Furniture maker declares 200% dividend along with Q4 results; record date fixed

Nilkamal Limited on Thursday reported a strong set of earnings for the March quarter and full financial year FY26, supported by steady growth in its B2B business and improving performance in retail and e-commerce operations.

The company also announced a final dividend of Rs 20 per equity share for FY26.

Dividend record date and book closure

The company said the register of members and share transfer books will remain closed from July 11, 2026 to July 17, 2026, both days inclusive, for the purpose of the annual general meeting and dividend payment.

Shareholders holding shares in physical or dematerialised form as of the close of July 10, 2026 will be eligible to receive the dividend, subject to shareholder approval at the AGM.

Q4 profit rises 22%; margins improve

On a consolidated basis, Nilkamal’s net profit for Q4FY26 rose 21.7 per cent year-on-year to Rs 41.5 crore, compared to Rs 34.1 crore in the corresponding quarter last year.

Revenue from operations during the quarter increased 8 per cent to Rs 965 crore against Rs 894 crore a year ago.

EBITDA for the quarter stood at Rs 96 crore, up 12.7 per cent from Rs 85.2 crore in Q4FY25. EBITDA margin improved to 9.9 per cent from 9.5 per cent in the year-ago period.

FY26 revenue rises 14%

For the full financial year FY26, Nilkamal reported standalone revenue of Rs 3,686 crore, up 14 per cent from Rs 3,239 crore in FY25.

EBITDA increased 14 per cent to Rs 320 crore, while profit before tax (PBT) rose 14 per cent to Rs 135 crore.

Standalone profit after tax (PAT) climbed around 15 per cent to Rs 105 crore from Rs 91 crore in FY25.

The company’s consolidated net sales stood at Rs 3,778 crore for FY26, compared to Rs 3,313 crore in the previous year. Consolidated PAT increased to Rs 116 crore from Rs 106 crore, despite a one-time employee benefit liability impact of Rs 15 crore linked to new labour codes.

B2B business leads growth

Nilkamal said its B2B segment continued to remain the key growth driver during the year.

The segment posted 13 per cent growth in value terms and 9 per cent growth in volume terms. Revenue from the B2B business stood at Rs 3,278 crore during FY26.

Among key categories, mattress and foam business grew 65 per cent, Bubbleguard business rose 27 per cent, while ready furniture business expanded 32 per cent. Material handling business also reported 13 per cent growth.

However, the plastic furniture segment remained subdued during the year.

The company said it continues to invest in expanding its ready furniture portfolio and is also pursuing backward integration initiatives to improve supply chain efficiency and margins.

Retail and e-commerce business expands

Nilkamal’s retail and e-commerce segment reported turnover of Rs 408 crore in FY26, compared to Rs 349 crore in FY25, registering growth of 17 per cent.

The e-commerce business rose 19 per cent to Rs 185 crore, while retail store sales increased 16 per cent year-on-year.

Losses in the segment also narrowed significantly, with negative EBIT improving to Rs 7 crore from Rs 18 crore in the previous year.

During FY26, the company opened 24 new stores and closed seven stores. Nilkamal currently operates 31 company-owned stores and 70 franchise stores.

Raw material inflation remains a concern

The company said it witnessed a sharp increase in raw material prices from March 2026 due to geopolitical tensions and global supply disruptions.

According to Nilkamal, raw material prices increased nearly 50 per cent during the period, which continued to put pressure on operations.

The company said it has adopted calibrated pricing strategies and optimised its product mix to maintain competitiveness amid the volatile environment.

Debt declines; renewable energy use rises

Capital expenditure during FY26 stood at Rs 144 crore, lower than Rs 280 crore in FY25.

Net borrowing reduced to Rs 181 crore as of March 31, 2026, compared to Rs 272 crore a year earlier.

Nilkamal also said its renewable energy consumption share increased to 28 per cent during the year. Its Hosur manufacturing unit received a Gold award from Confederation of Indian Industry for energy conservation and green manufacturing practices.

As part of its CSR activities, the company said it has built its third school in Gujarat, which is expected to provide education to more than 300 students annually.