Shares of Nilkamal Ltd surged 20% after the company reported a 102% year-on-year jump in net profit to Rs 68 crore for the September quarter. Revenue rose 16.3% to Rs 1,126 crore, supported by a recovery in capacity utilization. Investors are reacting to the improved operational efficiency and a stronger balance sheet, marked by a reduction in total debt.
Nilkamal Ltd shares gained 20% on the stock exchange following a strong performance report for the July-September 2026 quarter. The company announced a 102% rise in its net profit to Rs 68 crore compared to the same period last year. This result highlights a significant turnaround in the company's financial health, following challenges earlier in the fiscal year.
Operational revenue for the quarter stood at Rs 1,126 crore, a 16.3% increase from the previous year. A key driver for this growth was the recovery in capacity utilization, which rose to over 70% in the second quarter. This marks a notable improvement from the first quarter of the fiscal year, when the company struggled with rising raw material costs and production levels below 50%.
Profitability metrics also saw substantial improvement as the company managed its cost structure effectively. EBITDA, a measure of operating profit, grew by 54.5% to reach Rs 132 crore. This brought the EBITDA margin to 11.70%, up from 8.81% in the same quarter of the previous year. This margin expansion suggests the company managed to maintain stable pricing even as it increased sales volume by 54% compared to the previous quarter.
Debt Reduction and Financial Position
A reduction in debt has provided further support to the company’s financials. Net borrowing fell to Rs 254 crore as of September 30, 2026, down from Rs 376 crore a year ago. This lower debt level reduces interest costs and strengthens the company’s cash flow position. Additionally, the company reported a controlled capital expenditure of Rs 27 crore for the quarter, indicating a disciplined approach to investment compared to the Rs 42 crore spent in the same period last year.
For investors, the next steps to monitor involve the sustainability of this demand and the company’s ability to maintain these margins if raw material prices fluctuate. As the company operates in the competitive moulded furniture and material handling business, maintaining market share while keeping costs in check remains a key focus. The ongoing trend in capacity utilization will be an important metric to track in coming quarters to ensure the current growth trajectory continues.