NKIND - N K Industries

📊 NSE: NKIND 🏢 Solvent Extraction 📅 Last Updated: 12/14/2025 10:11

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for the quarter and half-year ended September 30, 2025, was reported at INR 317.87 lakhs, primarily driven by subsidiary operations. Specific segment-wise growth percentages are not disclosed in the provided interim results.

Geographic Revenue Split

Not disclosed in available documents; however, operations are centered in Ahmedabad, Gujarat, with subsidiaries like Banpal Oilchem and NK Oil Mills.

Profitability Margins

The company is experiencing severe margin pressure, reporting a consolidated net loss after tax of INR 48.61 lakhs for the half-year ended September 30, 2025. Profitability is hindered by massive accumulated losses of INR 35,403.93 lakhs, representing a 0.53% increase in accumulated losses from the INR 35,218.23 lakhs reported on March 31, 2025.

EBITDA Margin

Not explicitly disclosed, but core profitability is negative as evidenced by the net loss of INR 48.61 lakhs against a revenue of INR 317.87 lakhs, suggesting an operating loss environment.

Capital Expenditure

Historical and planned CAPEX is not specified; however, the company is focused on business revival rather than expansion, with a negative net worth limiting investment capacity.

Credit Rating & Borrowing

The company faces significant financial distress with non-current trade payables (other than MSME) amounting to INR 2,23,264.70 lakhs as of September 30, 2025. Credit ratings are not provided, but the 'Going Concern' uncertainty suggests high borrowing risk.

⚙️ Operational Drivers

Raw Materials

Vegetable oils and oilseeds (implied by subsidiary names Banpal Oilchem and NK Oil Mills). Specific percentage of total cost is not disclosed.

Key Suppliers

Not disclosed; however, historical transactions were heavily linked to N.K. Proteins Private Limited (a group company).

Capacity Expansion

Current installed capacity is not disclosed. No expansion plans are mentioned as the management is currently focused on the 'revival of the business' and recovering from a negative net worth position.

Raw Material Costs

Not disclosed as a specific line item, but the company is struggling with the fair value of investments in subsidiaries, only making impairment provisions for Tirupati Retail India Pvt Ltd.

Manufacturing Efficiency

Not disclosed; however, the loss-making status of subsidiaries Banpal Oilchem and NK Oil Mills suggests low operational efficiency or underutilization.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The strategy focuses on the revival of loss-making subsidiaries (Banpal Oilchem and NK Oil Mills) through improved profitability and sincere efforts in business restructuring. The management aims to recover accumulated losses of INR 35,403.93 lakhs through future cash flow projections and avoiding further impairment of subsidiary investments.

Products & Services

Edible oils, industrial oils, and castor oil derivatives (implied by 'Oil Mills' and 'Oilchem' subsidiaries).

New Products/Services

No new product launches mentioned; focus is on stabilizing existing oil-related operations.

Market Expansion

Not disclosed; current focus is on internal financial restructuring and legal compliance.

Market Share & Ranking

Not disclosed.

Strategic Alliances

Joint Venture with AWN Agro Private Limited, though the company claims no current control over it.

🌍 External Factors

Industry Trends

The edible oil and oilchem industry is evolving with stricter regulatory oversight. NKIND is currently positioned poorly due to historical legal entanglements (NSEL) and is struggling to maintain its 'going concern' status while the industry moves toward consolidation.

Competitive Landscape

Competes with other edible oil and castor oil processors; however, financial distress places it at a significant disadvantage compared to solvent peers.

Competitive Moat

The company currently lacks a visible moat due to its negative net worth and significant legal liabilities. Its survival depends entirely on the successful execution of its revival plan and favorable legal outcomes.

Macro Economic Sensitivity

Highly sensitive to regulatory actions and legal rulings regarding the NSEL scam and income tax disputes.

Consumer Behavior

Not disclosed.

Geopolitical Risks

Not disclosed.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to the Companies Act 2013, SEBI Listing Regulations, and Ministry of Consumer Affairs directions (which led to the NSEL suspension).

Environmental Compliance

Not disclosed.

Taxation Policy Impact

The company faces a specific Income Tax demand of INR 86.00 lakhs following a survey u/s 133 and special audit u/s 142(2A) for AY 2011-12 and 2012-13.

Legal Contingencies

Significant pending litigations include cases with Income Tax and Sales Tax authorities. A major contingency involves the NSEL financial arrangement through N.K. Proteins Private Ltd, with trade payables/receivables subject to confirmation and reconciliation following the 2013 trading suspension.

⚠️ Risk Analysis

Key Uncertainties

The primary risk is the 'Material Uncertainty Related to Going Concern' due to accumulated losses of INR 35,403.93 lakhs and negative net worth. Potential impact is 100% of equity value if revival fails.