Nitta Gelatin India Limited reported a robust 30% year-on-year increase in consolidated net profit to ₹252.79 crore for the quarter ended June 30, 2026 (Q1FY26), driven by significant operational efficiency and margin expansion. While top-line growth remained modest at 2.3%, reaching ₹1,445.40 crore from ₹1,412.63 crore in the corresponding period of the previous year, the company successfully converted this into stronger bottom-line outcomes through improved cost management.

The Board of Directors, in its meeting held on July 31, 2026, approved the unaudited standalone and consolidated financial results for Q1FY26. The results were reviewed by the Audit Committee and prepared in accordance with Indian Accounting Standards (Ind AS) and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Managing Director Praveen Venkataramanan communicated the results to the stock exchanges on July 31, 2026.

Financial Performance Overview

Nitta Gelatin’s consolidated revenue from operations stood at ₹1,445.40 crore, up from ₹1,412.63 crore in Q1FY25. The net profit after tax from continuing operations rose to ₹252.79 crore, compared to ₹196.53 crore in the year-ago quarter. Standalone figures mirrored this trend, with net profit increasing to ₹251.92 crore from ₹193.80 crore.

Margin Expansion and Operational Efficiency

A key highlight of the quarter was the improvement in operating margins. The consolidated operating margin expanded to 17.50% from 22.36% in the prior year context, though the net profit margin showed significant strength at 7.72% compared to 13.01% previously, indicating effective cost control measures despite fluctuating input costs. The company operates in a single segment for gelatin products, allowing focused strategic execution.

Standalone earnings per share (EPS) rose to ₹27.75 from ₹21.35, while consolidated basic EPS increased to ₹27.84 from ₹21.65. This consistent growth in per-share metrics reflects the company's ability to enhance shareholder value even with moderate revenue growth.

Discontinued Operations and Legal Developments

The consolidated results include discontinued operations related to its subsidiary, Bamni Proteins Limited. The subsidiary continues to be classified as non-going concern following the Maharashtra State Pollution Control Board’s closure order. Assets held for sale from the subsidiary amounted to ₹530.38 lakh as of June 30, 2026. The management is actively seeking buyers for these assets, believing that ongoing industrial developments in the vicinity may lead to better price realization than current offers.

Additionally, the company faces a pending customs duty dispute. A contingent liability of ₹1,819.66 lakh and a provision of ₹148.70 lakh remain under review pending the final hearing before the Hon’ble Supreme Court of India, scheduled for September 2026. The Supreme Court has granted an interim stay on the High Court’s judgment favorable to the company, which found no breach in advance authorization conditions for raw material imports.

Impact of New Labour Codes

Effective November 21, 2025, the Government of India consolidated existing labor laws into four new codes. Nitta Gelatin accounted for an incremental liability of ₹239.73 lakh for its own employees and an additional provision of ₹41 lakh for contract workforce gratuity liabilities as of March 31, 2026. These expenses were recognized in the financial year ended March 31, 2026, in compliance with Ind AS 19 'Employee Benefits'. The company continues to monitor state-level rule finalizations for further accounting adjustments.

What the Numbers Show

The divergence between modest revenue growth (2.3%) and substantial profit growth (28.6%) suggests that Nitta Gelatin’s profitability in Q1FY26 was primarily driven by operational efficiencies rather than volume expansion. This margin resilience is critical in the gelatin sector, where raw material price volatility can heavily impact costs. The successful navigation of these challenges, alongside active asset disposal strategies for the discontinued subsidiary, positions the company for sustained financial health despite external regulatory headwinds.

Nitta Gelatin India Ltd has appointed Shri. Arun K Vijayan IAS as a Non-Executive Nominee Director on its Board, effective July 14, 2026. He replaces Shri. Vishnuraj P IAS, who ceased to hold the position on the same date. The appointment follows a change in nomination by the promoter, Kerala State Industrial Development Corporation Limited (KSIDC), communicated via letter dated July 14, 2026.

The company confirmed that Shri. Arun K Vijayan IAS is not debarred from holding the office of Director by any order from SEBI or other authorities, in accordance with Circular No. List/Comp/14/2018-19 dated June 20, 2018. The disclosure was made to BSE Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Shri. Arun K Vijayan IAS is a 2016-batch Indian Administrative Service officer in the Kerala cadre. He holds a Bachelor of Engineering (Honours) in Electrical Engineering from BITS Pilani and a Master of Public Administration from JNU, New Delhi. Prior to this role, he served as Director of Industries, Government of Kerala, and Managing Director of KSIDC.

The table below details the changes in the Board composition:

Shri. Arun K Vijayan IAS is not related to any other director of the company, although Shri. APM Mohammed Hanish IAS is also a nominee of KSIDC. The filing was signed by Vinod Mohan, Company Secretary and Compliance Officer.