According to the latest financial results, Nidhi Granites delivered strong profitability growth in the June 2026 quarter despite facing revenue headwinds. The company's consolidated net profit surged 29% to ₹289.56 lakh in Q1 FY2026-27, compared to ₹224.03 lakh recorded in the corresponding quarter of the previous financial year. This significant profit growth demonstrates the company's ability to maintain operational efficiency and cost management during challenging market conditions, with earnings per share (EPS) increasing to ₹3.62 from ₹2.80 in the previous year. The Board of Directors approved the unaudited financial results at a meeting held on August 13, 2026, with the results reviewed by the Audit Committee and subjected to a limited review by statutory auditors Jogin Raval & Associates.
The company experienced a notable decline in top-line performance during the quarter, with total revenue from operations dropping 20% to ₹1,583.80 lakh from ₹1,981.05 lakh in the same period last year. This revenue contraction was primarily driven by a 28% decline in total expenses to ₹1,218.10 lakh, aided by lower cost of materials consumed (₹337.58 lakh vs ₹726.20 lakh) and reduced direct expenses. The construction materials segment saw sales drop to ₹1,062.25 lakh from ₹1,505.37 lakh in the prior year quarter, while the garments segment contributed ₹507.58 lakh, up from ₹465.52 lakh, providing some offset to the decline. The company's operating profit margin (OPM) improved to 7.46% in Q1 FY2026-27 from 5.47% in the previous year, indicating enhanced operational efficiency despite the revenue challenges.
The company's consolidated profit is driven entirely by subsidiaries, particularly in the Financial Technology and related services segment, which reported a segment result before tax of ₹262.97 lakh—accounting for approximately 71% of the total pre-tax segment results of ₹368.97 lakh. This highlights a heavy dependency on the fintech subsidiary for the group's profitability, despite the absence of direct revenue recognition at the consolidated level for this specific segment line item. The Board of Directors approved the unaudited financial results at a meeting held on August 13, 2026, with the results reviewed by the Audit Committee and subjected to a limited review by statutory auditors Jogin Raval & Associates.
On a standalone basis, the parent company turned profitable, reporting a net profit of ₹27.11 lakh compared to a loss of ₹28.10 lakh in Q1FY25. This turnaround was largely fueled by other income of ₹19.13 lakh, which significantly offset minimal operating revenues of ₹13.97 lakh and low operating expenses. The company also noted that SPNP Paper and Pack Private Limited sold its 100% stake in step-down subsidiary Fine Papyrus Private Limited for ₹324.62 lakh on March 16, 2026. The profit before tax increased 26% to ₹385.46 lakh from ₹304.95 lakh year-on-year, indicating improved operational leverage across the group's diversified business segments. The company's working capital requirements have reduced from 72.5 days to 58.0 days, demonstrating improved cash flow management and operational efficiency.
