Nandan Denim FY26: Revenue Fell ₹675 Cr, Profit Didn’t Move, and the Debt Quietly Halved Again

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1 — At a Glance

Nandan Denim closed FY26 with revenue of ₹2,872 Cr, down from ₹3,547 Cr the year before — a ₹675 Cr, roughly 19% contraction. Net profit barely flinched: ₹33.1 Cr against ₹33.5 Cr in FY25. A fifth of the top line vanished and the bottom line sat almost exactly where it was.

The balance sheet tells the louder story. Borrowings fell to ₹117.5 Cr from ₹248.8 Cr in FY25, and from ₹640 Cr back in FY18. A company that once carried more debt than net worth now carries net worth of ₹651 Cr against ₹118 Cr of borrowings.

Operating margin stayed thin at about 3.1%, where it has lived for three years now. The market caps the whole business at ₹355 Cr — below its own book value of ₹651 Cr, which is to say the market pays ₹0.54 for every ₹1 of stated net worth.

A denim maker shrinking its sales and its debt at the same time is doing two contradictory-looking things at once. The record for FY26 is mostly about which one the numbers care about more.

2 — Introduction

Nandan Denim Limited was incorporated in August 1994 and is part of the Ahmedabad-based Chiripal Group, a family business built by Mr. Ved Prakash Chiripal. It manufactures denim, shirting, yarn and assorted fabrics, runs two integrated facilities at Sejpur-Gopalpur in Ahmedabad, and operates a 15-MW captive solar plant on site that covers its power needs.

The FY26 audited results, approved by the board on 28 May 2026, carried an unmodified audit opinion from Nahta Jain & Associates. The year’s headline events were procedural and financial rather than dramatic: auditor reappointments for FY27, a credit-rating reaffirmation from Infomerics in January 2026, and an exchange penalty over a board-composition lapse.

The capital structure changed shape in FY25 when shareholders approved a 10:1 share split — one ₹10 share became ten ₹1 shares. The face value on the data sheet duly steps from ₹10 to ₹1, and every per-share figure here is computed on the post-split count of 144.15 Cr shares so the comparisons hold.

What ties the period together is a single tension: the top line moved a lot, the profit moved almost nothing, and the debt kept melting.

3 — Business Model: WTF Do They Even Do?

Nandan makes denim. Then it makes more denim. It also makes shirting fabric and spins yarn, but denim is the headline — the company runs an annual capacity of 110 million metres per annum and bills itself, with the rating agency’s blessing, as one of India’s largest denim manufacturers.

The model is resolutely B2B. The customers are fabric resellers, garment converters, distributors, wholesalers, dealers, brand owners and exporters — the unglamorous plumbing behind the jeans. The end brands the fabric reportedly reaches read better than the business does: Mufti, Zudio, Myntra, Max, Pantaloons, Westside. Nandan sells the cloth; somebody else sells the cool.

Production runs the full cycle — spinning to fabric finishing — across a spinning unit and the denim and shirting lines, with the 15-MW solar plant handling the power bill. Per the rating report, over a third of that captive supply comes from renewable sources, which is the kind of detail that matters when power is a large slice of a textile maker’s cost.

Geographically it is a domestic story with an export garnish — the FY23 split was roughly 95% domestic, 5% exports, shipped to a globe-spanning list from Peru to Korea. The roast writes itself: this is a company whose product ends up on shelves in fifteen countries and whose margin still behaves like a fragment of a rupee. Selling commodity denim into a fragmented market means the cloth travels far and the pricing power doesn’t travel at all.

Does a 110-million-metre capacity mean much when realisations sit near ₹142 a metre and the industry can’t pass through cotton costs? The capacity is real; the leverage on it is the open question.

4 — Financials Overview

Figures are consolidated, in ₹ crore. Result type is Quarterly; the latest period is the quarter ended March 2026.

The March quarter carried two arithmetic quirks worth naming because they sit on the page.