Nitco Ltd: ₹5,842 Lakh JDA Jackpot & The DGFT Penalty Plot Twist

1. At a Glance

Nitco Ltd, the 1966-born veteran of India’s designer tiles & marble arena, just pulled off a financial magic trick — going from a history of heavy losses to a Q1 FY26 net profit of ₹47.46 crore, largely courtesy of a ₹58.42 crore one-off gain from a Joint Development Agreement (JDA). Add in a spicy ₹170 crore DGFT penalty (which they’re challenging) and you’ve got yourself a quarterly results party where the invite says: “Drama at the cash counter.”

2. Introduction

In the corporate soap opera that is the Indian ceramics industry, Nitco Ltd has been playing the long-suffering underdog role for over a decade — sluggish sales, negative ROCE, and debt levels that could give a CFO nightmares.

But FY26’s Q1 was different. The company decided to drop a plot twist worthy of a Netflix limited series:

• Massive exceptional income from a property JDA.
• A penalty bigger than their annual sales from DGFT (Directorate General of Foreign Trade).
• A stock price run that’s left retail investors wondering whether this is a real turnaround or a well-timed cameo performance.

This is not your usual “tiles and marble” quarter. This is “tiles, marble, and miracles.”

3. Business Model (WTF Do They Even Do?)

Nitco makes and sells:

• Designer bathroom & kitchen tiles
• Outdoor & commercial tiles
• Wall & floor marble collections

They run 50+ retail outlets across India, and have tiptoed into international