Narmada Agrobase reported FY26 revenue growth of 20.1% to ₹79.67 crore. However, net profit fell 15.1% to ₹3.47 crore. The board recommended a stock split and incorporated a new subsidiary.
Narmada Agrobase Limited Announces FY26 Financials
For the fiscal year ended March 31, 2026, Narmada Agrobase Limited reported net revenue of ₹79.67 crore, marking a 20.1% increase from ₹66.34 crore in the previous year. The company's profit after tax, however, saw a 15.1% decline, settling at ₹3.47 crore compared to ₹4.09 crore in FY 2024-25.
Reader Takeaway: Revenue growth is positive, but margin pressure from input costs is a concern.
What just happened
Narmada Agrobase Limited has disclosed its financial results for the fiscal year 2025-26. The company reported net revenue of ₹79.67 crore, an increase of 20.1% year-on-year. However, its net profit after tax decreased by 15.1% to ₹3.47 crore for the period.
Why this matters
The revenue growth indicates increased demand for Narmada Agrobase's products. The profit contraction, however, signals potential margin pressure, which could impact shareholder returns if not managed. The proposed stock split aims to enhance liquidity and attract retail investors.
The backstory
Narmada Agrobase Limited has been focused on expanding its operations. The company's financial performance in the past year has been influenced by market conditions and raw material price fluctuations. The recent incorporation of a wholly-owned subsidiary signals strategic diversification efforts.
What changes now
The board has recommended a stock split, converting equity shares of ₹10 face value to ₹5 face value, subject to shareholder approval. This move is intended to improve share affordability and trading liquidity. The company also incorporated 'Narmada Bio Feed Private Limited' as a new subsidiary on May 6, 2026.
Risks to watch
The primary risk highlighted is input cost volatility, specifically in raw materials, which management cited as a reason for the profit contraction. This volatility can directly affect the company's net profit margins. Investors should also monitor the performance of the new subsidiary.
Peer comparison
While specific peer performance data for FY26 is not detailed in the filing, Narmada Agrobase operates in the agro-processing sector, likely facing similar market dynamics and raw material cost pressures as other companies in the animal feed and related segments.
Context metrics (time-bound)
- Net Revenue FY 2025-26: ₹79.67 crore (+20.1% YoY)
- Profit After Tax FY 2025-26: ₹3.47 crore (-15.1% YoY)
- Proposed Stock Split: ₹10 face value to ₹5 face value.
- New Subsidiary Incorporated: May 6, 2026 ('Narmada Bio Feed Private Limited')
What to track next
Investors should watch for shareholder approval of the proposed stock split, its impact on trading liquidity, and the performance and strategic direction of the new subsidiary, Narmada Bio Feed Private Limited. Monitoring raw material prices will also be crucial for assessing future profitability.