Financial Performance Highlights
NCL Industries delivered exceptional financial results for FY 2025-2026, reporting a 279% surge in consolidated net profit to ₹95.39 crore (FY25: ₹25.20 crore). Revenue from operations grew 4.4% to ₹1,422.08 crore, while EBITDA increased 57.6% to ₹221.93 crore with margins expanding to 15.6% from 10.3%. Earnings per share stood at ₹21.09 compared to ₹5.57 in the previous year.
Operational Performance
The company's performance was primarily driven by its Cement Division, which achieved gross revenue of ₹1,835.14 crore (5.5% growth) and segment result of ₹129.88 crore. Production increased to 2,768,119 MT with capacity expansion to 4.00 MTPA following commissioning of a new 0.66 MTPA grinding unit at Visakhapatnam in November 2025. The Boards and Ready Mix Concrete divisions showed mixed results amid market challenges.
Strategic Restructuring
NCL Industries discontinued its loss-making Doors Division during the year, recognizing a one-time charge of ₹28.36 crore comprising impairment loss of ₹14.68 crore and inventory write-down of ₹11.08 crore. This strategic move aimed to optimize operations and focus on core cement business.
Capital Management and Dividend
The board recommended a final dividend of ₹2.00 per share, bringing the total dividend for FY26 to ₹3.50 per share including the interim dividend of ₹1.50 already paid. The company maintained a strong capital structure with Debt-Equity ratio improving to 0.25 from 0.29 and Return on Equity surging to 10.61% from 2.95%.
Expansion Projects
Significant capital expenditure included the approval of a 130 MW solar-wind hybrid project in Tamil Nadu at an estimated cost of ₹919 crore, with Phase I (50 MW) scheduled for commissioning by February 2028. The company also completed its Vizag grinding unit construction on leased land from subsidiary Tern Distilleries.
Corporate Governance and Compliance
The company underwent several management changes including appointment of Mrs. Renu Challu as Chairperson & Independent Director and Mr. K. Ravi as Vice Chairman & Managing Director. Regulatory compliance matters included fines totaling approximately ₹7.35 lakhs levied by BSE and NSE for various disclosure delays, all paid under protest.
Subsidiaries and Related Parties
Transactions with subsidiaries including Tern Distilleries, Vishwamber Cements, and NCL Buildtek totaled significant amounts, with managerial remuneration of ₹1.16 crore to key personnel. The company recognized a provision of ₹4.14 crore for diminution in investment value in NCL Buildtek due to limited order execution.
Contingent Liabilities and Tax Matters
Significant contingent liabilities included tax demands of ₹22.54 crore under dispute for AY 2024-25, mines demand of ₹91.43 crore from Department of Mines and Geology, and various indirect tax matters totaling approximately ₹46.40 crore. The company opted for Section 115BAA benefit with effective tax rate of 25.168%.
AGM and Corporate Calendar
The 45th Annual General Meeting is scheduled for September 18, 2026 via video conference, with resolutions including adoption of financial statements, dividend declaration, and director appointments. E-voting will be available from September 15-17, 2026 with record date set for September 11, 2026.