💰 Financial Performance

Revenue Growth by Segment

Total Operating Income for H1FY26 was INR 69 Cr, up 3.7% YoY from INR 66 Cr in H1FY25. Segmental contributions shifted with Industrial revenue at 66.1% (down from 72.7%), Government revenue at 5.5% (up from 2.9%), and Retail/Others at 28.4% (up from 24.4%).

Geographic Revenue Split

The company maintains a strong presence in Western and Southern India. It recently expanded internationally with its first export order from the USA, though specific percentage splits by region are not disclosed in available documents.

Profitability Margins

Profitability saw a significant decline in H1FY26. Gross margin was approximately 42% based on material costs of INR 40 Cr against INR 69 Cr revenue. Net Profit Margin for FY25 was 4.03%, but dropped to 0.5% in H1FY26 as PAT fell 69.1% YoY to INR 0.33 Cr.

EBITDA Margin

EBITDA margin fell sharply to 5% in H1FY26 from 15.3% in H1FY25, representing a 42% decrease in absolute EBITDA to INR 3 Cr. This was driven by a 24.8% increase in other expenses and a 19.9% rise in employee benefits.

Capital Expenditure

The company is planning a major greenfield expansion at Wada, Maharashtra, with an estimated capital expenditure of INR 45-50 Cr. This facility is expected to be operational within 12-18 months (Dec 2026 – Mar 2027).

Credit Rating & Borrowing

The company maintains a low Debt-Equity ratio of 0.23 as of FY25. Finance costs for H1FY26 were INR 1.39 Mn, a slight decrease from INR 1.86 Mn in H1FY25. Specific credit ratings and interest rate percentages are not disclosed.

⚙️ Operational Drivers

Capacity Expansion

Current capacity is not specified in units, but the company is expanding via a new facility in Wada, Maharashtra, requiring INR 45-50 Cr in investment to drive future volume growth.

Raw Material Costs

Cost of materials consumed in H1FY26 was INR 40 Cr, representing 58% of total operating income, compared to INR 39 Cr (59% of income) in H1FY25.

📈 Strategic Growth

Growth Strategy

Growth will be driven by capacity expansion at the Wada facility (INR 45-50 Cr capex), entry into the switchgear vertical (first billing expected by FY26-end), and expansion into high-margin segments like Jewellery and Beauty & Cosmetics. The company is also targeting Tier 2/3 cities and international markets following its first USA order.

Products & Services

Commercial furniture, in-store retail fixtures, specialized jewellery displays, beauty and cosmetics fixtures, airport smoking lounges (18+ projects executed), and upcoming switchgear products.

Brand Portfolio

NAMAN IN-STORE

New Products/Services

Switchgear vertical (billing by FY26-end), specialized Jewellery fixtures, and high-margin Beauty & Cosmetics retail solutions.

Market Expansion

Expansion into Tier 2 and Tier 3 cities in India and aggressive targeting of global markets, starting with the USA.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward specialized retail (Jewellery/Beauty) and organized players. Naman is positioning itself by expanding capacity and diversifying into industrial verticals like switchgear to mitigate retail cyclicality.

Competitive Landscape

The market is highly competitive with both organized and unorganized players posing challenges to margin sustainability.

Competitive Moat

The company's moat is built on product differentiation and a strong customer focus, allowing it to maintain market position against unorganized players. Sustainability depends on the successful execution of the Wada expansion and switchgear vertical.

Macro Economic Sensitivity

Operations are sensitive to general economic conditions affecting demand-supply and price conditions in domestic and overseas markets.

Consumer Behavior

Increased demand for specialized and high-end retail environments is driving the company's expansion into Jewellery and Beauty segments.

Geopolitical Risks

Global tariff impacts are cited as a factor that previously caused a temporary slowdown in export revival.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to Section 134, 135 (CSR), and 188 (Related Party Transactions) of the Companies Act, 2013, and SEBI Listing Obligations (LODR) Regulations.

Taxation Policy Impact

The effective tax rate for FY25 was approximately 29.4% (INR 2.5 Cr tax on INR 8.5 Cr PBT).

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainties involve the timely commencement of the Wada facility (Dec 2026 - Mar 2027) and the successful scaling of the new switchgear vertical by FY26-end.

Geographic Concentration Risk

Revenue is primarily concentrated in Western and Southern India, though the company is actively diversifying into the USA and Tier 2/3 domestic cities.

Credit & Counterparty Risk

The company has a strong Current Ratio of 2.89, suggesting high liquidity and low counterparty risk.