NAHARPOLY - Nahar Poly

📊 NSE: NAHARPOLY 🏢 Packaging 📅 Last Updated: 12/14/2025 10:14

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single business segment, BOPP Films, which generated revenue of INR 665.94 Cr in FY25, representing a growth of 11% compared to INR 599.93 Cr in FY24.

Geographic Revenue Split

Not disclosed in available documents, though the company notes exposure to export markets and geography-specific risks.

Profitability Margins

Operating profit margin improved significantly to 14.28% in FY25 from 5.50% in FY24. Net profit margin turned positive at 7.86% in FY25 compared to -1.91% in FY24, reflecting a sharp turnaround from a loss of INR 8.49 Cr to a profit of INR 36.36 Cr.

EBITDA Margin

Operating profit margin (proxy for EBITDA) was 14.28% in FY25, a YoY increase of 8.78 percentage points from 5.50% in FY24, driven by improved realization prices and higher volumes.

Capital Expenditure

The company undertook large debt-funded capex in recent years, including the commercialization of a 30,000 TPA BOPP line in February 2022, which doubled total capacity to 60,000 TPA.

Credit Rating & Borrowing

CARE Ratings assigned a 'Stable' outlook. The company maintains high financial flexibility due to group investments worth INR 223 Cr to INR 405 Cr. Interest coverage ratio improved to 9.3x in FY25.

⚙️ Operational Drivers

Raw Materials

Polypropylene (BOPP resin) is the primary raw material, representing the largest component of the cost structure, though the exact percentage is not disclosed.

Import Sources

Not specifically disclosed, but the company is exposed to foreign fluctuation risk, indicating international sourcing or pricing benchmarks.

Capacity Expansion

Current installed capacity is 60,000 TPA for BOPP Films, following the addition of a 30,000 TPA line in February 2022. No further planned expansion is detailed.

Raw Material Costs

Raw material costs are highly susceptible to volatility in crude oil prices; margins are sensitive to the company's ability to pass these costs to customers.

Manufacturing Efficiency

Manufacturing scale increased with the new 30,000 TPA unit; however, specific capacity utilization metrics are not disclosed.

📈 Strategic Growth

Expected Growth Rate

11%

Growth Strategy

Growth is driven by ramping up the 30,000 TPA capacity line, focusing on higher-margin value-added films, and utilizing the financial flexibility provided by group investments.

Products & Services

Biaxially Oriented Polypropylene (BOPP) Films used primarily for packaging in the food and commercial sectors.

Brand Portfolio

Nahar Poly Films (part of the Nahar Group, which includes brands like Monte Carlo).

New Products/Services

Focus on 'value-added films' to improve core profitability and differentiate from commodity BOPP products.

Market Expansion

The company targets export markets to diversify its revenue base, though specific target regions are not detailed.

Strategic Alliances

Part of the Nahar Group, with significant cross-holdings in Nahar Spinning Mills (INR 143.29 Cr fair value) and Nahar Capital and Financial Services (INR 36.73 Cr cost).

🌍 External Factors

Industry Trends

The BOPP industry is currently experiencing a demand-supply imbalance due to overcapacity and excess supply, which has historically moderated profitability across the sector.

Competitive Landscape

High competition from other BOPP film manufacturers in a market characterized by cyclical oversupply.

Competitive Moat

Sustainable competitive advantage derived from being part of the 70-year-old Nahar Group, providing ample financial flexibility (INR 223-405 Cr in group investments) and established customer relations.