National Standard India Files for Merger with Lodha Developers Amidst Profit Decline

National Standard India reported a profit of ₹9.66 crore for FY 2025-26, a decrease from ₹13.20 crore in the previous year.

Reader Takeaway: Merger progress is key; declining profits pose a challenge.

What just happened

National Standard (India) Ltd has submitted its 63rd Annual Report for FY 2025-26, revealing a year-on-year decline in financial performance. Revenue from operations fell by 8.6% to ₹20.42 crore, and net profit dropped to ₹9.66 crore from ₹13.20 crore in FY 2024-25. The company also announced that an application for its merger by absorption with Lodha Developers Limited was filed with the National Company Law Tribunal (NCLT), Mumbai Bench, on June 11, 2026.

Why this matters

The proposed merger with Lodha Developers is the most significant development for National Standard India's shareholders. This move will determine the future of National Standard India as a listed entity. The company's shift in business model, focusing on trading building materials rather than active real estate development, also changes its investment profile.

The backstory

National Standard (India) Ltd has been transitioning its business model. Previously involved in real estate, it now primarily trades building and construction materials. This strategic shift is being executed alongside a proposed merger with its holding company, Lodha Developers.

What changes now

The company is awaiting the NCLT's decision on the merger application. Simultaneously, shareholders will be asked to approve material related party transactions with Cowtown Infotech Services Limited for FY2026-27, totaling up to ₹75 crore. The appointment of new statutory auditors, M/s. Walker Chandiok & Co. LLP, for a five-year term (2026-2031) is also proposed.

Risks to watch

Key risks include potential delays or rejection of the merger by the NCLT. The company's reliance on related party transactions with Cowtown Infotech Services for its trading business also presents a governance and operational risk that investors should monitor.

Peer comparison

National Standard India's business model is now distinct from pure real estate developers. Its focus on trading building materials and its pending merger place it in a unique position within the market.

Context metrics (time-bound)

For FY 2025-26, Revenue from Operations was ₹20.42 crore, Total Income was ₹39.96 crore, and Profit for the year was ₹9.66 crore. Basic EPS stood at ₹4.83.

What to track next

Investors should closely follow updates from the NCLT regarding the merger hearing. Monitoring the outcome of the shareholder vote on related party transactions and the company's performance in its trading business will also be crucial.