Nilkamal Ltd Q1 FY26 Earnings Results – 17% fall in Profits

Nilkamal Ltd transformed from Plastic Furniture to Complete Furniture Solution Provider for Home Furniture, Office Furniture, etc., in various materials and upholstered products.

Q1 FY26 Earnings Summary (Apr–Jun 2025)

• Consolidated Revenue from Operations: ₹883 crore, up 19% YoY.

• Net Profit (PAT): ₹15 crore, a steep drop from previous periods.

• EPS: Not explicitly reported, but reflective of significant margin pressure.

• New Business Trends:

  • Muted B2B business (excluding racking), with postponement of institutional spending due to the election cycle.

  • B2C segment: Declined 13% YoY due to soft demand and lower footfalls in lifestyle/@home retail.

  • Racking business: Grew 44% YoY.

  • Mattress business: Up 10% YoY, supported by more channels and in-house foam manufacturing.

  • E-commerce sales: Grew 16% YoY.

• Key Investments: Announced capex of ₹150 crore for FY26 to enhance manufacturing capacity and new channels.

• Management/Board: Appointment of a new independent director to strengthen governance.

Key Management & Strategic Decisions

• Retail Rebranding: Unification of @Home and Nilkamal Furniture Ideas under “Nilkamal Homes” to drive retail expansion and improve brand visibility.

• Channel & Product Diversification: Strong focus on growing the mattress and Bubbleguard divisions; expanding digital and channel partner networks.

• Cost Management: Ongoing efforts to optimize costs amid rising material expenses; renewed focus on operational efficiency in muted demand conditions.

• Investments: Significant capex outlay (₹150 crore) for upgrade/expansion, especially in high-growth businesses.

• E-commerce Expansion: Leveraging digital and e-commerce to broaden delivery reach and product portfolio.

• International Operations: Subsidiaries in Sri Lanka saw improved performance; UAE subsidiary experienced muted growth.

 

 

Q4 FY25 Earnings Summary (Jan–Mar 2025)

• Consolidated Revenue from Operations: ₹894.01 crore, up 7.17% YoY.

• Net Profit (PAT): ₹34.13 crore, down 3.9% YoY from ₹35.51 crore in Q4 FY24, but up 58.8% sequentially from Q3 FY25.

• EBITDA: ₹87.73 crore, up 4.04% YoY.

• EBITDA Margin: Approximately 9.8%.

• EPS: ₹23.30, compared to ₹23.83 in Q4 FY24.

• Profit Before Tax: ₹45.57 crore, down 1.9% YoY.

• Expenses: Total expenses rose 7.7% YoY to ₹851.16 crore, driven by an 8.45% increase in raw material costs and higher other expenditures.

• Dividend: Board declared a final dividend of ₹20 per share.

• Segmental Trends:

  • B2B/material handling business: Revenue grew 4.7% YoY.

  • Retail/e-commerce sales: Declined 6.3% YoY.

  • Mattress business: Grew by 38% in FY25.

  • Bubbleguard business: Up 14% in FY25.