Nandani Creation Faces Financial Struggles Amid Record Net Sales and Declining Profitability

Nandani Creation, a microcap player in the Garments & Apparels industry, has recently undergone a financial trend adjustment reflecting its performance in the quarter ending September 2025. The company reported its highest net sales for the quarter at Rs 28.35 crore. However, this positive aspect is overshadowed by significant challenges in other financial metrics. Operating cash flow for the year stands at a low of Rs -16.94 crore, indicating liquidity issues. Additionally, the profit after tax for the latest six months has declined sharply by 57.63%, amounting to Rs 1.00 crore. The profit before tax, excluding other income for the quarter, has also seen a substantial drop of 74.52%, recorded at Rs 0.40 crore. Interest expenses have peaked at Rs 1.05 crore, while the operating profit to net sales ratio is at its lowest, at just 6.88%. Earnings per share for the quarter have also fallen to Rs 0.15. In terms of market performance, Nandani Creation has faced a challenging year, with stock returns lagging behind the Sensex across various time frames. Over the past year, the stock has decreased by 12.66%, while the Sensex has gained 8.33%. This trend highlights the company's struggle to maintain competitiveness in a fluctuating market environment.