Nilkamal Limited , a prominent player in the Indian furniture and material handling industry, has recently received a tax demand order from the Office of The Superintendent of CGST Central Excise, Barjora Bankura, West Bengal. The order, which alleges wrongful availing and utilization of Input Tax Credit (ITC), has raised concerns about potential financial implications for the company.

Tax Demand Details

The tax demand order, received on November 20, 2025, outlines the following key points:

The order alleges that Nilkamal Limited wrongly availed and utilized Input Tax Credit for the fiscal years 2018-19 and 2019-20 in the state of West Bengal.

Company's Response

In response to this tax demand, Nilkamal Limited has stated that it plans to seek expert advice and file an appeal against the order. The company maintains that there is no material impact on its financial and operational activities as a result of this order.

Implications and Next Steps

While the tax demand of Rs. 7.22 lakh may seem relatively small for a company of Nilkamal's size, it raises questions about the company's tax compliance processes. The outcome of this case could have implications for how the company manages its Input Tax Credit claims in the future.

Investors and stakeholders will likely be watching closely to see how Nilkamal handles this situation, particularly in terms of:

1. The strength of its appeal against the tax demand
2. Any potential adjustments to its tax compliance procedures
3. The final resolution of the case and its financial impact, if any

As the situation develops, Nilkamal Limited is expected to provide further updates to its shareholders and the public regarding the progress of its appeal and any material developments in the case.

Nilkamal Limited , a leader in material handling and moulded furniture products, has announced its unaudited financial results for the second quarter of fiscal year 2026, showcasing robust growth across key metrics.

Revenue and Profitability

The company reported a consolidated revenue of ₹968.00 crore for Q2 FY26, marking an 18% increase from ₹822.00 crore in the same quarter last year. This growth was driven by strong performance in both the Business-to-Business (B2B) and Retail & E-commerce segments.

Nilkamal's profitability also saw significant improvement:

Segment Performance

B2B Segment

• Achieved 18% growth in value and 13% in volume terms
• Material Handling Business grew by 20%
• Mattress and Foam Business saw a remarkable 65% growth

Retail & E-commerce Segment

• Clocked a turnover of ₹110.00 crore, up 21% from ₹91.00 crore in Q2 FY25
• E-commerce business grew by 23% to ₹52.00 crore
• Retail through stores grew by 18%

Operational Highlights

• The company opened 13 new stores and closed 3 during the quarter
• Total of 96 stores operational with over 6.75 lakh square feet of carpet area
• Capex spend for Q2 FY26 stood at ₹42.00 crore, compared to ₹99.00 crore in Q2 FY25

Financial Position

• Net Borrowings as of September 30, 2025: ₹376.00 crore
• This compares to borrowings of ₹305.00 crore as on September 30, 2024

Consolidated Performance

On a consolidated basis, including subsidiaries and joint ventures:

• Net Sales: ₹972.00 crore (vs ₹824.00 crore in Q2 FY25)
• PAT: ₹34.00 crore (vs ₹32.00 crore in Q2 FY25)

Nilkamal's subsidiary companies in Sri Lanka and UAE, as well as its joint venture Cambro Nilkamal Private Limited, all exhibited growth in revenue and profitability.

The company's strong performance across segments, particularly the significant growth in the Mattress and Foam Business and E-commerce, indicates Nilkamal's successful adaptation to changing market dynamics and consumer preferences. The expansion of retail presence, coupled with robust B2B growth, positions Nilkamal well for sustained growth in the coming quarters.

Note: All figures are rounded to two decimal places unless otherwise stated.