💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment: Manufacturing and Trading of Dry Fruits, Tutty Fruity, and Agro Commodities. Revenue from operations for Q2 FY26 was INR 14.78 Cr, representing a 58% YoY growth from INR 9.38 Cr. H1 FY26 revenue reached INR 21.70 Cr, up 20% YoY from INR 18.04 Cr.

Geographic Revenue Split

The revenue split has shifted to 60% Domestic and 40% Export. Historically, the business was 80% export-oriented, serving Middle East and European countries.

Profitability Margins

Net Profit Margin (PAT) for H1 FY26 turned positive at 1.88% (INR 0.40 Cr) compared to -6.64% (INR -1.19 Cr) in H1 FY25. Gross margins improved due to a scale-up in trade activity and disciplined cost management.

EBITDA Margin

EBITDA margin for Q2 FY26 improved significantly to 6.99% from -1.87% YoY. For H1 FY26, the EBITDA margin stood at 8.61% (INR 1.86 Cr) compared to -1.57% (INR -0.28 Cr) in the previous year, driven by operating leverage and reduced financial costs.

Capital Expenditure

Investment in Property, Plant, and Equipment (Net) was INR 2.04 Cr for H1 FY26, compared to INR 2.59 Cr in H1 FY25. Capital Work-in-Progress stands at INR 0.29 Cr as of September 30, 2025.

Credit Rating & Borrowing

The long-term credit rating was downgraded to 'ACUITE C' from 'ACUITE B+' in June 2024 due to delays reflected in credit reports. Short-term rating is reaffirmed at 'ACUITE A4'. Finance costs for H1 FY26 were INR 0.65 Cr, a reduction from INR 0.74 Cr YoY due to debt reduction.

⚙️ Operational Drivers

Raw Materials

Primary raw materials include Raw Papaya (for Tutty Fruity), Amla, various nuts (almonds, cashews), makhana, and seeds. Raw material costs accounted for INR 17.95 Cr in H1 FY26, representing approximately 82.7% of total revenue.

Import Sources

Sourced primarily from domestic markets in India (centralized in Nagpur, Maharashtra) for agro-commodities, with established export channels to the Middle East and Europe.

Capacity Expansion

Current raw material processing capacity is 100 Metric Tons (MT) per day, with a finished product capacity of 8 to 10 MT per day. The company increased manufacturing plant capacity from 5 MT to 20 MT per day for finished goods in 2016.

Raw Material Costs

Cost of materials consumed was INR 17.95 Cr in H1 FY26, a 13% increase from INR 15.88 Cr YoY. Procurement strategies focus on leveraging Nagpur's central location for prompt supply and reduced transit loss.

Manufacturing Efficiency

The company is focusing on automation and technology upgrades to enhance operational efficiency and tighter execution in the beverage vertical.

Logistics & Distribution

Distribution is expanding through quick commerce (Blinkit) and a strengthened sales network across 23 states in India.

📈 Strategic Growth

Expected Growth Rate

100%

Growth Strategy

Growth will be achieved by scaling the FMCG beverage vertical (Energy Drinks), expanding into unpenetrated domestic markets, and enhancing digital reach via quick commerce platforms like Blinkit. Management expects revenue to 'almost double' by FY26-27 as new distribution channels mature.

Products & Services

Dry fruits, Tutty Fruity, Energy Drinks, fruit jams, fruit pulps, roasted nuts, makhana, seeds, Amla-based products, and inverted sugar syrup.

Brand Portfolio

NAKODAS

New Products/Services

Launched a new Energy Drink on October 28, 2025. Revenue contribution is expected to start from Q3 FY26, with exponential growth projected for FY26-27.

Market Expansion

Targeting unpenetrated domestic markets and increasing presence in organized retail and quick commerce (Blinkit).

🌍 External Factors

Industry Trends

The industry is shifting toward quick commerce and branded FMCG beverages. NGIL is positioning itself by moving from bulk agro-trading to branded consumer products like energy drinks to capture higher margins.

Competitive Landscape

Competes with both unorganized agro-processors and organized FMCG beverage players.

Competitive Moat

Moat is based on a 30-year track record, a centralized manufacturing hub in Nagpur for pan-India distribution, and established export relationships since 1998. Sustainability depends on successful brand transition in the competitive beverage market.

Macro Economic Sensitivity

Sensitive to agro-climatic conditions affecting raw material supply and domestic consumption trends in the FMCG sector.

Consumer Behavior

Increasing demand for convenience through quick commerce apps like Blinkit, which the company started utilizing in November 2025.

Geopolitical Risks

Trade barriers or instability in the Middle East could impact the 40% export revenue stream.

⚖️ Regulatory & Governance

Industry Regulations

Subject to food safety standards for processing 5000 MT of fruits and vegetables annually. Operations must comply with Indian Accounting Standards (Ind AS).

Taxation Policy Impact

Effective tax expense for H1 FY26 was INR 0.13 Cr (entirely deferred tax), as the company reported a PBT of INR 0.54 Cr.

Legal Contingencies

The company forfeited 2,77,146 partly paid-up equity shares in November 2025 due to non-payment of call money. No specific pending court case values were disclosed.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the successful adoption of the new energy drink line and the ability to reverse the 'Issuer Not Cooperating' credit status, which impacts borrowing costs.

Geographic Concentration Risk

60% of revenue is concentrated in the Indian domestic market across 23 states, with the remaining 40% in the Middle East and Europe.

Third Party Dependencies

High dependency on quick commerce partners (Blinkit) for the new retail growth strategy.

Technology Obsolescence Risk

Risk is mitigated by planned investments in automation and technology upgrades for manufacturing processes.

Credit & Counterparty Risk

Trade receivables of INR 3.97 Cr as of Sept 2025. Management claims high market liquidity reduces credit risk, despite the company's own credit rating challenges.