Nitco completes 75 per cent Kanjurmarg land conveyance, secures Rs 143 crore

Nitco Limited has completed the registration of the conveyance deed for 75 per cent of its land at Kanjurmarg, Mumbai, in favour of R Siddhatva Developers Private Limited, a step-down subsidiary of Runwal Construction Private Limited. The tile and Real Estate company said it has already received Rs 143 crore as consideration for this portion of the property.

The development advances a property monetisation transaction that had remained subject to conditions precedent and shareholder approval. Nitco had previously disclosed that the proposed Kanjurmarg transaction involved cash consideration of Rs 232 crore along with non-monetary consideration, while Rs 143 crore had been received as an advance but was not recognised earlier because definitive transaction conditions were pending.

For the remaining 25 per cent of the Kanjurmarg land, Nitco has registered an agreement for sale with R Siddhatva Developers. The conveyance deed for this balance land parcel will be executed after Nitco receives 1,00,000 square feet of commercial RERA carpet area and an additional 8,500 square feet of basement space.

Nitco expects to realise around Rs 250 crore through the sale of the commercial area it will receive under the arrangement. This expected realisation is sizeable relative to the company’s operating scale. Its consolidated revenue from geographical segments stood at Rs 542 crore in FY2025-26, meaning the projected commercial-space sales are equivalent to about 46 per cent of that annual revenue.

The transaction also underlines the increased relevance of property-linked activity to Nitco’s financial profile. On a standalone basis, its real estate segment reported income of Rs 58.42 crore and a segment profit of Rs 48.45 crore in FY2025-26. That performance was aided by an Alibaug joint development arrangement, while the core tiles and related-products segment recorded a loss despite higher sales.

The Kanjurmarg deal can provide Nitco with both immediate cash proceeds and a future inventory of commercial space for monetisation. However, the Rs 250 crore figure remains an expected revenue realisation rather than an upfront receipt. Its conversion into revenue will depend on the eventual sale of the commercial units, while transfer of the balance land remains conditional upon Nitco receiving the stipulated commercial and basement area.

Nitco made the latest disclosure under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, in continuation of its communications dated May 13, 2026, and June 29, 2026. The company said the transaction followed fulfilment of requisite conditions and receipt of necessary shareholder approvals.

The property development comes as Nitco continues to contend with a competitive tiles market marked by price pressure, fragmented manufacturing capacity and input-cost volatility. Its annual report had identified real estate monetisation and development arrangements as supplementary activities alongside its core surfaces business.

As of 10:21 AM on October 15, 2026, Nitco shares were trading at Rs 85.97, up 0.77 per cent from the previous close of Rs 85.31. The stock was about 26.8 per cent below its 52-week high of Rs 117.40, while its one-year decline of 25.04 per cent compared with a 5.86 per cent fall in the BSE 500 over the same period.

Disclaimer: The article is for informational purposes only and not investment advice.