NITCO Limited , a leading manufacturer of tiles, marble, and mosaic products, has released its Q2 FY2026 corporate presentation, revealing significant growth and positive projections for the fiscal year. The company's performance highlights a remarkable turnaround and sets an optimistic tone for its future.

Key Highlights

• Revenue Growth: NITCO reported a 62.63% year-on-year revenue increase to INR 106.2 crores in Q2 FY2026.
• H1 FY2026 Performance: The company achieved 91% growth in the first half of FY2026.
• FY2026 Projection: NITCO projects a 44% revenue growth for FY2026 compared to FY2025.

Financial Performance

Despite the strong revenue growth, the company's EBITDA remains negative, indicating ongoing operational challenges. However, the net profit has turned positive, showing signs of improvement in the company's overall financial health.

Strategic Initiatives

The company's growth is supported by several key factors:

1. Debt Restructuring: NITCO has undertaken significant debt restructuring efforts to improve its financial position.
2. Working Capital Infusion: The company has received working capital support, enhancing its operational capabilities.
3. Financial Partnership: Authum Investment Infrastructure Ltd has entered as a financial partner, providing crucial support for NITCO's turnaround strategy.

Market Outlook

The tiles, marble, and mosaic industry in India is experiencing growth, driven by increased construction activities and a focus on home improvement. NITCO's strong performance aligns with these market trends, positioning the company to capitalize on industry growth.

Investor Considerations

While the revenue growth is impressive, investors should note the following:

• The negative EBITDA suggests ongoing profitability challenges.
• The company's turnaround strategy is still in progress, and sustained performance will be key to long-term success.
• The partnership with Authum Investment Infrastructure Ltd could provide financial stability and strategic guidance.

NITCO Limited's Q2 FY2026 results demonstrate a significant improvement in its business performance. The projected 44% revenue growth for FY2026 indicates management's confidence in the company's trajectory. However, investors should monitor the company's ability to translate revenue growth into sustained profitability in the coming quarters.

NITCO Limited , a leading player in the tiles and marble industry, has announced its unaudited financial results for the quarter and half-year ended September 30, 2025. The company's performance reflects significant developments in asset management and employee incentives.

Key Financial Highlights

• Total revenue from operations for Q2 stood at Rs. 10,770.07 crore, compared to Rs. 6,601.25 crore in the same quarter last year.
• The company reported a profit before tax of Rs. 94.10 crore for Q2, a substantial improvement from a loss of Rs. 3,460.92 crore in the corresponding quarter of the previous year.

Asset Impairment Reversal

A notable development this quarter was the reversal of an impairment provision on the company's Alibaug factory assets. NITCO received a higher scrap sale offer of Rs. 32.50 crore, compared to the initial estimate of Rs. 16.00 crore. This led to a reversal of the impairment provision of Rs. 16.50 crore, which has been credited to the depreciation for the current quarter.

The company has entered into a binding contract for the disposal of these assets within six months, and accordingly, they have been reclassified as 'Non-current Assets Held for Sale' under Ind AS 105.

Employee Stock Option Plan

The Board of Directors implemented an Employee Stock Option Plan (ESOP) during the quarter. Key details of the ESOP include:

• Grant of 9,88,000 stock options to employees
• Exercise price set at Rs. 25.00 per option
• Options convertible into an equal number of equity shares
• Vesting period: 50% after one year and the remaining 50% after two years from the grant date

The company recognized an ESOP cost of Rs. 6.37 crore for the vesting period from August 2024 to September 2025, based on a fair value of Rs. 113.76 per option as determined by a registered valuer.

Real Estate Developments

NITCO has entered into a Joint Development Agreement (JDA) for the plotted development of its Alibaug land. Under this agreement, the company recognized an income of Rs. 58.42 crore in the June quarter, representing an Interest Free Adjustable Advance (IFAA) towards signing the JDA. As of September 30, 2025, the company has received Rs. 12.78 crore of the IFAA and expects to receive the balance within the current financial year.

Ongoing Challenges

The company continues to face a penalty of Rs. 170.00 crore from the Additional Directorate General of Foreign Trade (ADGFT) for non-fulfillment of export obligations. NITCO has challenged this order in the Bombay High Court, asserting that it is not in accordance with the principles of equity, law, and good conscience.

Conclusion

Despite facing challenges, NITCO Limited's Q2 results demonstrate the company's efforts to optimize its asset base and incentivize its workforce. The reversal of the asset impairment provision and the implementation of the ESOP scheme are steps that may contribute to the company's long-term growth and stability.