Microcap stock hits 5% upper circuit after announcing 274% YoY increase in net profits

Synopsis:
Nahar Polyfilms Limited reports 25.61% QoQ revenue growth and a 274% YoY net profit surge in Q1 FY26 results.

This micro-cap stock, engaged in manufacturing and supplying BOPP films used for flexible packaging, labeling, lamination, and specialty applications in the food, beverage, and consumer goods sectors, hit a 5 percent upper circuit after the company reported June quarterly results with a 274 percent YoY increase in net profit.

With a market capitalization of Rs. 814.23 crores, the shares of Nahar Polyfilms Limited hit a 5 percent upper circuit of Rs. 331.15 per share on Friday, up from its previous closing price of Rs. 315.40 per share.

Q1 FY26 Result Walkthrough

Coming into the quarterly results of Nahar Polyfilms Limited, the company’s consolidated revenue from operations increased by 17.27 percent YOY, from Rs. 167.78 crore in Q1 FY25 to Rs. 196.75 crore in Q1 FY26, and grew by 25.61 percent QoQ from Rs. 156.64 crore in Q4 FY25.

In Q1 FY26, Nahar Polyfilms Limited’s consolidated net profit increased by 274.37 percent YOY, reaching Rs. 14.90 crore compared to Rs. 3.98 crore during the same period last year. As compared to Q4 FY25, the net profit has increased by 14.09 percent, from Rs. 13.06 crore. The basic earnings per share increased by 274.07 percent and stood at Rs. 6.06 as against Rs. 1.62 recorded in the same quarter in the previous year, 2025.

Financial Highlights: Nahar Polyfilms Limited’s revenue has increased from Rs. 600 crore in FY24 to Rs. 666 crore in FY25, which is a growth of 11 percent. The net profit has also grown by 683.33 percent, from Rs. 6 crore in FY24 to Rs. 47 crore in FY25.

Nahar Polyfilms Limited’s revenue and net profit have grown at a CAGR of 19.18 percent and 4.9 percent, respectively, over the last five years. In terms of return ratios, the company’s ROCE and ROE stand at 6.76 percent and 5.92 percent, respectively. Nahar Polyfilms Limited has an earnings per share (EPS) of Rs. 23.3, and its debt-to-equity ratio is 0.12x.

Capacity Expansion: Nahar Poly Films Limited has announced a significant capacity expansion by adding a third production line for BOPP films, increasing its annual production capacity by 36,000 MT. This will raise the total capacity from the existing 60,000 MT to 96,000 MT. 

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The expansion project involves a capital outlay of approximately Rs. 450 crores and will be financed through a mix of term loans and internal accruals. The new line is expected to be operational within the next 2–3 years. This strategic move is aimed at meeting the growing demand for quality packaging materials, driven by e-commerce growth and rising packaged goods consumption.

Overview: Nahar Poly Films Limited is a publicly listed Indian company specializing in the manufacture of biaxially oriented polypropylene (BOPP) films, which are widely used in flexible packaging, labeling, and lamination applications. 

The company is part of the Nahar Group, a large conglomerate with interests primarily in textiles, and was incorporated in 1988 as a diversification from textiles into packaging films. Its headquarters are in Ludhiana, Punjab, and its manufacturing plant is located in Madhya Pradesh, India.

Nahar Poly Films is recognized as one of the most preferred suppliers of flexible packaging films in India, serving both domestic and international clients, especially in the food and beverage sectors. 

The company produces a range of standard and specialty BOPP films, including packaging films, label films, metallized films, lamination films, high barrier films, matte films, and anti-fog films, with a strong focus on quality and customer service.

Written by – Nikhil Naik

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