Nath Industries Q1 Results: Net profit turns positive at ₹3.85 crore
Nath Industries posted a Q1FY27 net profit of ₹3.85 crore on ₹160.4 crore revenue, up 37% YoY. Chemical sales doubled to ₹91.6 crore, offsetting a dip in paper revenues. EPS was ₹2.03. The turnaround from a prior-year loss underscores the impact of the chemical segment's expansion.
*this image is generated using AI for illustrative purposes only.
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.
| Segment | Revenue Q1FY27 (₹ crore) | Revenue Q1FY26 (₹ crore) | Change |
|---|---|---|---|
| Sale of Paper | 68.8 | 74.6 | -7.8% |
| Sale of Chemical | 91.6 | 42.6 | +114.9% |
| Total Revenue | 160.4 | 117.3 | +36.8% |
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.
Historical Stock Returns for Nath Industries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.33% | +3.54% | +9.32% | -16.72% | -42.22% | -51.63% |
Will Nath Industries maintain its aggressive capacity expansion in the chemical segment to sustain the 115% revenue growth, or is this a temporary demand spike?
How will the declining performance of the paper segment impact the company's long-term strategic focus and capital allocation between its two core businesses?
Given the sharp rise in material costs alongside revenue growth, can Nath Industries preserve its improved profit margins amidst potential global commodity price volatility?
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