NILE Ltd Q2 FY26 – Lead, Lithium, and Laughs: How a ₹942 Cr Metal Recycler Is Smelting Its Way to a Cleaner Future

1. At a Glance

NILE Ltd, the quiet metals recycler from Hyderabad, just turned in a September 2025 quarter that deserves more attention than the noise from its smelters. With sales of ₹274 crore and a net profit of ₹12 crore, the company’s quarterly profit shot up38.6% YoY, powered by an operating profit margin of 6%. The stock currently trades at ₹1,713 with a market cap of ₹514 crore and a modest P/E of 11.1 — cheaper than a second-hand inverter battery but cleaner than most midcaps.

ROCE stands at 19.9% and ROE at 14.7%, proving that while Nile doesn’t shout from rooftops, it quietly recycles both metals and money efficiently. Debt is just ₹18 crore with a laughable debt-to-equity ratio of 0.06 — the corporate equivalent of running a marathon barefoot and still winning. Promoters hold a firm 50.4%, while the public holds the other half, hoping lithium dreams will replace lead-heavy realities.

2. Introduction

Nile Ltd has been melting metal — and investor skepticism — since 1984. It’s that one stock which your old-school uncle bought decades ago and forgot, only to rediscover now when everyone’s talking aboutbattery recycling. The company’s story sounds simple: they make pure lead, supply it to battery giants, and recently decided to get “woke” by entering the lithium-ion recycling business.

But peel the layers, and you’ll find drama: one major customer (Amara Raja Batteries Ltd) accounts for 91% of revenue and is setting up itsown smelter. Translation: Nile’s largest client may soon be its biggest competitor. If this were a Bollywood movie, Amara Raja would be the hero turning villain halfway through.

Still, Nile keeps its cool. The management has deferred its foray into natural extracts (because, clearly, we all neededlead-to-leavesdiversification), but is going full throttle onNLCPL, its lithium battery recycling subsidiary, with a ₹600 million capex plan — 75% debt-funded, 25% from internal accruals. Phase 1 of the lithium unit is already operational, and Nile is finally riding the “green metals” wave instead of just being the smelter in the background.

3. Business Model – WTF Do They Even Do?

Let’s simplify: Nile takes used lead-acid batteries, recycles them, and produces pure lead (99.97% purity). This is then sold to companies like Amara Raja and Mangal Industries, who make new batteries. Basically, Nile’s business is the adult version of childhood “kabadiwala economics.”

They also producelead alloys— combinations like lead-antimony, lead-calcium, and lead-tin — used in batteries, PVC stabilizers, and more. The company ownstwo recycling plants:

• Choutuppal (capacity: 32,000 TPA)
• Tirupati (capacity: 75,000 TPA)

And just to flex some eco-muscle, Nile also runs awind power unit at Ramagiri, selling electricity to the Andhra Pradesh South Power Distribution Company Ltd.

Now here’s where it gets futuristic — Nile Lithium Circular Private Limited (NLCPL) is their new baby. It’s building India’s early lithium-ion battery recycling ecosystem, a segment hotter than Birla’s new IPOs. Meanwhile, Nile Extracts (NEPL), a subsidiary meant to make nutraceuticals and cosmetics ingredients, has been politely postponed. Because, honestly, nothing says “corporate diversification” like moving from lead to lipstick.

4. Financials Overview

Quarterly Results (Consolidated, ₹ crore)

Commentary:Nile’s quarterly scorecard shows consistency, not fireworks. Revenue grew 9% YoY — good enough in a commodities market plagued by price swings. PAT margin at ~4.4% may sound thin, but when your client list has 91% dependence on one buyer, even this looks like gold. The QoQ dip in profit is largely due to metal price fluctuations and slightly higher expenses.

Annualised EPS based on Q2 = ₹38.64 × 4 = ₹154.56.At a CMP of ₹1,713, that gives a P/E of 11.08