Nath Industries reported a 31% year-on-year decline in net profit to ₹667.70 lakh for the fiscal year ended March 31, 2026 (FY26). The company’s total income rose 16% to ₹4,948.7 crore, marking its highest-ever turnover despite significant geopolitical headwinds.

The Board of Directors decided against declaring a dividend for the year, opting instead to retain profits for future growth and investment requirements. The company will hold its 44th Annual General Meeting on September 30, 2026, to approve the financial statements and reappoint independent directors.

Financial Performance

Revenue from operations grew to ₹4,906.9 crore from ₹4,244.7 crore in the previous year. However, EBITDA (profit before interest and depreciation) contracted to ₹2,921 lakh from ₹3,467 lakh, resulting in an EBITDA margin compression from 8.11% to 5.90%.

What the Numbers Show

The divergence between top-line growth and bottom-line contraction highlights severe margin pressure. While revenue expanded by nearly ₹700 crore, operating profits fell by over ₹500 lakh. This indicates that rising input costs, supply chain disruptions, and export tariff impacts absorbed most of the incremental revenue, eroding profitability despite higher sales volumes.

Segment Highlights

The paper division contributed 60.43% of total turnover, achieving ₹2,960 crore in sales compared to ₹2,850 crore previously. The chemical division saw stronger growth, with turnover rising to ₹1,940 crore from ₹1,380 crore. Export turnover for the paper division stood at ₹363.8 million, impacted by US tariffs and shipping disruptions.

Governance and AGM

Shareholders will vote on the reappointment of Hitesh Purohit and Madhukar Deshpande as independent directors for five-year terms. The company also seeks ratification of cost auditor remuneration at ₹50,000 plus taxes. The register of members will remain closed from September 27 to September 29, 2026.

Nath Industries reported a net profit of ₹3.85 crore for the quarter ended June 30, 2026 (Q1FY27), marking a return to profitability from a net loss of ₹2.08 crore in the same period last year. Revenue from operations expanded 37% year-on-year to ₹160.4 crore, reflecting robust demand in its core business segments.

The results were approved by the Board of Directors during its meeting held on August 12, 2026. The unaudited standalone financial statements were reviewed by N. R. Agrawal & Co., the company’s chartered accountants, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Revenue and Segment Performance

Total income from operations stood at ₹160.45 crore for Q1FY27, compared to ₹118.25 crore in Q1FY26. The growth was largely propelled by the chemical segment, which saw revenue more than double to ₹91.6 crore from ₹42.6 crore in the previous year. In contrast, paper sales declined slightly to ₹68.8 crore from ₹74.6 crore.

Earnings per share (EPS) came in at ₹2.03, an improvement over the ₹2.00 recorded in Q1FY26.

Cost Structure and Profitability

Cost of materials consumed rose to ₹124.5 crore from ₹75.3 crore, aligning with the higher volume of chemical sales. Employee benefit expenses remained stable at ₹6.0 crore, while finance costs decreased slightly to ₹2.5 crore from ₹2.9 crore. Other expenses contracted to ₹25.2 crore from ₹26.6 crore, contributing to improved operating efficiency.

Profit before tax increased to ₹4.56 crore from ₹3.79 crore. After accounting for current tax expenses of ₹7.1 crore, the net profit after tax reached ₹3.85 crore. The previous quarter (Q4FY26) had seen a net loss of ₹2.08 crore due to deferred tax expenses and other adjustments.

What the Numbers Show

The chemical segment emerged as the primary driver of profitability, contributing ₹50.4 crore to segment results compared to just ₹5.0 crore in the preceding quarter. This surge contrasts with the paper segment, where segment results fell to ₹2.0 crore from ₹4.2 crore year-on-year. The divergence highlights a shifting revenue mix, with chemicals now accounting for over 57% of total revenue, up from approximately 36% in Q1FY26.

Total assets grew to ₹496.7 crore from ₹415.8 crore, while total liabilities increased to ₹231.3 crore from ₹155.2 crore. The capital employed in the chemical segment rose significantly, indicating potential capacity utilization or inventory buildup supporting the sales growth.