Company Overview

Nitta Gelatin India Limited (NGIL) reported strong financial performance for FY26 with standalone revenue of ₹588.31 crore and profit after tax of ₹110.60 crore, representing significant improvement over FY25 results. The company celebrated its 50th anniversary and operates in ossein, gelatin, and collagen peptide manufacturing.

Financial Performance Highlights

Revenue from Operations: ₹58,830.85 lakhs for FY26 (FY25: ₹52,657.21 lakhs)

Profit Before Tax: ₹145.60 crore standalone (FY25: ₹109.67 crore)

Net Profit: ₹110.60 crore standalone; ₹9,719.74 lakhs consolidated

Earnings Per Share: ₹121.81 basic (₹90.54 in FY25)

Dividend Recommended: ₹7 per equity share (70% of face value) + 7.65063% on preference shares

Key Ratios: Current Ratio improved to 5.55 (3.66 in FY25), Debt-Equity reduced to 0.02 (0.12 in FY25), Return on Equity at 22.2% (21% in FY25)

Operational Performance

  • Gelatin Volume: Increased 6.6% despite global price decline from hide-based competition
  • Collagen Peptide Volume: Increased 57% with realization decline of 14.5% due to product mix change
  • DCP Realization: Improved 13.7% due to better poultry sector demand
  • Plant Utilization: Gelatin plant at full capacity; Collagen Peptide plant near full capacity
  • Capacity Expansion: Collagen Peptide Project (550 MT) commissioned in Q2 FY26; Gelatin Expansion Project progressing

Subsidiary Status - Bamni Proteins Limited

Bamni Proteins Limited ceased manufacturing operations following closure order from Maharashtra State Pollution Control Board (MPCB) dated 13 March 2024. The Board decided permanent closure by 25 July 2024 due to absence of technically and economically viable solution. Assets classified as held for sale: ₹530.38 lakhs, with loss from discontinued operations of ₹104.83 lakhs for FY26.

Export Performance & Market Challenges

Total Exports: ₹219.35 crore (FY25: ₹232.61 crore)

  • Gelatin Exports: Lower due to US tariff impacts, prompting market diversification
  • Collagen Peptide Exports: Doubled year-on-year aided by capacity additions
  • US Tariff Impact: Company reduced US market exposure and shifted volumes to domestic market

Corporate Governance & Director Changes

Board Composition: 12 Directors (6 Independent, 1 Executive, 11 Non-Executive)

New Appointments: Mr. Vishnuraj P IAS, Mr. Hidenori Takemiya, Mr. Kazuya Hayashi, Mr. Hidehito Jay Araki

Cessations: Mr. S. Harikishore IAS, Mr. Mir Mohammed Ali IAS, Mr. Koichi Ogata, Mr. Sajiv K. Menon

Related Party Transactions

Proposed Transactions (01.10.2026 to 30.09.2027): Total ₹34,950 lakhs

  • Nitta Gelatin Inc., Japan: Purchase/Sale/Supply - ₹19,500 lakhs; Services - ₹300 lakhs
  • Nitta Gelatin NA Inc., USA: Purchase/Sale/Supply - ₹14,000 lakhs; Services - ₹150 lakhs
  • Bamni Proteins Limited: Purchase/Sale/Supply & Services - ₹100 lakhs

Contingent Liabilities & Legal Matters

Total Contingent Liabilities: ₹2,496.41 lakhs (FY25: ₹2,527.12 lakhs)

  • Customs duty: ₹1,819.66 lakhs (significant case pending in Supreme Court regarding advance authorization scheme imports)
  • Income tax: ₹216.66 lakhs under dispute
  • Excise duty and service tax: ₹225.86 lakhs
  • Goods and Service Tax: ₹234.23 lakhs

Credit Rating & Capital Commitments

Credit Rating: CRISIL A- Stable (long-term), CRISIL A2+ (short-term) for ₹97.9 crore facilities

Capital Commitments: ₹4,124.70 lakhs remaining, including ₹3,338.59 lakhs for expansion projects

AGM Details & Corporate Calendar

50th Annual General Meeting: July 31, 2026 at 10:30 AM via Video Conferencing

Business Items: Adoption of financial statements, dividend declarations, director reappointments, related party transaction approvals

E-voting: Available from July 27-30, 2026

Auditor's Report & Compliance

Statutory Auditors: Walker Chandiok & Co LLP issued unmodified opinion

Key Audit Matters: Litigations and contingent liabilities, revenue recognition

Regulatory Compliance: Full compliance with SEBI regulations and Companies Act requirements

Forward Outlook

The company continues to monitor global geopolitical developments and trade policies while focusing on market diversification and operational efficiency. Gelatin market outlook remains positive despite competitive pressures, with collagen peptide demand driven by global protein shortages and wellness trends.