N R Agarwal Industries Q1FY27 net profit jumps 111% on margin expansion
N R Agarwal Industries delivered robust Q1FY27 results with net profit jumping 111% YoY to ₹34.98 crore. Revenue grew 43% to ₹646.96 crore, and EBITDA margin expanded significantly to 11.48% from 3.65%, driven by operational improvements despite higher material costs.
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N R Agarwal Industries Limited reported a net profit of ₹34.98 crore for the quarter ended June 30, 2026, marking a 111% year-on-year increase from ₹16.55 crore in Q1FY26. The Mumbai-based paper manufacturer posted revenue from operations of ₹646.96 crore, a 43% rise from ₹452.14 crore in the same period last year. EBITDA surged to ₹743M from ₹165M, with the EBITDA margin expanding sharply to 11.48% from 3.65%, reflecting significant improvement in operating efficiency and core business profitability.
The Board of Directors approved the unaudited financial results at a meeting held on August 05, 2026, pursuant to Regulation 30 and Regulation 33 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013. Statutory Auditors GMJ & Co., Chartered Accountants, conducted a limited review under Standard on Review Engagements (SRE) 2410 and issued an unmodified opinion on the financial statements.
Financial Performance Overview
Revenue from operations grew significantly, driven by increased sales volume or pricing power, while other income contributed minimally at ₹5.77 crore compared to ₹25.68 crore in Q1FY26. Total expenses rose to ₹606.97 crore from ₹468.01 crore, primarily due to higher cost of materials consumed, which increased to ₹426.15 crore from ₹298.45 crore. Employee benefits expenses also saw a rise to ₹34.01 crore from ₹25.18 crore. The following table summarises the key financial metrics for the quarter:
| Particulars: | Q1FY27 (₹ in Lakhs) | Q1FY26 (₹ in Lakhs) | Change (%) |
|---|---|---|---|
| Revenue from Operations: | 64,695.56 | 45,214.22 | 43.1% |
| Other Income: | 577.03 | 2,568.48 | -77.5% |
| Total Income: | 65,272.59 | 47,782.70 | 36.6% |
| Total Expenses: | 60,696.56 | 46,801.20 | 29.7% |
| EBITDA: | ₹743M | ₹165M | — |
| EBITDA Margin: | 11.48% | 3.65% | — |
| Profit Before Tax: | 4,576.03 | 981.50 | 366.2% |
| Net Profit After Tax: | 3,497.53 | 1,654.88 | 111.3% |
| EPS (Basic/Diluted): | ₹20.55 | ₹9.72 | 111.4% |
Profit before tax surged to ₹45.76 crore from ₹9.82 crore, aided by a lower tax expense burden relative to pre-tax profits. The total tax expense was ₹10.79 crore, comprising ₹1.53 crore current tax and ₹10.63 crore deferred tax. In contrast, the previous year saw a deferred tax credit of ₹6.73 crore, reducing the overall tax impact.
What the Numbers Show
The sharp divergence between the growth in revenue (43%) and the decline in other income (77.5%) indicates that the profit surge is operationally driven rather than reliant on non-operating gains. The EBITDA margin expansion from 3.65% to 11.48% further underscores the improvement in core operating performance during the quarter. In Q1FY26, other income constituted over 5% of total income, whereas in Q1FY27, it fell below 1%, suggesting improved core business efficiency. Additionally, while material costs rose proportionally with revenue, employee benefits and finance costs grew at a slower pace, contributing to margin expansion. The company's paid-up equity capital remained unchanged at ₹17.02 crore.
Historical Stock Returns for N R Agarwal Industries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.98% | +0.54% | +5.79% | +9.97% | +23.94% | +62.25% |
Will the sharp expansion in EBITDA margins from 3.65% to 11.48% be sustainable in Q2FY27, or is it driven by temporary favorable pricing conditions?
How does the significant decline in other income (down 77.5%) impact the company's overall cash flow stability compared to previous quarters?
What specific operational efficiencies or cost-control measures contributed to employee benefits and finance costs growing at a slower pace than revenue?
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