Narmada Macplast Drip Irrigation Systems Ltd reported a sharp decline in net profit for the financial year ended March 31, 2026, despite significant growth in operational revenue. The company’s net profit after tax fell 69% year-on-year to ₹167.50 lakh, down from ₹539.17 lakh in the previous year.

Financial Performance

Revenue from operations rose 90.5% to ₹1,330.70 lakh in FY26, compared to ₹698.40 lakh in FY25. This top-line growth was driven by higher purchases of stock-in-trade, which increased to ₹1,062.70 lakh from ₹594.29 lakh in the prior year.

What the Numbers Show

The divergence between revenue growth and profit contraction highlights the company's reliance on non-operational income in the prior year. In FY25, other income contributed ₹582.19 lakh to total income, primarily due to a ₹537.85 lakh gain on the sale of property, plant, and equipment. This one-time gain was absent in FY26, where other income stood at nil. Consequently, while operational revenue nearly doubled, the absence of this exceptional item led to a substantial drop in bottom-line profitability.

Balance Sheet and Capital Structure

Total assets increased significantly to ₹1,905.34 lakh from ₹884.36 lakh in FY25. This expansion was largely driven by a surge in trade receivables, which jumped to ₹1,355.17 lakh from ₹290.13 lakh, indicating a potential lag in cash collections relative to sales growth. Cash and cash equivalents declined to ₹6.71 lakh from ₹40.08 lakh.

The company undertook major capital structure changes during the year:

• Bonus Issue: A 1:1 bonus share issue was approved and allotted, doubling the number of equity shares.
• Stock Split: The face value of equity shares was sub-divided from ₹10 to ₹2.
• Authorized Capital: Increased to ₹22 crore, comprising 11 crore equity shares of ₹2 each.

Corporate Governance and AGM

The 34th Annual General Meeting is scheduled for September 30, 2026, to be held via Video Conference/Other Audio Visual Means. Key agenda items include:

• Adoption of audited financial statements for FY26.
• Re-appointment of Jiten Vrajlal Vaghasia as a director liable to retire by rotation.
• Re-appointment of Vrajlal Vaghasia as Managing Director with a salary of ₹30,000 per month.
• Re-appointment of Jiten Vrajlal Vaghasia as Whole-time Director with a salary of ₹20,000 per month.

The Board also noted that it has not appointed an Internal Auditor as required under Section 138 of the Companies Act, 2013, stating that a suitable candidate is being sought. Additionally, the company delayed payments for annual listing fees to BSE and depository charges to NSDL and CDSL.

Narmada Macplast Drip Irrigation Systems Ltd reported improved profitability in its first quarter of FY26, with net profit rising 12% year-on-year to ₹45.08 lakh. The company’s revenue from operations also expanded by 19% to ₹368.73 lakh, reflecting stronger sales activity compared to the prior period.

The Gujarat-based manufacturer posted earnings per share (EPS) of ₹1.24 for Q1FY26, up from ₹1.11 in Q1FY25. The Board of Directors approved the standalone unaudited financial results on August 14, 2026, following review by the Audit Committee.

Financial Performance

Revenue growth outpaced expense increases, allowing the company to widen its pre-tax profit margin slightly. However, total expenses rose sharply, driven primarily by higher purchases of stock-in-trade and other operational costs.

Purchases of stock-in-trade increased to ₹290.71 lakh from ₹251.27 lakh year-ago, aligning with the higher revenue base. Other expenses saw a significant jump to ₹16.27 lakh from ₹3.11 lakh in the corresponding quarter last year, partially offsetting the benefits of top-line growth.

What the Numbers Show

While revenue grew nearly 19%, total expenses rose at a faster pace of 20.2%. This divergence indicates that cost pressures, particularly in other expenses, are eroding some of the operating leverage typically gained from sales growth. The company maintained its tax rate consistency, with current tax expense rising proportionally to pre-tax profits.

There were no reportable segments disclosed under Ind AS guidelines. The company reported no other income or comprehensive income items for the period.