Nakoda Group of Industries Limited

Nakoda Group of Industries Limited reported a strong financial turnaround for Q2 and H1 FY26. Revenue saw a significant increase of 58% year-on-year in Q2 and 20% year-on-year in H1, driven by improved demand and higher efficiencies. The company achieved positive EBITDA, reaching Rs. 1.03 crores in Q2 and Rs. 1.87 crores in H1, with EBITDA margins improving to 6.99% and 8.61% respectively. Net profit also turned positive, standing at Rs. 0.25 crores in Q2 and Rs. 0.41 crores in H1, reflecting effective cost management and operating leverage.

A key highlight of the period was the launch of the energy drink brand NO CTRL, marking the company's entry into the high-growth energy drink and flavored carbonated beverages segment. This strategic move expands NGIL's presence beyond traditional food processing. Early market response has been positive, with rising distributor interest and expanding availability across various trade channels. The company aims for a gross margin of around 40% for this new product, with marketing expenses estimated at 10-15% of product revenue.

NGIL is actively strengthening its distribution network for both existing and new products. This includes onboarding additional distributors in Tier 2 and Tier 3 regions and enhancing digital and modern trade reach, particularly through quick commerce platforms like Blinkit. For the NO CTRL brand, the company is strategically appointing experienced distributors, including those with prior experience with major beverage brands like Coke or Pepsi, to ensure rapid market penetration and wider retail presence.

The company has focused on bolstering its business fundamentals through operational enhancements, automation, and digital upgrades. Tighter expense control measures have been implemented, contributing to a sharp decline in other expenses. These initiatives, coupled with increased trade volumes, have significantly improved operational efficiency and overall profitability, leading to the expansion of EBITDA margins.

NGIL's balance sheet saw significant improvement, with long-term borrowings sharply reduced from Rs. 1.03 crores to Rs. 0.63 crores. This reduction has eased financial costs and contributed to improved cash flow. Additionally, cash-on-cash equivalents nearly doubled to Rs. 0.91 crores, enhancing the company's liquidity position and providing a stronger foundation for future growth plans. Management expects further improvement in the cash cycle within the next two quarters.

Looking ahead, NGIL is prioritizing scaling its FMCG beverage vertical through deeper distribution and continuous product innovation. The company plans to expand its presence in unpenetrated domestic markets and further enhance its digital and modern trade reach. Beyond the initial three SKUs for NO CTRL, two new flavors (Ginger ale and Kiwi & Lime) are in the pipeline for launch in the next two months, along with plans to introduce a 'no control mineral water' to boost brand visibility. Management anticipates the beverage segment revenue to almost double in FY26-27.