Profit Nearly Doubles: Ahmedabad Real Estate Stock Nila Spaces Announces Strong Results

Synopsis:-Appointing Deep Vadodaria as Chairman & Managing Director and Prashant Sarkhedi as Whole Time Director; the company’s 36 percent revenue growth and expanding operating margins signal a construction cycle in full swing, though rising finance costs and a sharp operating cash outflow warrant close attention.

A residential and commercial real estate developer from Ahmedabad came into focus after its board approved audited financial results for FY2026 at a meeting on May 7, 2026, revealing a near-doubling of consolidated net profit and confirming a fresh leadership structure at the top. The results were taken up alongside a slate of governance decisions that included two director appointments and the engagement of new internal and cost auditors.

With a market capitalisation of Rs. 593.59 crore, the shares of Nila Spaces Limited were trading at Rs. 15.07 per share, up 4.94 percent from its previous close of Rs.14.36. The stock is trading at a P/E of 23.52.

On a consolidated basis, Nila Spaces reported full-year revenue from operations of Rs. 1,979.61 crore for FY2026, down 37.11  percent from Rs. 1,443.82 crore in FY25. Net profit of the company came in at Rs. 287.58 crore, against Rs. 146.75 crore the previous year, a 95.97 percent increase.

The Q4 FY26 quarter added Rs. 524.58 crore in consolidated revenue and Rs. 93.99 crore in net profit. Operating margins for the December 2025 quarter, as visible in the quarterly trend, reached 38.25 percent, the highest in recent periods before the Q4 figures are finalized as balancing numbers between the audited full year and published YTD data.

On a standalone basis, the picture is equally compelling. Full-year standalone revenue touched Rs. 175.35 crore, with standalone PAT rising 75 percent to Rs. 26.61 crore from Rs. 15.20 crore the prior year. The statutory auditor, Dhirubhai Shah & Co. LLP, has issued an unmodified opinion on both standalone and consolidated results.

One figure that demands scrutiny is operating cash flow. On a standalone basis, the company recorded a net cash outflow from operations of Rs. 27.11 crore for FY26 compared to a substantial inflow of Rs. 52.90 crore in FY25. The swing was primarily driven by a large build-up in inventories (project work-in-progress and building material) and a drawdown in other current liabilities, both of which are characteristic of a real estate developer in the middle of an active construction cycle.

Revenue in such models is recognized on completion or handover, meaning the cash cycle can remain negative for extended periods before a project is delivered. The company’s consolidated ROCE of 24.2 percent and ongoing profit trajectory suggest the underlying project economics are sound, but the cash position with cash and equivalents at Rs. 7.03 crore at year end against borrowings of Rs. 78.07 crore is tight enough that project execution timelines matter.

Finance costs are also rising. On a standalone basis, interest and finance charges were Rs. 24.12 crore for FY26, up from Rs. 15.58 crore in FY25, a 55 percent increase that is outpacing revenue growth. As the company draws down more construction finance to fund ongoing projects, the interest burden will be a key variable in how much of the operating profit actually reaches shareholders.

Leadership Appointments

The board formalized two senior leadership appointments at the same meeting. Mr. Deep S. Vadodaria has been appointed Chairman and Managing Director for a period of three years with effect from May 7, 2026. Vadodaria, who oversees the company’s overall business strategy and project execution, is described as an entrepreneurial operator with strong operational depth. He is affiliated with the Ahmedabad-based Sambhaav Group, the parent organization of Nila Spaces.

Mr. Prashant H. Sarkhedi  joined as Whole Time Director for three years from the same date. Sarkhedi brings over 23 years of experience across finance, fund raising, and general management, and holds an MBA (Finance) and CFI qualification from ICFAI. The dual appointment effectively places both strategic and financial oversight within defined executive roles, which can help governance clarity as the company scales its project pipeline.

Business Overview

Incorporated in 2000, Nila Spaces Limited is an Ahmedabad-based real estate developer focused on residential and commercial projects, operating under the Sambhaav Group umbrella. The company’s consolidated operations include subsidiary Nila Urban Living Private Limited and associate Megacity Cinemat Private Limited.

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