Nikhil Adhesives FY26 net profit rises 6.4% to ₹235.73 crore
Nikhil Adhesives reported a 6.4% rise in FY26 net profit to ₹235.73 crore, while revenue declined to ₹563.55 crore. The Board recommended a ₹0.22 dividend and re-appointed key directors.
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Nikhil Adhesives Limited reported a net profit of ₹235.73 crore for the financial year ended March 31, 2026, marking a 6.4% increase from ₹221.34 crore in the previous year. Revenue from operations for the year stood at ₹563.55 crore, compared to ₹592.18 crore in FY25. The Board of Directors has recommended a dividend of ₹0.22 per equity share for the financial year, subject to shareholder approval at the ensuing Annual General Meeting.
For the quarter ended March 31, 2026, the company recorded a net profit of ₹82.92 crore, a significant rise from ₹57.62 crore in the same period last year. Quarterly revenue from operations increased to ₹165.96 crore from ₹149.11 crore in the corresponding quarter of the previous year. The financial results were reviewed by the Audit Committee and approved by the Board on May 27, 2026.
The Board also approved the re-appointment of key personnel and auditors. Mr. Umesh J. Sanghavi has been re-appointed as Chairman and Managing Director for a period of three years effective from July 10, 2026. Mr. Tarak Jayantilal Sanghavi and Mr. Rajendra J. Sanghavi were re-appointed as Whole Time Directors for three years effective from January 1, 2027. Additionally, M/s. BD G & Co., LLP and M/s. B. F. Modi & Associates were re-appointed as Internal Auditors and Cost Auditors, respectively, for the financial year 2026-27.
The company’s statutory auditors, M/s. PHD & Associates, issued an unmodified opinion on the audited standalone financial results. The results include an exceptional item of ₹36.56 lakh recognized in the quarter ended December 31, 2025, related to a one-time expense for gratuity liability following the notification of new Labour Codes.
Financial Performance
The following table summarizes the financial results for Nikhil Adhesives Limited for the quarter and year ended March 31, 2026:
| Particulars | Quarter Ended 31.03.2026 (₹ in Lakhs) | Quarter Ended 31.03.2025 (₹ in Lakhs) | Year Ended 31.03.2026 (₹ in Lakhs) | Year Ended 31.03.2025 (₹ in Lakhs) |
|---|---|---|---|---|
| Revenue from operations | 1,659.55 | 1,491.08 | 5,635.54 | 5,921.76 |
| Total Income | 1,662.03 | 1,492.37 | 5,635.54 | 5,921.76 |
| Total Expenses | 1,579.11 | 1,434.75 | 5,318.84 | 5,706.07 |
| Profit before tax | 829.21 | 576.22 | 2,393.87 | 2,213.44 |
| Net Profit | 627.79 | 418.31 | 2,357.31 | 2,213.44 |
Key Disclosures
The company changed its accounting policy for inventory valuation from the FIFO method to the Weighted Average Method for raw materials and packing materials, and to the Standard Cost Method for other materials, effective from April 1, 2025. This change was applied retrospectively, resulting in a cumulative effect on retained earnings of ₹44.76 lakh as of April 1, 2024. The company also wrote back a tax liability of ₹70.50 lakh under the Deferred Sales Tax scheme, deeming it no longer payable.
Historical Stock Returns for Nikhil Adhesive
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.26% | +6.29% | -2.56% | -4.02% | -3.77% | -83.46% |
What strategies will management implement to reverse the decline in annual revenue and drive top-line growth in FY27?
How will the recent change in inventory valuation methods impact future margins and cost management strategies?
Will the company increase capital expenditures or explore acquisitions to utilize the strong cash flow generated in Q4?
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