Nilkamal Limited , a leader in material handling and moulded furniture products, has announced its financial results for the first quarter, showcasing robust growth across key segments.

Strong Revenue Growth

The company reported a standalone revenue of ₹864.00 crores for Q1, marking a significant 19% increase compared to the same period last year. This growth was primarily driven by strong performances in both the Business to Business (B2B) and Retail & E-commerce segments.

Segment-wise Performance

Business to Business (B2B)

The B2B segment, which includes sales to industrial customers and channel partners, demonstrated impressive growth:

• 19% increase in value terms
• 22% growth in volume terms
• Revenue stood at ₹773.00 crores

Notable performances within the B2B segment include:

• Mattress and foam business grew by 51%
• Bubbleguard business increased by 22%
• Furniture trade business saw a modest 3% growth

However, the Nilkamal Edge - Institutional furniture business experienced a 30% decline.

Retail & E-commerce

The Retail & E-commerce segment also showed strong growth:

• Overall growth of 15%
• Revenue reached ₹92.00 crores
• E-commerce business grew by 18%, with turnover of ₹41.00 crores
• Retail through stores grew by 12%

As of the end of the quarter, Nilkamal operates 87 stores under COCO and FOFO arrangements.

Financial Highlights

Despite the strong revenue growth, the company faced some challenges in profitability. The EBIT for Q1 stood at ₹38.00 crores compared to ₹34.00 crores in the same quarter of the previous year, with margin pressure in the furniture trade business impacting EBIT margins.

Operational Updates

• The company's state-of-the-art MDF and foam manufacturing unit at Hosur-3 has become operational.
• Nilkamal plans to incur a capex of approximately ₹150.00 crores in the current fiscal year, focusing on Material Handling Business, Rigid Packaging, and Retail business.
• Net Borrowing increased to ₹331.00 crores at the end of the quarter, compared to ₹173.00 crores in the previous year.

Consolidated Performance

On a consolidated basis, including results from subsidiaries and joint ventures:

• Net Sales stood at ₹883.00 crores, up from ₹743.00 crores in the corresponding quarter of the previous year.
• PAT was ₹15.00 crores, compared to ₹18.00 crores in the same period last year.

Looking Ahead

With its planned capex and the newly operational manufacturing unit at Hosur-3, Nilkamal appears poised for continued growth. However, the company will need to address the challenges in its institutional furniture business and work on improving overall profitability in the coming quarters.

Investors and stakeholders will be watching closely to see how Nilkamal navigates the evolving market conditions and capitalizes on its growth opportunities in the remainder of the fiscal year.

Nilkamal Limited , a prominent player in the furniture and material handling industry, has made a significant move to expand its portfolio by entering the healthcare furniture sector. The company has recently signed an agreement to acquire the healthcare furniture business from Imedfurns Private Limited, marking a strategic expansion into a specialized market segment.

Deal Details

Nilkamal has executed a Deed of Assignment for Intellectual Properties and Design, along with Employment and Non-compete Agreements with Imedfurns Private Limited. This acquisition encompasses the following key components:

• Intellectual property rights
• Existing contracts
• Transfer of employees
• Associated goodwill

The total consideration for this acquisition is set at Rs. 3.00 crore, which will be paid over a period of four years.

Strategic Implications

This move represents a calculated step for Nilkamal to diversify its product offerings and tap into the growing healthcare furniture market. By acquiring an established business in this sector, Nilkamal aims to leverage existing expertise and quickly establish a foothold in the healthcare furniture vertical.

Regulatory Compliance

The company has duly informed the stock exchanges about this development, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The transaction was approved by the Sub-Committee of Nilkamal's Board of Directors on July 14, 2025.

Market Impact

While the immediate financial impact of this Rs. 3.00 crore acquisition may be limited, the long-term strategic benefits could be significant for Nilkamal. This move allows the company to:

1. Diversify its product portfolio
2. Enter a specialized market segment
3. Potentially cross-sell to existing customers in the institutional sector

Conclusion

Nilkamal's acquisition of Imedfurns' healthcare furniture business underscores the company's commitment to growth and diversification. As the healthcare sector continues to expand, this strategic move could position Nilkamal to capture a share of this specialized market, complementing its existing strengths in the furniture industry.

Investors and industry observers will likely keep a close watch on how Nilkamal integrates this new vertical into its operations and the potential growth it may bring to the company's overall business in the coming years.