Company Overview

NHC Foods Limited reported its FY26 financial results with standalone net profit of ₹609.74 lakhs and total income of ₹44,428.05 lakhs. Consolidated performance showed stronger results with total income of ₹60,296.44 lakhs and profit after tax of ₹1,231.70 lakhs, representing significant growth from FY25 levels.

Financial Performance

Standalone Financials: Revenue from operations reached ₹44,262.34 lakhs (up from ₹34,141.34 lakhs in FY25) with profit before tax of ₹881.04 lakhs. The company retained entire profits in retained earnings and did not recommend any dividend for the year.

Consolidated Performance: Revenue from operations stood at ₹60,130.73 lakhs with basic EPS of ₹0.20. The company maintained a gearing ratio of 42% and showed improved current ratio of 2.35. Trade receivables increased significantly to ₹25,161.80 lakhs, reflecting higher credit sales and slower collection patterns.

Capital Structure & Corporate Actions

The company underwent significant capital structure changes during FY26:

  • Equity shares increased from 59.27 crores to 65.77 crores through warrant conversions
  • Proposed preferential issue of 25.6 crore convertible warrants at ₹2.10 each to raise ₹53.76 crores from non-promoters
  • Shareholders will vote on increasing authorized capital from ₹100 crore to ₹2,000 crore at the September 25, 2026 AGM
  • Enhanced borrowing limits to ₹2,000 crore seeking shareholder approval

Risk Management & Financial Position

The company faces foreign currency risk with 1% forex rate movement impacting PBT by ₹19.56 lakhs. Net debt stood at ₹13,392.49 lakhs with assets pledged as security including trade receivables of ₹12,997.34 lakhs. The company maintains financial covenants including gearing ratio not exceeding 75%.

Corporate Developments

Management Changes: Satyam Joshi was appointed as Managing Director, Ashish Shah as Executive Director, with several other key managerial personnel changes including new CFO and Company Secretary appointments.

Subsidiary Expansion: Acquired 100% of Conquer Enterprises Limited (Hong Kong) through NHC International L.L.C-FZ and incorporated NHC International UK Limited as wholly owned subsidiary.

Shareholding Changes: Promoter shareholding became nil during the year after selling 4,83,86,550 shares (8.16% of total) on December 31, 2024.

Regulatory Compliance & Governance

The 34th AGM is scheduled for September 25, 2026 via video conferencing with e-voting from September 22-24, 2026. Auditors provided unmodified opinion on financial statements with no key audit matters identified. The company spent ₹10.00 lakhs on CSR activities, exceeding the required ₹9.69 lakhs.

Future Outlook

The preferential issue proceeds are allocated for capital expenditure (₹19.06 crores), working capital (₹20.00 crores), and general corporate purposes. The company has diversified into packaged beverages segment and signed LOI for investment in Agriconnect Solutions Private Limited post year-end.