According to the latest financial results approved by the Board of Directors on August 12, 2026, Nath Industries achieved a significant turnaround with net profit of ₹3.85 crore for Q1FY27, marking a return to profitability from a net loss of ₹2.08 crore in the corresponding quarter of the previous year. The company's total income from operations stood at ₹160.45 crore compared to ₹118.25 crore in Q1FY26, representing a 37% year-on-year growth. The results were reviewed by N. R. Agrawal & Co., the company's chartered accountants, pursuant to SEBI regulations.
The company demonstrated robust revenue expansion with total revenue growing 36.8% to ₹160.4 crore in Q1FY27 compared to ₹117.3 crore in the same period last year. This growth was primarily driven by the chemical segment, which saw revenue more than double to ₹91.6 crore from ₹42.6 crore in Q1FY26, representing a remarkable 114.9% increase. However, the paper segment declined slightly to ₹68.8 crore from ₹74.6 crore, showing a 7.8% decrease. The chemical segment now accounts for over 57% of total revenue, up from approximately 36% in Q1FY26, highlighting a significant shift in the company's revenue mix.
Despite higher material costs, Nath Industries demonstrated improved operational efficiency with profit before tax increasing to ₹4.56 crore from ₹3.79 crore in the previous year. Cost of materials consumed rose to ₹124.5 crore from ₹75.3 crore, aligning with the higher volume of chemical sales. However, employee benefit expenses remained stable at ₹6.0 crore, while finance costs decreased slightly to ₹2.5 crore from ₹2.9 crore. Other expenses contracted to ₹25.2 crore from ₹26.6 crore, contributing to improved operating efficiency. Earnings per share (EPS) came in at ₹2.03, an improvement over the ₹2.00 recorded in Q1FY26.
The chemical segment emerged as the primary driver of profitability, contributing ₹50.4 crore to segment results compared to just ₹5.0 crore in the preceding quarter. This surge contrasts with the paper segment, where segment results fell to ₹2.0 crore from ₹4.2 crore year-on-year. The divergence highlights a shifting revenue mix, with chemicals now accounting for over 57% of total revenue. Total assets grew to ₹496.7 crore from ₹415.8 crore, while total liabilities increased to ₹231.3 crore from ₹155.2 crore, indicating the company's expansion in the chemical business.
