Nilkamal Limited Reports Strong Q2 FY27 Financial Results

Profit after tax (PAT) rose 102% to Rs 67 crore, while revenue increased 17% to Rs 1,106 crore.

Reader Takeaway: Robust B2B growth and improved factory efficiency pushed margins higher, though investors should watch retail segment profitability.

What just happened

Nilkamal Limited posted impressive growth for the quarter ended September 30, 2026. Revenue climbed to Rs 1,106 crore from Rs 948 crore in the year-ago period. Profitability metrics saw a sharp uptick, with EBITDA jumping 57% to Rs 139 crore and profit before tax rising 106% to Rs 89 crore.

Why this matters

The company has demonstrated strong operational leverage. Capacity utilization surged to over 70% in Q2, a massive improvement from the sub-50% levels seen in Q1. This efficiency gain, coupled with a disciplined approach to capital expenditure (Rs 27 crore for the quarter), has helped the company significantly deleverage its balance sheet.

The backstory

The B2B business continues to lead the company's growth, accounting for the bulk of revenue at Rs 987 crore. The mattress and foam division was a standout, growing by 39% year-on-year, while the ready furniture business expanded by 15%. Meanwhile, the retail and e-commerce arm showed steady, albeit slower, growth of 8%.

Risks to watch

While B2B performance is strong, the retail segment’s growth remains moderate at 8%. Investors should track whether the company can maintain the 70%+ capacity utilization rate amidst potentially volatile demand and if the retail store network (108 stores) can improve its bottom-line contribution.

Context metrics

Net borrowing as of September 30, 2026, stood at Rs 254 crore, down from Rs 376 crore a year earlier. This reduction in debt is a positive signal for long-term balance sheet stability.