At a Glance
Nilkamal, the king of plastic chairs and the silent hero of every Indian household, pulled off a 19% revenue growth in Q1 FY26 to ₹864 Cr. However, profit slumped to ₹10 Cr (-34% YoY), with OPM stuck at 7%. The company announced a ₹150 Cr capex—because why not burn cash while profits melt?
1. Introduction
Once known for the legendary molded chair that outlasted marriages, Nilkamal is now stretching into mattresses, material handling, and honeycomb boards (yes, BubbleGUARD is a thing). But in Q1 FY26, the only thing bubbly was the investor anxiety. While revenue surged, profits decided to vacation elsewhere, giving analysts another reason to scratch their heads.
2. Business Model (WTF Do They Even Do?)
- Plastic Division: Chairs, tables, mattresses—basically the backbone of middle-class furniture.
- BubbleGUARD: Fancy honeycomb structured boards for packaging—niche but high-margin.
- Material Handling: Crates, pallets, racks—industrial clients’ best friend.
Roast: They sell from plastic stools to automated storage systems, yet can’t store enough margin to impress shareholders.
3. Financials Overview
Q1 FY26 Numbers
- Revenue: ₹864 Cr (+19% YoY)
- EBITDA: ₹58 Cr (-14% YoY)
- PAT: ₹10 Cr (-34% YoY)
- EPS: ₹10.2
Commentary: Sales climbed, but profits slipped—clearly, not all growth is good growth.
4. Valuation
- P/E: 26.1x – slightly expensive for a slow grower.
- P/B: 1.8x – decent but not dirt cheap.
- Fair Value Range: ₹1,550 – ₹1,750.
Translation: Investors pay a premium for nostalgia and brand—but growth doesn’t justify it fully.
5. What’s Cooking – News, Triggers, Drama
- ₹150 Cr capex announced for FY26 to expand capacities.
- New independent director appointed—fresh governance always smells nice.
- Focus on BubbleGUARD & Material Handling as growth drivers.
- Softness in furniture demand and cost pressures weigh on margins.
6. Balance Sheet
| (₹ Cr) | Mar 2024 | Mar 2025 |
|---|---|---|
| Total Assets | 2,221 | 2,544 |
| Borrowings | 406 | 531 |
| Net Worth | 1,410 | 1,487 |
Auditor-Style Remark: Debt creeping up, net worth crawling up—financial fitness is as flexible as their plastic chairs.
7. Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating Cash | 190 | 250 | 247 |
| Investing Cash | -164 | -156 | -224 |
| Financing Cash | -71 | -32 | 34 |
Remark: Positive cash ops, but investing cash is draining faster than cola at a summer wedding.
8. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE | 9% | 7% | 7.3% |
| ROCE | 13% | 11% | 9.6% |
| OPM | 10% | 9% | 8% |
| D/E | 0.3x | 0.3x | 0.4x |
Verdict: Margins and returns are flatter than their storage bins.
9. P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 3,131 | 3,196 | 3,313 |
| EBITDA | 312 | 294 | 286 |
| PAT | 134 | 122 | 107 |
Observation: Revenue grows, EBITDA shrinks—costs eating profits alive.
10. Peer Comparison
| Company | P/E | ROE | OPM |
|---|---|---|---|
| Safari Industries | 71.9 | 15.8% | 12.7% |
| VIP Industries | – | -11.8% | 3.8% |
| Nilkamal | 26.1 | 7.3% | 8.2% |
Comment: Safari flies, VIP sinks, Nilkamal sits—like their iconic chair, stable but uninspiring.
11. Miscellaneous – Shareholding
- Promoters: 64.5% (steady)
- FIIs: 1% (low interest)
- DIIs: 14.4%
- Public: 20%
12. EduInvesting Verdict™
Nilkamal is a legacy player with strong brand recall and a diversified product mix, but growth is tepid and profitability under strain. The capex plan hints at long-term vision, but short-term investors may find the returns as uncomfortable as sitting on a plastic chair for too long.
SWOT
- Strengths: Dominant brand, extensive distribution, strong cash flows.
- Weaknesses: Low margins, weak ROE, stagnant growth.
- Opportunities: BubbleGUARD, capex expansion.
- Threats: Rising raw material costs, competition from modern furniture brands.
Final Word: Reliable, sturdy, and omnipresent—Nilkamal is the plastic chair of investments: useful, but not thrilling.
Written by EduInvesting Team | 29 July 2025
SEO Tags: Nilkamal Q1 FY26, Plastic Furniture, BubbleGUARD, Capex, Consumer Durables
