NITCO LIMITED

Document Dates: August 12, 2026 & May 13, 2026

Financial Performance Highlights

Nitco Limited achieved a remarkable financial turnaround in FY26, reporting a consolidated net profit of ₹2,864.77 lakhs compared to a loss of ₹74,120.66 lakhs in FY25. Revenue from operations increased significantly to ₹55,388.42 lakhs (FY25: ₹32,774.41 lakhs), driven by growth in tiles segment (₹48,357.77 lakhs) and new real estate income (₹5,842.00 lakhs) from a joint development agreement. On a standalone basis, the company reported net profit of ₹34.22 crore versus loss of ₹736.21 crore in FY25, with revenue rising to ₹539.71 crore.

Capital Structure & Debt Restructuring

The company completed a major debt restructuring with Authum Investment & Infrastructure Limited, converting ₹1,03,781.25 lakhs debt into 11,25,00,000 equity shares at ₹92.25 per share. This included raising ₹40,823.08 lakhs through preferential allotment to third-party investors and issuing convertible warrants to promoters raising ₹5,398.93 lakhs. The sustainable debt was maintained at ₹15,000.00 lakhs in redeemable preference shares. Current borrowings stand at ₹30,419.49 lakhs, with a net debt to equity ratio of 0.75.

AGM Details and Key Resolutions

Nitco convenes its 60th AGM on September 17, 2026, via video conference to adopt FY26 financial statements and seek several approvals. Key agenda items include:

  • Re-appointment of Ms. Poonam Talwar as Director
  • Ratification of Cost Auditor remuneration at ₹75,000 for FY27
  • Revision of material related-party transaction limit with Authum Investment from ₹75 crore to ₹250 crore for working capital facilities

The increased limit with Authum is justified by operational and working capital requirements, with interest rate at 10% per annum secured by hypothecation of inventory & receivables.

Operational Developments and Asset Management

The company secured a major order from Prestige Estates Projects Ltd. for supply of tiles and marble aggregating ₹347.09 crores. It entered a Joint Development Agreement with Total Environment Building Systems Pvt. Ltd. for plotted development at Alibaug, expecting minimum consideration of ₹350 crores over three years. The company also progressed with monetization of Kanjurmarg Property through a revised transaction with M/s. R Siddhatva Developers Private Limited for monetary consideration of ₹143 crores + increased office space.

Contingencies and Risk Factors

Key challenges include a contingent liability of ₹16,980 lakhs from a DGFT penalty (under dispute) and aged trade receivables of ₹5,488.97 lakhs outstanding for over six months. The company faces foreign exchange risk exposure to multiple currencies, with 5% appreciation potentially decreasing profit by ₹49.14 lakhs. Other contingencies include tax and duty demands of ₹3,073.10 lakhs under dispute and various legal matters.

Corporate Governance and Compliance

The board composition includes 6 Directors (1 Executive, 5 Non-Executive including 2 Women Directors, 4 Independent Directors). Secretarial audit report contained qualifications regarding 4,242 promoter group shares not in demat form and bill discounting arrangement with related party potentially exceeding materiality threshold. The company maintains adequate internal controls and has a vigil mechanism in place with no complaints received during FY26.

Going Concern Assessment

Management confirms preparation of financial statements on a going concern basis based on improved operational performance, successful debt restructuring, capital infusion, and meeting all obligations. The company has adequate resources to continue operations with reduced future debt servicing obligations and additional working capital facilities secured.