Nimbus Projects (NIMBSPROJ) Q2 FY27 Profit Plunges as Costs Soar Past Revenue
Nimbus Projects' September quarter revenue rose 58% year-on-year, but a surge in expenses and a sharp drop in other income pushed it to a loss of ₹8.4 crore.
Nimbus Projects reported a 58% jump in Q2 FY27 revenue, but a massive 1344% surge in total expenses year-on-year led to a net loss of ₹8.4 crore. The company's aggressive expansion plans are being funded by rising debt.
For Nimbus Projects, the September quarter was a story of aggressive construction spending and a painful gap between operational progress and financial results. Revenue from operations grew 58% year-on-year to ₹6.92 crore, but the company swung to a consolidated net loss of ₹8.39 crore from a profit a year ago.
Revenue & profit
Revenue (₹ Cr)
Net Profit (₹ Cr)
| Metric | CurrentQ2 FY27 (Sep 2026) | PreviousQ1 FY27 (Jun 2026) |
|---|---|---|
| Revenue (₹ Cr) | 6.92 | 2.94 |
| Net Profit (₹ Cr) | -8.39 | 3.26 |
The headline loss was driven by a staggering 1344% year-on-year jump in total expenses to ₹18.3 crore. Employee costs and interest rose 42% and 45% respectively, while depreciation more than doubled. Crucially, other income collapsed by 91% to ₹2.07 crore, removing a key support that had flattered profits in the past.
Why the costs overwhelmed sales
The expense surge reflects heavy investment in ongoing projects. According to its investor presentation, Nimbus spent ₹8.5 crore on construction in the first half, recorded in inventories. Key projects like The Palm Village (60% complete) and The Arista Luxe (15% complete) are consuming capital long before revenue is booked. The company funded this partly through ₹3.65 crore of net new borrowings in H1, reports Multibagg.ai.
This spending is central to management's ambitious targets. Nimbus aims for FY27 turnover of ₹398 crore, a 74% jump over last year, as noted by Multibagg.ai. The outlook hinges on timely completion and handover of units at its major sites. For now, the cash is going out faster than it comes in.
A debt-fuelled runway to recovery
Funding this growth has increased leverage. Standalone non-current borrowings rose to ₹257.5 crore in September from ₹150.1 crore in March, per Flash Finance. The consolidated net debt-to-equity ratio stood at 0.76x, with a management target to bring it below 0.5x.
The company recently approved a ₹60 crore unsecured loan from an associate at 12% interest, highlighting its reliance on promoter-group funding. With an interest cover of -2.44 and negative operating cash flow, the financial strain from this debt-funded expansion is clear.
Key Points
- Revenue grew 58% YoY to ₹6.92 crore, but total expenses exploded by 1344% YoY, leading to a net loss of ₹8.39 crore.
- A 91% plunge in other income removed a prior profit buffer, while heavy construction spending on key projects drove up costs.
- Debt is rising to fund expansion, with standalone borrowings up sharply and a new ₹60 crore loan facility approved from an associate.
- Management's FY27 turnover target of ₹398 crore depends entirely on accelerated project completion and sales conversion in the coming quarters.
Hexa Perspective
The quarter underscores the execution risk in Nimbus Projects' model. Revenue recognition lags far behind presales and construction spend, creating a prolonged period of negative cash flows and profits. The company's guidance implies a dramatic second-half turnaround, requiring flawless project execution and strong collections.
Investors are weighing this promised future against present financial stress. The near-total absence of institutional ownership, as highlighted by a MarketsMojo report, suggests professional money remains unconvinced. The stock's 38% one-year decline reflects deep skepticism that the heavy spending will translate into sustainable earnings before leverage becomes a more serious constraint.
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