Nidhi granites Limited has announced the sale of its step-down subsidiary Fine Papyrus Private Limited as part of its strategic business restructuring initiative. The transaction, executed through a share purchase agreement dated March 16, 2026, involves the complete divestment of the paper and packaging business entity.

Transaction Structure and Parties

SPNP Paper and Pack Private Limited, a wholly owned subsidiary of Nidhi Granites Limited, has entered into the share purchase agreement with NGL Corporation Private Limited. The deal involves the sale of 100% shareholding in Fine Papyrus Private Limited, which currently operates as a step-down subsidiary of the listed company.

Financial Terms and Consideration

The transaction carries a cash consideration of ₹3,24,62,100 for the complete disposal of Fine Papyrus Private Limited. The original acquisition cost of the shares was at face value of ₹10 per equity share at the time of incorporation or subscription, indicating a significant appreciation in the subsidiary's value over time.

Business Profile and Strategic Rationale

Fine Papyrus Private Limited operates in the paper and packaging industry and was incorporated under the Companies Act, 1956. The company is currently engaged in paper and packaging related activities as a wholly owned subsidiary of SPNP Paper and Pack Private Limited.

The disposal forms part of Nidhi Granites Limited's business restructuring strategy and represents a strategic decision to divest the step-down subsidiary. The transaction does not involve any related party elements, and the promoter group has no interest in the acquiring entity.

Regulatory Compliance and Timeline

The transaction requires no material governmental approvals, streamlining the completion process. The deal is expected to be finalized within 30 days from the execution of the share purchase agreement, or such other mutually agreed date between the parties.

Upon successful completion of the transaction, Fine Papyrus Private Limited will cease to be a step-down subsidiary of Nidhi Granites Limited, marking the company's exit from this particular segment of the paper and packaging business.

Nidhi Granites Limited announced its unaudited financial results for the quarter ended December 31, 2025, along with significant corporate developments during its Board meeting held on February 13, 2026.

Financial Performance Overview

The company's financial performance showed contrasting results between its standalone and consolidated operations for Q3FY26:

On a consolidated basis, the company demonstrated strong growth with revenue from operations increasing to ₹1,555.07 lakhs in Q3FY26 compared to ₹1,341.49 lakhs in Q3FY25. The consolidated net profit surged to ₹220.61 lakhs from ₹94.22 lakhs in the corresponding quarter of the previous year.

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, the consolidated performance showed robust growth:

Segment-wise Business Performance

The company operates across four distinct business segments with varying contributions:

Q3FY26 Segment Revenue:

• Financial Technology Services: ₹416.29 lakhs (new segment)
• Paper and Paperboard: ₹1,138.71 lakhs
• Garments: ₹0.07 lakhs
• Construction Materials: Nil

The Financial Technology and related services segment, introduced following the acquisition of Auro Fintech Private Limited (now renamed Paynov8 Private Limited), contributed significantly with ₹416.29 lakhs in revenue and ₹239.77 lakhs in segment profit before tax for Q3FY26.

Key Corporate Developments

The Board approved several important corporate decisions during the meeting:

Leadership Profile

Mr. Darpan Shah brings over 25 years of experience in payment solutions, cross-border remittances, and e-commerce business. His professional background includes tenures with JP Morgan Chase (NY, USA), Times of Money Ltd, Yes Bank Ltd, and IndusInd Bank Ltd as Vice President & Head – Global Remittances & E-commerce Business. He is actively engaged in business expansion and M&A activities in the payment space for the company.

Subsidiary Operations

The company's subsidiary structure includes SPNP Paper and Pack Private Limited, Yug Fashion Garments Private Limited, Paynov8 Private Limited (formerly Auro Fintech Private Limited), and step-down subsidiary Fine Papyrus Private Limited. The acquisition of Auro Fintech Private Limited for ₹60.57 lakhs on April 1, 2025, has significantly contributed to the company's financial technology segment performance.

The paid-up equity share capital remains stable at ₹800.00 lakhs with a face value of ₹10 per share across all reporting periods.