Nahar Polyfilms Ltd (NAHARPOLY)
🎯 Key Takeaways
- Nahar Polyfilms Ltd is a mid-sized, promoter-led packaging films manufacturer operating in the capital goods sector, currently in a mature phase with stable governance and modest profitability. Despite consistent promoter holding and governance stability, the company faces pressure from declining margins and flat revenue trends, reflected in a low ROE of 7.
- Revenue declined 4.6% QoQ to ₹160 in Q1FY27.
- ⚠️ 1) Persistent margin compression in core packaging films business due to soft demand and pricing pressure in export markets. 2) Over-reliance on a con
- Market Cap
- ₹542
- P/E Ratio
- 9.3
- P/B Ratio
- 0.63
- ROE
- 8.3%
- ROCE
- 9.3%
- Debt/Equity
- 0.09
- Div Yield
- 0.68%
- Promoter
- 72.5%
📖 The Story
Nahar Polyfilms Ltd is a mid-sized, promoter-led packaging films manufacturer operating in the capital goods sector, currently in a mature phase with stable governance and modest profitability. Despite consistent promoter holding and governance stability, the company faces pressure from declining margins and flat revenue trends, reflected in a low ROE of 7.3% and a 17% year-on-year stock return decline.
📰 What's Happening
In Q1FY27 (June 2026), revenue contracted to ₹160 crores from ₹172 crores in Q3FY26, with operating profit margin compressing to 4.4% from 11.4%, driven by weaker operational performance. Management attributed the trend to soft demand conditions but emphasized continued focus on export growth and differentiated products. The company proposed a ₹1.50 dividend per share for FY25-26, pending AGM approval on September 25, 2026, with no new financial targets disclosed. Independent directors were re-appointed for second terms ending 2032, reinforcing governance continuity. No material changes in operations or financial position were reported in the annual filing.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
| Revenue | 172 | 167 | 168 | 160 |
| Operating Profit | 20 | 12 | 23 | 7 |
| OPM % | 11.4% | 7.3% | 13.8% | 4.4% |
| Net Profit | 16 | 16 | 20 | 6 |
| EPS | ₹8.45 | ₹7.85 | ₹8.34 | ₹4.75 |
Operating performance has shown a clear downward trend over the last four quarters, with revenue declining from ₹172 crores to ₹160 crores and operating profit margin falling from 13.8% to 4.4%. This erosion in profitability appears to be impacting net income and EPS, which dropped from ₹20 crores to ₹6 crores over the same period. Despite stable asset base and modest leverage, the margin compression suggests challenges in maintaining pricing or controlling costs amid soft demand, particularly in key export markets.
🔮 Management Outlook & What's Next
Management did not provide forward guidance in the latest filings, including the annual report or sustainability report. While reaffirming a focus on export growth and differentiated products, no new revenue, margin, or capex targets were disclosed. The absence of updated guidance, combined with declining operational metrics, suggests caution in near-term outlook, with management likely prioritizing stability over expansion.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 13 | 13 | 13 | 13 |
| Reserves | 789 | 847 | 854 | 840 |
| Borrowings | 96 | 111 | 79 | 96 |
| Total Liabilities | 948 | 1,022 | 1,000 | 1,009 |
| Fixed Assets | 210 | 224 | 180 | 194 |
| Investments | 588 | 668 | 611 | 640 |
| Total Assets | 948 | 1,022 | 1,000 | 1,009 |
The balance sheet remains relatively stable, with equity of ₹13 crores and reserves growing to ₹854 crores by March 2026, indicating long-term capital retention. Borrowings are minimal at ₹79 crores, and total assets have slightly increased to ₹1,000 crores, suggesting no aggressive capital deployment. The company is not investing heavily in expansion but is also not deleveraging aggressively, maintaining a conservative capital structure with low D/E of 0.12.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2025 | Mar 2026 |
|---|---|---|
| Operating | +57 | +50 |
| Investing | -3 | -25 |
| Financing | -41 | -38 |
| Net Cash Flow | +13 | -13 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 72.3% | 72.3% | 72.5% | 72.5% |
| FII | 0.1% | 0.0% | 0.0% | 0.0% |
| DII | 0.0% | 0.0% | 0.0% | 0.0% |
| Public | 21.8% | 21.6% | 21.4% | 21.4% |
| # Shareholders | 20,404 | 19,743 | 19,351 | 19,210 |
Promoter holding remains stable at 72.51% in Q1FY27, with no signs of dilution or pledging. Institutional ownership is negligible, with FII and DII holdings each at 0.03%, while public shareholding has slightly declined from 21.81% in Q2FY26 to 21.4% in Q1FY27. The growing number of shareholders (19,210 to 19,351) reflects retail participation but limited institutional interest.
⚖️ Peer Comparison — Packaging
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| INOXINDIA | 18,607 | 73.0 | 29.2% | — | 0.06 |
| GRWRHITECH | 15,455 | 39.8 | 22.0% | — | 0.00 |
| EPL | 7,531 | 19.4 | 17.1% | — | 0.25 |
| AGI | 5,200 | 14.4 | 19.6% | — | 0.10 |
| UFLEX | 4,645 | 6.8 | 8.8% | — | 1.21 |
| TCPLPACK | 3,628 | 31.4 | 17.8% | — | 0.80 |
| POLYPLEX | 3,340 | 21.5 | 7.7% | — | 0.23 |
| XPROINDIA | 2,680 | 81.2 | 5.2% | — | 0.38 |
| COSMOFIRST | 2,215 | 13.1 | 11.4% | — | 0.98 |
| KNACK | 2,162 | — | — | — | 0.80 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1) Persistent margin compression in core packaging films business due to soft demand and pricing pressure in export markets. 2) Over-reliance on a concentrated product mix with limited diversification into high-growth segments. 3) Minimal institutional interest may limit liquidity and market depth. 4) Governance stability is intact, but the lack of new strategic initiatives or growth targets raises concerns about long-term competitiveness.
📋 Recent Filings
- Financial Results2026-09-26Nahar Polyfilms Ltd has closed its trading window for insiders ahead of its quarterly and half-yearly financial results announcement, which will be di…
- 🟡 voting results2026-09-26Nahar Polyfilms shareholders approved all 9 AGM resolutions including adoption of standalone and consolidated financial statements for FY2026, declara…
- 🟡 Board Meeting2026-09-25Nahar Polyfilms held its 38th AGM on September 25, 2026 via video conference, adopting standalone and consolidated financial statements for FY2026, de…
- 🟡 Board Meeting2026-09-25Nahar Polyfilms announced shareholder approval at its September 25, 2026 AGM to reappoint four Independent Directors for second terms: Dr. Anchal Kuma…
- Announcement2026-09-03Nahar Polyfilms Ltd filed a dematerialization report for August 2026, confirming 1906 equity shares were converted to electronic form and transferred …
- 🟡 Board Meeting2026-09-02Nahar Polyfilms informed shareholders that the 2025-26 Annual Report and AGM notice are available online for those without registered email addresses,…
- 🟡 sustainability report2026-08-29Nahar Polyfilms Ltd submitted its Business Responsibility and Sustainability Report 2025-26 to BSE on August 29, 2026, detailing standalone disclosure…
- 🔴 annual report2026-08-29Nahar Polyfilms Ltd's FY 2025-26 Annual Report filed on August 29, 2026, details its financial performance, governance, and shareholder matters. The c…
- 🟡 Board Meeting2026-08-29No summary available
- Announcement2026-07-08Nahar Poly Films announced receipt of a SEBI-mandated dematerialization certificate from Alankit Assignments for the quarter ended June 30, 2026, conf…
🧠 Analyst's Read
Nahar Polyfilms exhibits governance resilience and financial prudence but is constrained by a stagnant operating trajectory and declining profitability. Investors should monitor export order trends and any shift in product mix or margin improvement initiatives at the upcoming AGM, as the company currently lacks a clear roadmap for growth revival.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-29.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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