Nitco Limited reported a consolidated net loss of ₹10.27 crore in the quarter ended June 2026, marking a significant reversal from the net profit of ₹47.53 crore recorded in the corresponding quarter of the previous financial year. According to reports from Business Standard, this represents a substantial decline in the company's financial performance during the first quarter of FY27. The Board of Directors approved the unaudited standalone and consolidated financial results on August 12, 2026, alongside a strategic buyer finance agreement worth approximately ₹2,000 crore with Desiderata Impact Ventures Private Limited (Progcap) for debtor bill discounting.
The company's standalone revenue from operations declined by 22.8% to ₹115.50 lakh in Q1 FY27, compared to ₹149.69 lakh in the same quarter of the previous financial year. As reported by Business Standard, this substantial revenue contraction was primarily due to the cessation of real estate-related income that had contributed ₹58.42 lakh in the prior period due to a Joint Development Agreement (JDA) advance. The consolidated revenue mirrored this trend at ₹116.01 lakh, with core tile sales growing modestly to ₹114.22 lakh against ₹90.70 lakh in Q1FY26, though this growth was insufficient to offset the loss of non-recurring gains from real estate activities.
The company's operating profit margin (OPM) turned negative at -7.14% in Q1 FY27, a significant decline from the positive 33.16% OPM recorded in the corresponding quarter of the previous year. According to the financial data reported by Business Standard, this operational deterioration reflects the challenging business environment faced by the company during the quarter. The segment result for tiles remained negative at ₹(7.47) lakh (standalone), indicating that operational margins are still under pressure despite top-line growth in the core tiles business.
PBDT (Profit Before Depreciation and Tax) turned negative at ₹8.19 crore in Q1 FY27, compared to a positive ₹50.56 crore in the previous year's corresponding quarter. As reported by Business Standard, the company's PBT (Profit Before Tax) also remained in negative territory at ₹10.33 crore, indicating widespread profitability challenges across all levels of the company's financial structure during the quarter. The Earnings Per Share (Basic) turned negative at ₹(0.43) compared to ₹2.07 in Q1FY26, reflecting the company's challenging financial performance.
The company has secured a ₹2,000 crore buyer finance facility with Progcap to enhance liquidity and provide access to funds for FY26-27 without altering the capital structure. According to Business Standard, the facility contains no special rights such as director appointments or share subscription preferences. The statutory auditors M/s M M Nissim & Co LLP issued a limited review report highlighting several emphasis of matters, including pending regulatory penalties and property monetization deals. The upcoming recognition of the Kanjurmarg property sale could provide a significant future boost, though until then, the financials reflect a challenging transition period for the group as the core tiles segment must carry the entire profit burden without non-recurring real estate income support.
