

Credit Rating & Borrowing

Maintains an ICRA AAA (Stable) rating. Gross debt stood at INR 5,848 Cr as of September 2025 with a comfortable LTV of 20%. Plans to raise INR 700 Cr via NCDs for refinancing existing debt.

⚙️ Operational Drivers

Raw Materials

Not applicable for a REIT; core 'inventory' is 9.9 M sf of leasable retail area and 1.3 M sf of office space.

Import Sources

Not applicable; assets are located across 14 major Indian urban consumption centers including Delhi, Mumbai, Bangalore, and Chandigarh.

Key Suppliers

Not applicable; key revenue-generating partners (tenants) include international brands such as Uniqlo, Zara, Onitsuka Tiger, and Armani Exchange.

Capacity Expansion

Current retail leasable area is 9.9 M sf. Planned expansion includes a 60,000 sq. ft. addition at Nexus Elante and a pipeline of 10 potential retail assets (3 currently under due diligence).

Raw Material Costs

Direct operating expenses were INR 1,541 M in Q2 FY26, representing approximately 24% of revenue. Procurement focuses on property management and maintenance services.

Manufacturing Efficiency

Maintained 97% leased occupancy for 10 consecutive quarters. Trading density reached INR 1,742 psf pm in Q2 FY26.

Logistics & Distribution

Not applicable; revenue is derived from rentals and property management.

📈 Strategic Growth

Expected Growth Rate

14%

Growth Strategy

Growth is driven by a 20% MTM re-leasing spread potential on 50% of rentals expiring by FY29, turnaround of under-leased assets like Nexus Vega City (20% consumption growth post-acquisition), and a 10-asset inorganic pipeline.

Products & Services

Leasable retail space, commercial office suites, and hospitality services (450 hotel keys).

Brand Portfolio

Nexus Select Citywalk, Nexus Elante, Nexus Seawoods, Nexus Ahmedabad One, Nexus Hyderabad, Nexus Vijaya, Nexus Shantiniketan, Nexus Vega City, Nexus MBD Neopolis.

New Products/Services

Expansion of Nexus Elante to include high-value categories like Luxury Fashion and Premium F&B, expected to unlock incremental NOI.

Market Expansion

Targeting consolidation in high-potential retail micro-markets where the trust already has customer insights.

Market Share & Ranking

India's first and largest listed retail REIT with 19 malls across 14 cities.

Strategic Alliances

Preferred partner for international brands entering India; added 10,000+ unitholders in H1 FY26.

🌍 External Factors

Industry Trends

Retail demand is 2x supply (10-12 M sf demand vs 5-6 M sf supply per annum), driving a projected 120bps decline in vacancy to 6.2% by 2028.

Competitive Landscape

Limited comparable large-format Grade-A mall supply in key cities like Chandigarh and Delhi strengthens market leadership.

Competitive Moat

Sustainable moat through 'fortress' assets in supply-constrained micro-markets and a 100% NDCF payout track record for 9 consecutive quarters.

Macro Economic Sensitivity

Highly sensitive to GDP growth (forecasted at 6.8% for FY26) and GST rate reductions which improve discretionary spending capacity.

Consumer Behavior

Shift toward premiumization and experience-based retail (F&B and Entertainment) driving double-digit consumption growth.

Geopolitical Risks

Exposed to global economic shocks that could impact international brand expansion and consumer sentiment.

⚖️ Regulatory & Governance

Industry Regulations

SEBI recently classified REITs as equity instruments, enhancing liquidity. REITs are subject to a 49% LTV limit and must invest 80% in rent-generating assets.

Environmental Compliance

Participates in GRESB; sustainability initiatives are a core part of the trust's reporting framework.

Taxation Policy Impact

72% of NDCF is tax-free at the time of distribution to unitholders.

⚠️ Risk Analysis

Key Uncertainties

Refinancing risk of NCDs with bullet repayments; vulnerability to exogenous shocks impacting retail footfalls; potential for consumption growth to settle after initial post-acquisition spikes.