Nilkamal Limited posted strong double-digit revenue growth for FY2025-26. The company recommended a ₹20 per share dividend, signaling confidence despite input cost volatility.
Nilkamal Ltd Posts Strong Double-Digit Growth, Recommends ₹20 Dividend
Nilkamal Limited has reported robust financial performance for the fiscal year 2025-26, with consolidated revenue from operations reaching ₹3,778.06 crore, marking a significant 14.05% year-on-year growth. Standalone revenue also saw a substantial increase of 13.80% to ₹3,686.39 crore.
Reader Takeaway: Strong revenue growth and strategic shift are positives; input cost volatility is a key concern.
What just happened
Nilkamal's consolidated revenue grew 14.05% to ₹3,778.06 crore in FY2025-26. Standalone profit after tax (PAT) rose to ₹105.13 crore from ₹91.27 crore in the previous year.
Why this matters
The company is successfully pivoting towards higher-value, design-led categories beyond its traditional plastic furniture business. This strategic shift is crucial for long-term value creation and resilience.
The backstory
Nilkamal has seen a structural shift with non-plastic home furniture, mattresses, and foam products now contributing more to sales than plastic furniture. This evolution reflects a move towards higher-margin segments.
What changes now
The Board has recommended a final dividend of ₹20 per equity share (face value ₹10). The company is focusing on margin discipline and prudent cash management for FY2026-27.
Risks to watch
Management flagged input cost volatility, citing a 45% spike in raw material prices (polypropylene, polyethylene) due to geopolitical events like the Strait of Hormuz blockade. Competitive pressure in the mattress and furniture segments also poses a risk.
Peer comparison
While specific peer data isn't provided in the filing, Nilkamal's diversification into home solutions and mattresses aligns with broader industry trends of moving towards value-added products.
Context metrics (time-bound)
- Consolidated Revenue Growth: 14.05% YoY for FY2025-26.
- Standalone PAT Growth: Increased to ₹105.13 crore in FY2025-26 from ₹91.27 crore.
- Nilkamal Sleep Growth: 53% YoY.
- PUF/Foam Division Growth: 198% YoY.
- Nilkamal EDGE Growth: 14% YoY.
- Steel Racking Business Growth: 22% YoY.
What to track next
Investors will be watching the expansion of the "Nilkamal Select" retail stores and the company's ability to maintain margin stability amidst ongoing input cost volatility in FY2026-27.