Author: Nishtha Mehrotra | EQMint

Synopsis:

• Nandan Denim reported a 33% decline in H1 FY27 revenue to ₹1,230.37 crore, while net profit increased 27% to ₹26.27 crore.
• Tax adjustments from earlier years supported net profit growth despite a 14% decline in profit before tax.
• Rising receivables, higher short-term borrowings and negative operating cash flow highlight working capital pressures.
  
  

Nandan Denim Reports Mixed H1 FY27 Performance

Nandan Denim Limited reported mixed financial results for H1 FY27, with declining revenue but higher net profit, supported partly by tax adjustments from earlier years.

The Ahmedabad-based textile manufacturer recorded standalone revenue from operations of ₹1,230.37 crore for the half year ended September 30, 2026, down 33% from ₹1,832.37 crore in the corresponding period last year.

Profit before tax declined 14% to ₹19.88 crore. However, net profit increased 27% to ₹26.27 crore from ₹20.65 crore in H1 FY26. The improvement was largely supported by a net tax credit of approximately ₹6.40 crore, including adjustments relating to earlier years.

For Q2 FY27, revenue stood at ₹607.98 crore, down 22.5% year-on-year, while net profit rose to ₹11.47 crore from ₹9.45 crore.

Receivables and Cash Flow Under Pressure

The company’s balance sheet showed rising working capital requirements. Trade receivables increased 44% to ₹543.15 crore from ₹376.65 crore at March 2026-end, while total borrowings climbed to approximately ₹161.63 crore.

Operating activities consumed ₹37.18 crore in cash during the half year, compared with a positive inflow of ₹144.45 crore in the previous corresponding period.

Renewable Energy Investment

Nandan Denim also acquired a 6.1% stake in Opera Vayu (Narmada) Private Limited for approximately ₹4 crore as part of a group captive renewable energy arrangement involving wind and solar power.

Going forward, revenue recovery, collection of outstanding receivables and sustainable cash generation will be important indicators of the company’s financial performance.

Source: https://www.bseindia.com/xml-data/corpfiling/AttachLive/75c7e2af-fd80-4f3f-822d-4e8c8a08cf91.pdf

Disclaimer: This article is for information purposes only and is not investment advice.

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