National Standard posts ₹96.6 crore profit in FY26 amid revenue dip
National Standard (India) Limited posted a net profit of ₹96.59 crore in FY26, declining from ₹131.99 crore in FY25, amid a drop in operational revenue to ₹204.18 lakh. The company, which has no active real estate projects, relies on trading and intra-group loans for income. Its upcoming AGM will approve ₹75 crore in related party transactions with Cowtown Infotech Services Limited and appoint new directors and statutory auditors.
*this image is generated using AI for illustrative purposes only.
National Standard (India) Limited reported a net profit of ₹96.59 crore for the financial year ended March 31, 2026 (FY26), a decline from the ₹131.99 crore recorded in FY25. The drop in profitability was driven by a contraction in revenue from operations, which fell to ₹2,041.81 lakh in FY26 compared to ₹2,232.97 lakh in the previous year. Despite the lower operational income, total income remained relatively stable at ₹3,995.77 lakh, supported by other income of ₹1,953.96 lakh. The company is now seeking shareholder approval for significant governance changes and related party transactions totaling ₹75 crore at its 63rd Annual General Meeting (AGM) scheduled for August 28, 2026.
The Board’s Report highlights that the company’s real estate project was completed in 2018, and it currently has no active development projects. Instead, operations focus on trading building materials and earning interest on surplus funds deployed within the group. The proposed related party transactions with Cowtown Infotech Services Limited, a fellow subsidiary, include ₹25 crore for the sale of building materials and ₹50 crore for loans and advances. These transactions represent 367% of the company’s annual consolidated turnover for the preceding financial year, underscoring a strategic dependency on group entities for liquidity and revenue generation.
Financial Performance Overview
The company’s financial structure remains robust with no borrowings, resulting in a debt-free balance sheet. Key financial metrics for FY26 reflect a shift in margin dynamics due to the mix of operating and non-operating income.
| Metric | FY26 (₹ lakh) | FY25 (₹ lakh) | Change |
|---|---|---|---|
| Revenue from Operations | 2,041.81 | 2,232.97 | -8.56% |
| Other Income | 1,953.96 | 1,813.40 | +7.75% |
| Profit Before Tax | 1,327.93 | 1,827.03 | -27.32% |
| Net Profit After Tax | 965.89 | 1,319.92 | -26.83% |
Operating profit margin decreased to 0.33% from 0.45% in FY25, while net profit margin stood at 0.47%, down from 0.59%. The current ratio improved significantly to 96.91 from 56.09, driven by a reduction in current liabilities. Trade receivables turnover ratio declined by 30.69% to 7.81, indicating slower collection cycles relative to revenue.
Governance and Board Changes
The AGM will also address critical board appointments and auditor changes. Shareholders will vote on the appointment of M/s. Walker Chandiok & Co. LLP as Statutory Auditors for a five-year term, replacing M/s MSKA & Associates LLP which completes its tenure. The proposed remuneration for the new auditors is ₹5 lakh per annum plus out-of-pocket expenses.
Board composition updates include:
- Vikas Jain: Appointment as Non-Executive Non-Independent Director. He brings over 19 years of experience in corporate finance and currently serves as Co-Head Finance at Lodha Group.
- Sanjay Bahad: Appointment as Independent Director for a first term ending July 5, 2031. He holds a PMP certification and has over three decades of experience in civil construction project management.
- Ritika Bhalla: Re-appointment as Independent Director for a second term ending July 11, 2032.
- Kurian Arimpur: Re-appointment as Non-Executive Non-Independent Director upon retirement by rotation.
What the Numbers Show
The financial data reveals a company transitioning from active real estate development to a holding-style entity focused on asset monetization and intra-group financing. With no employees and key managerial personnel deputed from the holding company, Lodha Developers Limited, operational costs are minimal. The high proportion of other income relative to revenue suggests that the core value driver is the deployment of surplus cash within the Lodha ecosystem rather than organic trading growth. The proposed ₹75 crore in related party transactions further cements this interdependence, allowing National Standard to earn steady interest income while supporting group procurement needs. This structure minimizes operational risk but concentrates exposure on the creditworthiness and performance of the holding company.
Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE166R01015/adb74b03-4d6d-4bb1-b6c1-0f00e4fd7a5d.pdf
Historical Stock Returns for National Standard
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -5.00% | -26.45% | -81.49% | -83.32% | -83.32% | -83.32% |
How might the proposed ₹75 crore in related party transactions impact National Standard's financial independence and valuation multiples given its heavy reliance on the Lodha group ecosystem?
With no active real estate development projects, what is the long-term strategy for deploying surplus funds to maintain profitability if interest rates or intra-group lending dynamics shift?
What are the potential risks associated with the 30.69% decline in trade receivables turnover ratio, and how could this affect cash flow stability in future quarters?
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