Nahar Polyfilms Ltd H1FY26 Results – ₹3,215.65 Lakh PAT, 16% OPM, ₹450 Cr Expansion Plan & A ₹638 Cr Market Cap Film Script That’s Thicker Than Its BOPP Roll!
1. At a Glance
If you thought films were only made in Mumbai, think again—because Nahar Polyfilms Ltd is spinning its own blockbuster from Raisen, Madhya Pradesh. With a market cap of ₹638 crore and a P/E of just 10.5, this BOPP film manufacturer seems like the kind of underdog that could surprise everyone when the end credits roll. The stock trades at ₹260, far below its 52-week high of ₹390, as if the market’s popcorn ran out mid-movie. The company recently delivered an H1FY26 PAT of ₹3,215.65 lakh (₹32.16 crore) and kept the operating profit margin at 16%—not bad for a business that literally deals in thin plastic sheets.
Promoters still dominate the screen with a 72.28% holding, while public shareholders, possibly including one too many retail investors who fell for “poly” in the name, hold around 27.63%. Despite its small size, NPFL flexes a healthy ROCE of 6.46% and a near-zero debt-to-equity ratio of 0.11. But let’s be honest—ROE of 5.69% doesn’t make analysts drool. Yet, the company trades at only 0.75x its book value, which is as if the market values its entire film business at discount rates of a B-grade multiplex.
Still, Nahar’s script isn’t over. With ₹699 crore in sales (TTM), ₹60.7 crore PAT, and a ₹450 crore expansion already approved for an additional 36,000 MT of capacity, it looks like the reel for FY26 might have some spicy scenes coming up.
2. Introduction
Nahar Polyfilms Ltd is the kind of stock that investors usually discover when they’re “accidentally” scrolling through Screener instead of Netflix. Incorporated in 1988, this company is part of the grand old Nahar Group, the textile-to-finance empire led by the Oswal family—one of Punjab’s most diversified business dynasties.
From yarns to films, they’ve managed to cover everything—literally and figuratively. Their BOPP (Bi-axially Oriented Polypropylene) films wrap everything from biscuits to shampoo sachets to namkeen. So yes, every time you tear open a Lay’s packet, think of a Nahar cousin making margins out of your munching habit.
But let’s not glamorize too early. The stock’s been under pressure, down 25% in six months and 13% in the last quarter. Why? Because while the company makes flexible packaging films, its profits have been anything but flexible. The PAT margin improved recently, but long-term ROE still moves like a tired scooter uphill.
What’s fascinating is how this smallcap has quietly built a ₹699 crore topline empire with just one core product: films. Not the Netflix kind, the plastic kind. It’s a single-product business wrapped around operational discipline and family control—like every other old-money Punjabi business, just with more machines and fewer weddings.
Still, for investors who like the “underrated yet cash-generating” kind of stories, Nahar Polyfilms is worth watching till the climax.
3. Business Model – WTF Do They Even Do?
Let’s simplify this: Nahar Polyfilms makes BOPP films—those shiny, transparent, or metallic plastic layers that wrap your snacks, tape rolls, textiles, and even your online shopping packages. They don’t make consumer brands; they make the material that keeps those brands crispy and glossy.
Their films have various uses:
Lamination & Reverse Printing: For your fancy biscuit wrappers and FMCG packaging.
Decoration: For gift wraps and labels that lie about product quality.
Textile Bags & Industrial Use: Because even boring packaging needs strength.
They operate a 60,000 TPA (ton per annum) production facility at Raisen, Madhya Pradesh. After a second BOPP line went live in 2022, capacity doubled—and now they’re going for another ₹450 crore expansion (adding 36,000 MT) over 2–3 years.
And here’s the twist: 91% of revenue is domestic, and only 9% export. That means they’re catering mostly to Indian FMCG, tape, and textile companies. The top 10 customers account for 54% of sales—thankfully, none of them dominate more than 15%, which means they’re not dancing to any single client’s tune.
The company is also deeply linked to the Nahar Group ecosystem, holding stakes in Nahar Capital (39.48%) and Nahar Spinning Mills (19.14%), while those same firms own large pieces of Nahar Polyfilms in return. It’s basically a mutual admiration society of balance sheets.
4. Financials Overview
Let’s pull out the magnifying glass and inspect Nahar Polyfilms’ H1FY26 results like a forensic accountant with caffeine.
Metric
Latest Qtr (Sep’25)
Same Qtr Last Year (Sep’24)
Previous Qtr (Jun’25)
YoY %
QoQ %
Revenue (₹ Cr)
172
169
197
+1.8%
-12.7%
EBITDA (₹ Cr)
28
23
28
+21.7%
0.0%
PAT (₹ Cr)
21
17
18
+23.5%
+16.7%
EPS (₹)
8.45
7.08
7.42
+19.4%
+13.9%
Commentary: The topline barely moved, but the margins flexed better than a gym influencer. OPM at 16% shows that the cost discipline from the Raisen unit is finally kicking in. PAT of ₹21 crore in a quarter gives an annualised EPS of ₹33.8, implying an effective P/E of ~7.7x—cheaper than a multiplex ticket on weekday mornings.
But the revenue growth has plateaued. It’s the classic mid-cap boredom zone: stable, consistent, but not viral.
5. Valuation Discussion – Fair Value Range (Educational Purpose Only)
Let’s break down the possible valuation ranges using three boring but beautiful tools.
(a) P/E Method: Current EPS (TTM): ₹24.7 Industry P/E: 21.7 Company P/E: 10.5
If NPFL catches up halfway with industry averages (say P/E of 16): Fair Price ≈ ₹24.7 × 16 = ₹395 If the market stays pessimistic (10x): ₹247 → Fair Range: ₹247 – ₹395
(b) EV/EBITDA Method: EV = ₹729 Cr, EBITDA (TTM) = ₹113 Cr → EV/EBITDA = 6.4x Industry average ~10x → At 10x multiple, EV ≈ ₹1,130 Cr → Equity value ≈ ₹1,130 – ₹95 debt = ₹1,035 Cr → Fair Price ≈ ₹420
(c) Simplified DCF: Assume 6% growth, 12% discount rate, 5 years of visibility, terminal at 1.2x book value. → Implied range ₹250–₹400
Educational Range: ₹250 – ₹400 per share. (This fair value range is for educational purposes only and is not investment advice.)
6. What’s Cooking – News, Triggers, Drama
Nahar Polyfilms’ management decided to spice things up with a ₹450 crore expansion plan in July 2025. A new 36,000 MT BOPP film line is to be added over the next 2–3 years, which will push capacity to 96,000 TPA—almost doubling from pre-2022 levels.
Translation: The company is betting that India’s packaging obsession—from Swiggy containers to online retail—will keep growing.
Also, the company reported consistent profitability in H1FY26 with ₹3,215.65 lakh PAT. For a smallcap like this, that’s no pocket change—it’s the kind of number that makes management announce new plants instead of new excuses.
On the corporate governance side, things are silent (which is often good). No pledges, no resignations, and no “mystery related party transactions” popping up like horror sequels. Even the dematerialisation report (Oct’25) showed smooth NSDL-CDSL alignment.
So yes, this is one of those rare Indian smallcaps that’s quietly expanding capacity while staying debt-light and family-controlled.
7. Balance Sheet
(₹ Cr)
Mar’23
Mar’24
Sep’25
Total Assets
979
959
1,009
Net Worth (Equity + Reserves)
780
799
853
Borrowings
163
126
96
Other Liabilities
36
34
60
Total Liabilities
979
959
1,009
Auditor’s Commentary (Our version):
Balance sheet looks cleaner than a freshly laminated biscuit wrapper.
Debt down from ₹163 Cr (FY23) to ₹96 Cr (H1FY26) – slow but steady repayment.
