Nidhi Granites Ltd (512103)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Nidhi Granites' revenue was ₹15.8 Cr (-20.1% year on year, -4.9% on the previous quarter), and net profit ₹2.9 Cr (+29.3% year on year); the operating margin was 27.4%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹15.8 | -20.1% | -4.9% |
| Operating profit | ₹4.3 | +34.1% | +20.0% |
| Net profit | ₹2.9 | +29.3% | +49.3% |
| EPS (₹) | 3.62 | +29.3% | +49.6% |
| Operating margin | 27.4% | — | — |
📢 Recent Corporate Announcements
Nidhi Granites has approved subscribing to the rights issue of Jowela Exim Private Limited for ₹1.60 crore (16,00,000 equity shares at ₹10 each). Following the allotment, Nidhi Granites will hold a 50.50% controlling stake (16,16,000 shares), making Jowela Exim a subsidiary. Jowela operates in precious metals, diamond-studded jewelry, and bullion, reporting a FY26 turnover of ₹743.54 crore—dwarfing Nidhi Granites' FY26 revenue of ₹65.2 crore. The transaction is expected to be completed by end of October 2026.
- Subscribing to 16,00,000 shares at ₹10 each for a total consideration of ₹1,60,00,000
- Post-allotment holding will increase to 16,16,000 equity shares or 50.50% controlling stake
- Target entity Jowela Exim reported FY26 turnover of ₹7,43,53,81,801.86
- Acquisition scheduled for completion by end of October 2026 with no material regulatory approvals required
Nidhi Granites reported a consolidated net profit of ₹2.89 Cr for Q1 FY27, marking a 29% YoY increase from ₹2.24 Cr. This growth occurred despite a 20% decline in consolidated revenue to ₹15.84 Cr, down from ₹19.81 Cr in the previous year's quarter. The revenue drop was primarily driven by the Paper and Paperboard segment, which fell 29% YoY to ₹10.62 Cr. Conversely, the Financial Technology segment grew 9% YoY to ₹5.08 Cr, contributing significantly to the improved bottom line.
- Consolidated Net Profit grew 29% YoY to ₹2.89 Cr from ₹2.24 Cr in Q1 FY26
- Consolidated Revenue from operations declined 20% YoY to ₹15.84 Cr
- Financial Technology segment revenue increased to ₹5.08 Cr from ₹4.66 Cr YoY
- Paper and Paperboard segment revenue decreased to ₹10.62 Cr from ₹15.05 Cr YoY
- Standalone operations turned profitable with a PAT of ₹27.11 Lakhs vs a loss of ₹28.10 Lakhs YoY
Nidhi Granites reported a consolidated net profit of ₹2.89 Cr for Q1 FY27, a 29% increase from ₹2.24 Cr in the same quarter last year. This profit growth occurred despite a 20% decline in consolidated revenue to ₹15.84 Cr, down from ₹19.81 Cr in Q1 FY26. The margin improvement is driven by the Financial Technology segment, which contributed ₹2.63 Cr to segment results on a revenue of ₹5.08 Cr (52% margin), while the larger Paper segment saw revenue contract by 29% following the divestment of a step-down subsidiary in March 2026.
- Consolidated Net Profit increased 29.2% YoY to ₹2.89 Cr from ₹2.24 Cr.
- Consolidated Revenue from operations fell 20.1% YoY to ₹15.84 Cr.
- Financial Technology segment emerged as a major profit driver with segment results of ₹2.63 Cr.
- Paper and Paperboard segment revenue declined 29.4% YoY to ₹10.62 Cr from ₹15.05 Cr.
- Consolidated Basic EPS improved to ₹3.62 from ₹2.80 in the year-ago period.
Nidhi Granites Ltd has announced a board meeting on August 13, 2026, to consider and approve the un-audited financial results for the quarter ended June 30, 2026. The company is coming off a strong FY26 where revenue grew to ₹65.47 Cr from ₹47.29 Cr in FY25. Investors will be monitoring if the company can maintain its TTM Operating Profit Margin of 19.0% as it continues its diversification into paper, garments, and fintech. The trading window for designated persons has been closed since July 1, 2026.
- Board meeting scheduled for August 13, 2026, to approve Q1 FY27 results
- Trading window closed from July 1, 2026, until 48 hours post-announcement
- Company reported a TTM revenue of ₹65 Cr and PAT of ₹8 Cr leading into this quarter
- Previous year's corresponding quarter (Jun 2025) saw revenue of ₹19.81 Cr
Financial Performance
Revenue Growth by Segment
SPNP Paper and Pack Private Limited generated turnover of INR 36.56 Cr, while Yug Fashion Garments Private Limited generated INR 8.54 Cr. Consolidated profit grew by 1844.6% YoY, rising from INR 6.32 Lakhs to INR 122.90 Lakhs.
Geographic Revenue Split
100% of operations and subsidiary activities are based in India, primarily managed from Mumbai, Maharashtra.
Profitability Margins
SPNP Paper and Pack Private Limited reported a PAT margin of 1.83% (INR 66.77 Lakhs profit on INR 36.56 Cr turnover). Yug Fashion Garments Private Limited reported a PAT margin of 0.62% (INR 5.26 Lakhs profit on INR 8.54 Cr turnover).
EBITDA Margin
Not disclosed in available documents; however, consolidated net profit after depreciation stood at INR 122.90 Lakhs for FY25.
Capital Expenditure
The company undertook a major investment of INR 60.57 Lakhs on April 1, 2025, to acquire 100% of Auro Fintech Private Limited.
Credit Rating & Borrowing
Not disclosed in available documents. Total liabilities for subsidiaries include INR 6.72 Cr for SPNP and INR 4.57 Cr for Yug Fashion.
Operational Drivers
Raw Materials
Dyes, chemicals, and textile auxiliaries represent the core trading inventory for the company's distribution business.
Capacity Expansion
Not disclosed in available documents; focus is currently on scaling up operations of existing subsidiaries in paper, garments, and fintech.
Raw Material Costs
Not disclosed in available documents; however, the company operates as a trader and distributor in the chemicals and dyes segment.
Strategic Growth
Growth Strategy
The company is pursuing an acquisition-led growth strategy, evidenced by the 100% acquisition of Auro Fintech for INR 60.57 Lakhs. It aims to achieve accelerated momentum by scaling up the operations of its paper and garment subsidiaries while integrating new fintech services.
Products & Services
Dyes, chemicals, textile auxiliaries, paper and packaging products, garments, and fintech services.
Brand Portfolio
Nidhi Granites, SPNP Paper and Pack, Yug Fashion Garments, and Auro Fintech.
New Products/Services
Fintech services through the newly acquired subsidiary Auro Fintech Private Limited (acquired April 2025).
Strategic Alliances
Maintains 100% ownership of SPNP Paper and Pack, Yug Fashion Garments, and Auro Fintech.
External Factors
Industry Trends
The company is transitioning from a pure trading entity into a diversified holding company with interests in manufacturing (paper/garments) and technology (Fintech), reflecting a shift toward higher-value service sectors.
Competitive Landscape
The company faces increased competition in its core chemical trading market, which management identifies as a threat to long-term profitability.
Competitive Moat
Moat is built on multi-sector diversification across four distinct industries (Chemicals, Paper, Garments, Fintech), which provides a hedge against sector-specific cyclicality.
Macro Economic Sensitivity
High sensitivity to the local economic environment and global geopolitical stability, which influence trading volumes and manufacturing demand.
Consumer Behavior
Management identifies growing demand for diversified consumer products as a key opportunity for its garment and packaging divisions.
Geopolitical Risks
Escalating geopolitical hostilities are cited as a primary threat to business prospects and supply chain continuity.
Regulatory & Governance
Industry Regulations
Operations are governed by the Companies Act 2013 and SEBI Regulations. Secretarial audits indicate a need to strengthen internal compliance systems to match the company's growing size.
Taxation Policy Impact
Effective tax rates for subsidiaries are approximately 30.8% for SPNP Paper and 38.4% for Yug Fashion based on FY25 tax provisions.
Legal Contingencies
Not disclosed in available documents; no major pending court cases or case values were highlighted in the audit reports.
Risk Analysis
Key Uncertainties
Primary risks include geopolitical instability impacting trade and the successful integration and scaling of the new Fintech business line.
Geographic Concentration Risk
100% revenue concentration in India, specifically through Mumbai-based operations and subsidiaries.
Technology Obsolescence Risk
The company is mitigating technology risks by diversifying into the Fintech sector through the acquisition of Auro Fintech.
