NSIL - Nalwa Sons Invst

📊 NSE: NSIL 🏢 Finance & Investments 📅 Last Updated: 12/14/2025 10:16

💰 Financial Performance

Revenue Growth by Segment

For FY2024-25, the Investment & Finance segment generated INR 10,835.81 lakh, while the Trading of Goods segment contributed INR 1,686.60 lakh. In H1 FY2025-26, Investment & Finance revenue was INR 5,819.36 lakh (down 31.15% from INR 8,451.76 lakh in H1 FY2024-25) and Trading of Goods revenue was INR 363.05 lakh (down 75.59% from INR 1,487.57 lakh in H1 FY2024-25).

Profitability Margins

Operating Profit Margin for FY2024-25 was 58.86%, a significant decrease of 38.91% from 96.36% in the previous year. Net Profit Margin was 41.43%, down 41.34% from 70.63% YoY. These declines were primarily driven by a decrease in profit after tax and a simultaneous increase in sales/revenue base.

EBITDA Margin

Operating Profit Margin stood at 58.86% for FY2024-25. Core profitability was impacted by a 26.30% decrease in Return on Net-worth, which fell from 10.02% to 7.39% due to lower profit after tax and an expanded net worth base.

Credit Rating & Borrowing

The company is classified as an NBFC-Middle Layer with total assets of INR 18,561.66 Crore. Specific credit ratings and borrowing interest rates are not disclosed.

⚙️ Operational Drivers

Raw Materials

As an NBFC and investment company, the primary 'raw material' is capital/funds. For the trading segment, specific goods are not named, but the segment generated INR 1,686.60 lakh in FY2024-25.

Capacity Expansion

Not applicable for an investment and trading firm; however, the company manages an asset base of INR 18,561.66 Crore as of March 31, 2025.

Raw Material Costs

Not applicable. Operating expenses include employee benefits of INR 34.08 lakh in H1 FY2025-26 (up 12.77% from INR 30.22 lakh YoY) and other expenses of INR 53.63 lakh.

Manufacturing Efficiency

Not applicable. The company focuses on investment value maximization and prudent leveraging of growth opportunities within the regulatory framework.

📈 Strategic Growth

Growth Strategy

The company aims to achieve growth by developing systems to face global economic challenges and focusing on sustainable growth in its investee companies. Strategy includes maximizing stakeholder value through prudent investment evaluation and leveraging growth opportunities in the competitive NBFC industry while maintaining strict regulatory compliance.

Products & Services

Investment services, financing (NBFC activities), and trading of goods.

Brand Portfolio

Nalwa Sons Investments Limited.

Market Expansion

The company is looking forward to sustainable growth in its investee companies to enhance entrenched value for shareholders.

Strategic Alliances

The company has three subsidiaries (Nalwa Trading Limited, Brahmaputra Capital and Financial Services Limited, Jindal Steel & Alloys Limited) and one associate (Jindal Equipment Leasing and Consultancy Services Limited).

🌍 External Factors

Industry Trends

The NBFC industry is evolving under the RBI's Scale Based Regulation (SBR) framework; NSIL is positioned in the 'Middle Layer' with assets exceeding INR 1,000 Crore. The industry is shifting toward more rigorous internal financial controls and audit trail requirements.

Competitive Landscape

The company faces competition from other NBFCs and financial institutions, though management notes that the primary challenges are economic rather than direct competitor-driven.

Competitive Moat

The company's moat is derived from its significant asset base (INR 18,561.66 Crore) and its strategic holdings in Jindal group-related entities, providing a stable stream of dividend and interest income.

Macro Economic Sensitivity

Highly sensitive to domestic and global economic scenarios which affect the valuation of the investment portfolio and the profitability of investee companies.

Consumer Behavior

Not applicable for this business model.

Geopolitical Risks

Global economic challenges are identified as a primary risk factor that could offset associated investment risks.

⚖️ Regulatory & Governance

Industry Regulations

Registered as an NBFC under Section 45 IA of the RBI Act, 1934. Complies with the Companies Act, 2013, and SEBI (LODR) Regulations, 2015. Must maintain an audit trail (edit log) for all relevant transactions as per Rule 3(1) of the Companies (Accounts) Rules, 2014.

Taxation Policy Impact

Standalone tax expense for FY2024-25 was INR 1,552.86 lakh on a PBT of INR 5,248.13 lakh, representing an effective tax rate of approximately 29.59%.

Legal Contingencies

The company has pending litigations and tax demands. Auditors identified the assessment of these contingencies as a Key Audit Matter, involving significant management judgment and legal opinions to determine necessary provisions.

⚠️ Risk Analysis

Key Uncertainties

Market volatility affecting 'Net gain on fair value changes' (INR 790.20 lakh in FY2024-25) and potential credit defaults in the NBFC portfolio.

Third Party Dependencies

High dependency on the financial health and dividend-paying capacity of its investee companies.

Technology Obsolescence Risk

The company has implemented accounting software with audit trail features to mitigate risks of data tampering and ensure financial reporting reliability.