Nile Q3 Results: Profit Soars 48%, Shares Surge Over 10%

Introduction to Nile's Strong Quarter

Nile Ltd, an industrial metals company, announced robust financial results for the third quarter of fiscal year 2025, ending December 31, 2025. The company reported a significant 47.5% year-on-year increase in net profit, fueled by higher revenue and improved operational efficiencies. The strong earnings report was well-received by the market, with the company's shares surging over 10% during intraday trading on February 10, 2026.

Detailed Financial Performance

The company's net profit for the December quarter stood at ₹15 crore, a substantial rise from the ₹10 crore reported in the same period of the previous fiscal year. This growth was supported by a healthy increase in top-line figures. Revenue from operations grew by 25.3% to ₹291.4 crore, compared to ₹232.5 crore in the corresponding quarter a year ago. This performance indicates strong business momentum and sustained demand for its products.

Improvement in Operational Efficiency

Nile Ltd also demonstrated a notable improvement in its operational performance. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased by 32.4% year-on-year, reaching ₹21.3 crore for the quarter, up from ₹16 crore in Q3 FY24. The EBITDA margin expanded by 40 basis points, from 6.9% to 7.3%. This expansion in margin suggests that the company has been effective in managing its costs and improving profitability from its core operations.

Positive Market Reaction

Following the announcement of its strong quarterly numbers, Nile Ltd's stock witnessed significant buying interest. The share price jumped to an intraday high of ₹1,798 on the exchange. By mid-afternoon, the stock was trading at ₹1,772, marking a gain of ₹173.75, or 10.87%, for the session. This sharp rally reflects investor confidence in the company's growth trajectory and financial health.

Update on Windmill Operations

In a separate regulatory filing, Nile Ltd informed the stock exchanges about the suspension of its windmill operations. The company stated that this decision was made following the expiration of its power purchase agreement (PPA) with the Transmission Corporation of Andhra Pradesh Limited. Management clarified that the suspension is confined to the windmill power project and does not have any bearing on the company's primary manufacturing activities, which continue to be the main driver of its revenue and profitability.

Shareholding and Investor Sentiment

Data on shareholding patterns indicates growing confidence among retail investors. According to Trendlyne, retail investors increased their stake in the company from 32.24% at the end of September 2025 to 32.72% by the end of December 2025. This slight increase suggests that smaller investors are optimistic about the company's future prospects.

Stock Performance in Context

While the stock has seen a recent downturn, declining by approximately 13% over the last six months, its long-term performance remains strong. Over the past year, the share has delivered a return of 15%. More impressively, investors who have held the stock for the last five years have seen a return of around 400%. The stock's 52-week high is ₹2,214, while its 52-week low is ₹1,215, indicating significant volatility but also substantial upside potential.

Broader Financial Health

The company's trailing twelve months (TTM) performance shows a price-to-earnings (P/E) ratio of 12.30 and a basic earnings per share (EPS) of ₹143.75. With a market capitalization of ₹545 crore and a return on equity of 15.9%, Nile Ltd maintains a solid financial footing in the industrial metals sector. Its earnings have grown at an average annual rate of 22.2% over the past five years, demonstrating consistent growth.

Conclusion

Nile Ltd's third-quarter results for FY25 highlight a period of strong financial execution, with significant growth in both revenue and profit. The improvement in operating margins underscores the company's focus on efficiency. While the suspension of its non-core windmill operations is a notable development, the management has assured that it will not affect the core business. The positive market reaction and steady long-term returns suggest that investors remain confident in the company's ability to deliver value.