Nahar Poly Films FY26: ₹704 Cr Revenue, 7.66x P/E, and a ₹594 Cr Capex Bet on the Future

General information and entertainment, not investment advice. The author is not a SEBI-registered adviser or research analyst. No recommendation, no promised returns. Markets carry risk including loss of capital. Figures may not be current. Consult a registered adviser before acting. Prices referenced are not live — the reference price used throughout this article is ₹245.65.

1 — At a Glance

Revenue crossed ₹704 Cr in FY26, a five-year compounded growth of 18% off a much smaller base. The operating profit margin recovered to 15% from a near-catastrophic 4% in FY24, a year the BOPP industry would rather forget.

PAT came in at ₹78.84 Cr — the best since FY22’s ₹97.71 Cr. EPS on a fully consolidated basis: ₹32.05. The market, at the reference price of ₹245.65, pays 7.66x those earnings.

The balance sheet carries ₹78.95 Cr in borrowings against total equity of ₹866.78 Cr — a D/E of 0.09. That’s almost nothing. Which makes the announcement of a ₹594 Cr expansion capex (funded mostly via a ₹418 Cr term loan) the most interesting number in the room.

The company’s ROCE sits at 10.7%. The question the market has not yet fully answered: does a business earning 10.7% on capital deserve to borrow ten times its current debt and double capacity in an industry that has already been through one oversupply crisis in the past three years?

2 — Introduction

Nahar Poly Films Limited (NPFL) was not always in the film business. It started life as Nahar Exports Ltd, pivoted through a textile-to-investment demerger in 2006, changed its name in 2008, and commissioned its first BOPP plant in Madhya Pradesh in 2010. The second line came in February 2022, doubling installed capacity to 60,000 TPA.

The company sits inside the sprawling Nahar Group — a seven-decade-old Ludhiana conglomerate with fingers in textiles (Oswal Woollen Mills, Monte Carlo Fashions), BOPP films, real estate, sugar, and financial services. NPFL’s largest promoter shareholder is Nahar Capital and Financial Services Limited (NCFSL), which holds 49.16% of NPFL — and NPFL, in turn, holds 39.48% of NCFSL. A holding-company loop that the consolidated accounts dutifully account for via equity method.

FY24 was the industry’s purgatory. The market leader cut prices aggressively to hold market share; realizations cratered across the sector; NPFL posted PAT of just ₹5.68 Cr on ₹599.93 Cr of revenue — an NPM so thin it would lose a fight with a rounding error. FY25 began the recovery. FY26 made it stick: revenue ₹704.2 Cr, PAT ₹78.84 Cr, OPM 15%.

Q4 FY26 (Mar 2026) added ₹167.68 Cr in revenue and ₹20.5 Cr in net profit, capping a year where all four quarters turned profitable for the first time since FY23. The board recommended a ₹1.50 per share dividend (30% on face value of ₹5), and simultaneously announced that Ms. Sakshi Maheshwari — 23, freshly minted ACS — has taken over as Company Secretary following Priya’s departure in March 2026.

3 — Business Model: WTF Do They Even Do?

NPFL manufactures Biaxially Oriented Polypropylene (BOPP) films. Which sounds like a lab experiment but is actually what wraps your biscuit packet, your bread loaf, your cigarette box, your tape roll, and the textile bags your grandmother stores winter quilts in.

BOPP film is polypropylene resin stretched in two directions simultaneously — bi-axially — until it becomes a thin, strong, optically clear film. The company then sells this in several grades:

Plain/transparent films — used in lamination and packaging. The commodity end of the range. Margins are slim because any BOPP plant can make this.

Metalized films — a thin aluminium layer deposited on the BOPP base. Better barrier properties, shinier appearance, better margins, more differentiation. This is where NPFL has more room to breathe.

Specialty grades — white opaque, sealable, pearlised, tape grade. Each grade has different specifications and customer stickiness. Top-10 customers in FY25 contributed ~35% of revenue (down from ~57% in FY24 — a meaningful improvement in customer diversification).

The raw material is polypropylene resin (and additives), which accounts for roughly 70% of operating income. Polypropylene is a petrochemical derivative — it moves with crude oil. The company does not make crude oil. This is a permanent structural vulnerability, partially softened by forward contracts.

Capacity: 60,000 TPA at Distt. Raisen, Madhya Pradesh (Village Sarakia/Itayakalan). Exports go to Nigeria, the UK, Bangladesh, UAE, Turkey, Oman, Tanzania, Nepal, and the Slovak Republic — about 12% of FY25 revenue. Domestic sales cover 200+ customers.

The business model’s honest description: a commodity-adjacent film manufacturer with modest differentiation, raw material pass-through economics, and a balance sheet that is very clean except for the giant capex about to arrive. The moat, such as it is, comes from scale, customer relationships, and the group’s financial umbrella — not from any proprietary technology.

4 — Financials Overview

Figures are consolidated, in ₹ crore.

Quarterly Results — Q4 FY26 (Mar 2026)

Q4 OPM came in at 19% — the strongest quarter in the series shown on screener. Operating profit grew faster than revenue in Q4, suggesting operating leverage began to show up as fixed costs stayed flat while volumes held.

The full-year FY26 EPS of ₹32.05 (consolidated, Net Profit ÷ 2.46 Cr shares) is the reference for all P/E calculations in this article.

Source — Announcements: The board on 28 May 2026 approved audited FY26 results and recommended a ₹1.50/share dividend (30% on ₹5 face value). Sakshi Maheshwari was appointed Company Secretary effective the same date.

Source — CARE Ratings (April 2026): CARE reaffirmed CARE A; Stable on long-term facilities (enhanced to ₹545 Cr) and CARE A1 on short-term. The reaffirmation specifically cited the group’s financial flexibility and NPFL’s “strong liquidity