Nakoda Group's Strategic Shift: Q2 FY26 Marks a Strong Turnaround

Nakoda Group of Industries Limited, a diversified manufacturing and trading company, has reported a remarkable financial turnaround for the second quarter (Q2) and first half (H1) of Fiscal Year 2026. The company, traditionally known for its agro-based products, has made a strategic leap into the high-growth beverages segment, a move that is already showing promising early signs. For Q2 FY26, Nakoda's revenue from operations surged by 58% year-on-year to 14.7867 crore. The first half also saw robust growth, with revenue increasing by 20% year-on-year to 21.7076 crore. Crucially, the company's profitability metrics, including EBITDA, EBIT, and Net Profit, all turned positive in both periods, signaling a significant improvement in operational efficiency and market demand.

This impressive financial performance is largely attributed to stronger demand, improved order flow, and enhanced operational efficiencies within its existing agro-based business. The company's disciplined cost management and strategic focus have been instrumental in boosting margins. EBITDA margins, which were negative in the prior year, expanded significantly to 6.99% in Q2 FY26 and 8.61% in H1 FY26. This turnaround is a testament to the management's efforts to streamline operations and optimize its product mix, even as it embarks on a new strategic direction.

Strategic Expansion into Beverages

A pivotal development for Nakoda Group is its entry into the fast-growing beverages segment with the launch of its new brand, "NO CTRL" (NO CONTROL). This strategic initiative, which commenced on October 24, 2025, marks a significant transformation for the company from an agro-based manufacturer to a diversified FMCG player. The "NO CTRL" brand offers a range of energy drinks and flavoured carbonated soft drinks, targeting the youth-driven consumer categories. While the revenue from this new segment will be reflected from Q3 FY26, the early market response has been encouraging, with rising distributive interest and positive consumer feedback.

To support this new venture, Nakoda is aggressively expanding its distribution architecture. The company has already ventured into B2C, e-commerce, and quick-commerce platforms like Blinkit, aiming to enhance brand visibility and consumer reach. Management is also focused on strengthening its presence across traditional markets and modern retail, onboarding additional distributors in Tier 2 and Tier 3 regions. This multi-channel approach is designed to ensure widespread availability and deeper market penetration for the "NO CTRL" brand.

Operational Excellence and Future Outlook

Beyond the new product launch, Nakoda Group is committed to enhancing operational efficiencies through strategic investments. The company is investing in automation, digital upgrades, and tighter expense control to strengthen productivity, reduce wastage, and streamline its cost structure. These initiatives are expected to boost efficiency, enhance product quality, reduce costs, and ultimately improve margins through higher production and economies of scale. The manufacturing facility boasts an installed capacity for raw papaya processing of 100 MT/Day, with a finished products capacity of 20 MT/Day, currently utilized at 8-10 MT/Day.

On the balance sheet front, the company has made significant strides. Long-term borrowings have been drastically reduced from 1.0336 crore to 0.6344 crore. Concurrently, cash and cash equivalents have nearly doubled, increasing from 0.4301 crore to 0.9086 crore, thereby strengthening the company's liquidity position and providing a solid foundation for future growth plans. The management anticipates that the revenue from the new beverage segment will almost double in FY26-27, and plans are underway to launch more SKUs, including Ginger Ale, Kiwi & Lime, and eventually 'No Control' mineral water, in the coming months.

Nakoda Group's strategic pivot into the beverages segment, coupled with its strong financial turnaround and focus on operational excellence, positions it for sustained growth. The company's commitment to product innovation, expanded distribution, and robust financial management underscores its vision to capture emerging consumer markets and deliver long-term value to its stakeholders. The journey from an agro-based company to a diversified FMCG player is well underway, with promising prospects on the horizon.