The collagen and gelatin specialist, Nitta Gelatin India Ltd (NGIL), just dropped its audited financial results for the year ended March 31, 2026. While the rest of the chemical sector is busy making excuses about global headwinds, NGIL is busy making money. We are looking at a company that is turning animal bones into liquid gold, and the latest numbers suggest the alchemy is working better than ever.
1. At a Glance
If you ever wondered who makes the shells for your multivitamin capsules or the collagen in your fancy skincare, meet the Indo-Japanese powerhouse, Nitta Gelatin. This isn’t your average chemical company; it’s a high-precision biological extraction business. The latest Q4 results are nothing short of a fireworks display. We are looking at a Net Profit of ₹34.1 crore for the quarter, a staggering 105% increase over the same period last year.
The market cap stands at a humble ₹891 crore, but don’t let the small size fool you. This is a debt-free entity with a Stock P/E of 9.07, operating in an industry where the median P/E is nearly 29. It’s like finding a designer watch at a flea market price. The company has declared a dividend of ₹7 per equity share, showing they have enough cash to reward shareholders even while planning a massive ₹200 crore expansion.
But it’s not all sunshine and rainbows. The company is currently navigating the messy closure of its subsidiary, Bamni Proteins Ltd, due to pollution issues in Maharashtra. Management had promised to internalize the supply chain to mitigate this, and the latest P&L suggests they didn’t just walk the talk—they ran it. Revenue for the quarter grew by 25.2% YoY, proving that the supply chain hiccups were just a speed bump, not a roadblock.
2. Introduction
Nitta Gelatin India is a unique collaboration between the Kerala State Industrial Development Corporation (KSIDC) and Nitta Gelatin Inc., Japan. Imagine the discipline of Japanese engineering meeting the raw material access of India. They produce Gelatin, Ossein, and Collagen Peptides—ingredients that are “invisible” but essential to the pharmaceutical and food industries.
The company has three main divisions:
- Gelatin Division in Kochi.
- Ossein Division in Koratty.
- Reva Division in Gujarat.
The stock has been a steady performer, giving 24% returns over the last year. However, the real story lies in the efficiency. With a ROCE of 27.4% and a Debt-to-Equity of 0.01, the balance sheet is cleaner than a surgical ward. They are currently doubling down on their high-margin Collagen Peptide capacity, sensing a global shift toward nutraceuticals and “beauty from within” products.
3. Business Model – WTF Do They Even Do?
They take animal bones (mostly crushed cattle bones) and treat them with hydrochloric acid to create Ossein. This Ossein is then processed into Gelatin for pharma capsules or Collagen Peptides for health supplements. They also produce Di-Calcium Phosphate (DCP), which goes into poultry feed.
Essentially, they are the ultimate “waste-to-value” players. They take a byproduct of the meat industry and turn it into high-value pharmaceutical-grade ingredients. It’s a dirty business in terms of raw materials, but a very “clean” one in terms of
