Nidhi Granites has approved the acquisition of a 50.50% stake in Jowela Exim Private Limited, transforming the unlisted entity into its subsidiary. The transaction involves a cash consideration of ₹1.6 crore, marking a strategic expansion into the precious metals and diamond jewelry sector.

The Board of Directors authorized the subscription to 16,00,000 equity shares of Jowela Exim at a face value of ₹10 each. This investment increases Nidhi Granites' aggregate holding to 16,16,000 equity shares. The move follows a recommendation from the Audit Committee and is structured as a rights issue subscription.

Transaction Details

The acquisition is executed through a cash payment, with no material governmental approvals required. The transaction is scheduled for completion by the end of October 2026. Notably, this deal does not constitute a related party transaction, as the promoter group has no prior interest in the target entity.

Strategic Rationale

Jowela Exim operates in the manufacturing, importing, and exporting of precious metal diamond-studded jewelry. Its business portfolio also includes dealing in precious metals, bullions, diamonds, and both natural and lab-grown rough diamonds. By acquiring controlling interest, Nidhi Granites aims to consolidate its position within this high-value commodity segment.

What the Numbers Show

A significant disparity exists between the acquisition cost and the target's revenue scale. Jowela Exim reported a turnover of ₹743.54 crore as on March 31, 2026. In contrast, the consideration paid for the controlling stake is only ₹1.6 crore. This implies that the valuation assigned to the 50.50% equity share is minimal relative to the company's top-line performance, suggesting either a distressed asset acquisition or a specific capital structure where equity value is decoupled from current turnover metrics.

Nidhi Granites reported a consolidated net profit of ₹289.56 lakh for the quarter ended June 30, 2026, rising 29% from ₹224.03 lakh in the same period of FY25. The company’s total revenue from operations declined 20% year-on-year to ₹1,583.80 lakh from ₹1,981.05 lakh (restated from ₹1,672.95 lakh in earlier filings), driven primarily by a contraction in its construction materials segment.

On a standalone basis, the parent company turned profitable, reporting a net profit of ₹27.11 lakh compared to a loss of ₹33.27 lakh in Q1FY25. This turnaround was largely fueled by other income of ₹19.13 lakh, which significantly offset minimal operating revenues of ₹13.97 lakh and low operating expenses. Standalone income from operations rose to ₹33.10 lakh from ₹7.30 lakh in the previous year quarter.

The Board of Directors approved the unaudited financial results at a meeting held on August 13, 2026. The results were reviewed by the Audit Committee and subjected to a limited review by statutory auditors Jogin Raval & Associates.

Consolidated Financial Performance

The group’s top-line revenue contracted as the construction materials segment saw sales drop to ₹1,062.25 lakh from ₹1,505.37 lakh in the prior year quarter. However, the garments segment contributed ₹507.58 lakh, up from ₹465.52 lakh, providing some offset to the decline.

Total expenses fell sharply by 28% to ₹1,218.10 lakh, aided by lower cost of materials consumed (₹337.58 lakh vs ₹726.20 lakh) and reduced direct expenses. Earnings per share (basic and diluted) stood at ₹3.62, up from ₹2.80 in the previous year.

What the Numbers Show

The financial data reveals a distinct divergence between the parent company and its subsidiaries. While the standalone Nidhi Granites generated negligible operating revenue (₹13.97 lakh), it recorded a profit due to non-operating income. In contrast, the consolidated profit is driven entirely by subsidiaries, particularly in the Financial Technology and related services segment, which reported a segment result before tax of ₹262.97 lakh—accounting for approximately 71% of the total pre-tax segment results of ₹368.97 lakh. This highlights a heavy dependency on the fintech subsidiary for the group’s profitability, despite the absence of direct revenue recognition at the consolidated level for this specific segment line item in the primary income statement view.

Segment Highlights

• Construction Materials: Revenue fell to ₹1,062.25 lakh from ₹1,505.37 lakh; segment result was ₹13.97 lakh.
• Garments: Revenue rose to ₹507.58 lakh from ₹465.52 lakh; however, the segment incurred a small loss of ₹0.09 lakh.
• Financial Technology: Reported a strong segment result of ₹262.97 lakh, up from ₹224.45 lakh, though no specific revenue figure was disclosed separately for this segment in the segment note.
• Paper and Paperboard: Contributed ₹92.12 lakh to segment results, down from ₹107.14 lakh.

The company also noted that SPNP Paper and Pack Private Limited sold its 100% stake in step-down subsidiary Fine Papyrus Private Limited for ₹324.62 lakh on March 16, 2026.