N R Agarwal Industries Ltd (NRAIL)

Forest Materials · Paper · NSE · Updated 2 September 2026

By StockFin Research Team • AI-Assisted Analysis • Source: BSE/NSE Filings

₹497.8 ↑ 27.4% (1Y)

🎯 Key Takeaways

N R Agarwal Industries Ltd is transitioning from a turnaround phase to a stabilized growth phase, leveraging operational improvements and strategic land monetization to drive profitability. Management is focused on sustaining revenue momentum while enhancing margins and capital efficiency, supported by leadership continuity and shareholder-friendly capital allocation.
Revenue grew 6.9% QoQ to ₹647 in Q1FY27.
⚠️ Overreliance on a single business segment (paper and forest materials) exposes the company to sector-specific headwinds, including raw material availa

Market Cap

₹847

P/E Ratio

13.6

P/B Ratio

1.04

ROE

7.6%

ROCE

10.0%

Debt/Equity

0.97

Div Yield

0.40%

Promoter

74.3%

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📖 The Story

N R Agarwal Industries Ltd is transitioning from a turnaround phase to a stabilized growth phase, leveraging operational improvements and strategic land monetization to drive profitability. Management is focused on sustaining revenue momentum while enhancing margins and capital efficiency, supported by leadership continuity and shareholder-friendly capital allocation.

📰 What's Happening

In Q4 FY2026, the company delivered a 69.9% YoY revenue surge to ₹2,16,895.77 lakhs and a 162% YoY jump in net profit to ₹4,369.91 lakhs, driven by strong operational performance and cost discipline. The Board reappointed P K Mundra as CFO for three years and elevated Raunak and Rohan Agarwal as Deputy Managing Directors, ensuring leadership stability. A final dividend of ₹2 per share (20% of face value) was declared, pending AGM approval. The Board also approved amendments to the MoA to facilitate commercial development of land through industrial galas and joint ventures, signaling a strategic shift toward asset-light monetization. These moves underscore a deliberate focus on operational excellence and long-term value creation.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Revenue	525	563	605	647
Operating Profit	27	40	39	56
OPM %	5.1%	7.1%	6.5%	8.7%
Net Profit	-1	14	14	35
EPS	₹-0.87	₹8.48	₹8.34	₹20.55

The company has demonstrated consistent top-line growth, with revenue rising from ₹525 lakhs in September 2025 to ₹647 lakhs in June 2026, accompanied by improving operational performance — operating profit margin expanded from 5.1% to 8.7% over the same period. Net profit turned positive after a loss in Q3 2025, reaching ₹35 lakhs in June 2026, reflecting better cost control and scale benefits. Despite modest absolute profitability, margins are trending upward, aligning with management’s focus on efficiency. The audited FY2026 results confirm this trajectory, with revenue up 28% YoY and net profit up 162% YoY, validating the impact of operational initiatives.

🔮 Management Outlook & What's Next

Management expressed confidence in sustaining growth momentum, citing strong demand trends and improved execution in core operations. The Board highlighted the unmodified auditor’s opinion and compliance with SEBI LODR as validation of governance and financial integrity. While no explicit forward guidance on revenue or margins was provided, the reappointment of key leadership and strategic focus on land monetization suggest a structured approach to long-term value creation. The company emphasized maintaining operational discipline amid market challenges, reinforcing its commitment to profitability and shareholder returns.

Extracted from official company announcements. Not StockFin.ai's opinion.

🏦 Balance Sheet (₹ Cr)

Item	Mar 2025	Mar 2025	Mar 2026	Mar 2026
Equity Capital	17	17	17	17
Reserves	751	758	769	798
Borrowings	693	644	728	789
Total Liabilities	1,766	1,770	1,868	2,031
Fixed Assets	1,146	1,190	1,164	1,221
Investments	104	101	83	13
Total Assets	1,766	1,770	1,868	2,031

The balance sheet reflects a stable capital structure with equity and reserves growing modestly while borrowings increased slightly to ₹789 lakhs from ₹728 lakhs YoY, indicating controlled leverage. Total assets rose to ₹2,031 lakhs, driven by operational expansion, yet equity remains tightly held, supporting financial resilience. The company is not aggressively capitalizing growth but is selectively investing in capacity and land development, consistent with its asset-light strategy. The modest net cash flow of ₹3 lakhs suggests limited reinvestment or financing activity in the quarter, with capital allocation likely focused on debt servicing or dividend sustainability rather than large-scale capex.

💰 Cash Flow Statement (₹ Cr)

Item	Mar 2026
Operating	+95
Investing	-188
Financing	+96
Net Cash Flow	+3

👥 Shareholding Pattern

Category	Q2FY26	Q3FY26	Q4FY26	Q1FY27
Promoters	74.1%	74.1%	74.3%	74.3%
FII	0.4%	0.4%	0.4%	0.3%
DII	0.0%	0.0%	0.0%	0.0%
Public	21.4%	21.5%	21.8%	21.8%
# Shareholders	8,683	8,233	7,886	7,633

Promoter holding remains stable at 74.29% over the past year, indicating strong confidence from the founding family. Institutional ownership is minimal, with FII at just 0.34% and DII at 0.01% in Q1FY27, suggesting limited foreign or domestic institutional interest despite strong financials. The modest increase in public shareholder count from 7,633 to 7,886 may reflect retail interest but lacks depth in institutional participation. No pledging or significant dilution is evident, but the low institutional footprint could limit upside potential if broader market awareness grows.

⚖️ Peer Comparison — Paper

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
JKPAPER	7,262	21.9	8.0%	5.9%	0.44
WSTCSTPAPR	4,320	18.8	9.5%	6.6%	0.09
SESHAPAPER	1,459	14.1	6.7%	4.8%	0.00
ANDHRAPAP	1,202	43.5	2.4%	1.4%	0.12
TNPL	1,033	4.0	7.0%	12.5%	0.76
PDMJEPAPER	877	9.6	18.3%	13.6%	0.03
NRAIL	847	13.6	10.0%	7.6%	0.97
EMAMIPAP	667	7.5	15.6%	18.9%	1.65
KUANTUM	627	17.4	4.9%	2.9%	0.70
SATIA	571	—	3.9%	-0.7%	0.22

🔗 Peer Stock Analyses

JKPAPER WSTCSTPAPR SESHAPAPER ANDHRAPAP TNPL

⚠️ Risk Factors

1. Overreliance on a single business segment (paper and forest materials) exposes the company to sector-specific headwinds, including raw material availability and pricing volatility. 2. The strategic shift toward land monetization through joint ventures introduces execution and regulatory risks, particularly around approvals and partnership dynamics. 3. Margins, while improving, remain sensitive to input cost fluctuations and competitive pressures in the paper industry, with no long-term pricing power evident yet. 4. Low institutional coverage may limit liquidity and analyst scrutiny, increasing price volatility around earnings announcements.

📋 Recent Filings

🧠 Analyst's Read

N R Agarwal Industries is executing a disciplined turnaround with measurable progress in profitability and operational efficiency, supported by stable management and shareholder-friendly policies. The next catalyst will be the market’s response to its land monetization strategy and whether margin expansion can be sustained without volume-driven growth. Investors should monitor AGM approval of the dividend and progress on MoA amendments as near-term triggers.

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 2026-09-02.

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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