Textile Penny Stock Under Rs 5 Reports Q4 FY26 Results; Net Profit Stays Positive Despite Revenue Decline

On Friday's trading session, Indian equity benchmarks remained under pressure, with the benchmark Nifty 50 index declining 1.50 per cent to 23,547.75. Textile stocks were also trading weak amid the broader market selloff. In this segment, shares of Nandan Denim were trading at Rs 2.62 on May 29, 2026, down 0.76 per cent from the previous close. The company announced its audited standalone financial results for the quarter and financial year ended March 31, 2026.

Nandan Denim Q4 FY26 Results

For the quarter ended March 31, 2026, Nandan Denim reported revenue from operations of Rs 539.98 crore, compared with Rs 1,048.65 crore in the corresponding quarter of the previous year, reflecting a decline of 48.5 per cent year-on-year. Total income stood at Rs 549.37 crore against Rs 1,050.27 crore in Q4 FY25.

Despite the sharp decline in revenue, profit before tax increased 3.6 per cent to Rs 15.02 crore from Rs 14.50 crore in the year-ago quarter. Net profit for the quarter stood at Rs 9.51 crore compared with Rs 10.60 crore in Q4 FY25, while total comprehensive income came in at Rs 8.65 crore. Earnings per share remained at Rs 0.07.

Total expenses during the quarter declined significantly to Rs 534.34 crore from Rs 1,035.76 crore in the corresponding period last year. Cost of materials consumed fell to Rs 452.10 crore from Rs 933.61 crore, while employee benefit expenses stood at Rs 20.70 crore. Finance costs turned negative at Rs 3.50 crore compared with Rs 9.07 crore in Q4 FY25.

Nandan Denim  FY26 Financial Performance

For the financial year ended March 31, 2026, revenue from operations stood at Rs 2,871.87 crore, compared with Rs 3,546.68 crore in FY25, reflecting a decline of 19.0 per cent. Total income came in at Rs 2,886.07 crore against Rs 3,554.30 crore in the previous financial year.

Profit before tax for FY26 stood at Rs 42.26 crore compared with Rs 45.85 crore in FY25, while net profit declined marginally to Rs 33.13 crore from Rs 33.45 crore. Total comprehensive income for the year was Rs 32.39 crore. Earnings per share remained unchanged at Rs 0.23.

The company reported total expenses of Rs 2,843.82 crore during FY26 compared with Rs 3,508.45 crore in the previous year. Cost of materials consumed declined to Rs 2,486.05 crore from Rs 3,118.24 crore, while finance costs reduced substantially to Rs 17.66 crore from Rs 36.74 crore.

Balance Sheet Strengthens As Debt Reduces

Nandan Denim continued to strengthen its balance sheet during FY26. Total equity increased to Rs 651.18 crore as of March 31, 2026, from Rs 618.79 crore a year earlier. Total borrowings declined significantly, with non-current borrowings reducing to Rs 49.90 crore from Rs 63.32 crore and current borrowings falling to Rs 67.44 crore from Rs 185.30 crore.

Cash and cash equivalents increased to Rs 3.54 crore from Rs 2.51 crore, while trade receivables declined to Rs 376.65 crore from Rs 510.53 crore, reflecting improved working capital management.

About Nandan Denim

Nandan Denim is one of India's textile manufacturers engaged in the production of denim fabrics, shirting fabrics, cotton yarn and related textile products. The company operates manufacturing facilities in Ahmedabad, Gujarat, and caters to domestic as well as international markets.

The company follows a business-to-business model and supplies products to fabric resellers, garment manufacturers, distributors, wholesalers, brand owners and exporters. It operates in a single reportable segment of textiles and exports its products to multiple international markets.

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