Nitiraj Engineers Ltd Q2 FY26 – From Weighing Scales to Flying Drones, This Phoenix Is Seriously Trying to Fly Higher (and Still Stay Balanced)
1. At a Glance
Nitiraj Engineers Ltd — the makers of the iconic “Phoenix” weighing scales — just dropped their Q2 FY26 results, and oh boy, they’re the kind of numbers that make even a precision weighing machine blink twice. With quarterly sales of ₹16.39 crore and PAT at ₹1.63 crore, the company pulled off a YoY sales growth of 30.5% and a profit growth of 8,050%. Yep, eight thousand. That’s not a typo, that’s redemption.
At a market cap of ₹185 crore and a current price hovering around ₹180, Nitiraj is technically tiny, but its ambitions are heavy-duty. The stock trades at a P/E of 23.8x, a reasonable multiple for an electronics manufacturer, though ROE of 5.63% suggests the juice still isn’t flowing at full voltage. With a dividend yield of 0.84%, near-zero debt, and EV/EBITDA of 12.6, this company screams “operational discipline” louder than your gym instructor on New Year’s Day.
The last twelve months haven’t been kind on the price chart (down 24%), but internally, the company has quietly fixed the leaks: debtor days improved from 43.5 to 32.2, working capital requirements reduced from 122 to 92.7 days, and management seems to have finally realized that a weighing scale company can’t afford to lose balance financially.
2. Introduction – From Baby Scales to Bureaucracy
Incorporated way back in 1989, Nitiraj Engineers began its journey building good old weighing scales. Fast-forward three decades, and the same company is supplying smart, data-backed weighing systems to government programs like the Child Growth Monitoring Systems (CGMS). Their devices now measure not just kilograms but bureaucratic patience, because these orders often involve state tenders and layers of red tape thicker than a 50kg flour sack.
The real twist? Nitiraj isn’t just counting kilos anymore — it’s counting cash and fare too. With currency counting machines, electronic taxi meters, and even upcoming drones, the company’s product range looks like a cross between a police station and a science exhibition.
While most small manufacturing firms in India remain content selling to traders, Nitiraj has found a sweet spot serving state governments — which, if executed well, means consistent volumes and visibility. But if mismanaged, it’s like waiting for your bus pass renewal — painfully long.
So what’s happening in FY26? New branches in Ahmedabad, Secunderabad, and Cuttack; a new commercial unit at Dadra & Nagar Haveli; and a drone project that might finally let Phoenix “fly”. The irony is delicious: from measuring weight to defying gravity.
3. Business Model – WTF Do They Even Do?
Let’s make it simple. Nitiraj Engineers builds machines that either count, weigh, or measure — things people love doing in Excel sheets but hate doing manually.
Their flagship “Phoenix” brand is now synonymous with everything that measures:
Currency Counting Machines, which you’d hope politicians don’t use too often.
Taxi Fare Meters for autos and cabs, proving that even inflation can be quantified.
And soon — drones for agriculture, GIS, and defense sectors. Because why not?
The business works on a B2G and B2B hybrid model, selling directly to state governments (Jharkhand, Andhra, Orissa, etc.) for child health programs and to private dealers for retail and industrial usage.
Their associate company handles software and IT solutions, giving Phoenix scales a digital brain. Combine that with 13 branch offices and 430 distributors across SAARC and the Middle East, and you have a company that sells both metal and megabytes.
Now, tell me — how many weighing-scale makers do you know who are entering the drone business? Exactly.
4. Financials Overview
Let’s see what the latest quarterly data says:
Metric
Q2 FY26 (Sep 2025)
Q2 FY25 (Sep 2024)
Q1 FY26 (Jun 2025)
YoY %
QoQ %
Revenue (₹ Cr)
16.39
12.56
10.54
30.5%
55.5%
EBITDA (₹ Cr)
2.71
0.70
0.02
287%
13,450%
PAT (₹ Cr)
1.63
0.02
-0.32
8,050%
609%
EPS (₹)
1.59
0.02
-0.31
7,850%
613%
Annualised EPS = ₹1.59 × 4 = ₹6.36; giving a P/E of roughly 28x at CMP ₹180.
Now that’s a comeback chart Arjuna would be proud of. After a rough Q1 (loss-making), Q2 delivered a knockout punch with PAT margin rising back to ~10%. The company’s cost control looks tighter, and operational leverage kicked in after those large government orders started dispatching.
It’s still a small-cap company, so a single tender win or delay can swing margins wildly. But if this consistency sustains for even two more quarters, Phoenix may finally be rising from the ashes of volatility.
5. Valuation Discussion – Fair Value Range Only
Let’s get nerdy but fun.
(a) P/E Method: Annualized EPS = ₹6.36 Industry P/E =
