Nakoda Group of Industries Limited profit rises as revenue falls

Nakoda Group of Industries Limited reported September-quarter profit after tax of Rs 42.71 lakh, up 70% from Rs 25.12 lakh a year earlier, although revenue from operations fell 28% to Rs 10.59 crore. For the six months ended September 30, 2026, rising receivables and inventories contributed to Rs 5.25 crore of operating cash outflow.

What drove Nakoda Group's September-quarter profit increase?

Nakoda Group's profit after tax increased because profit before tax rose to Rs 57.07 lakh in the quarter ended September 30, 2026, from Rs 33.90 lakh in the corresponding 2025 quarter. Tax expense also rose, to Rs 14.36 lakh from Rs 8.78 lakh, but the Rs 23.17 lakh increase in pre-tax profit exceeded that additional tax charge.

The September-quarter result also exceeded the preceding June 2026 quarter, when Nakoda Group reported profit after tax of Rs 29.26 lakh and profit before tax of Rs 39.16 lakh. Profit after tax rose by Rs 13.45 lakh sequentially, while profit before tax increased by Rs 17.91 lakh. Basic earnings per share were Rs 0.24 for the September 2026 quarter, compared with Rs 0.14 a year earlier and Rs 0.17 in June 2026.

The audit committee reviewed the unaudited results and the board approved them on October 30, 2026. The statutory auditor's limited review report, dated October 30, 2026, said nothing had come to its attention suggesting that the statement had not made the required disclosures or contained a material misstatement.

How did Nakoda Group's revenue and expenses change?

Nakoda Group's revenue from operations fell to Rs 10.59 crore in the September 2026 quarter from Rs 14.79 crore in the September 2025 quarter. The Rs 4.19 crore decline was about 28% year on year, although revenue was above the Rs 8.31 crore reported for the quarter ended June 30, 2026.

Total expenses decreased to Rs 10.02 crore in the September 2026 quarter from Rs 14.45 crore a year earlier. That Rs 4.42 crore reduction was marginally greater than the revenue reduction, which lifted profit before tax to Rs 57.07 lakh despite the lower top line. The filing does not identify individual cost categories behind the change because the extracted financial-results table does not provide a clear disaggregated expense comparison.

Nakoda Group manufactures and trades dry fruits, tutti frutti, soft drinks, carbonated beverages and other agro commodities. It said segment disclosure under Indian Accounting Standard 108, or Ind AS 108, was not applicable because it did not meet the standard's eligibility criteria. The filing therefore does not show which products accounted for the Rs 4.19 crore year-on-year decline in revenue.

Why was Nakoda Group's operating cash flow negative?

Nakoda Group used Rs 5.25 crore in operating activities in the six months ended September 30, 2026, despite reporting Rs 1.96 crore of operating profit before working-capital changes. Inventory increased by Rs 2.72 crore, trade receivables increased by Rs 3.16 crore and other current assets increased by Rs 95.59 lakh during the period.

Trade payables declined by Rs 26.86 lakh in the six-month period, while short-term borrowings fell by Rs 15.91 lakh. These movements contributed to cash generated from operating activities of negative Rs 5.28 crore before Rs 2.58 lakh of net income tax paid. The result distinguishes the September-quarter profit figure of Rs 42.71 lakh from cash movements across the full six-month period.

Investing activities used Rs 18.43 lakh in the six months, including Rs 18.78 lakh spent on property, plant and equipment, net of disposals. Cash and cash equivalents nevertheless rose by Rs 1.93 lakh to Rs 6.76 lakh at September 30, 2026, because financing activities generated Rs 5.45 crore during the period.

What changed in Nakoda Group's working-capital balances?

Nakoda Group's inventory rose to Rs 21.81 crore at September 30, 2026, from Rs 19.08 crore at March 31, 2026. Trade receivables increased to Rs 8.99 crore from Rs 5.57 crore over the same period, a balance-sheet movement consistent with the Rs 3.16 crore receivables outflow in the six-month cash-flow statement.

Total current assets increased to Rs 37.53 crore at September 30 from Rs 30.40 crore at March 31. Other current assets rose to Rs 4.73 crore from Rs 3.77 crore, while cash and cash equivalents increased from Rs 4.83 lakh to Rs 6.76 lakh. Property, plant and equipment declined to Rs 13.54 crore from Rs 14.03 crore.

Current liabilities declined to Rs 14.46 crore at September 30, 2026, from Rs 14.88 crore at March 31, 2026. Current borrowings decreased to Rs 12.33 crore from Rs 12.59 crore, while dues to micro and small enterprises fell to Rs 41.94 lakh from Rs 1.37 crore. Total assets increased to Rs 51.31 crore from Rs 44.71 crore.

What warrant funding plan did Nakoda Group disclose?

Nakoda Group issued 87 lakh warrants at Rs 28 per warrant, including a securities premium of Rs 18 per warrant, for a total potential issue value of Rs 24.36 crore. It received 25% of that amount, or Rs 6.09 crore, on allotment, comprising Rs 2.45 crore for 35 lakh warrants on July 2, 2026, and Rs 3.64 crore for 52 lakh warrants on July 14, 2026.

The remaining 75%, amounting to Rs 18.27 crore or Rs 21 for each warrant, is payable when holders exercise their conversion option. The options may be exercised within 18 months from allotment, on or before January 3, 2028, subject to the disclosed terms and conditions. The six-month financing cash flow includes Rs 6.09 crore of proceeds from fresh warrant issues and Rs 7.41 lakh of warrant-issue expenditure.

Equity, comprising share capital and other equity, stood at Rs 35.79 crore at September 30, 2026, compared with Rs 28.95 crore at March 31, 2026. Paid-up equity share capital remained Rs 17.54 crore, while other equity increased to Rs 18.26 crore from Rs 11.43 crore. Nakoda Group said its basic and diluted earnings per share for the quarter and six months reflected the warrant issue where applicable.

Conclusion

Nakoda Group's September-quarter profit increased because the Rs 4.42 crore fall in total expenses was slightly larger than the Rs 4.19 crore decline in revenue. The gain in reported profit coincided with a larger working-capital requirement, as higher inventories and receivables contributed to negative operating cash flow of Rs 5.25 crore in the six months ended September 30, 2026.

The next disclosed funding milestone is the warrant-conversion window ending January 3, 2028, when holders may pay the remaining Rs 18.27 crore to convert warrants into equity shares. Subsequent results will also show whether the September 2026 balances of Rs 21.81 crore in inventory and Rs 8.99 crore in receivables translate into operating cash generation.