Narmada Macplast revenue jumps to ₹13.31 cr as profits dip
Operating revenue for the year ended March 31, 2026, nearly doubled to ₹13.31 crore, though net profit dropped following a large prior-year asset sale.
What's new
- Revenue climbed to ₹13.31 crore from ₹6.98 crore in FY25.
- Net profit fell to ₹1.68 crore against ₹5.39 crore the previous year.
- Trade receivables jumped to ₹13.55 crore, up from ₹2.90 crore last year.
Why this matters
The top-line expansion shows progress, but the ballooning receivables suggest the company struggles to collect cash from customers. A firm of this size cannot carry a growing working capital gap while margins contract.
What we're watching
- Cash conversion cycles in the coming quarters.
- Ability to lower trade receivables from current levels.
- Equity deployment of capital raised via recent share issuances.
The full read
Narmada Macplast doubled its revenue to ₹13.31 crore for FY26. The top-line growth is evident, but the profit figure is muddied by the absence of last year's ₹5.82 crore one-time gain from asset disposal. Net profit landed at ₹1.68 crore, down from ₹5.39 crore in the previous cycle. A more pressing issue is the state of the balance sheet. Trade receivables have ballooned to ₹13.55 crore, surpassing the company's total annual revenue. For a nano-cap firm, this level of working capital intensity creates genuine liquidity pressure. The company added new equity, pushing total equity to ₹9.40 crore, but the focus now shifts to cash collection. The business needs cash, not just receivables. It is not there yet.
Questions answered
- Why did net profit fall if revenue doubled?
- The previous year’s profit of ₹5.39 crore included a one-time ₹5.82 crore gain from selling property. Without that gain, the core business results reflect a different profit profile.
- What is the primary concern on the balance sheet?
- Trade receivables rose to ₹13.55 crore, which exceeds the annual revenue of ₹13.31 crore. This indicates the company is financing its sales through credit rather than immediate cash payments.
- How did the equity base change during the year?
- Total equity grew to ₹9.40 crore from ₹7.73 crore following a share issuance.
- How do these results compare to previous projections?
- The results align with the company's previously announced rights issue and recent business trajectory.