Net Profit Surges 1,507%; Revenue Jumps 334%: Check Out This FMCG Company

NHC Foods Ltd reported a strong set of financial results for the quarter and half year ended September 30, 2026, with consolidated net profit increasing 1,507 per cent year-on-year to Rs 21.69 crore, compared with Rs 1.35 crore in the corresponding quarter of the previous financial year.

Consolidated revenue from operations surged 334 per cent to Rs 448.18 crore in Q2FY27, compared with Rs 103.21 crore in Q2FY26. Total income increased to Rs 451.32 crore from Rs 104.09 crore in the year-ago quarter.

Profit before Tax (PBT) jumped to Rs 23.36 crore from Rs 2.21 crore in the corresponding quarter last year. Total expenses increased to Rs 427.97 crore against Rs 101.88 crore in Q2FY26. The company reported earnings per share (EPS) of Rs 0.26 for the quarter, compared with Rs 0.02 in the year-ago period.

For the first half of FY27, consolidated revenue from operations increased to Rs 817.87 crore from Rs 213.72 crore in the corresponding period of the previous financial year. Total income stood at Rs 821.46 crore against Rs 214.68 crore. Consolidated net profit surged to Rs 38.68 crore from Rs 3.02 crore, while PBT increased to Rs 40.99 crore from Rs 4.47 crore.

On a standalone basis, revenue from operations increased to Rs 142.08 crore in Q2FY27 from Rs 103.21 crore in Q2FY26. Total income stood at Rs 145.23 crore, while profit before tax increased to Rs 6.46 crore. For H1FY27, standalone revenue from operations stood at Rs 263.14 crore, compared with Rs 213.72 crore in H1FY26, while PBT stood at Rs 10.88 crore.

The company's consolidated results include two overseas subsidiaries that reported combined revenue of Rs 306.09 crore and net profit after tax of Rs 16.88 crore for Q2FY27. For H1FY27, these subsidiaries reported combined revenue of Rs 554.73 crore and net profit after tax of Rs 30.09 crore. Notably, the financial results of these overseas subsidiaries were unaudited and were furnished to the statutory auditors by the management. The auditors' review conclusion was not modified in this regard.

In a significant business development, the company's board approved an investment of Rs 1.80 crore to acquire a 99.98 per cent stake in Sachmaas Foods, a partnership firm engaged in manufacturing, processing, repacking and trading chickpeas, peanuts and other food products. The firm reported turnover of Rs 5.52 crore in FY26, compared with Rs 8.80 crore in FY25 and Rs 3.08 crore in FY24. The investment is expected to expand the company's business and create synergies with its existing operations. The transaction was completed on November 7, 2026, through cash consideration.

The board also approved the appointment of Jayesh Dhirajlal Shah as an Additional Director, designated as Executive Director, effective November 7, 2026, subject to shareholder approval. He brings more than 15 years of experience in the Indian food processing and FMCG sectors and is currently a designated partner at Sachmaas Foods. Additionally, Alesha Hakim Khan was appointed as the Company's Company Secretary and Compliance Officer, effective November 7, 2026. She has more than 10 years of experience in corporate law, securities law and listing regulations.

The company also approved a draft postal ballot notice to seek shareholder approval for the relevant agenda items and appointed Nikunj Kanabar & Associates as the scrutiniser for the e-voting process. November 6, 2026, was approved as the cut-off/record date for determining shareholder entitlement to participate in the e-voting process.

On the balance sheet front, consolidated total assets increased to Rs 611.88 crore as of September 30, 2026, compared with Rs 311.04 crore as of March 31, 2026. Consolidated equity stood at Rs 248.12 crore, while total liabilities increased to Rs 363.76 crore from Rs 128.75 crore. Non-current borrowings stood at Rs 204.78 crore, compared with Rs 2.29 crore at the end of the previous financial year. Current borrowings increased to Rs 52.17 crore from Rs 46.45 crore.

Consolidated trade receivables stood at Rs 312.19 crore, while cash and cash equivalents amounted to Rs 13.04 crore. On a standalone basis, total assets increased to Rs 443.89 crore from Rs 162.86 crore as of March 31, 2026. Standalone non-current borrowings stood at Rs 204.78 crore, compared with Rs 2.29 crore previously.

The consolidated cash flow statement showed that net cash generated from operating activities stood at Rs 2.39 crore in H1FY27, compared with an outflow of Rs 12.32 crore in H1FY26. Net cash used in investing activities increased to Rs 233.21 crore against Rs 3.94 crore in the corresponding period. Net cash generated from financing activities stood at Rs 231.92 crore, compared with Rs 15.65 crore in the previous corresponding period.

The company also disclosed that, following the conversion of 19 Foreign Currency Convertible Bonds (FCCBs) with an aggregate principal value of USD 19 million, its board allotted 18,18,79,020 fully paid-up equity shares of face value Rs 1 each at a conversion price of Rs 1 per share on August 25, 2026. Consequently, the company's paid-up equity share capital increased to Rs 94.38 crore.

The standalone and consolidated financial results were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on November 7, 2026. The statutory auditors issued limited review reports on both sets of financial results.

Disclaimer: The article is for informational purposes only and not investment advice.