Naman Industries FY26 Net Loss Rs 22.82 Cr, Revenue Falls 8.4%
Naman Industries Proxima Limited reported a net loss of ₹228.22 lakhs for the year ended 31st March 2026, compared to a net profit of ₹627.95 lakhs in the previous year. Revenue from operations declined by 8.4% to ₹14,250.94 lakhs, impacted by a slowdown in high-value retail project orders and rising material costs. The company's EBITDA margins compressed to 2.1% from 10.3% in the prior year. Despite the financial downturn, the company is proceeding with a capacity expansion plan, including a new factory in Wada, Maharashtra, with an estimated capex of ₹40 Cr, aiming to increase revenue potential to ₹270–300 Cr. The Board approved the appointment of a new internal auditor and extended the timeline for IPO fund utilisation for factory construction.
*this image is generated using AI for illustrative purposes only.
Naman Industries Proxima Limited (formerly known as Naman In-Store (India) Limited) disclosed its audited standalone financial results for the half-year and year ended 31st March 2026, as approved by its Board of Directors at a meeting held on 15th May 2026. The company also released an investor presentation on 16th May 2026, detailing the performance and strategic outlook. The results were reviewed by the Audit Committee and audited by statutory auditors M/s. Rushabh Davda & Associates (FRN: 156559W), who issued an unmodified audit opinion. The company is listed on the Emerge Platform of the National Stock Exchange of India Limited.
Financial Performance: Year Ended 31st March 2026
The company recorded a net loss of ₹228.22 lakhs for the year ended 31st March 2026, compared to a net profit of ₹627.95 lakhs for the year ended 31st March 2025. Revenue from operations declined to ₹14,250.94 lakhs from ₹15,562.86 lakhs in the prior year. Total revenue, including other income of ₹175.98 lakhs, stood at ₹14,426.92 lakhs against ₹15,712.71 lakhs in the previous year. The loss before tax for the year was ₹298.13 lakhs, compared to a profit before tax of ₹850.03 lakhs in the prior year.
The following table summarises the key financial metrics for the full year:
| Metric: | Year Ended 31st March 2026 (Audited) | Year Ended 31st March 2025 (Audited) |
|---|---|---|
| Revenue from Operations: | ₹14,250.94 lakhs | ₹15,562.86 lakhs |
| Other Income: | ₹175.98 lakhs | ₹149.85 lakhs |
| Total Revenue: | ₹14,426.92 lakhs | ₹15,712.71 lakhs |
| Total Expenses: | ₹14,121.31 lakhs | ₹14,090.94 lakhs |
| Profit Before Depreciation, Finance Cost & Tax: | ₹305.61 lakhs | ₹1,621.77 lakhs |
| Finance Costs: | ₹263.41 lakhs | ₹375.72 lakhs |
| Depreciation & Amortisation (Direct): | ₹285.96 lakhs | ₹331.94 lakhs |
| Depreciation & Amortisation (Indirect): | ₹54.37 lakhs | ₹64.08 lakhs |
| Profit/(Loss) Before Tax: | ₹(298.13) lakhs | ₹850.03 lakhs |
| Net Profit/(Loss): | ₹(228.22) lakhs | ₹627.95 lakhs |
| Basic & Diluted EPS (₹): | (1.75) | 5.34 |
Half-Year Performance
For the half-year ended 31st March 2026, the company reported a loss before tax of ₹342.01 lakhs and a net loss of ₹260.89 lakhs, compared to a profit before tax of ₹203.96 lakhs and net profit of ₹147.26 lakhs for the half-year ended 31st March 2025. Revenue from operations for the second half stood at ₹7,358.68 lakhs, down from ₹8,914.18 lakhs in the corresponding prior-year period. Basic and diluted earnings per share for the half-year ended 31st March 2026 stood at ₹(2.00), against ₹1.14 for the half-year ended 31st March 2025.
Balance Sheet Highlights as at 31st March 2026
The audited balance sheet as at 31st March 2026 reflects total assets of ₹12,162.85 lakhs, compared to ₹11,861.83 lakhs as at 31st March 2025. Shareholders' funds stood at ₹7,709.87 lakhs against ₹7,938.09 lakhs in the prior year, comprising share capital of ₹1,306.60 lakhs and reserves and surplus of ₹6,403.27 lakhs. Short-term borrowings increased to ₹1,818.44 lakhs from ₹1,108.87 lakhs, while long-term borrowings declined to ₹512.77 lakhs from ₹709.52 lakhs.
| Balance Sheet Item: | 31st March 2026 (₹ in Lakhs) | 31st March 2025 (₹ in Lakhs) |
|---|---|---|
| Share Capital: | 1,306.60 | 1,306.60 |
| Reserves & Surplus: | 6,403.27 | 6,631.49 |
| Shareholders' Funds: | 7,709.87 | 7,938.09 |
| Long-Term Borrowings: | 512.77 | 709.52 |
| Short-Term Borrowings: | 1,818.44 | 1,108.87 |
| Total Assets: | 12,162.85 | 11,861.83 |
| Inventories: | 3,499.58 | 3,866.47 |
| Trade Receivables: | 2,967.47 | 2,737.18 |
| Cash and Bank Balances: | 1,413.82 | 2,353.97 |
Cash Flow Summary
The cash flow statement, prepared under the Indirect Method as per Accounting Standard AS-3, shows net cash outflow from operating activities of ₹707.40 lakhs for the year ended 31st March 2026, compared to an outflow of ₹949.58 lakhs in the prior year. Net cash inflow from investing activities was ₹1,583.47 lakhs, against an outflow of ₹2,957.47 lakhs in the prior year, primarily driven by maturity proceeds from fixed deposits. Net cash inflow from financing activities stood at ₹313.38 lakhs. Cash and cash equivalents at the end of the year were ₹1,219.90 lakhs, compared to ₹30.46 lakhs at the beginning of the year.
IPO and Preferential Issue: Fund Utilisation
The company had raised ₹2,534.72 lakhs through its IPO, comprising 28,48,000 equity shares of ₹10 each at a premium of ₹79 each, and was listed on the Emerge Platform of the National Stock Exchange of India Limited on 2nd April 2024. As at 31st March 2026, ₹1,420.93 lakhs of the IPO proceeds had been utilised, with ₹1,113.79 lakhs remaining unutilised and invested in fixed deposits. The unutilised amount pertains to the construction of a factory building at Village Chambale, Taluka Wada. Pursuant to shareholder approval via Postal Ballot dated 28th March 2026, the implementation timeline for utilisation of the remaining IPO proceeds has been extended to 30th September 2027, without any change in the objects of the issue.
The following table details the IPO fund utilisation status:
| Object of Issue: | Revised Allocated Amount (₹ in Lakhs) | Amount Utilised till 31st March 2026 (₹ in Lakhs) | Amount Unutilised till 31st March 2026 (₹ in Lakhs) |
|---|---|---|---|
| Purchase of Land (Village Chambale, Taluka Wada): | 549.03 | 549.03 | - |
| Construction of Factory Building: | 1,113.79 | - | 1,113.79 |
| Stamp Duty, Registration & Other Statutory Expenses: | 37.18 | 37.18 | - |
| General Corporate Expense: | 584.72 | 584.72 | - |
| Public Issue Expense: | 250.00 | 250.00 | - |
| Total: | 2,534.72 | 1,420.93 | 1,113.79 |
Separately, the company raised ₹3,499.99 lakhs through a Preferential Issue of 25,17,980 equity shares of ₹10 each at a premium of ₹129 each, allotted on 7th October 2024. The entire amount of ₹3,499.99 lakhs has been fully utilised — ₹850.00 lakhs for General Corporate Expenses and ₹2,649.99 lakhs for Working Capital — with no deviation or variation reported.
Strategic Outlook and Capacity Expansion
According to the investor presentation, the company is undertaking a capacity expansion with a new factory in Wada, Maharashtra. The facility is expected to be operational in 12–18 months with an estimated capital expenditure of around ₹40 Cr in Phase 1. The expansion covers an area of approximately 1,20,000 sq. ft. Post-expansion, the company expects revenue potential to increase to ₹270–300 Cr, representing a ~70% increase from the current peak revenue potential of ₹175–180 Cr. The company aims for a PAT margin of 7–7.5% and growth of 15–20% YoY, with potential to double current performance post full-scale operations.
Board Decisions and Other Disclosures
At the Board meeting held on 15th May 2026, the Board also approved the appointment of M/s. Tarun P. Jain & Associates (FRN: 136969W) as Internal Auditor of the company for the financial year 2026-27. The firm offers services including audit and tax advisory, compliance, assurance services, and asset management services, and has no relationship with any Board Director or Key Managerial Personnel of the company. The Board meeting commenced at 04:30 P.M. (IST) and concluded at 05:28 P.M. (IST). The statutory auditor noted an emphasis of matter regarding the implementation of New Labour Codes, with the management evaluating the consequential impact, if any, on employee benefit obligations; the audit opinion remains unmodified in this regard.
Will Naman Industries Proxima be able to reverse its net loss trajectory and return to profitability before the Wada factory becomes operational, given the current working capital pressures and declining revenue?
How might the 64% surge in short-term borrowings combined with the ongoing cash burn from operations affect the company's credit profile and ability to secure additional financing for the ₹40 Cr Phase 1 capex?
What specific demand drivers or client pipeline does management anticipate to justify the projected 70% revenue increase to ₹270–300 Cr post-expansion, especially given the current revenue decline trend?
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