NHC Foods Q3: Revenue Surges 76%, Profits Dip Amid $27M Fundraising Plan

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AuthorAnanya Iyer|Published at:
NHC Foods Q3: Revenue Surges 76%, Profits Dip Amid $27M Fundraising Plan
Overview

NHC Foods' Q3 FY26 saw consolidated revenue soar 76.11% YoY to ₹12,919.04 Lakhs. However, standalone PAT dipped 10.43% YoY to ₹187.51 Lakhs, and basic EPS fell across both standalone and consolidated figures. The company's Board also approved a significant fundraising of up to USD 27 Million and an increased borrowing limit, signaling future growth ambitions.

📉 The Financial Deep Dive

NHC Foods Limited announced its un-audited financial results for the quarter and nine months ended December 31, 2025, revealing a stark contrast between top-line growth and bottom-line performance.

The Numbers (Q3 FY26 vs Q3 FY25):

  • Standalone Performance: Revenue from operations demonstrated robust growth, surging 59.45% YoY to ₹11,698.09 Lakhs. However, this top-line expansion did not translate to the bottom line, as Profit After Tax (PAT) declined by 10.43% YoY to ₹187.51 Lakhs. Basic Earnings Per Share (EPS) consequently dropped significantly from ₹0.18 to ₹0.03.
  • Consolidated Performance: On a consolidated basis, revenue from operations exhibited even stronger growth, climbing 76.11% YoY to ₹12,919.04 Lakhs. Consolidated PAT saw an increase of 27.04% YoY, reaching ₹264.65 Lakhs. Despite this growth, the basic EPS decreased from ₹0.18 to ₹0.04, indicating a dilution or pressure on per-share profitability.

The Numbers (Nine Months FY26 vs Nine Months FY25):

  • Standalone Performance: For the nine-month period, standalone revenue grew by 59.85% YoY to ₹33,069.71 Lakhs. PAT, however, saw a more pronounced decline of 15.64% YoY to ₹489.02 Lakhs. Basic EPS fell sharply from ₹0.46 to ₹0.08.
  • Consolidated Performance: Consolidated revenue for the nine months increased by 60.84% YoY to ₹34,290.66 Lakhs. Consolidated PAT declined by 7.84% YoY to ₹566.16 Lakhs, with basic EPS dropping from ₹0.48 to ₹0.09.

Corporate Actions & Future Outlook:

The company's Board of Directors approved raising funds not exceeding USD 27 Million (approximately ₹225 Crores, subject to exchange rates) through various instruments like equity shares, convertible bonds, debentures, warrants, or preference shares via preferential issue, QIP, or other methods. Furthermore, the Board approved an increase in its borrowing limit under Section 180(1)(a) of the Companies Act, 2013, up to ₹500 crore.

Statements confirming no deviation in the utilization of proceeds from a previous Rights Issue (₹47.42 Crores) and Preferential Issue of Warrants (₹8.125 Crores) were also reviewed. Funds from the Rights Issue were fully utilized for working capital, loan repayment, and general corporate purposes, while Warrant funds were used for capital expenditure, working capital, and general corporate expenditure.

🚩 Risks & Outlook

The significant divergence between revenue growth and profitability, particularly the decline in standalone PAT and EPS, presents a key concern. While the company is pursuing aggressive growth, reflected in the substantial fundraising plans and increased borrowing limits, investors will closely monitor how these funds are deployed and whether they can revive per-share profitability. Execution risk and market conditions impacting margins will be critical factors to watch in the coming quarters. The company also needs to address the declining EPS which could impact valuation multiples.

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