Nisus Finance Services Co Ltd (BSE: 544296) Q3 2026 Earnings Call dated Feb. 12, 2026
Corporate Participants:
Amit Anil Goenka — Chairman & Managing Director
Mahesh Mudda — Managing Director and Chief Executive Officer of NCCCL
Analysts:
Unidentified Participant
Pavan Domakonda — Analyst
Nishita Shanklesha — Analyst
Shruti Malpani — Analyst
Presentation:
operator
Good afternoon everyone and welcome to the Q3 and 9M FY26 earnings call of Nisys Financial Services Limited. We have on call Dr. Amit Goenka, Chairman and Managing Director. We have Mrs. Mridu Goenka, Executive Director. We have Mr. Manish Meena, Director of Strategy and Corporate affairs. We have Mr. Mahesh Mudar, Vice Chairman and Managing Director of NCCL. We have Mr. Sunil Maheshwari, Chief Financial Officer. Mr. Amit Junjanwala, Chief Investment Officer, UAE Fund for NISIS. Mr. Abdul Sarwate, Chief Investment Officer, India Fund. And we have Ms. Anshul Singh who’s the Chief Business Development Officer. We must remind you that the discussion on today’s call may include certain forward looking statements and must be therefore viewed in conjunction with the risks that the company faces.
May I now request the management to take us through the financials and the business outlook subsequent to which we will open the floor for Q and A. Thank you. And over to you sir.
Amit Anil Goenka — Chairman & Managing Director
Thank you very much Rashi for this introduction and very warm greetings to all our stakeholders. Gratitude for joining our earnings call this afternoon. My name is Amit Goenka. I’m the Chairman and Managing Director of Nicest Finance Services School Limited Your company which is also known as nifco. I’m joined by my colleagues within the board, within the management as well as our management from nccl, our construction arm. It is a pleasure to present the quarter three and the nine month for financial year 26 performance to you. I believe you may have gone through the presentation and the numbers already.
It is a proud moment for us to be here together as we present a remarkable result once again which is a bedrock of the trajectory that we have been charting for ourselves over the last 18 plus months. There is strategic intent and laser sharp execution across all our verticals and geographies. The nine month period has been exceptional and but however also in line with our expectations and projections. Reaching a revenue of on a Nicest finance group level of 114 crores. Reconsolidation with NCCCL which is comfortably outperforming our entire previous fiscal year of FY25. Order 3 on itself reflects a continued operating momentum across our business lines.
Excluding the NCCL consolidation we have reported a quarterly revenue of 38.74 rupees, an EBITDA of 28.6 crores and a path of 20.19 crores. Translating respectively into EBITDA margin of 73.9% and PAT margin of 53% which is larger than our previous margins in the preceding quarters. While the nine month revenues to that 114 crore rupees, the EBITDA stood at 84.23 crores and part of 56.7 crores with overall margins of 75.6% at the EBITDA level or 51% at the PAT level. This performance has been been demonstrating our strength both on the advisory front as well as on the asset management front which is supported by disciplined and focused deployment of capital, timely monetization exits and cost efficiency across our capital across our cost structures.
As a ratio, we are maintaining roughly about 49% of revenue from advisory and about 51% from asset management. A significant jump from our earlier ratios wherein asset management today has overtaken advisory and stands at about 51%. Somebody stopped.
operator
Sorry sir, can you mute others?
Amit Anil Goenka — Chairman & Managing Director
Yeah, Some background noise please. Okay, thank you. Including NCCL on the date of consolidation, the combined platform revenue for the nine month period of FY26 stands at about 365.27 crores with EBITDA margins of 28.4% and PAT margin of roughly 16% which is a strong integration of high skill execution business into our platform. Looking ahead, we wish to continue our momentum and the outlooks outlook looks very strong and very positive. We are well positioned to meet our AUM targets of between 3,000 to 4,000 crores by the year end. As we continue to institutionalize the India urban infrastructure story as well as the UAE growth story.
We have been actively engaged into smart redevelopment of Mumbai tech enabled growth in the GCC as well as on a compounding alpha across our investments as well as on our balance sheet. While doing cost control and preserving our capital, it is important to understand our AUM or a nav. We do AUM valuation or NAV valuation on a six monthly basis and hence it is practical for us to report a NAV or AUM only at the end of September and the end of March. These are the two reporting periods in which the portfolio is valued basis, the current assets or the current investments in the portfolio at that period of time.
We will continue to keep our investors informed as and when the NAV gets updated or the AUM gets updated basis. These valuations as is required statutory both by SEBI in India, by IFSC in KIP City as well as by DIFC in the uae. All three regulators require six monthly review or revaluation which is when the numbers actually get published. Can we fix the camera? People are having an issue because the camera is zooming back and forth. Is it possible for us to fix the camera? We’ll have to ask him to fix it on the Polycom.
Can you fix the camera so that it doesn’t keep on zooming in and out. Foreign? From a strategic standpoint, Q3 remains a very important quarter for us as we continue to expand our footprint in the uae. You may have read that we acquired one of our largest assets in the UAE last quarter which was almost 536 crores of investments in one of the key micro markets of Dubai. It is approximately about $60 million in a large residential and commercial development in Dubai Motor City. We’ve seen a significant uptick in that micro market and we believe that we will make a very significant upside from this investment over the next 18 to 24 months.
This investment has happened through our DIFC fund, through our Give City feeder and we’ve had significant partnerships within this investment. Two of the institutional investors, one being from the gc. Can you please ensure everybody’s on mute, please?
operator
Yes, yes, yes sir.
Amit Anil Goenka — Chairman & Managing Director
Okay. On the execution front, NCCL continues to demonstrate strong traction both in terms of mandate wins and balance sheet discipline. During the last quarter of Q3, NCCL secured a strong mandate from for a development in Hyderabad which is valued at approximately 40 crores of contract value. Getting another 3.7 lakh square feet to the execution order book, strengthening near term visibility in revenues and profits. Additionally, the company has disclosed that it has won a prestigious mandate from Lodha for about 112 crore. 112.5 crores of construction value in Alibaba. Making its third project with the Loda Group.
Reinforcing the repeatability of client base and its validation of being a strong execution partner for all of its clients which are all AAA developer development companies. The active order book remains well over 2100 crores with a clear pathway to achieve a 5000 crore order book in the near future. With the mix gradually moving from from residential to non residential and other institutional projects, enhancing diversification both in asset class as well as in geography, we continue to invest and exit simultaneously. We’ve exited one of our investments in the NCR recently with a strong 1.5x MOIC which is again a reflection of our strong investment discipline, underwriting and timely exit.
This was exited well before the term of the investment. Our own capital invested across platforms in in multiple funds and investments has more than doubled standing at about 120 crore rupees reinforcing our alignment and conviction towards our own investments. The industry tailwinds remain very supportive. The India private credit market remains very buoyant, filling the financing gap between banking, non banking and other private capital space largely driven by significant regulatory constraints on banks and non banks. India’s real estate market has witnessed a structural shift in preference towards private credit as traditional banking facilities remain constrained by regulatory and capital limitations.
Semi regulated category 2 AIF which is what we are, scaled rapidly over the past decade delivering an attractive 12 to 21% IRR across residential and mixed use projects, therefore enabling the entire growth of aifs to over 14 lakh crore rupees today. We remain a strong beneficiary of this extraordinary growth in capital formation in AIFs. Our position as one of the leading private credit providers has been further cemented by our investments and as well as our exits. It has been backed by several institutional and marquee investors joining various funds as well as in our individual deals.
Real estate capital remains in general remains strong for the sector both in public as well as in private markets which is being supported by rapid urbanization on the back of strong location of capital by the central budget and under the 2040 master plan. There’s been a global investor interest to participate in this growth story of India in the urbanization scheme including into income generating assets both commercial and non commercial. We are seeing a clear shift away from distance driven capital to first call capital which is towards primary markets as well as towards new projects. The Union budget of 2026 has laid a very clear roadmap for us in India with a very significant allocation of budget towards urban infrastructure both in terms of road, rail power and other allied assets which is further increasing the pace of urbanization and therefore an opportunity set to put our capital into multiple geographic locations as a serbianization accelerates further the monetization of CPSE real estate assets.
So dedicated reach structures is a fantastic welcome change which allows a significant pool of assets held by government institutions to come to market drawing significant domestic and global capital interest and also accelerating our endeavors to bring more readable assets onto our platform. It deepens the market and brings additional capital interest as a whole. It is also going to try and unlock several surplus lands held by governmental bodies as well as other assets which can be monetized in hands of capable managers like ourselves. This entire move is deepening India’s institutional yield asset market, bringing additional assets to the market and enhancing liquidity, capital formation and exit avenues for real estate assets and developers.
In summary, Q3 has been an acceleration of our story, of our vision and of our belief in the opportunity set that is very clearly present for focused managers, focused investors, focused platforms which can play the entire urban infrastructure space right from identification to advisory to investments to development to exit. That is allowing us to accelerate ourselves on all, on all fronts both in India as well as in the UAE which is seeing significant capital inflows. UAE has continued to remain an anti fragile economy and every geopolitical shift, every geopolitical shift has only resulted in additional capital formation, additional transactions and new opportunities for us in the uae.
We have slowly becoming one of the leading players in a very short period of time within the uae. Our strong standalone profitability plus a scaled integrated platform with NCCCL marquee Dubai asset acquisitions, discipline, exits and fresh mandate wins on advisory front continue to further augment our business trajectory and growth growth story. We remain focused on capital efficiency, our underwriting rigor and the scalability of our platform as we’re building a balanced cross border urban infrastructure franchise designed to deliver sustainable risk adjusted returns and growth for all stakeholders. We thank you once again for your continued trust and participation.
I’m happy to take questions from here on.
Questions and Answers:
operator
Okay, thank you. Thank you so much. Amit Saw so if anyone has any questions I would request them to raise their hand and unmute themselves and you can ask your question.
Amit Anil Goenka
Some questions have been posted as well. We can take them as and when we want.
operator
So since it’s an earnings call we would request whoever has questions to raise their hand and unmute themselves and ask the questions themselves please.
Unidentified Participant
Okay. Good afternoon team. My name is Tiagrajan Ramachandran, I’m calling from chennai.
Amit Anil Goenka
Good afternoon Mr.
Unidentified Participant
Okay, excellent quarter sir, you know my best wishes to you and the team. A couple of questions I had. One relating to ncccl. You know the quarter seems to be a low margin quarter for ncccl. Is it an inherent, you know, business nature that the margins are going to be little less and you’ve projected margin improvement, is that coming from contracts pricing from scale benefit? And the second question related to that was directionally does the non residential mix that you spoke about, is it going to improve the margins over the next three to four quarters? Sir, if you can give a steady state EBITDA in the next three to four quarters, it’ll be helpful sir, thank you very much.
Amit Anil Goenka
I will love to answer it but I will defer this question to my colleague Mr. Mahesh Buddha, the Vice Chairman Managing Director of NCCL. The question remains how is NCCCL going to move forward. The margins have been low in the third quarter. What makes us believe that there will be a margin expansion to about 3 to 4% as we project it over the next 12 to 18 months and is it led by better contract pricing by scale or by diversification to non residential? Maheshi
Mahesh Mudda
Yes, I think your question is very right handed. While talking you you mentioned that how this diversification from residential to other sector is going to help.
That is the right, you know question that because we were focusing more on the res side where the competition is very stiff and then your margins are also very competitive but now strategically because we have been focusing towards the other future industrial IT and data center. Well definitely because we have the additional advantage of getting better margins which because we’ll see the quarter on quarter going forward. Just to add to the your question in Q3 specifically because of the change in labor code the NCCL financials have taken one exceptional provision towards graduate of almost 4 crores that has impacted the overall profitability of NCR.
Excluding that one time the margin improvements are really showing.
Amit Anil Goenka
So Mr. Chagrajan I hope you’ve answered. We’ve answered your question. Three things were mentioned. One, three is an exceptional quarter in terms of lower margins because of one time provisioning of the impact of labor code. It is not a continuing item. It has been provisioned for once to take into account the new labor code which came into effect in November. The second is that the diversification. We talked about a Hyderabad contract which is a hospitality development, a non residential where one is able to earn far better margins.
And third of course is that we are able to get into a larger order book with major players today with the construction pace in the country there is a very significant dearth of high quality contracting companies and Triple Seal is clearly one of the top five or seven players in the space and therefore its ability to expand its margins on the back of larger contracts and more value added businesses remains very much in that. Can we take the next question please?
operator
Yes. I would request anyone who has a question to kindly raise their hands and then I will ask you to unmute yourself. Only then we will be taking questions and any questions that are put on the chat. We will not be able to take this. I would request you again to raise your hand and then only we will be able to take that question. So I would request Anuj, you can unmute. You can unmute yourself and ask your question.
Unidentified Participant
My question relates to the exceptional item. Does 100% of the item relate to the change in labor labor code or is there any other item playing into it?
Mahesh Mudda
Nothing else. There’s a one time towards. The one time provision for towards graduate. That is because of the change in labor. Nothing else. No other exceptional write offs or any other provision, even the actual valuation has been received for.
Unidentified Participant
All right, thank you.
Mahesh Mudda
Thank you.
operator
Great. The next question we can take from Shashank. Shashank, kindly unmute yourself and ask your question.
Unidentified Participant
Yes, sir. My question here is that in last con call you say that we are H2 heavy business. Okay. But your traditional business without NCCL seems to be lower in Q3 compared to Q2. So what is the reason behind that, sir? And how should we actually see? I am an analyst, so I want to have some pretty predictability. 50 if you can give me some. Like Q1 will be higher, Q2 will be lower. Something like that. H1 will be higher. So I can predict something.
Amit Anil Goenka
You’re right, Shashank. It’s a good question. Seasonality is important and typically H2 tends to be larger than H1.
Which is correct. We’ve mentioned that in the past. If you look at Q1 Q results, Q2s look larger than Q3, but it is better than Q1. Now Q2 is larger because we had certain investments that we divested. Now what happens is that there is no periodicity for that and there is nothing to seasonality for that. So when you say that I am looking at let’s say 120 crore top line. Effectively I am looking at about 30 crore rupees of top line every quarter. Right? Which is obviously what we are meeting or beating every quarter. However, a quarter like Q2 becomes larger than even the top line or the upper segment of our outlook which is at 140 crores because of a certain, certain income from investments.
Now certain income from investments can happen periodically where we are holding on to very large amount of investment. Almost as I mentioned, about 120 crores of our money is invested. When I divest, let’s say 120 or some part of that, I will earn a certain amount of upside or market gains. Those are. Those are not things that will happen every quarter, but they will happen periodically. So which is the reason why Q2 looks larger than Q3. But yes, H2 tends to be larger and will be larger. For example, today the order book in the. And the invest, the order book for NCCL as well as the Investment outlay for H2 is much larger compared to H1.
Unidentified Participant
Okay, got it. So how much business will come from H2? Any number. Can you give so you already know our our outlook in terms of top line, in terms of the upper end as well as the bottom end. You know that we’ve already beaten the bottom bottom end of the projection which was at 120 crores. Obviously we’re accelerating to now the top end of the of the projections. So you can imagine what will be for the rest of the year. Because we already achieved a significant portion at 100. What is the total? 114 out of 140 is what percentage?
Amit Anil Goenka
97, 98 is 2020.
Only 20 is remaining. Whereas we have 25 which so obviously we’ve more than beaten that sort of estimate. So yeah, I think that helps you give you a predict predictions on. You always said that AUM top line and bottom line is something we can predict. That’s exactly what we’ve been doing. And therefore that should give you a sense of a sense of the cyclicality or seasonality as well as the growth trajectory in terms of outlook.
Unidentified Participant
Okay. And regarding ncl, what should be the patent margin we should expect in FY28, 27, 28?
Amit Anil Goenka
I think we’ll be moving from roughly about 2% to about 3 and a half, 4%.
3 to 4% we can say.
Unidentified Participant
Okay. Okay. And good. So that’s also. Thank you. All the best.
Mahesh Mudda
Thank you. We are rapidly expanding. So your introduction was more towards predictability for a very high growth company like nicers we would organize will have exceptional quarters. And in future also it will be the case. Having said that what Amit sir has rightly mentioned for high growth companies you have to look at the longer horizon we have. We are beating our previous year performance with with significant margins. And that. That will be the real story here.
Unidentified Participant
Okay. Yes, please.
operator
Great. Thanks. Thanks Shashank for your question. Pawan, you can unmute yourself and ask your question next. Thank you.
Pavan Domakonda
Yeah. Hi Amit sir. Congratulations for the Q3 results. So my question is like initially AEM projection was like 4000 crores, right? You have said like multiple times. So why it Is decreased to 3000 to 4000 crores currently. Any particular reason? Sir,
Amit Anil Goenka
we’re not saying that. We’re not saying we will. We’re decreasing it. We’re saying we’re giving a range of 3,000 to 4,000 without changing our revenue or our pat outlook. What is happening is that with increasingly number of partners our margins on our AUM have been going up. Also as we get in more institutional players, as we get in larger players, they’re happy to pay more because they’re Seeing a very large amount of outcome for themselves.
So we’re able to actually increase our revenue share on a slightly smaller base. And we are saying 3000 to 4000, which means it could be 3500, it could be 3800, would be 4000 because again it’s a function of nav and valuation. Please understand that when we are investing in the UAE we have, we are revaluing the assets that we are buying. We are buying these assets at a discount and when they get revalued, we get to charge on the revalued amount. Now I do not know what the revaluation number will be. We have an estimate which is why I’m saying it could be anywhere between 3, 500 or to 4000 crores.
But is not to reduce the AUM or to have any impact on the outcome of our financials.
Pavan Domakonda
Okay, thank you sir. So like currently, sir, geopolitical tensions are currently there, right sir. So you are considering that geopolitical tensions like US Iran war, how it is it will be affecting Dubai real estate and everything.
Amit Anil Goenka
In fact tell you the has been an acceleration of partnerships. So in the recent 1/4 itself some very significant transactions have happened with U S entities and Canadian entities having expanded their footprint in the UAE. Recently Blackstone entered with a 5 billion dollar outlay create yielding assets including industrial, commercial and other assets in in the uae.
And I partnered with one of the UAE government entities to do that. This is the last quarter news. Likewise, Brookfield has gone and accelerated their investments to almost 4x by not only buying the entire gym school and a few other assets, but also creating another platform for development of assets in the uae. So increasingly Western capital is actually joining hands with the UAE to increase their engagement. Also recently NASA partnered with the Abu Dhabi government to create a space program which is domiciled in the UAE to diversify the UAE risk of NASA and space programs away from away from Florida.
So increasingly UAE is becoming a epicenter for diversification of risk for major geographies and countries worldwide. So in fact it is the most anti fragile economy which is the benefit that we are seeing both in terms of opportunities as well as in terms of capital. So the more geopolitical risk, the better the outcomes are for ourselves.
Pavan Domakonda
Yeah, thank you. Thank you very much sir, one last question. So are we in line with mainboard listing in in coming years? Sir, in two to three years
Amit Anil Goenka
we have a three year block as you know. So we listed in December of 24, which means only in 27th, December 27th will be eligible to move.
Obviously we remain very, very focused on that date.
Pavan Domakonda
Okay. Thank you very much, sir. Thank you.
Amit Anil Goenka
Thank you. Next one.
operator
Thank you. Thanks. Thanks. Pawan, I would request. Nishita, if you can unmute yourself and ask your question.
Nishita Shanklesha
Yes. Hello. So I just wanted to clarify something. You’ve given a guidance of 650 crores in NCCCL for the full year of FY26. Correct?
Amit Anil Goenka
Yes. Yeah.
Nishita Shanklesha
And we’ll consolidate the NCCL numbers in our financials for seven months only. Right?
Amit Anil Goenka
Date of acquisition. Yes. Yes. Seven months.
Nishita Shanklesha
Okay. Okay. Understood. So from my understanding the whole of 650 crores is not going to be consolidated in our financials for FY26. Okay. Okay. Perfect. Thank you so much. And my. Another question was the pat margin expansion that you mentioned in NCCL from 2% to 3.54%. This will. We can see this in FY27 or was that for FY28.
Amit Anil Goenka
Going forward? Because this year. Because we just started this partnership. So effectively next year, on April, on quarter onwards. Technically yes.
Nishita Shanklesha
Sorry. I’m sorry. From next year onwards we can see this.
Amit Anil Goenka
Between FY27 and FY28. What happens is the pack margins are a function of your new order books. Your existing order book already has a certain margin and a certain cost involved that is getting exhausted. And the new orders which are getting booked are coming at better margins. So you start seeing that transition effectively between FY27 and FY28.
Nishita Shanklesha
Okay. Okay. Understood. Thank you so much.
Amit Anil Goenka
Thank you. Next please.
operator
Thanks. Thanks. Sorh. If you can unmute yourself and ask your question please.
Unidentified Participant
Yeah. Thank you. Congratulations Amit. Sir. For good set of numbers. Okay. Thank you. Sir, I have been tracking license since it. It was listed on. On the NC BAC Small. Yeah. So sir, I’ve been tracking this. A few quarters was not good. But recently last three quarters have been very good. Right. So sir, when we can expect the tokenization to be live? Because we have been tracking this since last six months. Almost. Almost. Right.
Amit Anil Goenka
So as you know tokenization is a product that. We’re looking at it from a UAE perspective. India’s regulations on fractionalization and tokenization is still not clear.
There is only a sandbox approval given by SEBI to do tokenization. Right. It is not a mainstream product. So we’re launching it in the uae. We already started to apply for the licensing within. Within the UAE which is called vara. The. The Virtual Assets Regulatory Authority as well as in other jurisdictions from where the tokenization will start. We’re Looking to start the campaign effectively from Q1 of Next Financial year when all of this licensing is behind us and we can actually take the product to the market. And so effectively you’ll see the impact of tokenization in the next financial year.
Sort of,
Unidentified Participant
sir. And, and we have proposed $500 million. Right. So yes. Do we expect this to be scaled in the same next financial year or do we it can stretch?
Amit Anil Goenka
I don’t know. I don’t know. See, because currently if you see the total amount of tokenization done by some of the largest players, including Crypto, which is backed by DAMAC, which is a 70 billion dollar organization, is roughly only hundred million dollars. So the, and recently the UAE government introduced two asset classes. One is the CBDC which is the digital dirham. Right. And they introduced their own as well as the, as well as a digital dollar.
So because they have introduced digital currencies which can now be traded online and through Forex, it will be possible to now accelerate this as they bring these digital currencies into mainstream. So we do believe that there will be some time to accelerate that. The availability of assets is not a problem, it is just that the regulator is taking it in a trajectory format. It is not allowing people to go and issue billions of dollars overnight and create a bubble. So we are ready, we can do it if required in the next year itself. But again we’ll have to see how the regulator reacts.
Unidentified Participant
Thank you sir. We also heard that you know we are exploring the SM REIT in India market, right?
Amit Anil Goenka
Yes.
Unidentified Participant
Can you throw some light on that?
Amit Anil Goenka
So we have, we have set up an entity for SM REIT which is a operate, which is the fund manager entity, the subsidiary of Listco. We have started to apply for the license with semi to set up the SM reit. We have identified assets which can go into that portfolio. We’re working with several law firms and accounting firms to figure out all of the other nuances of that. So we will have better clarity in Q1 of next year in terms of the total launch time and size.
Unidentified Participant
Okay. So we can expect the rate in the, and the earnings from that in the next financial year.
Amit Anil Goenka
Well, I mean of course once you launch it then it’s simple because it goes to the public for distribution. It’s a public listed place. It is raised simultaneously along with the acquisition of the asset and your revenue starts almost immediately. So it’s, you know, the go to market is not very long. Do we have any numbers in our mind for the SM read or. We’ll decide. I think It’ll be premature because currently there are only two SM reads as you may be aware.
Both of them have been run by by prop share for 2 REITs of about 1000 crores. So the market still is evolving. Our target of course is to be larger than that. But we are hoping that we can do that sooner than later.
Unidentified Participant
Thanks. Thanks sir. Although you have mentioned that we have mentioned the AUM on the six monthly basis. But at least if some, some light if can be provided because you know the AUM is the fixed business, right. Annuity business, right. And the. And then the advisory is kind of. It can lump sum, right.
I mean to say although we have been perform good and the advisory also since last three quarters, right. But at least AUM the investors had confidence that we have scaled up to this aum, right? It gives some confidence to us.
Amit Anil Goenka
No, you’re right Sourabh. But let me answer this in two parts. The first is in terms of AUM itself, right. I mentioned about the 6 monthly valuation which allows us to only give you exact numbers at the end of half years. Having said that, we were roughly at about 2000 crores in H1. We’re looking to be at roughly close to 4000 crores in H2.
And so therefore the third quarter is somewhere in the middle. So we obviously we can’t give the exact number because I don’t have the valuation of that today. But you can assume that because the numbers that you’re seeing in terms of revenue from AUM as well as from has only gone up by the way from advisory. If you saw the last few quarters since you’ve been tracking it from inception where we were at roughly about, you know, 35 of less on AUM fees today, we’ve accelerated to 51. This could not have happened without an expansion in the aum.
Right. So I think that gives you some sense that there is more predictability because of EU expansion and AUM fees expansion. The second, when it comes to predictability on the advisory, you will be happy to note that the advisory fees have been earned on a transaction value which is almost equal to our Aum of H1. Now therefore I’ve always maintained that there is a very strong correlation between AUM and advisory fees. So while we were earning money on 2000 to 3000 crores of AUM on a similar value of transaction of almost 2000 crores, we want advisory fees.
So therefore there will continue to be a strong correlation between advisory and AMC while it looks, it looks lumpy or it looks unpredictable. But in Our business, it is not. The amount of preview put gives us the same amount of opportunities on the advisory side. And so while the AMC fees will expand because obviously you will have a larger recurring income as the AMC expands. But the correlation between advisory and AMC will not go away. Thanks. Thanks. So how sir, could there be probability that we miss aim target of 3,500 to 4,000 crores or we, we are very much confident.
I don’t think so. I don’t think so because as I said, the pipeline is very strong. We have over thousand crores of, of. Of deployments planned or you know, in late stage of deployment within the India fund. Similarly, we have additional thousand crores of deployment planned, you know, in this quarter as well. So there is enough transactions that need to be consummated in this quarter alone. So I don’t see that as a concern. But again, you know, as I said, we will be able to get to the exact number closer to March and once we have the entire thing locked in.
Unidentified Participant
Okay, apart from this, the, the projected aum, how many. The value we have in the pipelines. I’m sorry, apart from this aum, right. What you’re projecting for this financial year, how many additional revenue. I mean to say the AUM we have is in pipeline.
Amit Anil Goenka
So we have like you talked about tokenization, we talked about SM reit, we talked about the UAE fund, we talked about the India Credit fund. So there are a number of AMC opportunities which are in the pipeline which will continue to accelerate the aum. So it is going to go beyond three products to maybe about six or seven products in the coming year.
And that will obviously further accelerate the AMC and the AUM business.
Unidentified Participant
Thank you sir. All the best.
Amit Anil Goenka
Thank you. Sorrow. Thanks. Yes please.
operator
Thanks. Aurav, I would request. Shruti, if you could unmute yourself now and ask your question.
Shruti Malpani
Hi all. So sir, I have three questions. So the first one being around. So recently the company reduced its controlling interest in NCCL from 69 to 54% to repay the loan. Right. So like do we plan on repaying the balance loan also by divesting or like how can we see that going?
Amit Anil Goenka
We don’t. No we don’t. So this was a preemptive idea at the point of purchase itself. We had agreed that both with the lenders as well as with the, as well as with the management that we will be holding majority stake of 54%. And that’s exactly what we’ve done. So it was not something which was an afterthought shooting because we did not want to keep keep that kind of debt on our books. Number two, there is no intent to further pair this stake immediately. The company will be ready to, you know, be in the public markets at some point in time, in a short period at which time we will see if we need to, you know, further divest, you know, as, as existing shareholders.
That’s an event which is a little away in terms of repayability of debt. Today the debt or the debt has been significantly further reduced. So when you see our liabilities or our long term liabilities or debt as of March end, you’ll see that it’s now shrunk to a very, very small number and we have enough cash flows from operations and internal accrues to actually repay it off almost immediately. That does not bode very well for the lender. They’re getting very pettr by the idea that we repaying their debt in less than six months. So we keep it for some more time a small amount of debt, but the idea is to exhaust it immediately.
Shruti Malpani
Okay, so follow question on the so saying you will be listing nccl. So like do you have a timeline in mind?
Amit Anil Goenka
Probably it’s, it’s in the distance, it’s in the future. But the idea is obviously for the company to be able to grow to a point. See it’s today already a competing company to some of the larger players or listed like Capacity or BL Kasha or others. And so therefore it will have to go to a capital market route at some point in time. Can I give you a date? I think we premature. We’ve hardly been in this company for six months. So the idea is that when we accelerate our outcomes over the next 12 months for the next financial year, I think we’re better poised when you see the numbers and we see the numbers and you see the strength of the company getting unlocked to obviously make it a far more meaningful conversation.
Shruti Malpani
Okay. Okay. So another question being so like what is the source of other income for the standalone statements? Because when I see the amount in consolidated statements it is reduced. So like can you answer Again the.
Mahesh Mudda
Question is more than the console. So this is because of the partnership interest between the subsidiary entities. So what we do we whatever the share of nisco, I mean the listed one has the subsidiary LMP entities that is being distributed to the standalone. That’s why the number in the standalone is higher than the consultant. Right. And obviously as you know that the AMC has earned more AMC income comes from subsidiaries AMC and therefore the AMC income obviously when it goes as a Share of profits from the subsidiaries to the parent. To look larger, the parent is largely taking a a percentage of the advisory income.
Shruti Malpani
So can you please repeat the last half?
Amit Anil Goenka
I’m saying transaction advisory gets booked in the parent standalone and the AMC fees comes as other income because it’s part of the subsidiaries. Since the AMC income has been pretty large and that also only in India because then the the advisory fee or UAE separate that does not come in the standalone. So because there’s been a very significant advisory income which has also got booked in the uae. So the India advisory income is seen as income from operations in the standalone. The other income is income from the AMC in India which is a share of profits of the subsidiaries.
And that of course is much larger. Therefore you see the disproportionate number presentation. We have provided our financials which is nicest consultation without technical ser. So core business of N which is transition advisory and finance business. You will get the full picture on that from the management presentation.
Shruti Malpani
Okay. Okay. So one more question. So like there was a update in the financial statements as well from the 26th of January saying that nicest has received an in final approval to grant Nicest DIFC a license from dfsa. So this is relating to which one?
Amit Anil Goenka
This is in the Dubai Fund Shruti where we have an operating business in, in Dubai which is the fund manager. We’ve taken our own which was one of the objects also of the IPO was to get our own licenses. We’ve procured the approval of DFSA to further launch our funds in the difc and which is why we’ll have both inbound and outbound funds getting, getting registered and raised in the difc. So it’s a license for us to now operate on a full time basis with all our own with additional funds in the difc. So that’s the approval we’ve got.
Shruti Malpani
Okay, thank you so much.
Amit Anil Goenka
Okay, thank you.
operator
Thank you. Thank you. Shruti. I would request everyone to limit their questions to two at one time. So jkc, if you since you were not able to raise your hand please feel free to unmute yourself and ask your question right now.
Unidentified Participant
Thanks. Shashi, folks on the phone, can you hear me okay?
operator
Yeah, yeah, we can hear you.
Unidentified Participant
All right. So Mr. Amit, a couple of questions that I have. One is you just called out that you know it’s very hard for us to give you the exact AUM that we have under management at this moment because of the valuation and all. So if I could draw your attention to slide number 71 in the investor presentation. Right. What I’m seeing is a very precise amount of AUM being called, like 1726 in India and 1819 in Dubai. Right. So how can we come up with such a precise number? Which sheet is that? Give me, give me a second.
Yeah, yeah, sure. Slide number 21 is that, which sheet number is that? 2121 growth outlook for FY26 and beyond. No, so number. No, no. If you look at, if you look at FY26 end, right, we are calling out 1726 and 1819 at the precise AUM target we want to achieve by end of 26.
Amit Anil Goenka
Yeah, yeah. So that’s, that’s an outlook. You’re right. So which is why I said that, see again, one is estimating what will be my NAV at the end of this financial year. We know the valuation metrics, we know typically how valuable we look at it.
You know, Deloitte is the auditor there, it values the assets, it gives us the number. Likewise, Apex and Deloitte do the valuation in India. So, you know, this is where we believe this will be the estimate basis. The basis, the parameters of valuation. So again, that’s why it’s an estimate. Okay. We think it will be in the ballpark there, thereabouts. But again, you know, it could have some variance. Basis, basis. What is, what is the rate in the uae? What is the total amount of YTM in India? Etc? So base of that, you know, there could be some variance to that.
Unidentified Participant
Okay, so that, that’s more acceptable actually for me, a range of 3,000 to 4,000 or x to Y. But when I looked at such a precise number, I was like, wow, we are so sure that we hit those numbers. I was like, I’ve never seen any management.
Amit Anil Goenka
It’s a good observation and I like your sharp eye. I think it’s all computer generated. When you put in your existing investments and then you put a formula on how the NAVs are usually calculated by the auditor, they throw up certain numbers, does not mean that the auditor will sign off on the same nav.
But that is what effectively the team picked up and put up. So without rounding it off. But it’s a good observation.
Unidentified Participant
Okay, so thanks for clarifying that at least. I just wanted to be sure my understanding is correct. And the second question I actually had was, so in one of the previous call somewhere I had heard you mention that we get roughly about, you know, 300, 400 or 500 deals come our way throughout the year. Right. And we based on the quality and our confidence level, we kind of fund 10, 15, 20, whatever that number is.
So the question I have is if I were to ask you like what would be the deal size of all the 500 opportunities that come our way? Right. Whether we fund it or not, that’s a different thing. But what is that?
Amit Anil Goenka
What is the value of the deal? And therefore you may be 2000 crores to work, but what is the total value of these that you actually see?
Mahesh Mudda
Sure. So, so we roughly see around 400 to 500 trades. And they range from say an amount of 25 cross to 200 cross. So average would be, so average would be around 100 cross.
Unidentified Participant
Okay, so it’s like five, 400 times 100 cross. Right. So it’ll be around 400 into CI,
Mahesh Mudda
400 into 100. So 40,000.
Unidentified Participant
Okay. Okay. And just one last thing. If I could squeeze in, let’s, let’s say you know, we, we want to hit a target of AUM of 8,000 in 2027. Right. Or 2028, whatever. So let’s assume that you know, we, we are in 2027. We are, we achieved that 8 and 8,000 crores. So what is your innovation, Mr. Ahmed? Like where do you want to take this from? Five years. Take nicest five years down the line.
Right. Or seven years down.
Amit Anil Goenka
I always give an example of a, of a peer for peer which has a very similar sort of history wherein around 2018, 19, they were at about, at about thousand crores of AUM in about 25, they’re at about 60,000 plus crores of AUM in a similar space. I think they’re looking to also maybe go public or do, at some, do some private equity or whatever. So I’m saying the acceleration opportunity, if I look at a comparable player or a pair which went from thousand crores to 60,000 crores in a span of seven years, you know what the Asian growth potential is? Okay, that’s number one.
Number two, that was only an India play. We are now adding India along with UAE to start with. And not just uae, GCC as a whole. Which means you’re already looking at Bahrain, we’re looking at Qatar, we’re looking at Saudi, we’re looking at the markets also which are also looking at their own growth stories and are welcoming global managers and investors to look at their countries. So having said that, if you were to look at that opportunity set and comparably, and of course we’re more conservative, we don’t only go by you, we go by actually the delivery of returns on the AUM we manage.
So therefore a 4 or 5x growth on that number also doesn’t seem very tall, to be honest.
Unidentified Participant
No, that. That’s very helpful. I just have one comment or observation, but I’ll follow. Yeah, yeah, I’ll come in queue. I’ll come in queue. Yeah, I’ll. I’ll come back in.
operator
Okay, great. Thank you so much. So I would request if you can join the queue again. So the next question we can take is from Nachiket. Nachiket. Please feel free to unmute yourself and ask your question.
Unidentified Participant
Yeah. Hi, good evening team. Am I audible properly? Yes, please.
operator
Yes, yes, yes.
Unidentified Participant
Congratulations on a great set even in this quarter and thank you for publishing results in Q3, even though you’re not really required as an SME.
Amit Anil Goenka
Thank you very much. Very few people appreciate that, but we like to be as transparent as regularly available and share our successes, maybe sometimes a failure also with you because there’s no one way story in our life. Right. But happy to transparently share everything that’s happening with your company in as frequently as possible.
Unidentified Participant
Yes, absolutely that. Kudos to the team at nicest for that. Actually one of my queries just got answered on the previous question.
The other one is we recently got an exit from the Skytech investment which. Yes, yes, I noticed that that was well ahead of the expected timeline. Yes, very small query on that. As to whenever we exit an investment ahead of timeline, I am guessing it’s a win win for both parties. Could you just elaborate further as to what are the advantages for us and what are the advantages for the investor also to come to an exit?
Amit Anil Goenka
It’s a good question. Two things. First is for us, because we are significantly invested, for example, some sale like this means we’re selling our securities to a third party at a premium.
So when you see we’ve generated certain premium on sale of our securities in Q2 as well. Right. So when you sell our securities, you obviously generate a premium on sale because it’s a takeover of our sits on our securities by a third party. So we obviously better off in terms of revenue. Rather than keeping a certain yield, we’re getting a certain upside on our own investment as well. That money is obviously being utilized into some other investment and therefore the AUM fees continue unabated. So when we have the opportunity to reinvest the capital, we have the option to take an upside on sale and exit.
Obviously that is a double upside for us to go forward. As far as the investing company is Concerned. Typically there’s a certain time frame. So for example, I gave a three year time frame for this company to complete a project and exit. But as we know that is usually never the case. There will be environmental issues, there’ll be approval issues, there’ll be RERA issues, there’ll be some other issues. Now these companies usually sometimes want an extension of one or one and a half years beyond the term. Something that we can’t grant. So what it does for the investing companies gives them the opportunity to take additional capital or new capital by exiting us at a premium and be able to complete a project over the next 18 to 24 months which is not within our term.
So it is therefore win, win for both. Understood?
Unidentified Participant
Yeah. Great. That’s the only question I had. You have been very.
Amit Anil Goenka
The interesting part about this investment was that this was an investment where we had partnered with the Government of India fund called Swami and both were, both were investors in that and both got an exit at a very, very good outcome largely because of our efforts. So our partnerships have actually seen very strong outcome because we partner with very strong institutions. In this case with the Government of India fund which is a co investor or co lender to this.
And both got exited because of our endeavor, you know. So therefore it is a great opportunity to also prove to partners who invest with us this is how we can create exits for them.
Unidentified Participant
Absolutely. Great, sir, congratulations on that. Thank you. Only query I had for today.
Amit Anil Goenka
All right, thank you so much. All right, thank you so much.
operator
Thanks. Nachiket, I would request, Sahil, if you could unmute yourself and ask your question please.
Unidentified Participant
Thank you, Rashi. And good evening everyone. Sir, I have only one question. May I know like how much is the dry powder in our fund like across all the fund, the money which is yet to be deployed.
Amit Anil Goenka
You know, when you look at the UE fund, it’s $500 million. You’ve hardly deployed what 130, 150. 130 million. Right. So there’s enough, there’s enough Runway. As far as the UAE fund is concerned, the India fund is about two and a half thousand crores. We have to put over thousand, 1500 crores. So enough Runway on the existing capability both in India and the UAE to more than meet our targets for this year and the next year.
Unidentified Participant
Okay, and what are the timelines we are looking for like to deploy these funds?
Amit Anil Goenka
As I said, we’re looking at new product launches, new, you know, NFOs next year. So as I said, even for next year, if you have to finish all of this capital which we will then of course would have met a largely a next year target just on existing products and capital. Of course we’ll want better and HENCE we’re doing NFOs next year.
Unidentified Participant
Okay, so is there any new fundraising on board like considering
Amit Anil Goenka
we discussed about tokenization, we discussed about smd, discussed about other products within the pipeline.
So all of these obviously when they get launched will obviously raise their own capital.
Unidentified Participant
Okay, perfect. Thank you.
Amit Anil Goenka
Very strong LP base and distribution in place. So that’s never a concern.
Unidentified Participant
Thank you. Thank you so much, sir. Thank you.
Amit Anil Goenka
Thank you.
operator
Thanks. Sahil Anuj, you can unmute yourself now and ask your question. Thanks.
Unidentified Participant
Hi, thanks for taking my question. So I wanted to ask, can you provide any guidance on cash flow and can we expect it to be positive both on a standalone and a consolidated basis for this financial year?
Mahesh Mudda
Yes. So cash flow from the operating will be again positive for nicest without intercultural. We have to figure it out on the way, I mean on a consolidated basis because on a consolidated basis we, the debtors of entrepreneur and of nices are very, very different. So working capital changes you will find maybe very, very large compared to the last financial year.
So.
Amit Anil Goenka
So let’s break up this into two parts and which is why we present this entire story in two parts, right? One is the advisory AMC business, which is Nicest finance, where there is no problem of operating cash flows because AMC fees is accrued and earned almost simultaneously. Whatever receivables are there are very small and largely that is from our advisory business both in UAE and India, because there are milestones for payment on completion of an advisory service, right? So for example, when we ended up selling a land parcel to a large developer, they said we’ll give you your fees in three parts.
One on closure of the transaction, second on getting our basic approvals, third on getting rera. While we have no obligation to meet those timelines, but usually fees are basically certain milestones. So fees booked accepted by both parties sits as receivers but received in three to six months time basis these milestones. So that is where our business is, right? So you will not have a problem operating cash flows because as you know the margins are very large compared to the receiver. So the operating cash flows are very positive. When you consolidate with the nccs, it has got its own working capital cycle, right? It’s got its own debtors, it’s got its own debts, it’s got its own receivables from its existing projects which by the way are also a function of the advances they’ve received on mobilization and therefore when you club the two it look at a very different picture.
But that does not affect the solvency or the operating capabilities of both the entities individually.
Unidentified Participant
Got it. Thank you. And can you provide the working capital cycle for NCCL how long is it currently at? Two cycles they do two and a half. Generally goes up to the outer limit of 90 days because that’s the industry now. 90 days?
Mahesh Mudda
Yeah. So about four thirds adjustments because of the accounting what they have done Right now the current working capital cycle is to we are in the process of doing the financial restructuring of their balance sheet move the do the right classification that should improve their working capital cycle significantly.
And anuj also to on nicest business. Nicest cash flows. When you look at it for the reporting purpose, both the cash flow from operations and cash flow from investments both are for the nicest. Particularly it is same. It is the cash flow from operations only even if we are doing investment where the cash flow will reflect an investment. It is our core business. So when you combine both cash flow from investment and cash flow from operations, you would see a very large positive cash flow fraud. Nicest.
Amit Anil Goenka
So what we’re investing into our funds comes into the investment side.
But that’s a mandatory requirement for operations for the purpose of accounting treatment by showing it under investment. But it’s actually operating income because without that you cannot operate your fund. So if you combine the two that is your true cash flows from operations.
Unidentified Participant
Yeah. All right, thank you.
operator
Thank you so much. We will take one last question from Ajay and then after that we will close the earnings call. Thank you.
Unidentified Participant
Hello? Hello, can you hear me?
operator
Yeah, yeah, Jay, we can hear you. Go on.
Unidentified Participant
Congrats for the good quarter. Sir. I wanted to know about receivables as mentioned in the last quarter. How do the receivables look now? Can you repeat your query again? How do the receivables at NC NCCL look now?
Amit Anil Goenka
Receivables at NCCL it is regular receivables only. There is no default. There is no some look down how receivable reduced your thing. Yes. Have the receivables reduced as you had mentioned in the last quarter there is a recovery for the accelerated collection. Yeah. So what is the story now? We reducing our seals, right? Yes. Because we have been putting a lot of pressure.
We have been following a track on the existing jobs also with the help of because nicest team. Our team because we have been following it up very strongly. So of course has to be under control
Unidentified Participant
and will necess be acquiring more companies like they are decorated in triple CL in the future.
Amit Anil Goenka
We don’t know that Ajay. I think there has to be a very strong synergy and value unlocking opportunity for us to be able to do that. You know, we’ve known this company for a very long time. I’ve known maheshi for nearly 20 years. We’ve known the management for a long time.
We’ve seen how strong they are in their business. We’ve seen how they’ve accelerated their business with some of the largest players in the country. Many of these developers are also our clients because they’ve borrowed money from us. So they’ve done business on an advisory side with us. It’s a very strong synergy. Find this kind of fitment and our ability to unlock value by bringing them on par and above their peers is a very exciting journey for us. So a there is a very strong integration between the dreams. It’s not just a random acquisition. Number two, there is a very large unlocking opportunity which can create a very large multiple for ourselves in a very short period of time.
And therefore if you can find something like that, know the company for many years, be a part of the journey, unlock it and you know, give them a very large multiple for a short period of time that is of great interest. As of today I don’t have that immediate sort of a target of that nature but if you do find one, we’ll be happy to report it. They’re asking how many. 560 people are on the payroll of NCCCL. Correct. What are the total employee strength? Sorry, strength is around close to 900 now. 900 employees.
operator
I would request that any further questions or to be taken separately since we have to close today’s earnings call. So I have dropped in my email rashi goindia advisors.com in the chat. So please get in touch with us if you have any further questions or want to meet the management for any further clarification. But thank you so much everyone from Nisis and all the investors and analysts who attended the Q3 FY26 earnings call for Nisis Financial Services. Thank you so much.
Amit Anil Goenka
Thank you very much.