Nandan Denim Q1 Results: Net profit rises 32% YoY to ₹14.8 lakh
Nandan Denim reported a 31.8% YoY rise in net profit to ₹14.80 lakh for Q1FY26, despite a 40.6% drop in revenue to ₹622.39 lakh. The profit surge was driven by a ₹5.07 lakh reversal of earlier tax provisions. The Board also approved the re-appointment of MD Jyotiprasad Chiripal for a five-year term starting June 2027.
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Nandan Denim reported a net profit of ₹14.79 lakh for the quarter ended June 30, 2026, rising 31.8% from ₹11.20 lakh in the corresponding period of FY25. The gain was primarily driven by a reversal of earlier income tax provisions rather than operational expansion, as revenue from operations contracted 40.6% to ₹622.39 lakh. This divergence between top-line decline and bottom-line growth highlights the significant impact of tax adjustments on the company’s quarterly profitability.
The Board of Directors approved the unaudited financial results and the limited review report during a meeting held on August 12, 2026, in compliance with Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Nahta Jain and Associates, the independent auditors, issued their review report on the same date, confirming that the statement was prepared in accordance with Ind AS 34 and did not contain any material misstatement.
Financial Performance
Revenue from operations stood at ₹622.39 lakh for Q1FY26, down from ₹1,047.68 lakh in Q1FY25. Total expenses decreased to ₹614.50 lakh from ₹1,034.40 lakh in the prior year period. Profit before tax was ₹10.32 lakh, compared to ₹14.82 lakh in the previous year.
The net profit figure includes a credit of ₹5.07 lakh from the short provision of income tax or deferred tax of earlier years. Deferred tax expense for the current quarter was ₹58.98 lakh. Earnings per share (basic) were ₹0.10, up from ₹0.08 in the same quarter last year.
| Particulars | Q1FY26 (₹ in lakhs) | Q1FY25 (₹ in lakhs) | Change |
|---|---|---|---|
| Revenue from operations | 622.39 | 1,047.68 | -40.6% |
| Other Income | 2.43 | 1.54 | +57.8% |
| Total Expenses | 614.50 | 1,034.40 | -40.6% |
| Profit Before Tax | 10.32 | 14.82 | -30.4% |
| Net Profit | 14.80 | 11.20 | +31.8% |
Leadership and Governance
On the recommendation of the Nomination & Remuneration Committee, the Board approved the re-appointment of Jyotiprasad Devkinandan Chiripal (DIN: 00155695) as Managing Director for a further term of five years. The tenure is effective from June 1, 2027, to May 31, 2032, subject to shareholder approval. Chiripal, who has over 40 years of experience in the fabric and yarn business, joined Nandan Denim as Managing Director in 2017.
Chiripal holds directorships in several other entities within the Chiripal Group, including Chiripal Industries Limited, True Green Bio Energy Limited, and Grew Technologies Private Limited. He is the father of Deepak Chiripal, the CEO of Nandan Denim Limited.
Strategic Investments
The company disclosed that it entered into a Share Transfer cum Shareholders' Agreement with Opera Vayu (Narmada) Private Limited and Shivman Wind Energy Private Limited for the purchase of wind and solar power under the group captive renewable energy route. On July 13, 2026, Nandan Denim acquired 4,002,096 equity shares (6.1%) of Opera Vayu (Narmada) Private Limited for a total consideration of ₹40.02 lakh.
What the Numbers Show
The most notable aspect of Q1FY26 results is the decoupling of revenue and profit trends. While revenue fell by over 40%, net profit increased by nearly 32%. This outcome is entirely attributable to non-operational factors, specifically the reversal of ₹5.07 lakh in prior-year tax provisions. Excluding this adjustment, the underlying operational performance would have shown a lower profit before tax. Investors should monitor whether this tax benefit is a one-time occurrence or indicative of broader changes in the company’s tax strategy.
Historical Stock Returns for Nandan Denim
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.86% | -1.27% | -2.09% | -24.76% | -31.58% | -91.16% |
What specific operational strategies is Nandan Denim implementing to reverse the 40.6% decline in revenue from operations in upcoming quarters?
How will the acquisition of a 6.1% stake in Opera Vayu (Narmada) impact Nandan Denim's long-term energy costs and carbon footprint?
Given that the profit growth was driven by tax reversals rather than operational efficiency, what is the sustainability of the company's current profit margins?
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