NG Industries' profit tumbles 78% as other income vanishes
Net profit falls to ₹173.38 lakhs from ₹773.95 lakhs, driven by collapse in investment income. Dividend of ₹3.50 per share recommended.
What's new
- Net profit fell 78% to ₹173.38 lakhs from ₹773.95 lakhs.
- Other income collapsed to ₹102.95 lakhs from ₹800.07 lakhs.
- Board recommended a final dividend of ₹3.50 per share (35%).
Why this matters
The earnings of NG Industries are heavily dependent on volatile investment income. A near-total evaporation of that income slashed profits, while operating revenue barely moved. The dividend offers thin yield support but does not mask the underlying risk: the core business is not generating growth.
What we're watching
- Whether the company addresses its reliance on non-operating income.
- Impact of fair-value losses on future investment portfolio.
- Any management commentary on revenue growth initiatives.
The full read
NG Industries' net profit plunged 78% to ₹173.38 lakhs in FY26, the victim of a near-total evaporation of other income—₹800.07 lakhs in FY25 to just ₹102.95 lakhs. Operating revenue barely moved, slipping to ₹1,639.48 lakhs. The board recommended a ₹3.50 per share dividend, but that does little to soften the blow. The total income flipped to a loss of ₹378.35 lakhs, thanks to fair-value hits on the same volatile investment portfolio. For a ₹40 crore nano-cap, earnings that depend on investment income rather than operations are a clear risk. The dividend is a token; the real story is the fragile earnings base.
Questions answered
- Why did NG Industries' profit drop so sharply?
- The 78% profit decline was driven by a collapse in other income, which fell from ₹800.07 lakhs to ₹102.95 lakhs. Revenue from operations was nearly flat at ₹1,639.48 lakhs, so the entire earnings hit came from non-operating income.
- How much dividend is proposed and what is the yield?
- The board recommended a final dividend of ₹3.50 per share (35% face value). At the current market price around ₹100-110, the yield is about 3-3.5%.
- What caused the total loss of ₹378.35 lakhs for the year?
- The total loss reflects fair-value losses on investments, turning a prior-year gain of ₹355.54 lakhs into a loss. This is tied to the same volatile investment portfolio that drove the profit plunge.
- Is the company's operating business growing?
- No. Revenue from operations edged lower to ₹1,639.48 lakhs from ₹1,654.68 lakhs in FY25, a marginal decline. The core business is stagnant.