Mumbai (Maharashtra) [India], February 12: Nandan Denim Ltd (NDL), India’s premier denim manufacturer and the world’s fourth-largest in the segment, has reported mixed quarterly results for Q3FY26 as it navigates current market headwinds. The company recorded revenue of Rs 499.53 crore and net profit of Rs 2.97 crore during the quarter ended December 2025, representing a significant contraction from Rs 784.69 crore and Rs 6.58 crore, respectively, in the corresponding quarter of the previous fiscal year. The decline reflects broader challenges in the textile and apparel sectors, yet the company’s nine-month performance demonstrates underlying operational strength.
For the first nine months of FY26, Nandan Denim posted consolidated revenue of Rs 2,331.89 crore compared to Rs 2,498.03 crore in the prior year period, though net profit expanded 3.4 per cent to Rs 23.62 crore, signaling improved operational efficiency and margin management. This resilience builds on the company’s exceptional FY25 annual performance, which saw net sales surge 76 per cent year-on-year to Rs 3,546.68 crore, with annual net profit reaching Rs 33.48 crore. The strong FY25 trajectory underscores NDL’s capacity for recovery and growth in favorable market conditions.
Trading at a price-to-earnings multiple of 12x, significantly below the industry average of 20x, Nandan Denim’s equity appears attractively valued relative to peers. The company, with a market capitalization exceeding Rs 440 crore, has delivered exceptional long-term shareholder returns, gaining 215 per cent over the past five years and appreciating 16 per cent from its 52-week low. Promoter backing remains strong, with the Chiripal Group—which established NDL in 1994—maintaining a controlling stake of 51.01 per cent as of December 2025.
As a global denim powerhouse, Nandan Denim serves an extensive customer base spanning 27 countries and major Indian retailers, supported by an expansive portfolio of over 2,000 annual denim variations, shirting fabrics, and sustainable organic cotton yarn. The company’s competitive moat is reinforced by a robust in-house research and development department, positioning it to capitalize on evolving consumer preferences and emerging opportunities in sustainable textiles as market conditions stabilize
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
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