Nagpur Power FY26: A Slag Recovery Business That Runs on Interest Income, Real Estate Dreams, and an NBFC Application

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1 — At a Glance

FY26 revenue reached ₹84.12 crore, a fresh high for a company whose headline line item grew 35% over the trailing year. Underneath that record top line sits a net loss of ₹2.14 crore. Sales are climbing at a 23% five-year pace; profit refuses to follow.

This is a company that extracts metal from decades-old furnace slag, whose annual report says investment income now exceeds income from its core operations, and which is applying for an NBFC registration because the RBI told it to. Operating profit for the full year was ₹2.84 crore on ₹84.12 crore of sales — an operating margin of 3.38%. Other income of ₹1.38 crore sits right beside that.

The market caps the whole thing at ₹191 crore against a book value of ₹63.3 per share. A record top line and a bottom line in red is the tension the rest of this entry works through.

Where does the money actually come from — the slag, the subsidiary, or the securities portfolio?

2 — Introduction

Nagpur Power and Industries Limited was incorporated in 1996 and operates from a 20th-floor office at Nariman Point, Mumbai — an address that costs more per square foot than most of the ferro-alloy sector it nominally belongs to.

The company once manufactured high- and medium-carbon ferro manganese and silico manganese. It has since discontinued that manufacturing. What remains is a slag recovery process: the furnace waste that piled up around the old plant over the years is now processed to extract reusable metal content. Per the company’s own filings, income from surplus funds parked in bank deposits and financial securities exceeds income from the curtailed business — which is why the RBI has directed it toward NBFC registration, an application already initiated.

Recent months brought a set of board actions on May 29, 2026: FY26 audited results, the appointment of M/s. M. V. Ghelani & Co. as internal auditors for FY2026-27, and the re-appointment of Gautam Khandelwal as Executive Chairman from June 30, 2026 for three years. Earlier, on October 3, 2025, Company Secretary Praveen Bhati resigned.

The consolidated numbers also carry a subsidiary — Motwane Manufacturing Company Private Limited — which makes test and measurement products. Much of the “power and industries” story is now this measurement business plus an investment portfolio.

3 — Business Model: WTF Do They Even Do?

Three divisions carry the flag: the Ferro Manganese / Silico Manganese Slag division, the Electrical (Electronal) division, and the Electro-Mechanical division. The name promises a foundry; the segment split tells a different story.

By the FY22 segment disclosure, the Electrical division brought roughly 83% of segment revenue and Electro-Mechanical about 16.5% — leaving the carbon ferro manganese and silico manganese slag business, the one the company is literally named after, at around 0.5%. The eponymous product line is a rounding error. The slag recovery process is the elegant part: waste from a manufacturing operation that no longer runs is combed for salvageable metal. A business that mines its own history.

The consolidated revenue leans heavily on the Motwane subsidiary, which develops test and measurement instruments and holds its own subsidiary in underground cable-fault locating equipment. Add to this a stated ambition to develop company land into a large warehousing facility and commercial real estate. So the corporate identity now spans: recovering metal from old slag, making electronic test gear, holding an investment portfolio large enough to trigger NBFC rules, and someday building warehouses.

An investment portfolio that generates more income than the operations, wrapped inside a ferro-alloy holding company — the manufacturing is the branding, the balance sheet is the business.

4 — Financials Overview

Figures are consolidated, in ₹ crore.

Revenue rose by more than a third while operating profit slipped slightly and the bottom line crossed from a ₹2.38 crore profit into a ₹2.14 crore loss. The March 2026 quarter alone booked sales of ₹32.47 crore against ₹17.40 crore a year earlier — an 86.6% jump — yet delivered a quarterly net loss of ₹1.99 crore versus a ₹1.94 crore profit in the prior-year quarter.

The gap between a surging top line and a sinking bottom line is where interest costs (₹2.92 crore for the year), depreciation (₹3.18 crore), and a shrinking other-income contribution (₹1.38 crore, down from ₹5.20 crore) all collect.

5 — Market Expectations & Historical Multiples

This section describes how the market is currently pricing the company and how that compares with its own history and peer group. It is descriptive, not predictive.

P/E cannot be stated as a positive multiple this year because FY26 earnings are negative. The market pays 2.30x book value here, while capitalising an enterprise at 50.2x its EBITDA. Against a peer median P/E of 19.38, this company sits outside the comparison entirely — a loss-making year has no earnings multiple to place next to peers.

What the market appears to be pricing is not this year’s earnings, which are negative, but the balance sheet: a ₹63.3 book value per share, an investment portfolio large enough to require NBFC registration, and land the company itself flags for warehousing and commercial development. The 2.30x book and 50.2x EV/EBITDA describe a market looking past the operating P&L toward the asset base and the FY26 top-line growth of 35%.

Market expectations here rest on assets and revenue trajectory rather than on current profitability.

6 — What’s Cooking

The May 29, 2026 board meeting produced three filed actions: approval of the FY26 audited results, appointment of M/s. M. V. Ghelani & Co. as internal auditors for FY2026-27, and re-appointment of Gautam Khandelwal as Executive Chairman for three years from June 30, 2026, subject to shareholder approval.

Separately, on October 3, 2025, Company Secretary and Compliance Officer Praveen Bhati resigned. A trading window closure was intimated on June 24.

Four real filings, four real events — a governance calendar, not a growth story. The most consequential item remains structural rather than announced: the NBFC registration process the company says it has initiated at the RBI’s direction.

7 — Balance Sheet

Assets equal liabilities in each column.

• Borrowings climbed from ₹15.79 crore to ₹23.49 crore across two years — a 49% rise while net worth barely moved and then dipped.
• Other liabilities nearly tripled from ₹11.63 crore to ₹36.11 crore over the same span, outpacing every other line on the sheet.
• Net worth of ₹82.95 crore in FY26 is lower than the ₹84.97 crore of FY25, the year’s loss quietly eroding the reserve.

Cash and bank stood at ₹2.76 crore against ₹23.49 crore of borrowings; the ₹19.06 crore investment book sits alongside. A balance sheet that grows on the liability side while the equity holds still is a balance sheet doing more borrowing than earning.

8 — Cash Flow: Sab Number Game Hai

Operating cash flow has been negative in every one of these three years, bottoming at ₹-9.13 crore in FY25. Financing has plugged the gap each time — ₹8.26 crore raised in FY25, ₹4.21 crore in FY26. A business whose operations consume cash while financing supplies it is, by the arithmetic on these rows, running on external funding rather than its own till.

9 — Ratios: Sexy or Stressy?

• ROE at -2.55% means the equity base earned nothing this year and then went backwards.
• ROCE of 0.91% shows the capital employed generated under a rupee of return per hundred deployed — the company’s assets clocking in at close to idle.
• PAT margin of -2.5% records a year where revenue grew 35% and still landed below the line.
• D/E of 0.28 keeps leverage modest, which is the one ratio here standing upright.

10 — P&L Breakdown: Show Me the Money

The Other Income column tells the real story of the profit swings. In FY25, other income of ₹5.20 crore sat beside operating profit of ₹2.94 crore — non-operating gains nearly matched the entire operating result, and the year printed a profit. In FY26, other income collapsed to ₹1.38 crore; operating profit held roughly flat at ₹2.84 crore, but with the non-operating cushion gone and interest and depreciation together running near ₹6.1 crore, the year turned to a ₹2.14 crore loss.

The point sits in plain sight: this P&L has swung between profit and loss on the size of its investment gains more than on the strength of its slag and instruments. Revenue nearly doubled across these three years; the bottom line went profit, profit, loss — governed by other income and financing costs, not by the operating trajectory.

11 — Peer Comparison

Against peers, Nagpur Power’s quarterly sales of ₹32.47 crore are a fraction of Indian Metals’ ₹763.29 crore or Maithan Alloys’ ₹559.18 crore. Its quarterly loss of ₹1.99 crore places it among the red-ink names in the set, with no positive earnings multiple to compare against the peer median P/E of 19.38. It is the smallest genuine operator in a table where the largest carries an 18.34% ROCE against its own 0.91%.

12 — Miscellaneous: Shareholding & Promoters

Promoter holding has sat unchanged at 61.23% across every quarter shown, with Zeppelin Investment Private Limited holding 43.08% and the Khandelwal family holding the balance. Pledged shares stand at 0%. LIC-linked entity Lici Asm Non Par is the notable institutional name at 6.64%.

The promoter group is anchored by Gautam Khandelwal, who per the filing holds a BA in Economics from the University of Mumbai, studied at the London School of Economics, and carries about 36 years of business experience. The board he chairs approved his re-appointment as Executive Chairman through 2029.

13 — Corporate Governance: Angels or Devils?

The statutory auditor, M/s. Parekh Sharma & Associates, issued an unmodified opinion on both standalone and consolidated FY26 results — a clean audit report with no qualifications. A new internal auditor, M. V. Ghelani & Co., was appointed for FY2026-27. Pledged promoter shares stand at 0%.

The record shows one Company Secretary resignation (Praveen Bhati, October 2025) and a fresh CS in place signing the May 2026 filings. The consolidated accounts carry significant related-party history, including the intercorporate and guarantee arrangements between the parent and its Motwane subsidiary disclosed in earlier years. On the auditor’s face, the FY26 statements pass without modification.

14 — Industry Roast & Macro Context

Ferro alloys and manganese are commodity-cycle businesses: input costs swing with ore and power, output prices swing with steel demand, and margins get squeezed from both ends. The peer table makes the volatility plain — one name swings to a ₹70.68 crore quarterly loss while another posts a ₹1,082 crore quarterly profit. Ferrous metals is a sector where a single quarter can flip a company’s entire annual arithmetic.

Nagpur Power occupies an odd corner of it: a ferro-alloy company that has largely exited ferro-alloy manufacturing, keeps its economic centre of gravity in electrical instruments and an investment book, and is being ushered by the regulator toward becoming an NBFC. The macro backdrop for manganese barely touches a company whose named product is 0.5% of segment revenue.

15 — EduInvesting Verdict

A company named for a manufacturing business it no longer runs, earning more from its portfolio than its plant, growing revenue at 35% while the bottom line turns red — the record here is of an identity mid-transition, from ferro-alloy maker to something the RBI classifies as an NBFC. A record top line with nothing to show below it, and an asset base still deciding what kind of company it wants to be.