Company Overview
NTC Industries Limited, engaged in cigarette manufacturing and exports with four material subsidiaries in real estate and infrastructure, reported exceptional financial performance for FY 2025-26 alongside significant corporate developments.
Financial Performance Highlights
Consolidated Results:
- Revenue from operations surged 85% to ₹116.02 crore (FY25: ₹62.74 crore)
- Profit After Tax increased 72% to ₹19.56 crore (FY25: ₹11.37 crore)
- Earnings Per Share stood at ₹13.47 (FY25: ₹8.79)
Standalone Performance:
- Revenue reached ₹101.75 crore, more than doubling from ₹49.01 crore in FY25
- Export sales contributed significantly at ₹54.17 crore vs ₹28.34 crore previous year
- Profit After Tax nearly doubled to ₹14.49 crore from ₹7.86 crore
Capital Raising Initiative
The Board proposed preferential issuance of 17,18,750 warrants to promoter entities at ₹160 per warrant, aggregating ₹27.5 crore. The warrants are convertible within 18 months from allotment date, with 25% payable on subscription and 75% on conversion. This requires approval at the 35th Annual General Meeting scheduled for August 25, 2026.
Subsidiary Operations and Segment Performance
The group operates through four wholly-owned subsidiaries focusing on real estate and infrastructure. Segment-wise, FMCG-cigarettes generated ₹62.36 crore revenue with ₹8.59 crore segment result, while rental income contributed ₹15.10 crore with ₹7.06 crore segment result. Geographical revenue split showed ₹61.85 crore from domestic market and ₹54.17 crore from exports.
Key Audit Matters and Contingent Liabilities
Auditors identified indirect tax litigations as a key audit matter, with ₹326.76 crore in contingent liabilities not acknowledged as debts. The major case involves an excise duty demand of ₹313.18 crore and penalty of ₹13.58 crore for period October 1994 to October 1996, currently under appeal at CESTAT. Additionally, two lawsuits filed by minority shareholders challenging property transactions to subsidiaries are pending in civil courts.
Corporate Governance and Compliance
The company maintained clean regulatory status with no wilful defaulter declarations, benami property cases, or cryptocurrency transactions. It incurred its first CSR expenditure of ₹15.63 lakh on education promotion activities, meeting the mandatory 2% requirement. The board composition includes experienced directors with proper committee structures in place.
Capital Structure and Shareholding
Paid-up capital remained unchanged at ₹14.52 crore (1.45 crore equity shares). Major shareholders include Vinod Dugar (10.27%), Sheetal Dugar (13.32%), YMS Finance Private Limited (13.16%), and Loka Properties Private Limited (8.54%). The group maintained a debt-equity ratio of 0.37 with total borrowings of ₹76.66 crore against equity of ₹209.90 crore.
Outlook and Strategic Focus
The company proposed no dividend for FY26 to conserve resources for business expansion. With strong revenue growth, improved operational metrics, and planned capital infusion through warrant issue, NTC Industries is positioned for continued growth in both cigarette manufacturing and real estate subsidiaries while managing ongoing litigation risks.