Nikhil Adhesives Ltd (526159)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Nikhil Adhesives' revenue was ₹189 Cr (+52.7% year on year, +13.6% on the previous quarter), and net profit ₹7.3 Cr (+105.2% year on year); the operating margin was 6.8%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹189 | +52.7% | +13.6% |
| Operating profit | ₹12.9 | +53.6% | +14.4% |
| Net profit | ₹7.3 | +105.2% | +16.6% |
| EPS (₹) | 1.59 | +103.8% | +16.1% |
| Operating margin | 6.8% | — | — |
📢 Recent Corporate Announcements
Nikhil Adhesives Limited has published its Integrated Annual Report for FY 2025-26 and scheduled its 40th Annual General Meeting for September 22, 2026. The Board has recommended a dividend of ₹0.22 per equity share of face value ₹1. Standalone financial notes show Profit Before Tax stood at ₹2,357.33 lakhs (₹23.57 crore) in FY26 compared to ₹2,213.42 lakhs in FY25. The company reported an active manufacturing capacity of 135,000 MTPA across 5 plants and 22+ warehouses nationwide.
- Board recommended a dividend of ₹0.22 per equity share of face value ₹1 for FY 2025-26
- Reported FY26 Profit Before Tax of ₹2,357.33 lakhs versus ₹2,213.42 lakhs in FY25
- Current total production capacity stands at 135,000 MTPA across 5 manufacturing units
- 40th AGM scheduled for September 22, 2026 via Video Conferencing
Nikhil Adhesives Limited has fixed Tuesday, September 15, 2026, as the record date to determine shareholder entitlement for the FY 2025-26 dividend and AGM e-voting. The Register of Members and Share Transfer Books will be closed from September 16 to September 22, 2026. The remote e-voting window is scheduled between September 19 and September 21, 2026. Subject to shareholder approval at the 40th AGM, dividend distribution will take place within 30 days.
- Record date and cut-off date fixed as September 15, 2026 for dividend entitlement and AGM voting
- Book closure period scheduled from September 16, 2026 to September 22, 2026 (both days inclusive)
- Remote e-voting window runs from September 19, 2026 (9:00 AM IST) to September 21, 2026 (5:00 PM IST)
- Dividend to be paid within 30 days from the AGM date upon shareholder approval
- Tax exemption/TDS documentation submission deadline set for September 10, 2026
Nikhil Adhesives has announced procedural dates for its 40th Annual General Meeting and the distribution of dividend for FY 2025-26. The cut-off and record date for dividend eligibility and e-voting entitlement is set for September 15, 2026. The company's register of members will remain closed from September 16 to September 22, 2026. If approved by shareholders at the AGM, the dividend will be disbursed within 30 days.
- Record/Cut-off date fixed as Tuesday, September 15, 2026 for dividend entitlement and e-voting.
- Share transfer books closed from September 16, 2026 to September 22, 2026 (both days inclusive).
- Remote e-voting window open from September 19, 2026 (9:00 AM) to September 21, 2026 (5:00 PM).
- Tax withholding (TDS) declaration documents to be submitted by September 10, 2026.
- Approved dividend to be paid within 30 days from the date of the AGM.
Nikhil Adhesives Limited has issued notice for its 40th Annual General Meeting scheduled for September 22, 2026, via video conferencing. Key agenda items include the declaration of a dividend of Re 0.22 per equity share (face value Re 1) for FY26. The company is also seeking shareholder approval for the re-appointment of Whole-Time Directors and remuneration approval of up to Rs 1.0–1.20 crore per annum for Executive Director Dr. Satish Gaonkar.
- 40th Annual General Meeting scheduled for Tuesday, September 22, 2026 at 3:00 PM IST
- Proposed dividend of Re 0.22 per equity share of face value Re 1 for FY26
- Re-appointment of Whole-Time Directors Mr. Tarak J. Sanghavi and Mr. Rajendra J. Sanghavi for 3-year terms starting Jan 1, 2027
- Special resolution to approve executive director remuneration of Rs 1.00 cr to Rs 1.20 cr per annum for Dr. Satish Gaonkar exceeding Section 197 profit limits
Nikhil Adhesives reported a strong start to FY27 with a net profit of Rs 7.32 Cr for the June quarter, representing a 37% increase from Rs 5.34 Cr in the same period last year. The Board has proposed an increase in borrowing powers under Section 180(1)(a), signaling potential future capital requirements. Additionally, the company re-appointed an Independent Director for a second five-year term and transitioned to a new Secretarial Auditor following a resignation for personal reasons. The 40th Annual General Meeting (AGM) is scheduled for September 22, 2026.
- Net Profit for Q1 FY27 reached Rs 7.32 Cr, up 37.1% from Rs 5.34 Cr in Q1 FY26
- Basic and Diluted EPS for the quarter improved to Rs 1.59 from Rs 1.16 in the year-ago period
- Board proposed increasing borrowing and asset-charging powers under Section 180(1)(a) of the Companies Act
- Independent Director Mrs. Gauri Surendra Trivedi re-appointed for a 5-year term starting January 1, 2027
- Secretarial Auditor changed to M/s Deepika Mishra & Associates following the resignation of M/s Somani & Associates
Nikhil Adhesives reported a strong start to the fiscal year with a Q1 net profit of Rs 7.32 Cr, a 37% increase over the Rs 5.34 Cr reported in the same quarter last year. Sequentially, profits grew 16.5% from Rs 6.28 Cr in March 2026, with EPS rising to Rs 1.59. The Board has also proposed increasing the company's borrowing powers, signaling potential preparation for future capital requirements. A change in secretarial auditors was also noted following a resignation for personal reasons.
- Net profit for Q1 ended June 2026 reached Rs 7.32 Cr, up from Rs 5.34 Cr YoY.
- Earnings Per Share (EPS) improved to Rs 1.59 from Rs 1.37 in the previous quarter.
- The company recorded a foreign exchange gain of Rs 36.78 Lakhs, reversing a loss of Rs 200.30 Lakhs in the previous quarter.
- Board proposed increasing borrowing powers under Section 180(1)(a) of the Companies Act 2013.
- The 40th Annual General Meeting (AGM) is scheduled for September 22, 2026.
Nikhil Adhesives reported a robust Q1 FY27 with revenue growing 52.7% YoY to ₹188.59 Cr and PAT doubling to ₹7.32 Cr. The Board has proposed increasing its borrowing powers under Section 180(1)(a), signaling potential preparation for future capital requirements or expansion. Additionally, the company is transitioning its secretarial auditor and has scheduled its 40th AGM for September 22, 2026. The results show a significant improvement in operating performance compared to the same quarter last year.
- Revenue for Q1 FY27 increased 52.7% YoY to ₹188.59 Cr from ₹123.47 Cr in Q1 FY26
- Net Profit (PAT) surged 105% YoY to ₹7.32 Cr compared to ₹3.57 Cr in the year-ago period
- Earnings Per Share (EPS) improved to ₹1.59 for the quarter from ₹0.78 in Q1 FY26
- Board proposed increasing borrowing powers under Section 180(1)(a) of the Companies Act, 2013
- Re-appointment of Dr. Gauri Surendra Trivedi as Independent Director for a second 5-year term (2027-2031)
Nikhil Adhesives Ltd has scheduled a board meeting for August 13, 2026, to approve the unaudited financial results for the quarter ended June 30, 2026. The company enters this earnings cycle with a TTM revenue of Rs 554 Cr and a PAT of Rs 17 Cr. The trading window for insiders has been closed since July 1, 2026, and will reopen 48 hours after the results are declared. This is a routine regulatory filing required under SEBI (LODR) Regulations.
- 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 TTM revenue of Rs 554 Cr as of March 2026.
- Operating profit margin (OPM) stood at 6.4% for the trailing twelve months.
Financial Performance
Revenue Growth by Segment
Total Operating Income grew 3.6% YoY to INR 584.59 Cr in FY25 from INR 564.19 Cr. Manufacturing business is expected to grow at 12-15% CAGR, while the trading segment revenue decreased 16.3% from INR 42.95 Cr to INR 35.96 Cr as the company intentionally reduced focus on low-margin trading. Volume-wise, Speciality Emulsions contribute 48%, Construction Chemicals 23%, Consumer & Contract Manufacturing 19%, Industrial Adhesives 9%, and Exports/RDP 2%.
Geographic Revenue Split
The company has a PAN India presence supported by 22 warehouses and 5 manufacturing plants. Exports currently contribute a small portion, with 1% of total sales volume going to international markets including Nepal, Taiwan, Bangladesh, Sri Lanka, Philippines, and Kenya.
Profitability Margins
Gross and operating profitability improved due to a shift toward value-added products. PAT margin increased from 2.35% in FY24 to 2.88% in FY25. Operating margins reached 6.4% in FY25 and further improved to 6.78% in Q1 FY26, driven by a 90 basis point expansion in EBITDA margins.
EBITDA Margin
EBITDA margin stood at 6.34% in FY25, up from 5.45% in FY24 (an 89 bps increase). EBITDA grew 20.4% YoY to INR 37.05 Cr. The company aims for a further 50-100 basis point expansion in the next fiscal year through product mix optimization and operational efficiency.
Capital Expenditure
The company recently commissioned and stabilized RDP capacity at Dahej and implemented automation at Tumkur and Dahej plants. While specific future INR Cr figures for capex are not disclosed, the company stated there is no major debt-funded capex planned for the medium term, focusing instead on capacity utilization.
Credit Rating & Borrowing
Crisil revised the outlook to 'Positive' from 'Stable' and reaffirmed 'Crisil BBB' for long-term facilities and 'Crisil A3+' for short-term. Conversely, Infomerics downgraded NAL to 'IVR B/Negative' under the 'Issuer Not Cooperating' category due to lack of information. Interest coverage ratio improved to 4.56x in FY25 from 4.42x in FY24.
Operational Drivers
Raw Materials
Key raw materials include chemicals linked to crude oil derivatives (used in emulsions and adhesives), which represent a significant portion of the cost structure. Specific chemical names like VAM (Vinyl Acetate Monomer) are implied by the production of RDP and emulsions.
Import Sources
Raw materials are sourced globally and domestically. The company is specifically focusing on 'Make in India' initiatives to produce 100% import substitutes like Mahacol RDP to reduce dependency on foreign supplies.
Key Suppliers
The company maintains strategic partnerships and sourcing relationships with global chemical leaders including DOW and BASF.
Capacity Expansion
Current annual manufacturing capacity is 135,000 tons across 5 plants (Dahanu, Silvassa, Dahej, and Bangalore). The company is focusing on increasing capacity utilization and has recently stabilized the new RDP capacity at the Dahej plant.
Raw Material Costs
Raw material costs are highly sensitive to crude oil price fluctuations and international market volatility. The company's strategy to mitigate this includes shifting to high-value-added products and import substitution (RDP) to stabilize margins.
Manufacturing Efficiency
Efficiency improved through the automation of the Dahej and Tumkur plants, contributing to a 90 bps EBITDA margin expansion. The company uses SAP to streamline processes and increase productivity across departments.
Logistics & Distribution
Distribution is handled through a PAN India network of distributors. The company is expanding its retail footprint and influencer engagement (carpenters/contractors) to drive volume in the B2C segment.
Strategic Growth
Expected Growth Rate
12-15%
Growth Strategy
Growth will be achieved by focusing on the manufacturing business (targeted 12-15% growth) while reducing low-margin trading. Key pillars include the launch of 36 new construction chemical products under the 'Mahafix' brand, scaling the 'Mahacol RDP' (an import substitute), and expanding the B2C distribution network. The company also plans to set up a new R&D center for Wood Adhesives to drive innovation.
Products & Services
Specialty adhesives, industrial emulsions, wood adhesives (Mahacol), construction chemicals (Mahafix), textile binders (Emditex), paint emulsions (Emdilith, Emdicryl), and Re-dispersible Polymer (Mahacol RDP).
Brand Portfolio
Mahacol (Wood Adhesives), Mahafix (Construction Chemicals), Emdilith, Emdicryl, Emditex, Emdibind.
New Products/Services
Launched 36 new products in the construction chemicals segment (Mahafix) and a 100% import substitute product, Mahacol RDP, which currently contributes 1% of volume but is expected to grow significantly.
Market Expansion
Expanding into untapped packaging adhesives and construction solutions. Target regions for export expansion include South-East Asia, the Middle East, and Africa.
Market Share & Ranking
NAL is the largest manufacturer of 100% import substitute RDP (Mahacol RDP) in India. It is a leading player in the specialty chemicals and industrial emulsions space with 40+ years of presence.
Strategic Alliances
The company performs contract manufacturing for Asian Paints Ltd and has partnerships with other major corporates like Berger, Akzo Nobel, JK Cement, and JSW.
External Factors
Industry Trends
The Indian adhesives market is projected to grow at 7% CAGR to USD 3.9 billion by 2028. Trends include a shift toward organized players, premiumization in consumer segments, and a strong push for 'Make in India' import substitution in specialty chemicals.
Competitive Landscape
Competes with established peers in the adhesives and construction chemicals space. While NAL has strong B2B ties, its consumer brand awareness is still developing compared to market leaders.
Competitive Moat
Moat is built on 40+ years of promoter experience, deep-rooted relationships with major paint companies (Asian Paints), and technical expertise in RDP manufacturing (import substitution). Sustainability is driven by R&D and a diversified product portfolio across 5 segments.
Macro Economic Sensitivity
Highly sensitive to the construction and infrastructure sectors, which drive demand for adhesives and paint emulsions. The construction chemical market is expected to grow at a 7% CAGR to USD 5.5 billion by 2030.
Consumer Behavior
Increasing demand for home improvement and premium construction chemicals is driving the shift toward branded products like Mahacol and Mahafix.
Geopolitical Risks
Fluctuations in international chemical markets and crude oil prices due to geopolitical tensions directly impact input costs. Trade barriers or changes in import duties on chemicals could affect the competitiveness of their import-substitute products.
Regulatory & Governance
Industry Regulations
Operations are subject to environmental and pollution control norms for chemical manufacturing, as well as quality standards for construction chemicals and import/export regulations for raw materials.
Environmental Compliance
The company maintains R&D focus on sustainable products. Specific ESG compliance costs were not disclosed in INR.
Taxation Policy Impact
The effective tax rate is approximately 24.8% (based on PBT of INR 22.42 Cr and PAT of INR 16.86 Cr in FY25).
Legal Contingencies
The company reported no pending applications or proceedings under the Insolvency and Bankruptcy Code, 2016. No instances of one-time settlements with banks were reported for the financial year.
Risk Analysis
Key Uncertainties
Raw material price volatility (linked to crude oil) and currency fluctuations are the primary risks. High competition in the consumer adhesive segment could limit the success of brand-building efforts.
Geographic Concentration Risk
Revenue is primarily domestic (99% of volume), with manufacturing spread across 4 states (Maharashtra, Gujarat, Karnataka, and Dadra Nagar Haveli), providing some regional diversification.
Third Party Dependencies
Dependency on global chemical suppliers for raw materials is being mitigated by the development of in-house import substitutes like RDP.
Technology Obsolescence Risk
The company is mitigating technology risks by upgrading its R&D center in Navi Mumbai and implementing SAP and plant automation to stay competitive.
Credit & Counterparty Risk
The company deals with large, reputable corporates like Asian Paints and Berger, which mitigates credit risk in the B2B segment. The 'Positive' outlook from Crisil reflects a stable credit profile.
