Nitta Gelatin India Ltd (506532)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Nitta Gelatin's revenue was ₹141 Cr (+1.3% year on year, -13.0% on the previous quarter), and net profit ₹25.2 Cr (+32.5% year on year); the operating margin was 24.5%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹141 | +1.3% | -13.0% |
| Operating profit | ₹34.5 | +27.6% | -23.4% |
| Net profit | ₹25.2 | +32.5% | -25.9% |
| EPS (₹) | 27.73 | +31.4% | -26.1% |
| Operating margin | 24.5% | — | — |
📢 Recent Corporate Announcements
Nitta Gelatin India Ltd has issued revised proceedings for its 50th Annual General Meeting held on July 31, 2026, to correct a typographical error in the quorum count from 54 to 55 shareholders. The meeting transacted seven resolutions, including the adoption of FY26 financial statements where the company reported TTM revenue of ₹589 Cr and PAT of ₹97 Cr. A dividend of ₹34,00,280 was declared for 44,44,444 redeemable preference shares at a rate of 7.65063% p.a. The company also approved equity dividends and related party transactions, maintaining its focus on specialized capsule-grade gelatin.
- Quorum corrected to 55 shareholders present via Video Conferencing from the previously reported 54
- Preference share dividend declared for 44,44,444 shares amounting to ₹34,00,280
- Seven resolutions transacted including the adoption of FY26 Standalone and Consolidated Financial Statements
- Approval granted for entering into Related Party Transactions by the Company
- Re-appointment of Mr. Hidenori Takemiya and appointment of Dr. Balu Paulose Maliakel as Independent Director approved
Nitta Gelatin India Limited held its 50th Annual General Meeting on July 31, 2026, to formalize the adoption of FY26 financial results and governance matters. Shareholders approved a dividend of Rs 34,00,280 for 4,444,444 redeemable preference shares at a rate of 7.65063% p.a. The meeting also covered the re-appointment of directors and approval for Related Party Transactions. While the equity dividend was an agenda item, the specific per-share amount was not detailed in this summary filing.
- Approved preference dividend of Rs 34,00,280 for 4,444,444 shares at 7.65063% p.a.
- Adopted FY26 Audited Financial Statements featuring Rs 588 Cr revenue and Rs 97 Cr PAT.
- Re-appointed Mr. Hidenori Takemiya and approved appointments of Dr. Balu Paulose Maliakel and Mr. V Ranganathan as Independent Directors.
- Approved entering into Related Party Transactions as an ordinary resolution.
- Meeting attended by 54 shareholders via video conferencing, concluding in 75 minutes.
Nitta Gelatin India Ltd (NGIL) has clarified that the recent revision of Standard Input Output Norms (SION) for Gelatin and Ossein will not have a significant financial bearing on the company. The company has made technical representations to the DGFT for a restatement of these norms and has secured agreements from Ossein customers to absorb any potential liabilities arising from export obligation shortfalls. Furthermore, NGIL transitioned to the Duty Drawback Scheme for imports starting July 2026 to mitigate regulatory risks. This update follows a prior notification from June 5, 2026, effectively addressing potential concerns regarding increased raw material costs or export penalties.
- Representations made to DGFT for restatement of SION based on technical assessment.
- Customers for Ossein and Limed Ossein have agreed to absorb potential liabilities if export obligations are not met.
- Transitioned to importing under the Duty Drawback Scheme starting July 2026.
- Company confirms 'no significant financial bearing' from the SION change based on current evaluation.
- Follow-up to the initial regulatory intimation dated June 5, 2026.
Nitta Gelatin India's board has approved the unaudited financial results for Q1 FY27 (ended June 30, 2026). While specific quarterly P&L figures were not detailed in the cover letter, the company enters this period with a strong TTM revenue of ₹589 Cr and a high ROCE of 28.0%. The board also initiated a postal ballot to appoint Mr. Arun K Viyayan IAS as a Nominee Director from KSIDC, replacing Mr. Vishnuraj P IAS. Investors should focus on the company's progress toward its ₹155 Cr gelatin capacity expansion and the impact of the ongoing 12-18 month shutdown at its subsidiary BPL.
- Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2026.
- Initiated postal ballot for the appointment of Mr. Arun K Viyayan IAS as Nominee Director representing KSIDC.
- Company is currently executing a ₹155 Cr investment to expand gelatin capacity by 1,500 MT by FY27.
- Maintained a strong promoter holding of 74.5% as of the June 2026 quarter.
- TTM Operating Profit Margin (OPM) stood at 23.1% prior to this quarter's results.
Nitta Gelatin India Ltd has scheduled a board meeting on July 31, 2026, to approve its unaudited standalone and consolidated financial results for the quarter ended June 30, 2026. The company enters this quarter following a strong performance in FY26, with TTM revenue reaching ₹589 Cr and a PAT of ₹97 Cr. Investors will be monitoring if the company can sustain its 23.1% operating margin and the momentum from the March 2026 quarter, which saw peak revenue of ₹162 Cr. The meeting will be held via video conferencing.
- Board meeting scheduled for July 31, 2026, to approve Q1 FY27 results
- Quarterly results cover the period ended June 30, 2026
- Company reported a TTM PAT of ₹97 Cr and EPS of ₹107.11
- Operating profit margin (TTM) stands at 23.1% with a low debt-to-equity ratio of 0.01
- Stock has seen a significant 112.4% price return over the last 3 months
Nitta Gelatin India Ltd has announced a change in its board composition following a nomination by its promoter, Kerala State Industrial Development Corporation (KSIDC). Mr. Arun K Vijayan IAS, a 2016-batch officer and current MD of KSIDC, replaces Mr. Vishnuraj P IAS as a Non-Executive Nominee Director effective July 14, 2026. This is a routine administrative change common in joint ventures involving state government entities. The new appointee brings experience from various administrative roles in Kerala, including Director of Industries.
- Appointment of Mr. Arun K Vijayan IAS as Non-Executive Nominee Director effective July 14, 2026
- Replacement of Mr. Vishnuraj P IAS (DIN: 10701056) following a letter from promoter KSIDC dated July 14, 2026
- Mr. Vijayan is a 2016-batch IAS officer with a Bachelor of Engineering (Honours) from BITS Pilani
- The appointee currently holds the additional charge of Managing Director at KSIDC
- One other director, Shri. APM Mohammed Hanish IAS, also serves as a nominee of KSIDC
Nitta Gelatin India's 50th Annual Report highlights the successful commissioning of its new Collagen Peptide Project with a capacity of 3.5 metric tonnes per day. The parent company, Nitta Gelatin Inc. Japan, has unveiled a long-term vision to double net sales and increase operating income by 2.5x by FY 2033, positioning the Indian unit as a key growth driver. Despite global trade headwinds and US tariffs, the company is progressing with its Gelatin Expansion Project as scheduled. Total assets pledged as security rose to ₹536.05 crore in FY26, reflecting increased capital commitment for these expansions.
- Commissioned new Collagen Peptide Project with an installed capacity of 3.5 metric tonnes per day
- Parent group targets doubling net sales and 2.5x operating income by fiscal year ending March 2033
- Total assets pledged as security increased to ₹536.05 crore from ₹450.11 crore in the previous year
- Related party sales to Nitta Gelatin Inc. Japan and its subsidiaries reached ₹95.04 crore in FY 2025-26
- Gelatin Expansion Project is progressing as per schedule to further enhance manufacturing capabilities
Financial Performance
Revenue Growth by Segment
Total revenue remained flat in fiscal 2025 at INR 533 Cr. Gelatin (56% of sales) contributed INR 294 Cr but saw a decline in product realization. Collagen Peptide (11% of sales) grew strongly by 22% YoY to INR 58 Cr. Di Calcium Phosphate (DCP) sales were INR 92 Cr, representing a 2% YoY decline.
Geographic Revenue Split
The United States accounts for approximately 17% of total revenue. Total exports reached INR 286 Cr (approx. 53.6% of total revenue), with the majority of gelatin exports directed toward the U.S. market.
Profitability Margins
Operating margins moderated to 20.1% in fiscal 2025 from an all-time high of 24.1% in fiscal 2024. This decline was driven by higher crushed bone prices in H1 FY25. Long-term sustainable margins are projected at 12-15% as global demand-supply gaps ease.
EBITDA Margin
Operating profitability stood at 20.1% for FY25, a 400 bps decrease from 24.1% in FY24. The variance was primarily due to fluctuations in raw material costs and export-related headwinds from U.S. tariffs.
Capital Expenditure
The company has planned a total capital expenditure of INR 200-250 Cr over the next 2-3 fiscals (FY25-FY27). This includes INR 155 Cr specifically for expanding gelatin capacity by 1,500 metric tonnes and doubling collagen peptide capacity.
Credit Rating & Borrowing
CRISIL reaffirmed 'CRISIL A-/Stable' for long-term and 'CRISIL A2+' for short-term facilities. Borrowing costs are minimized by low fund-based limit utilization (8-26%) and a very low debt-equity ratio of 0.01.
Operational Drivers
Raw Materials
Key raw materials include crushed bone (primary for ossein/gelatin) and bovine hide. Ossein is a critical intermediate; 20% was previously sourced from subsidiary BPL.
Import Sources
The company is sourcing U.S. origin 'Vertebra Free Halal Gelbones' to meet specific Asian export requirements. It also leverages surplus raw materials from Western markets (UK/US) where bone gelatin plants have closed.
Key Suppliers
A significant portion (20%) of ossein was supplied by subsidiary Bamni Proteins Ltd (BPL) before its closure; the company now relies on internal sourcing from plants in Kerala and Gujarat.
Capacity Expansion
Current gelatin plants operated at 100% capacity in FY25. Planned expansion includes 1,500 MT of additional gelatin capacity by FY27 and a recently completed doubling of collagen peptide capacity.
Raw Material Costs
Raw material costs are susceptible to global fluctuations; crushed bone prices were high in H1 FY25 but fell in H2. The company uses agile manufacturing to align production with raw material price cycles.
Manufacturing Efficiency
The gelatin plant operated at full capacity throughout FY25. Efficiency is driven by technology absorption from Nitta Gelatin Inc., Japan, focusing on reducing energy consumption and waste.
Logistics & Distribution
Supply chain costs have escalated due to prolonged lead times (60-75 days) for exports to North America and Europe, requiring strategic manufacturing alignment.
Strategic Growth
Expected Growth Rate
20.35%
Growth Strategy
Growth will be achieved by expanding gelatin capacity by 1,500 MT (INR 155 Cr investment), capitalizing on the 20.35% CAGR of the Indian nutraceutical market, and shifting 95% of production to high-value specialized capsule-grade gelatin.
Products & Services
Gelatin (for pharmaceutical capsules and confectionery), Collagen Peptide (for gut health and diabetes management), Di-Calcium Phosphate (DCP), and Ossein.
Brand Portfolio
Nitta Gelatin India Limited (NGIL).
New Products/Services
Developing collagen peptide products aimed at gut health and diabetes management; collagen peptide revenue already grew 22% in the latest fiscal.
Market Expansion
Exploring alternative international markets to reduce U.S. dependency and targeting the wellness/nutraceutical industry which is projected to reach USD 51.83 Billion by FY31.
Market Share & Ranking
Established leader in the domestic gelatin market, specifically positioning as a leader in capsule-grade solutions by dedicating 95% of capacity to that segment.
Strategic Alliances
Joint Venture with Nitta Gelatin Inc., Japan (43% stake) for technical and operational support, and Kerala State Industrial Development Corporation Ltd.
External Factors
Industry Trends
The industry is shifting toward specialized wellness ingredients. While there is a global glut of cheap hide gelatin, demand for high-quality bone-grade gelatin for the capsule industry remains robust.
Competitive Landscape
Stiff competition from new manufacturing capacities in Turkey and South America which leverage low-cost raw materials to create a market glut.
Competitive Moat
Moat is built on a technical tie-up with NGI Japan and a 95% capacity focus on specialized capsule-grade gelatin, which has higher entry barriers than standard food gelatin.
Macro Economic Sensitivity
Highly sensitive to global gelatin supply-demand; a surplus of bovine hide gelatin from Turkey and South America has created a 'buyer's market,' pressuring prices.
Consumer Behavior
Increasing health consciousness is driving a 22% growth in collagen peptide demand and sustained demand for protein-based wellness products.
Geopolitical Risks
U.S. trade barriers/tariffs are a primary risk, as gelatin is classified as a food material (70% confectionery use) and does not benefit from pharmaceutical duty exemptions.
Regulatory & Governance
Industry Regulations
Gelatin classification as 'food' (HS Code) in the U.S. prevents it from receiving pharmaceutical tariff exemptions, impacting competitiveness.
Environmental Compliance
Significant focus on environment; however, subsidiary BPL was ordered to stop operations by MPCB due to alleged pollution violations.
Taxation Policy Impact
The company is investigating if U.S. customers can secure refunds of duties paid on exports to Asia to mitigate tariff impacts.
Legal Contingencies
Subsidiary Bamni Proteins Ltd (BPL) faces a shutdown order from the Maharashtra Pollution Control Board (MPCB) dated March 13, 2024; operations are expected to remain suspended for 12-18 months.
Risk Analysis
Key Uncertainties
The primary uncertainty is the timeline for BPL's resumption (12-18 months) and the final regulatory text regarding U.S. tariffs, which could permanently alter export profitability.
Geographic Concentration Risk
17% of revenue is concentrated in the U.S. market, which is currently facing regulatory and tariff-related headwinds.
Third Party Dependencies
Dependency on NGI Japan for technical expertise and 19% of sales; dependency on BPL for 20% of ossein supply (currently disrupted).
Technology Obsolescence Risk
Low risk; company is actively absorbing NGI Japan's technology for advanced peptide and gelatin production.
Credit & Counterparty Risk
Trade receivables turnover ratio is stable at 5.87, indicating healthy collections and low counterparty risk.
