Nikhil Adhesives Reports FY26 Profit of ₹17.36 Crore, Recommends Dividend

Nikhil Adhesives Limited announced its audited financial results for the year ended March 31, 2026, posting a profit after tax of ₹17.36 crore. The company also recommended a dividend of ₹0.22 per equity share.

Reader Takeaway: Strong profit and dividend payout signal confidence; segment simplification aids clarity.

What Happened

Nikhil Adhesives Limited reported its audited financial results for the fiscal year ending March 31, 2026. The company achieved a profit of ₹17.36 crore for the full year. For the fourth quarter ending March 31, 2026, the profit was ₹6.28 crore. Full-year revenue from operations reached ₹553.55 crore, with fourth-quarter revenue at ₹165.96 crore.

The Board of Directors recommended a dividend of ₹0.22 per equity share, pending shareholder approval. The statutory auditors, PHD & Associates, issued an unmodified opinion on the financial results.

Why It Matters

These results show improved profitability for the fiscal year, and the recommended dividend provides a direct return to shareholders. The company also simplified its reporting by consolidating into a single 'Manufacturing' segment and updated its inventory valuation policy, aiming for better financial transparency and comparability.

Previous Performance

In the previous fiscal year (FY25), revenue from operations was ₹553.55 crore, and profit was ₹17.36 crore. Quarterly performance shows year-over-year growth: revenue increased from ₹149.11 crore in Q4 FY25 to ₹165.96 crore in Q4 FY26, and profit rose from ₹4.18 crore to ₹6.28 crore in the same period.

Changes Announced

Following a reduction in trading activities, the company has stopped reporting a separate trading segment and now operates solely under 'Manufacturing'. Additionally, effective April 1, 2025, Nikhil Adhesives changed its inventory valuation method from FIFO to Weighted Average/Standard Cost. This accounting change has been applied retrospectively.

Potential Risks

The company is focusing on its core manufacturing business. Key factors to monitor include the success of the single reportable segment strategy and the impact of the inventory valuation change on future costings. Unforeseen market shifts in the adhesives sector could also pose a challenge.

Key Metrics (FY26)

• Revenue from operations: ₹553.55 crore
• Profit for the year: ₹17.36 crore
• Revenue from operations (Q4): ₹165.96 crore
• Profit for the period (Q4): ₹6.28 crore
• Recommended Dividend: ₹0.22 per equity share

What to Track Next

Investors will want to watch the company's execution within its consolidated manufacturing segment and the long-term effects of the inventory valuation policy change on cost management and financial reporting. Shareholder approval of the recommended dividend is also a key point to follow.