Nath Industries Reports Record FY26 Income of Rs 494.87 Crore

Total Income: Rs 494.87 crore | Net Profit: Rs 6.67 crore

Reader Takeaway: Top-line growth hit a record high, but profitability suffered due to geopolitical risks and margin compression.

What just happened

Nath Industries Limited has released its 44th Annual Report for the fiscal year ending 2025-26. While the company achieved its highest-ever total income of Rs 494.87 crore—up from Rs 427.47 crore in the previous year—profitability saw a contraction. Net profit (PAT) dropped to Rs 6.67 crore from Rs 9.74 crore, as global economic volatility and elevated logistics costs weighed on the bottom line.

Why this matters

Despite achieving record revenue, the decline in EBITDA from Rs 34.67 crore to Rs 29.21 crore highlights the impact of external headwinds. The company explicitly noted that USA-imposed tariffs and geopolitical instability in shipping routes created significant supply chain disruptions. Investors should note that the firm’s EPS fell to Rs 3.51, reflecting the challenging operating environment.

Management Commentary

Management emphasized that while the paper and chemical divisions performed well in terms of turnover, rising input prices proved difficult to fully pass on to customers. The company remains committed to energy-saving initiatives to mitigate fuel costs, which represented 8.77% of operations this year.

Corporate Actions

The Board of Directors has not recommended a dividend for the current fiscal year. The company intends to retain these profits to support upcoming growth initiatives and capital investments. Additionally, the AGM is scheduled for September 30, 2026, where shareholders will vote on the re-appointment of directors, including Ms. Nupur Lodwal and Independent Directors Mr. Hitesh Rajnikant Purohit and Mr. Madhukar Deshpande.

Risks to watch

The primary concern remains margin pressure. With EBITDA falling despite revenue growth, the company's ability to maintain pricing power amid raw material volatility will be critical. The company continues to face exposure to global trade restrictions and regional conflicts, which remain key risks for the next fiscal year.