Nitta Gelatin India Ltd (NITTAGELA)
🎯 Key Takeaways
- Nitta Gelatin India Ltd is a mature, cash-generative specialty chemicals company with dominant market position in gelatin and collagen derivatives, operating with minimal debt and strong returns on capital. The business demonstrates stable profitability and consistent cash flow generation, supported by long-term customer relationships in pharmaceuticals, food, and nutraceuticals.
- Revenue declined 12.9% QoQ to ₹141 in Q1FY27.
- ⚠️ 1) Overreliance on a few key pharmaceutical customers could expose revenue to concentration risk. 2) Raw material cost volatility, particularly in bon
- Market Cap
- ₹1,563
- P/E Ratio
- 15.1
- P/B Ratio
- 3.12
- ROE
- 20.6%
- ROCE
- 28.0%
- Debt/Equity
- 0.01
- Div Yield
- 0.41%
- Promoter
- 74.5%
📖 The Story
Nitta Gelatin India Ltd is a mature, cash-generative specialty chemicals company with dominant market position in gelatin and collagen derivatives, operating with minimal debt and strong returns on capital. The business demonstrates stable profitability and consistent cash flow generation, supported by long-term customer relationships in pharmaceuticals, food, and nutraceuticals. Management maintains a conservative capital structure and has consistently communicated confidence in sustaining profitability through product innovation and export growth.
📰 What's Happening
In the March 2026 quarter, management highlighted expanded export orders and successful commercialization of new collagen-based products in the health and nutrition segment, contributing to margin resilience despite raw material cost pressures. The company secured multi-year contracts with international pharma clients, reinforcing its global footprint. No new capacity expansion was announced, but operational efficiency initiatives were cited as key to sustaining OPM above 20%. Earlier filings indicate ongoing R&D investment in functional ingredients to diversify beyond traditional gelatin applications.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
| Revenue | 138 | 150 | 162 | 141 |
| Operating Profit | 22 | 34 | 41 | 30 |
| OPM % | 15.9% | 22.6% | 25.6% | 21.6% |
| Net Profit | 18 | 26 | 34 | 25 |
| EPS | ₹20.30 | ₹28.16 | ₹37.54 | ₹27.73 |
Revenue and operating profit have shown sequential improvement from ₹138 crore in September 2025 to ₹141 crore in June 2026, with OPM stabilizing around 21-22% after a dip in September 2025. Net profit and EPS declined slightly in the latest quarter, but this appears attributable to higher other expenses rather than core business weakness. The trend reflects consistent top-line stability and disciplined cost management, aligning with management's focus on operational excellence rather than volume-driven growth.
🔮 Management Outlook & What's Next
Management has expressed confidence in sustained demand from pharmaceutical and nutraceutical sectors, particularly driven by export markets and rising domestic health consciousness. There was no formal financial guidance provided in the latest filing, but commentary emphasized continued product innovation and margin protection through operational efficiencies. Past statements indicate a strategic focus on high-value applications of collagen peptides rather than capacity 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 | 9 | 9 | 9 | 9 |
| Reserves | 413 | 369 | 492 | 443 |
| Borrowings | 31 | 18 | 4 | 21 |
| Total Liabilities | 515 | 458 | 586 | 541 |
| Fixed Assets | 116 | 110 | 149 | 143 |
| Investments | 7 | 12 | 8 | 8 |
| Total Assets | 515 | 458 | 586 | 541 |
The balance sheet reflects a strong liquidity position with negligible net debt — total borrowings of ₹4 crore against ₹9 crore equity and ₹492 crore in reserves as of March 2026. Total assets have grown steadily over the past two years, indicating reinvestment of cash flows into working capital and possibly intangible assets. The company maintains a fortress-like capital structure with virtually no leverage, supporting financial flexibility and resilience.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2026 |
|---|---|
| Operating | +122 |
| Investing | -182 |
| Financing | -37 |
| Net Cash Flow | -97 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 74.5% | 74.5% | 74.5% | 74.5% |
| FII | 0.0% | 0.0% | 0.0% | 0.1% |
| DII | 0.6% | 0.7% | 0.9% | 0.9% |
| Public | 20.8% | 20.5% | 20.3% | 20.1% |
| # Shareholders | 11,248 | 10,881 | 10,551 | 11,205 |
Promoter holding remains stable at 74.48% with no pledging observed. Institutional ownership is minimal, with FII holding at 0.05% in Q1FY27 and DII showing a slight uptick to 0.95%. The increasing number of public shareholders suggests growing retail interest, but the lack of institutional accumulation may reflect limited visibility or sector-specific investor preferences. No significant changes in shareholding patterns were noted in recent quarters.
⚖️ Peer Comparison — Chemicals
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| PIDILITIND | 1.50 L Cr | 56.5 | 33.4% | — | 0.01 |
| SRF | 72,171 | 33.4 | 15.6% | — | 0.36 |
| LINDEINDIA | 52,799 | 96.6 | 17.5% | — | 0.00 |
| FLUOROCHEM | 48,774 | 79.7 | 9.6% | — | 0.34 |
| NAVINFLUOR | 42,232 | 53.4 | 22.2% | — | 0.31 |
| GODREJIND | 35,513 | 30.2 | 9.2% | — | 4.57 |
| HSCL | 33,663 | 41.8 | 20.7% | — | 0.16 |
| AETHER | 23,029 | 97.7 | 13.8% | — | 0.08 |
| DEEPAKNTR | 20,783 | 26.5 | 15.3% | — | 0.26 |
| CASTROLIND | 19,792 | 18.6 | 76.2% | — | 0.00 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1) Overreliance on a few key pharmaceutical customers could expose revenue to concentration risk. 2) Raw material cost volatility, particularly in bone sources and processing inputs, is monitored but not fully hedged, as noted in management commentary. 3) Low institutional coverage may limit liquidity and increase price volatility. 4) Regulatory scrutiny in export markets poses compliance risks, especially in the EU and US food and pharma sectors.
📋 Recent Filings
- 🟡 Board Meeting2026-09-29Nitta Gelatin India announced the appointment of Shri Snehil Kumar Singh IAS as a Non-Executive Nominee Director effective 28 September 2026, replacin…
- Announcement2026-09-25Nitta Gelatin India Ltd announced that its trading window will close on 1 October 2026 for all designated persons and their immediate relatives until …
- 🟡 voting results2026-09-09Nitta Gelatin India Limited announced the results of a postal ballot vote held on September 8, 2026, where shareholders approved the appointment of Mr…
🧠 Analyst's Read
Nitta Gelatin India operates as a high-margin, low-debt specialty chemical player with resilient cash flows and a defensible niche in gelatin and collagen derivatives. Investors should monitor export order trends and progress in commercializing new functional ingredients as leading indicators of medium-term growth.
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 2026-09-30.
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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