Nile Ltd (530129)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Nile's revenue was ₹281 Cr (+14.6% year on year, +22.1% on the previous quarter), and net profit ₹8.1 Cr (-45.7% year on year); the operating margin was 3.8%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹281 | +14.6% | +22.1% |
| Operating profit | ₹10.6 | -52.0% | -33.9% |
| Net profit | ₹8.1 | -45.7% | -41.9% |
| EPS (₹) | 27.22 | -45.2% | -40.4% |
| Operating margin | 3.8% | — | — |
📢 Recent Corporate Announcements
Nile Ltd submitted its monthly report regarding share transfer requests re-lodged under SEBI's special window for physical shares. For the month ended September 30, 2026, the company's Registrar and Share Transfer Agent, XL Softech Systems Limited, confirmed that zero (NIL) requests were received, processed, approved, or rejected. This is a recurring regulatory compliance disclosure pursuant to SEBI circular dated January 30, 2026, and bears no financial or operational impact on the company.
- Zero (NIL) physical share transfer requests received during September 2026
- Zero (NIL) transfer requests processed, approved, or rejected in the month
- Average processing time reported as N.A
- Filing submitted in compliance with SEBI Circular dated January 30, 2026
Nile Ltd has submitted its monthly report regarding the special window for re-lodgment of physical share transfer requests as per SEBI guidelines. For the month of July 2026, the company's Registrar and Share Transfer Agent (RTA) reported zero (NIL) requests received, processed, or approved. This is a procedural filing with no impact on the company's financial performance or operations. The company continues to operate with a market capitalization of Rs 485 Cr and TTM revenue of Rs 1040 Cr.
- Zero (NIL) requests for physical share transfers were received during the month of July 2026
- Zero (NIL) requests were processed, approved, or rejected during the reporting period
- The report was filed in compliance with SEBI Circular dated 30th January, 2026
- The status was confirmed by the RTA, M/s. XL Softech Systems Limited, as of July 31, 2026
Nile Ltd reported a consolidated revenue of Rs 280.71 cr for Q1 FY27, a 14.4% increase compared to Rs 245.33 cr in the same quarter last year. However, consolidated net profit fell sharply by 45.4% YoY to Rs 8.14 cr from Rs 14.92 cr, primarily due to a significant rise in raw material costs. Standalone EPS dropped to Rs 32.64 from Rs 54.83 YoY, reflecting severe margin compression as cost of materials consumed reached 84.4% of revenue.
- Consolidated Revenue from operations increased 14.4% YoY to Rs 280.71 cr
- Consolidated Net Profit declined 45.4% YoY to Rs 8.14 cr
- Cost of materials consumed rose to Rs 237.00 cr from Rs 181.90 cr in the year-ago period
- Standalone EPS for the quarter stood at Rs 32.64 vs Rs 54.83 YoY
- Consolidated Profit Before Tax (PBT) margin contracted to 4.05% from 8.40% YoY
Nile Ltd's board has approved the un-audited financial results for the quarter ended June 30, 2026. The company has re-appointed Sri Sandeep Vuyyuru Ramesh as Managing Director for a three-year term starting August 12, 2026, ensuring leadership continuity. Additionally, a new statutory auditor, M/s M. Bhaskara Rao & Co., has been proposed for a five-year term. The Annual General Meeting (AGM) is scheduled for September 30, 2026.
- Re-appointment of Managing Director for a 3-year term effective from August 12, 2026, to August 11, 2029.
- Proposed appointment of M/s M. Bhaskara Rao & Co. as Statutory Auditors for a 5-year term (FY 2026-27 to 2030-31).
- Annual General Meeting (AGM) fixed for September 30, 2026, with a voting cut-off date of September 23, 2026.
- Approval of standalone and consolidated financial results for the quarter ended June 30, 2026.
- Company maintains a high client concentration with one customer (AREML) accounting for approximately 90% of total revenue.
Nile Ltd has scheduled a board meeting for August 4, 2026, to consider and approve the unaudited financial results for the quarter ended June 30, 2026. The company currently operates with a TTM revenue of Rs 1,040 Cr and a PAT of Rs 56 Cr, maintaining a lean debt-to-equity ratio of 0.04. Investors will be monitoring the results for margin stability, as raw material costs constitute 90% of expenses and are linked to LME lead prices. Additionally, updates on the Li-ion recycling subsidiary (NLPL), which is expected to be fully operational by Q4FY26, will be critical for long-term growth assessment.
- Board meeting scheduled for August 4, 2026, to approve Q1 FY27 results.
- Trading window for insiders is closed until 48 hours after the meeting conclusion.
- Company reported a TTM revenue of Rs 1,040 Cr and TTM EPS of Rs 183.88.
- High client concentration remains a factor, with ARBL accounting for approximately 90% of total revenue.
- Current lead recycling capacity stands at 107,000 TPA across two plants.
Financial Performance
Revenue Growth by Segment
Total Operating Income (TOI) grew by 9.75% YoY to INR 919.30 Cr in FY25 from INR 837.63 Cr in FY24. The Lead recycling segment remains the primary driver, while the Li-ion recycling subsidiary (NLPL) contributed to growth in its first full year of operation in FY25.
Geographic Revenue Split
The majority of revenue is derived from the domestic Indian market, specifically through long-term supply agreements with Amara Raja Batteries Limited (ARBL). The company is currently exploring export opportunities to overseas markets to diversify its customer base and improve revenue visibility.
Profitability Margins
Gross margins are impacted by raw material costs which constitute 90% of the cost structure. Net Profit Margin improved from 3.72% in FY24 to 3.95% in FY25. Operating Profit Margin (PBILDT) stood at 6.12% in FY25, up from 5.50% in FY24, driven by better pricing strategies and professional hedging of commodity prices.
EBITDA Margin
PBILDT margin was 6.12% in FY25, representing a 62 bps increase YoY. Core profitability improved due to a 10% increase in TOI to INR 920 Cr and stable demand from OEMs despite volatile raw material prices.
Capital Expenditure
The company is undertaking a total capital expenditure of INR 60 Cr for its subsidiary, Nile Li-Cycle Private Limited. This is funded through INR 40 Cr in bank term loans and INR 20 Cr from internal accruals. Phase 1 is operational, and Phase 2 (hydrometallurgy) is expected to be fully operational by Q4FY26.
Credit Rating & Borrowing
CARE Ratings reaffirmed 'CARE A-; Stable' for long-term bank facilities (INR 60 Cr) and 'CARE A2+' for short-term facilities (INR 30 Cr). Working capital utilization is low at approximately 5-10%, with an interest coverage ratio of 53.94x in FY25.
Operational Drivers
Raw Materials
Lead and Lead-bearing scrap (used batteries) represent approximately 90% of the total cost structure. Other materials include chemicals for alloying and smelting.
Import Sources
Majority of requirements are met domestically. Imports are sourced from European scrapyards and Middle Eastern countries to supplement domestic supply.
Key Suppliers
The top 10 suppliers contribute approximately 90-95% of total procurement. Specific names include various domestic battery collectors and international scrapyards.
Capacity Expansion
Current Lead recycling capacity is 107,000 TPA (32,000 TPA at Choutuppal and 75,000 TPA at Tirupati). Li-ion recycling (NLPL) currently processes 40-50 tonnes per month in Phase 1, with Phase 2 expansion underway.
Raw Material Costs
Raw material costs account for 90% of the total cost structure. The company maintains a minimum stock of 1.5x monthly orders, making it sensitive to LME price fluctuations. Procurement is managed through annual contracts and spot purchases.
Manufacturing Efficiency
Capacity utilization is supported by annual job work agreements with ARBL. Efficiency is enhanced by end-to-end recycling solutions that comply with the Battery Waste Management Rules (BWMR) 2022.
Logistics & Distribution
Distribution is primarily focused on supplying ARBL's facilities. The company is exploring international logistics for the export of Black Mass (Mixed Metal Oxide) from its Li-ion plant.
Strategic Growth
Expected Growth Rate
16.43%
Growth Strategy
Growth will be achieved through the scaling of the Li-ion recycling subsidiary (NLPL), which is expected to be fully operational by Q4FY26. Additionally, the company is diversifying its customer base by exploring export markets for lead alloys and black mass, and expanding its relationship with Amara Raja Advanced Cell Technologies.
Products & Services
Pure Lead, Lead Alloys (Antimonial and Selenium Lead), and Mixed Metal Oxide (Black Mass) from Li-ion recycling.
Brand Portfolio
Nile Limited (Corporate Brand), Nile Li-Cycle (Subsidiary).
New Products/Services
Lithium-ion battery recycling services and the production of Black Mass (Mixed Metal Oxide) for local and international battery material companies.
Market Expansion
Targeting international markets for Black Mass exports and expanding domestic lead recycling capacity to meet OEM demand.
Market Share & Ranking
One of the few organized players providing end-to-end recycling solutions in India; specific market share percentage not disclosed.
Strategic Alliances
Established long-term relationship with Amara Raja Batteries Limited (ARBL). Discussions are ongoing with Amara Raja Advanced Cell Technologies for synergistic opportunities in Li-ion recycling.
External Factors
Industry Trends
The Global Battery Recycling Market is expected to grow from $19.4 billion in 2024 to $69.4 billion by 2034. Tightening environmental regulations (BWMR 2022) favor organized players like Nile by eliminating unorganized competition.
Competitive Landscape
Competes with other organized recyclers and a large unorganized sector. The shift toward organized recycling due to government norms is a key competitive advantage.
Competitive Moat
Moat is built on a 30-year track record, stringent environmental licenses (PCB valid till 2027), and a deeply integrated relationship with ARBL. These are sustainable due to high regulatory entry barriers for new recycling plants.
Macro Economic Sensitivity
Highly sensitive to global non-ferrous metal prices (Lead) and the growth of the domestic automotive and industrial battery sectors.
Consumer Behavior
Increasing demand for electric vehicles and portable electronics is driving the shift toward Li-ion battery recycling.
Geopolitical Risks
Trade barriers or changes in import regulations for used lead-acid batteries could impact raw material availability from European and Middle Eastern scrapyards.
Regulatory & Governance
Industry Regulations
Subject to Battery Waste Management Rules (BWMR) 2022, which mandates Extended Producer Responsibility (EPR) and prohibits landfill disposal, benefiting end-to-end recyclers.
Environmental Compliance
Maintains a waste disposal contract with Ramky Enviro Engineers Limited. PCB inspection was last conducted in FY22, with certification valid until FY27.
Taxation Policy Impact
Effective tax rate is not explicitly stated, but PAT was INR 40.83 Cr on PBT implied by PBILDT of INR 58.04 Cr minus depreciation and interest.
Legal Contingencies
No major audit observations or significant pending court cases reported in the provided documents.
Risk Analysis
Key Uncertainties
Raw material price volatility (90% cost exposure) and extreme customer concentration (90% revenue from one client) are the primary risks, with potential impact on margins exceeding 1-2%.
Geographic Concentration Risk
High concentration in South India (Telangana and Andhra Pradesh) where manufacturing plants are located, and 90% revenue from a single domestic client.
Third Party Dependencies
90-95% dependency on the top 10 suppliers for raw materials and 90% dependency on ARBL for revenue.
Technology Obsolescence Risk
The shift from Lead-Acid to Li-ion batteries is a risk, which the company is mitigating by investing INR 60 Cr in its Li-ion recycling subsidiary.
Credit & Counterparty Risk
Receivables quality is high; the collection period is approximately 30-35 days, with payments from major customers like ARBL received timely.
