Nitta Gelatin India Ltd (NGIL) Q2FY26 | ₹138 Cr Sales, ₹18.9 Cr PAT, P/E 10.9 — When Collagen Turns Into Compound Annual Growth
1. At a Glance
From animal bones to investor bonanza — Nitta Gelatin India Ltd (NGIL) has found a way to squeeze beauty, health, and profits from leftovers. Incorporated in 1975, this ₹814 crore smallcap crafts gelatin, collagen peptides, ossein, and Di-Calcium Phosphate (DCP), basically converting cow bones into cash flows.
At a stock price of ₹897, NGIL trades at a reasonable P/E of 10.9, a Book Value of ₹465, and a ROE of 19.6% — numbers that make most midcaps blush. The company reported Q2FY26 revenue of ₹138 crore (up 4.3% YoY) and PAT of ₹18.9 crore, down 5.7% due to the subsidiary shutdown saga in Maharashtra.
Despite that hiccup, NGIL maintains operating margins near 19%, a ROCE of 24.6%, and debt-to-equity ratio of just 0.07. Basically, a clean balance sheet, healthy profits, and collagen-rich returns.
The stock has delivered 42.6% in five years — not a multibagger, but a sturdy compounding story. And just when you thought this company was as quiet as its Japanese joint venture partner, it goes ahead and drops ₹200 crore capex plans, a pollution scandal, a CFO reshuffle, and a potential merger — all in one fiscal year.
Smallcap? Yes. Boring? Absolutely not.
2. Introduction
In a world obsessed with “wellness”, Nitta Gelatin has been doing it before it was cool. While Instagram influencers sip collagen smoothies, NGIL has been making the raw material for decades. Founded as a JV between Kerala State Industrial Development Corporation (32%) and Japan’s Nitta Gelatin Inc. (43%), the company embodies a rare Indo-Japanese partnership that actually works.
Operating out of Kerala and Gujarat, NGIL turns animal bones into pharmaceutical-grade gelatin, ossein, and collagen peptides — essential for industries like pharma, food, cosmetics, and even poultry feed.
But 2025 hasn’t been all glossy skincare ads and health supplements. Its subsidiary Bamni Proteins Ltd (BPL), which used to supply 20% of ossein, was shut down by the Maharashtra Pollution Control Board in July 2024. Yet NGIL managed to keep the show running by increasing in-house sourcing — talk about bone-deep resilience.
With capex of ₹200 crore under way for expanding gelatin and peptide capacity, the company’s next few years could see double the output — if it manages to keep the environmental cops happy and customers glowing.
So yes, this isn’t just about making gelatin. It’s about how a Kerala-Japan joint venture turned leftover skeletons into a skincare empire.
3. Business Model – WTF Do They Even Do?
Let’s break this down like an overcooked bone:
NGIL’s business is vertically integrated — they collect animal bones, process them into ossein, convert that into gelatin and collagen peptides, and sell the by-products as feed supplements. Essentially, nothing goes to waste except investor doubts.
Main products include:
🦴 Ossein & Gelatin – Used in food, pharma, and capsule manufacturing.
💧 Collagen Peptides (Wellnex brand) – Marketed as “beauty from within,” these peptides are sold for skin, joint, and diabetic care.
🐓 Dicalcium Phosphate (DCP) – A by-product sold to poultry feed manufacturers.
🌿 Chitosan – A niche product used in agriculture, textiles, and cosmetics.
🍶 Consumer Products – “Gelixer” and “Wellnex” collagen supplements.
The company’s strategy is equal parts chemistry and commerce — sell to B2B pharma giants while wooing millennials with B2C collagen powders.
However, NGIL’s recent subsidiary shutdown (Bamni Proteins) was a speed bump. But management plans to handle ossein needs internally for now, ensuring production continuity.
So if you’re wondering — yes, this is the only listed Indian company that literally turns bones into beauty, feed into finance, and waste into wealth.
4. Financials Overview
Source table
Metric
Q2FY26 (₹ Cr)
Q2FY25 (₹ Cr)
Q1FY26 (₹ Cr)
YoY %
QoQ %
Revenue
138
132
139
4.3%
-0.7%
EBITDA
26
26
27
0.0%
-3.7%
PAT
18.9
20
19
-5.7%
-0.5%
EPS (₹)
20.3
22.3
21.1
-9.0%
-3.8%
Annualized EPS = ₹81.2 → P/E = 897 / 81.2 = 11x. That’s called value with collagen.
Margins are leaner than FY23 highs (when OPM touched 23%), but still impressive at 19% OPM and 13.7% PAT margin. The company may not flex growth yet, but it’s flexing financial discipline.
5. Valuation Discussion – Fair Value Range
Method 1: P/E Approach Industry P/E = 33. NGIL’s EPS = ₹90. Fair range = 90 × 15–20 = ₹1,350–₹1,800
