NCL Industries Takes The Spotlight As FY26 PAT Surges 261% YoY to ₹123.65 Cr

Synopsis:- Reporting audited results for FY26, Secunderabad-based NCL Industries posted a near-fourfold jump in net profit from continuing operations to Rs. 123.65 crore on the back of a sharp cement segment recovery, while simultaneously writing off Rs. 25.75 crore in assets as it permanently shuttered its loss-making Doors division; the board has recommended a total dividend of Rs. 3.50 per share for the year.

A Hyderabad-headquartered multi-segment building materials company came into focus on May 29, 2026, after its board approved audited results for the quarter and full year ended March 31, 2026, alongside a structural decision to permanently exit the Doors business. The filing presents two distinct narratives running in parallel: a core business that staged a meaningful recovery, and a peripheral division that the management has finally decided to stop funding.

With a market capitalization of approximately Rs.841.24 crore, the shares of NCL Industries Limited were last quoted at Rs. 185.98 per share, up 1.34 percent from its previous close of Rs.183.52. The stock is trading at a P/E of 11.5.

Standalone revenue from continuing operations for FY26 came in at Rs. 1,422.08 crore, up 4.4 percent from Rs. 1,362.10 crore in FY25, a modest topline uptick. Net profit from continuing operations surged to Rs. 123.65 crore from Rs. 34.24 crore a near-fourfold increase driven almost entirely by a dramatic improvement in cement margins.

After accounting for the Doors division loss of Rs. 28.36 crore (net of tax), total PAT for FY26 stands at approximately Rs. 95.29 crore versus Rs. 25.38 crore in FY25. Including other comprehensive income, total comprehensive income for FY26 was Rs. 97.69 crore against Rs. 25.16 crore last year.

On an EPS basis, continuing operations contributed Rs. 27.87 per share (basic) in FY26 against Rs. 7.52 in FY25. The discontinued Doors segment shaved Rs. 6.27 per share, bringing total EPS to Rs. 21.60.

The consolidated segment data confirms that cement is the engine of this recovery. The Cement division posted FY26 revenue of Rs. 1,500.08 crore and segment profit of Rs. 139.65 crore  against Rs. 56.60 crore in FY25. That is a Rs. 83 crore improvement in segment profit on a revenue increase of roughly Rs. 50 crore, pointing to a steep recovery in per-tonne realisation and/or a meaningful reduction in power, fuel, and freight costs.

The Boards division (Cement Particle Boards under the Bison Panel brand) was softer, revenue fell from Rs. 206.12 crore to Rs. 163.40 crore, and profit declined to Rs. 10.82 crore from Rs. 16.84 crore. Ready Mix Concrete contributed Rs. 130.89 crore in revenue but only Rs. 3.50 crore in segment profit, down from Rs. 5.21 crore. The Energy (small hydro power) segment remained a small but positive contributor at Rs. 3.41 crore profit on Rs. 7.36 crore revenue.

The most consequential board decision of the day was the resolution to permanently discontinue the Doors division  sold under the Duradoor brand  citing “operational and commercial challenges.” An independent valuation was conducted, and an impairment loss of Rs. 25.75 crore has been recognised on the assets of the division. Related assets (Rs. 31.79 crore) have been reclassified as “Assets Held for Sale” on the balance sheet, and the division’s financial performance has been disclosed separately as Discontinued Operations.

The Doors division had been a serial drag. FY26 discontinued operations showed a loss before interest and tax of Rs. 31.93 crore (consolidated segment), and even before the impairment write-off, the division was running at roughly Rs. 13 crore in pre-tax losses annually. The FY26 impairment charge marks the line  no further losses from this segment will flow through the P&L in FY27.

The exceptional items in FY26 are separate from the Doors write-off and total Rs. 9.77 crore: Rs. 5.63 crore relates to a mineral-bearing cess payable pursuant to a Supreme Court judgment covering earlier years, and Rs. 4.14 crore is a provision for diminution in the value of an investment in a joint venture.

Balance Sheet and Dividend

The balance sheet shows total equity of Rs. 946.25 crore (standalone) as at March 31, 2026, against Rs. 864.38 crore a year earlier. Standalone total assets were Rs. 1,588.32 crore, down from Rs. 1,648.47 crore, partly reflecting the reclassification of Doors assets. Total borrowings (current and non-current) stand at Rs. 237.57 crore, broadly stable year-on-year.

The board has recommended a final dividend of Rs. 2.00 per share (20 percent), taking the total FY26 dividend to Rs. 3.50 per share inclusive of the Rs. 1.50 interim already paid.

Business Overview

NCL Industries Limited, incorporated in 1979, manufactures and sells cement under the Nagarjuna Cement brand, cement particle boards under Bison Panel, Ready Mix Concrete, and operates two small hydro power projects. The company is part of the NCL Group, headquartered in Secunderabad.

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