Nilkamal Revenue Surges 12.7% on Strong B2B, Standalone Profit Soars 46.7%

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AuthorRiya Kapoor|Published at:
Nilkamal Revenue Surges 12.7% on Strong B2B, Standalone Profit Soars 46.7%
Overview

Nilkamal Limited posted strong Q3 FY26 financial results, with consolidated revenue climbing 12.7% year-on-year to ₹962 crore. Standalone profit after tax (PAT) surged 46.7% to ₹22 crore, driven by a 51.7% increase in standalone EBITDA. The company also reduced net borrowings to ₹315 crore, showcasing improved financial health. Key B2B segments like Mattress and Foam, Bubbleguard, and Furniture were significant contributors to the growth.

Nilkamal Limited: Q3 FY26 Earnings Analysis

Nilkamal Limited has announced a robust performance for the third quarter and nine months ended December 31, 2025, demonstrating significant year-on-year growth across key financial metrics. The company's strategic focus on its B2B segments appears to be yielding strong results, complemented by a gradual improvement in its retail operations.

📉 The Financial Deep Dive

  • The Numbers:
  • Consolidated Revenue for Q3 FY26 stood at ₹962 crore, marking a healthy 12.7% increase compared to ₹854 crore in the same quarter last year.
  • Standalone Revenue also saw substantial growth, rising by 12% to ₹933 crore from ₹832 crore in Q3 FY25.
  • Standalone EBITDA witnessed a remarkable 51.7% jump, reaching ₹91 crore from ₹60 crore YoY.
  • Standalone Profit Before Tax (PBT) before exceptional items grew by 126.3% to ₹43 crore.
  • After accounting for an exceptional item of ₹15.41 crore (incremental provision for employee benefits), standalone PBT stood at ₹27 crore, a 42.1% increase YoY.
  • Standalone Profit After Tax (PAT) consequently rose by 46.7% to ₹22 crore from ₹15 crore YoY.
  • Consolidated PAT for the quarter was approximately ₹25 crore, up 13.6% from ₹22 crore in the prior year's quarter.
  • Standalone Basic EPS increased by 40% to ₹14 from ₹10 YoY.
  • The Quality:
  • The company reported an improved standalone operating margin of 9.65%, up from 9.00% YoY, indicating better operational efficiency.
  • Net borrowings have been effectively managed, standing at ₹315 crore as of December 31, 2025, a reduction from ₹349 crore a year prior. This translates to a consolidated debt-to-equity ratio of 0.21, down from 0.24 YoY, signalling a stronger balance sheet.
  • Capital expenditure (Capex) in Q3 FY26 was ₹30 crore, a decrease from ₹42 crore in Q3 FY25, and for the nine months YTD FY26, Capex stood at ₹108 crore (down from ₹232 crore YoY). This reduction in investment spending, coupled with debt reduction, points towards a focus on cash conservation and operational efficiency.
  • Segmental Performance:
  • The B2B segment was a key growth driver, registering 12% value growth and 6% volume growth. Notable contributions came from Mattress and Foam (+68%), Bubbleguard (+33%), and Furniture (+16%) businesses.
  • The Retail & E-commerce segment showed a 13% turnover increase to ₹110 crore, with e-commerce up 15% and store retail up 11%. While this segment still reported a negative EBIT of ₹7 crore, it represented an improvement from the negative ₹18 crore in Q3 FY25.

🚩 Risks & Outlook


  • Specific Risks: The exceptional item of ₹15.41 crore, related to employee benefit provisions due to new labour codes, temporarily impacted profitability. While explained, such one-off costs can obscure underlying operational trends. The continued negative EBIT in the Retail & E-commerce segment, though improving, indicates ongoing challenges in achieving profitability in this division.

  • The Forward View: The strong performance in B2B segments suggests continued demand and effective execution in these core areas. Investors will monitor if the positive momentum in B2B can sustain and if the Retail & E-commerce segment can move towards positive EBIT in the coming quarters. The reduced Capex and debt levels provide a stable financial foundation for future growth initiatives.

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