Nitta Gelatin India announced a ₹7 per share dividend and reported a 34.5% jump in standalone Profit After Tax to ₹110.59 crore for FY26. A new collagen peptide plant is operational, boosting capacity. The company highlighted strong liquidity and digital transformation efforts.
Nitta Gelatin India's Strong FY26: ₹110.59 Cr Profit, ₹7 Dividend, New Plant
Nitta Gelatin India Limited reported a standalone Profit After Tax (PAT) of ₹110.59 crore for the fiscal year 2025-26, a significant increase of 34.52% from ₹82.21 crore in the previous year. The company also recommended a dividend of ₹7 per share, representing 70% of the face value.
Reader Takeaway: Strong profit growth and new capacity add upside, but auditor notes and geopolitical risks require monitoring.
What just happened
Nitta Gelatin India has posted a robust financial performance for FY 2025-26. Standalone total income grew by 14.26% to ₹614.09 crore from ₹537.43 crore in FY 2024-25. Profit After Tax (PAT) rose by 34.52% to ₹110.59 crore, and pre-tax profit increased to ₹145.60 crore from ₹109.68 crore.
Why this matters
The strong profit growth and a recommended dividend of ₹7 per share signal financial health and a commitment to returning value to shareholders. The successful commissioning of a 3.5 metric tonnes per day Collagen Peptide project enhances the company's production capabilities, positioning it for future revenue expansion. Strong liquidity, indicated by a current ratio of 5.55 and reduced borrowings, further bolsters investor confidence.
The backstory
The company has been focused on expanding its capacities and improving its operational efficiency. This includes investments in new projects and digital transformation initiatives like migrating to SAP S/4HANA. Despite global market challenges, Nitta Gelatin India has maintained high plant utilization rates.
What changes now
The commissioning of the Collagen Peptide plant is expected to contribute significantly to future revenues. The ongoing Gelatin Expansion project will further strengthen its manufacturing base. The company's strong liquidity position provides flexibility for future growth and investment opportunities.
Risks to watch
Geopolitical risks, specifically US tariff measures, have made Nitta Gelatin's products uncompetitive in the US market, impacting exports. The company must monitor these for potential adjustments to its volume strategy. Additionally, the Bamni Proteins factory remains closed, with management exploring asset disposal or restructuring options, which warrants attention.
Auditor and Governance Notes
Statutory auditors noted that audit trail features in SAP ERP and Zoho Books (for retail sales) were not enabled at the database level throughout the year. Management has stated that application-level controls are in place to prevent unauthorized data modifications.
Context metrics (time-bound)
- Standalone Total Income: ₹614.09 crore in FY 2025-26 (up 14.26% from ₹537.43 crore in FY 2024-25).
- Standalone PAT: ₹110.59 crore in FY 2025-26 (up 34.52% from ₹82.21 crore in FY 2024-25).
- Dividend Recommendation: ₹7 per share (70% of face value).
- Capacity Expansion: 3.5 metric tonnes per day Collagen Peptide project commissioned.
- Current Ratio: 5.55 in FY 2025-26 (vs 3.66 in FY 2024-25).
What to track next
Investors should closely monitor the impact of US tariffs on the company's exports and its strategy to mitigate these effects. Additionally, developments regarding the Bamni Proteins unit and the auditor's observations on IT controls will be crucial to watch.