Nilkamal Limited Reports Q1 FY27 Results: PAT Surges 145% to ₹23 Crore Driven by Retail Turnaround

Leading molded furniture and material handling solutions provider Nilkamal Limited has declared its unaudited standalone and consolidated financial results for the first quarter ended June 30, 2026 (Q1 FY27).

Despite top-line pressure caused by global supply chain disruptions and elevated raw material costs, the company achieved substantial margin expansion and profitability growth. Standalone Profit After Tax (PAT) surged 145% year-on-year (YoY), anchored by a strong performance in the Retail & E-commerce division, which turned profitable during the quarter.

Standalone Financial Performance

Net Sales: Stood at ₹799 Crore, reflecting an 8% YoY decline (down 7.5% from ₹865 Crore recorded in Q1 FY26).

EBIDTA: Advanced 39% YoY to ₹80 Crore, up from ₹57 Crore in Q1 FY26.

Profit Before Tax (PBT): Climbed 145% YoY to ₹31 Crore, compared to ₹13 Crore in the corresponding prior-year quarter.

Profit After Tax (PAT): Rose 145% YoY to ₹23 Crore, up from ₹10 Crore in Q1 FY26.

Earnings Per Share (EPS): Basic EPS increased to ₹16 (vs. ₹6 in Q1 FY26), while Cash EPS rose to ₹41 (vs. ₹29 in Q1 FY26).

Operating Environment & Segment Dynamics

Raw Material Headwinds & B2B Performance

Since March 2026, geopolitical developments and global supply chain bottlenecks escalated key raw material costs by approximately 50%. This directly impacted the B2B division, causing a 37% volume contraction.

However, proactive pricing adjustments and product mix optimization restricted value-based revenue decline in B2B to 10%, enabling the segment to maintain absolute profitability levels despite lower volumes.

Within the B2B segment, sub-categories displayed mixed performance:

Mattress and Foam Business: Grew 49% YoY.

Ready Furniture Business: Expanded 20% YoY.

Plastic Furniture Business: Contracted 13% YoY.

Material Handling Business: Registered a 16% YoY decline.

Bubbleguard Business: Recorded a 36% YoY decline.

Retail & E-commerce Turnaround

The Retail & E-commerce segment emerged as a key growth driver, generating ₹104 Crore in turnover compared to ₹92 Crore in Q1 FY26-a 13% YoY increase.

E-commerce: Jumped 22% YoY.

Store Retail: Rose 6% YoY.

Segment EBIT: Turnaround to a positive ₹1.68 Crore, reversing an EBIT loss of ₹9.5 Crore in Q1 FY26.

As of June 30, 2026, Nilkamal operated a retail network of 100 stores across Company-Owned Company-Operated (COCO) and Franchise-Owned Franchise-Operated (FOFO) formats.

Capital Expenditure, Balance Sheet & Credit Rating

Capital Expenditure (Capex): Stood at ₹41 Crore during Q1 FY27, up from ₹36 Crore in Q1 FY26.

Deleveraging: Net Borrowings were reduced to ₹116 Crore as of June 30, 2026, compared to ₹331 Crore as of June 30, 2025.

Credit Rating: CARE Ratings Ltd reaffirmed Nilkamal's long-term credit rating at CARE AA; Stable and short-term rating at CARE A1+.

Consolidated Performance Overview

Consolidated results incorporate Nilkamal's subsidiaries-Nilkamal Eswaran Plastics Pvt. Ltd. and Nilkamal Eswaran Marketing Pvt. Ltd. (Sri Lanka), Nilkamal Crates and Bins FZE (Ajman), and Nilkamal Foundation-alongside its joint venture, Cambro Nilkamal Pvt. Ltd.

Consolidated Net Sales: Stood at ₹820 Crore for Q1 FY27, compared to ₹883 Crore in Q1 FY26.

Consolidated PAT: Reached ₹24 Crore, up from ₹15 Crore in the corresponding quarter of the previous fiscal year.

Shares of Nilkamal Limited was last trading in BSE at Rs. 1794.80 as compared to the previous close of Rs. 1754.40. The total number of shares traded during the day was 10674 in over 861 trades.

The stock hit an intraday high of Rs. 1820.00 and intraday low of 1685.00. The net turnover during the day was Rs. 18721165.00.

Source : Equity Bulls

Keywords

Nilkamal INE310A01015 Q1FY27 Q1FY2027 ResultUpdate