NILKAMAL - Nilkamal Ltd

📊 NSE: NILKAMAL 🏢 Plastics Products 📅 Last Updated: 12/14/2025 10:32

💰 Financial Performance

Revenue Growth by Segment

In Q2 FY26, the B2B segment grew 18% in value and 13% in volume, while the Retail & E-commerce segment grew 20%. For FY25, the B2B segment contributed INR 2,961.84 Cr (up 5% YoY), while the retail segment contributed INR 350.90 Cr (down 7% YoY). The mattress business grew 38% in FY25.

Geographic Revenue Split

India remains the primary market, with the plastic division contributing 94% of total operating income in FY24. International operations include subsidiaries in Sri Lanka (Nilkamal Eswaran Plastics and Marketing) and UAE (Nilkamal Crates and Bins FZE), both of which exhibited growth in revenue and PBT in Q2 FY26.

Profitability Margins

Standalone PBT for Q2 FY26 stood at INR 43 Cr with PAT at INR 33 Cr. Consolidated PBT was INR 45 Cr and PAT was INR 34 Cr. Profitability is susceptible to volatility in raw material prices and foreign exchange fluctuations.

EBITDA Margin

EBIDTA for Q2 FY26 stood at INR 88 Cr, representing a 16% increase YoY. The margin for Q2 FY26 is approximately 9.28% based on revenue of INR 948 Cr.

Capital Expenditure

The company invested INR 280 Cr in capital expenditure during FY25. This included a greenfield project in Hosur for foam and modular furniture, rigid packing production at Puducherry and Noida, and bubble guard production at Hosur.

Credit Rating & Borrowing

CARE reaffirmed ratings of 'CARE AA; Stable' for long-term bank facilities and NCDs, and 'CARE A1+' for short-term facilities and commercial paper. Net borrowing stood at INR 376 Cr as of September 30, 2025, compared to INR 305 Cr in the previous year.

⚙️ Operational Drivers

Raw Materials

Plastic granules and polymers (derived from crude oil) are the primary raw materials, as the plastic division accounts for 94% of total operating income.

Capacity Expansion

Current expansion includes a greenfield project in Hosur for foam, modular furniture, and sofas, along with rigid packing production lines at Puducherry and Noida plants.

Raw Material Costs

Raw material costs are highly volatile due to their link to crude oil prices. This volatility is cited as a key risk factor tempering profitability margins.

Manufacturing Efficiency

The company is investing in new injection moulding machines and moulds for crates, pallets, and plastic furniture to enhance production efficiency.

Logistics & Distribution

The company maintains a wide-spread distribution network with over 1,200 channel partners and 20,000+ dealers across India.

📈 Strategic Growth

Expected Growth Rate

18%

Growth Strategy

Growth is driven by rebranding the retail division to 'Nilkamal Homes' (unifying @home and Nilkamal Furniture Ideas), expanding the B2B segment (18% value growth in Q2 FY26), and scaling the e-commerce business which grew 23% to INR 52.44 Cr in Q2 FY26. New capacity in Hosur for foam and modular furniture is expected to further boost revenue.

Products & Services

Bins, crates, pallets, material handling equipment, shelving and racking systems, insulated boxes, waste management solutions, road safety barriers, hospitality products, moulded furniture, mattresses (Nilkamal Sleep), and bubble guard.

Brand Portfolio

Nilkamal, Nilkamal Homes, @home, Nilkamal Sleep, Nilkamal Edge.

New Products/Services

New product offerings include foam, modular furniture, sofas, rigid packing products, and bubble guard. The Sleep vertical grew 32% in FY25 following new production lines.

Market Expansion

Focus on market penetration in the organized furniture retail segment and expanding the B2B material handling business.

Market Share & Ranking

Leading market position in moulded plastic products and material handling business in India.

Strategic Alliances

Cambro Nilkamal Private Limited is a 50% Joint Venture in India that exhibited an uptrend in revenue with new product offerings.

🌍 External Factors

Industry Trends

The industry is shifting toward organized furniture retail and increased demand for specialized material handling solutions in logistics and e-commerce. Nilkamal is positioning itself through rebranding and expanding its B2B portfolio.

Competitive Landscape

Competes in the organized furniture retail and material handling segments against both organized and unorganized players.

Competitive Moat

Sustainable advantages include a strong brand name ('Nilkamal'), a massive distribution network of 20,000+ dealers, and a leading market position in the moulded plastics segment.