NIRAJISPAT - Niraj Ispat Ind.

📊 NSE: NIRAJISPAT 🏢 Plastics Products 📅 Last Updated: 12/14/2025 10:33

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single reportable segment, primarily steel-related manufacturing. Revenue from operations for H1 FY26 was INR 1.92 Cr, representing a marginal decline of 0.83% compared to INR 1.93 Cr in H1 FY25. Quarterly revenue for Q2 FY26 stood at INR 0.96 Cr, a 6.2% decrease from INR 1.03 Cr in Q2 FY25.

Geographic Revenue Split

Not specifically disclosed in available documents; however, the company's registered office and operations are centered in North Delhi and Ghaziabad, Uttar Pradesh.

Profitability Margins

Net Profit Margin for H1 FY26 significantly improved to 31.6% (based on total income) from 25.7% in H1 FY25. This was driven by a 38% increase in 'Other Income' (INR 0.71 Cr vs INR 0.51 Cr) and better control over raw material costs, which fell from 49.9% of operational revenue to 45.5%.

EBITDA Margin

EBITDA for H1 FY26 was INR 1.21 Cr, resulting in an EBITDA margin of 45.8% on total income. This is an improvement from the H1 FY25 EBITDA of INR 0.93 Cr (38.1% margin), primarily due to the surge in investment-related other income.

Capital Expenditure

The company shows minimal capital expenditure. Property, Plant, and Equipment (Net) decreased from INR 1.16 Cr as of March 31, 2025, to INR 1.11 Cr as of September 30, 2025, indicating that depreciation (INR 0.075 Cr) outpaced new asset additions.

Credit Rating & Borrowing

Total borrowings as of September 30, 2025, stood at INR 4.78 Cr, comprising non-current borrowings of INR 4.02 Cr and current borrowings of INR 0.76 Cr. Finance costs remained low at INR 0.0098 Cr for H1 FY26, suggesting highly subsidized or promoter-linked interest rates.

⚙️ Operational Drivers

Raw Materials

Specific raw material names are not listed, but the 'Ispat' designation implies steel scrap, billets, or ingots. Raw material consumption accounted for 45.5% of operational revenue in H1 FY26 (INR 0.87 Cr).

Import Sources

Not disclosed in available documents; procurement is likely domestic given the scale of operations.

Capacity Expansion

Current installed capacity is not specified. The lack of significant change in Property, Plant, and Equipment (INR 1.11 Cr) suggests no major capacity expansion was undertaken in the current half-year.

Raw Material Costs

Raw material costs decreased by 9.6% YoY in H1 FY26 (INR 0.87 Cr vs INR 0.96 Cr), despite relatively flat revenue, indicating improved procurement efficiency or lower market prices for steel inputs.

Manufacturing Efficiency

Employee benefit expenses rose 8.1% YoY to INR 0.23 Cr in H1 FY26, while revenue slightly declined, suggesting a decrease in labor productivity per unit of revenue.

📈 Strategic Growth

Expected Growth Rate

32.70%

Growth Strategy

The company aims to achieve growth by leveraging its substantial 'Other Income' from investments (INR 0.71 Cr in H1 FY26) to offset sluggish core operational growth. Strategy includes maintaining a lean corporate structure and utilizing its net worth of INR 15.14 Cr to sustain operations during industry downturns.

Products & Services

Steel-based industrial products (implied by 'Ispat' name and raw material consumption patterns).

Brand Portfolio

Niraj Ispat Industries.

Market Share & Ranking

Not disclosed; the company is a small-cap entity with a paid-up capital of only INR 0.60 Cr.

Strategic Alliances

The company has a joint venture, Electiromeccanica India Private Limited, though its investment has been eroded due to accumulated losses and is not currently contributing to the financials.

🌍 External Factors

Industry Trends

The industry is facing a 'low trend' environment. The company is positioned as a small-scale player focusing on statutory compliance and maintaining a high net-worth-to-capital ratio to weather volatility.

Competitive Landscape

Operates in a fragmented steel products market with competition from both large-scale integrated plants and small-scale local manufacturers.

Competitive Moat

The company lacks a significant manufacturing moat but maintains a financial cushion through 'Other Equity' of INR 14.54 Cr, which is 24x its base share capital, providing high solvency.

Macro Economic Sensitivity

Highly sensitive to the Indian steel industry cycle and interest rate environments that affect investment income.

Geopolitical Risks

Minimal direct exposure; however, global steel price volatility influenced by geopolitical factors indirectly impacts raw material costs.

⚖️ Regulatory & Governance

Industry Regulations

The company is subject to the Companies Act 2013 and SEBI LODR Regulations. It is currently exempt from certain corporate governance requirements (Regulations 17-27) because its paid-up capital is below INR 10 Cr and net worth is below INR 25 Cr.

Taxation Policy Impact

The effective tax rate for H1 FY26 was 25.8% (INR 0.29 Cr tax on INR 1.13 Cr PBT).

Legal Contingencies

The company was penalized INR 61,360 by SEBI for failing to appoint a qualified Company Secretary within the prescribed time under Regulation 6(1). The penalty was paid on June 6, 2025.