How has been the historical performance of Nidhi Granites?

Revenue and Profitability Trends

Since reporting no sales in fiscal 2021, Nidhi Granites has seen a remarkable increase in net sales, rising from ₹0 crore to ₹45.28 crore by March 2025. This growth reflects the company’s expanding market presence and operational scale. Total operating income mirrored this trend, reaching ₹45.28 crore in the latest fiscal year. Despite the rising top line, operating profit margins have experienced a gradual decline, from 4.87% in 2022 to 2.45% in 2025, indicating increased cost pressures or competitive pricing dynamics.

Operating profit (PBDIT) excluding other income remained relatively stable around ₹1.1 crore in the last two years, while other income contributed significantly to overall operating profit, which surged to ₹3.16 crore in 2025 from ₹0.88 crore in 2022. This boost in other income has helped offset margin compression in core operations.

Profit before tax has shown a steady rise, reaching ₹2.53 crore in 2025, supported by controlled interest expenses and depreciation. The company’s profit after tax increased substantially from ₹0.07 crore in 2021 to ₹1.92 crore in 2025, reflecting improved operational efficiency and tax management. Correspondingly, the PAT margin improved to 4.24% in 2025, up from negligible levels in earlier years.

Cost Structure and Expense Analysis

The company’s expenditure profile reveals a significant portion allocated to the purchase of finished goods, which rose from ₹12.63 crore in 2022 to ₹29.02 crore in 2025, indicating reliance on external procurement. Raw material costs also increased but at a slower pace, reaching ₹11.62 crore in 2025. Employee costs have remained relatively stable, with a slight increase to ₹2.33 crore in 2025, while manufacturing and other expenses have seen moderate growth consistent with business expansion.

Despite rising costs, Nidhi Granites has managed to maintain a positive gross profit margin, which improved to 6.16% in 2025 from 4.87% in 2022. This suggests effective pricing strategies and cost control measures, although the operating profit margin contraction signals room for further efficiency gains.

Balance Sheet and Financial Position

Shareholder’s funds have grown robustly from ₹2.12 crore in 2021 to ₹14.88 crore in 2025, reflecting equity infusion and retained earnings accumulation. The company’s total liabilities increased in line with asset growth, reaching ₹21.99 crore in 2025. Long-term borrowings remain minimal, indicating a conservative approach to debt financing, with secured loans at ₹0.08 crore in 2025.

On the asset side, net block value expanded significantly to ₹4.84 crore in 2025, up from negligible levels in 2021, signalling capital investment in fixed assets. Non-current investments also rose steadily, reaching ₹2.15 crore. Current assets increased to ₹14.73 crore in 2025, supported by higher inventories and sundry debtors, which align with the company’s growing operations.

Cash Flow and Liquidity

Cash flow from operating activities showed improvement in 2025, generating ₹1 crore after prior years of negative or zero cash flow. Investing activities have been negative in recent years due to capital expenditure, while financing activities have fluctuated, reflecting equity raises and debt management. The company’s closing cash and cash equivalents stood at ₹3 crore in 2025, providing a comfortable liquidity buffer to support ongoing operations.

Earnings per share (EPS) have generally trended upwards, reaching ₹2.4 in 2025, despite some volatility in prior years. Book value per share also increased to ₹18.59, underscoring the strengthening equity base and value creation for shareholders.

Outlook and Considerations

Overall, Nidhi Granites has exhibited a commendable growth trajectory from a nascent stage in 2021 to a more established player by 2025. The company’s expanding sales, improving profitability, and solid balance sheet position suggest a positive outlook. However, investors should monitor margin trends and cost pressures closely, as well as the company’s ability to sustain cash flow generation amid capital investments.

Given the company’s demonstrated progress and financial discipline, Nidhi Granites remains a noteworthy contender in its sector, with potential for further value appreciation as it consolidates its market position.

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