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Nila Infrastructures Ltd

| Quarterly Financial Results Q3 FY 2025-26

NEUTRAL SENTIMENT

Report Source

⬤27th Jan 26

Summary : Nila Infrastructures shows strong nine-month growth, but faces uncertainty from ongoing tax assessments and new labour code implementation.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Standalone Cost of materials consumed and project expenses for nine months ended Dec 2025: 17,275.11 lakhs.
  2. Consolidated Cost of materials consumed and project expenses for nine months ended Dec 2025: 17,301.70 lakhs.
  3. Standalone Employee benefits expenses for nine months ended Dec 2025: 437.67 lakhs.
  4. Consolidated Employee benefits expenses for nine months ended Dec 2025: 437.67 lakhs.
  5. Standalone Finance costs for nine months ended Dec 2025: 282.39 lakhs.
  6. Consolidated Finance costs for nine months ended Dec 2025: 285.28 lakhs.
  7. Standalone Revenue from operations for nine months ended Dec 2025: 24,166.75 lakhs.
  8. Consolidated Revenue from operations for nine months ended Dec 2025: 24,166.75 lakhs.
  9. Standalone Other income for nine months ended Dec 2025: 1,152.24 lakhs.
  10. Consolidated Other income for nine months ended Dec 2025: 1,099.08 lakhs.
  11. Potential impact of Income-Tax assessment orders is currently unascertainable.
  12. Paid-up equity share capital (Standalone & Consolidated): 3,938.89 lakhs.
  13. Standalone Other equity (as of March 31, 2025): 14,164.36 lakhs.
  14. Consolidated Other equity (as of March 31, 2025): 12,482.69 lakhs.
  15. Consolidated results include a wholly owned subsidiary, two joint ventures, and one associate.
  16. Standalone and Consolidated results are presented.
  17. Consolidated profit after tax is lower than standalone due to share in loss of joint ventures and associates.
  18. Consolidated results include a wholly owned subsidiary, two joint ventures, and one associate.

Corporate Overview

  1. Registered office in Ahmedabad, India. No specific geographic breakdown provided.
  2. Uncertainty regarding the final outcome and potential financial impact of Income-Tax search operations and pending assessment orders.
  3. Evaluating and monitoring the impact of new unified labour codes on employee benefit obligations.
  4. Reliance on construction and infrastructure projects.
  5. Single operating segment: construction and development of infrastructure projects.
  6. Formal and factual in reporting financial results and regulatory compliance.
  7. Construction and development of infrastructure projects.

Risk Factors

  1. Uncertain financial impact of tax assessments.
  2. Potential adverse outcomes from tax appeals.
  3. Increased costs from new labour codes.
  4. Losses from joint ventures and associates.

Key Drivers

  1. Strong revenue growth year-on-year.
  2. Increased nine-month profit before tax.
  3. Successful adaptation to new labour codes.
  4. Positive resolution of income tax issues.

Auditor’s Report

  1. Unmodified review report on standalone and consolidated financial results.
  2. Highlighting the Income-Tax search operation and pending assessment orders, with the final outcome and potential impact being presently unascertainable.

Board Commentary

  1. Uncertainty regarding the final outcome and potential impact of Income-Tax assessment orders.
  2. Income-Tax Department search operation and pending assessment orders for multiple years.
  3. Implementation of new unified labour codes by the Government of India.

Corporate Governance

  1. Financial results reviewed by Audit Committee and approved by Board of Directors.
  2. Audit Committee is mentioned as reviewing financial results.
  3. Income-Tax search operation on promoters and key employees, with uncertain final outcome.

Management Discussion & Analysis

Future Strategy

  1. Responding to Income-Tax notices and filing appeals for assessment years 2014-15 to 2022-23.
  2. Monitoring the finalisation of Central and State rules and clarifications for new labour codes.

Macroeconomic Outlook

  1. Government of India's consolidation of 29 labour legislations into four new labour codes, effective November 21, 2025.

Operational Focus Areas

  1. Addressing ongoing Income-Tax assessment issues and appeals.
  2. Evaluating and recognizing financial impact of new labour codes on employee benefits.

Performance Drivers

  1. Revenue from operations, cost of materials, employee benefits, finance costs.

Risk Control Measures

  1. Company has responded to Income-Tax notices and filed appeals.
  2. Management believes tax developments are unlikely to significantly impact financial position.
  3. Company is monitoring finalisation of new labour code rules and clarifications.

Critical Risks

  1. Uncertainty of final outcome and potential financial impact from Income-Tax search operations and pending assessment orders.
  2. Potential changes in estimates and financial impact due to new labour codes.