Nilkamal Limited, a leading manufacturer of molded furniture and material handling solutions, has officially announced its financial results for the first quarter of the fiscal year 2026-27. Despite a 7.2% year-on-year decline in operating revenue due to broader macroeconomic headwinds, the company posted an impressive 59.2% surge in net profit, driven by disciplined cost-cutting, reduced expenses, and robust operational efficiency. With stock market participants gearing up for Monday’s trading session, analysts are keeping a close watch on the company’s resilient bottom line, expanding EBITDA margins, and changing segment dynamics.
Revenue Dips While Profitability and EBITDA Surge
During the June 2026 quarter, Nilkamal’s revenue from operations stood at ₹819.73 crore, marking a 7.2% decrease compared to ₹883.14 crore reported in the corresponding period of the previous fiscal year. However, a sharp focus on expense management allowed total expenses to drop by 8.8% down to ₹793.47 crore. Consequently, the company’s net profit jumped significantly to ₹24.40 crore, up from ₹15.33 crore a year ago. Operational performance saw a notable boost as well, with EBITDA growing by 28.7% to ₹74.63 crore, while the EBITDA margin expanded substantially to 9.10% compared to 6.57% previously, reflecting stronger margin control despite rising input costs.
Supply Chain Pressures Impact B2B While Retail and E-commerce Flourish
The company highlighted that global geopolitical events and ongoing supply chain disruptions since March 2026 have triggered a staggering near-50% increase in key raw material prices, heavily impacting its B2B division where volume growth declined by 37%. Despite these hurdles, strategic price adjustments and a refined product mix limited total B2B value declines. Conversely, the retail and e-commerce segments performed exceptionally well, growing 13% with a turnover of ₹104 crore, supported by a 22% jump in e-commerce and a positive turn in segment EBIT. Furthermore, Nilkamal strengthened its balance sheet considerably, reducing net debt down to ₹116 crore by June 30, 2026, compared to ₹331 crore the previous year, while expanding its retail network footprint to 100 stores.