NAHARCAP - Nahar Capital

📊 NSE: NAHARCAP 🏢 Finance & Investments 📅 Last Updated: 12/14/2025 10:13

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations grew 3.16% to INR 29.05 Cr in FY25 from INR 28.16 Cr in FY24. Interest income increased 27.27% to INR 12.53 Cr, while Dividend income declined 12.85% to INR 9.39 Cr and Rental income decreased 8.68% to INR 5.69 Cr. Total income (including gains) fell 12.5% to INR 49 Cr in FY25 from INR 56 Cr in FY24.

Geographic Revenue Split

Not explicitly disclosed, but operations are concentrated in India with corporate offices in Ludhiana, Punjab and Gurugram, Haryana.

Profitability Margins

Return on average assets (RoA) moderated to 3.4% in FY25 from 4.5% in FY24. Return on Net Worth was 4.4% in FY24 compared to 3.4% in FY23. The decline in FY25 was primarily driven by a 12% reduction in total income due to lower investment gains.

EBITDA Margin

Core profitability is driven by investment yields; Profit After Tax (PAT) was INR 38 Cr in FY24 (67.8% of total income) and declined to approximately INR 30 Cr in FY25. The high PAT margin is due to the low-cost structure of an investment-holding entity.

Capital Expenditure

Not disclosed as a primary metric for this NBFC; however, managed assets grew from INR 860 Cr in FY23 to INR 907 Cr in FY24, representing a 5.46% increase in the investment base.

Credit Rating & Borrowing

Maintains an [ICRA]A1+ rating for its INR 25 Cr Commercial Paper programme. Borrowing costs are minimal as the company operates with a managed gearing of 0.00 times and negligible debt.

⚙️ Operational Drivers

Raw Materials

Capital is the primary input, with a Net Worth of INR 906 Cr as of March 31, 2025. Investment assets are the core drivers of value.

Import Sources

Not applicable for an NBFC-ICC.

Key Suppliers

Not applicable; however, the company relies on financial intermediaries and fund managers for its AIF and mutual fund investments.

Capacity Expansion

Current managed assets stand at INR 907 Cr (FY24). The company is expanding its 'capacity' to generate returns by diversifying into Quant-based funds and Multi-Asset funds.

Raw Material Costs

Not applicable. Operating expenses are minimal; the primary cost is interest paid which increased to INR 45.57 Lakhs in FY25 from INR 14.17 Lakhs in FY24.

Manufacturing Efficiency

Capital adequacy remains exceptionally high with a CRAR of 95.03% in FY25, significantly above regulatory requirements, indicating a massive buffer for operational expansion.

Logistics & Distribution

Not applicable; the company operates through a centralized corporate office in Ludhiana.

📈 Strategic Growth

Expected Growth Rate

10-12%

Growth Strategy

Growth will be achieved by diversifying the investment portfolio into higher-yield instruments including Real Estate Alternative Investment Funds (AIFs), Venture Funds, and Quant-based debt securities. The company is also scaling its real estate segment to capture higher yields beyond traditional equity dividends.

Products & Services

Investment services (long-term and trading), corporate lending to group entities, and real estate leasing/development.

Brand Portfolio

Nahar Group, Nahar Capital.

New Products/Services

Expansion into Commodity Funds and Multi-Asset/Balanced Funds to mitigate equity-specific risks, expected to contribute to more stable quarterly income.

Market Expansion

Targeting increased exposure in the real estate segment and financial market segments beyond the traditional textile-linked group investments.

Market Share & Ranking

Classified as NBFC-Base Layer (NBFC-BL) under RBI's scale-based regulations.

Strategic Alliances

Part of the Ludhiana-based Nahar Group; maintains strategic investment links with Nahar Spinning Mills, Nahar Industrial Enterprises, and Nahar Poly Films.

🌍 External Factors

Industry Trends

The NBFC sector is shifting toward Scale Based Regulation (SBR). The industry is growing as a powerhouse driven by domestic demand, with NAHARCAP positioning itself as a diversified investment vehicle rather than just a group holding company.

Competitive Landscape

Competes with other investment holding companies and diversified NBFCs in the Indian financial services sector.

Competitive Moat

Moat is derived from being part of a 60-year-old established industrial group (Nahar Group) with a strong credit profile and massive capital reserves (INR 906 Cr net worth), providing high financial flexibility.

Macro Economic Sensitivity

Highly sensitive to Indian GDP growth and domestic demand, as these drive the performance of the underlying textile and financial assets in the portfolio.

Consumer Behavior

Shift toward professional fund management and multi-asset allocation is influencing the company's strategy to move away from pure equity into AIFs and Quant funds.

Geopolitical Risks

Indirect exposure through Nahar Group's textile exports; trade barriers could reduce group dividends.

⚖️ Regulatory & Governance

Industry Regulations

Regulated by RBI as an NBFC-ICC (Investment and Credit Company) under the Base Layer category of Scale Based Regulations (2023).

Environmental Compliance

Minimal impact as a financial services entity; ESG compliance is managed at the group level for industrial operations.

Taxation Policy Impact

Effective tax rate is influenced by deferred tax adjustments on Ind-AS fair value changes and dividend tax treatments.

Legal Contingencies

The company maintains internal financial controls over financial reporting as per the Companies Act 2013; no specific high-value pending litigation amounts were disclosed in the provided summaries.