Narmada Agrobase Limited (NARMADA) share price
₹11.15 on NSE as of 2026-10-08. -1.76% on the day. market cap ₹42 Cr. P/E 11.7. 52-week range ₹10.26 to ₹21.78. Fast Moving Consumer Goods.
Narmada Agrobase FY26: Revenue Climbs to ₹78 Crore, But the Operating Margin Quietly Left the Building
At a glance
Narmada Agrobase sells cattle feed and cottonseed by-products from one plant in Gujarat. FY26 revenue came in at ₹78.39 crore, up 21% from ₹64.68 crore a year earlier.
Profit after tax went the other way, slipping to ₹3.86 crore from ₹4.09 crore, a dip of 5.6%. Operating profit also fell, to ₹4.98 crore from ₹5.58 crore. Operating margin — what is left of each sales rupee after running costs — narrowed from 8.63% to 6.35%.
Profit before tax held marginally higher on other income of ₹1.27 crore. That line was nearly double the previous year's ₹0.66 crore. Other income is money earned outside the main business, such as interest on cash held.
The balance sheet doubled to ₹72.25 crore over the year. A rights issue — shares offered to existing holders — brought in the cash and diluted the promoter family's stake.
Debtor days stretched to 165. That is the average wait between making a sale and collecting the money for it. Operating cash flow stayed negative for a second straight year.
The plant runs at roughly half its installed capacity. Sales grew a fifth over the year while the operating line shrank beneath them.
Introduction
Narmada Agrobase was incorporated in 2013 and converted to a public limited company in 2017. It listed on the NSE Emerge platform for small and medium companies in 2018, then migrated to the mainboard in 2022.
The company manufactures and sells cotton seed by-products and cattle feed. Production runs from a single facility at Mehsana, near Ahmedabad in Gujarat. Installed capacity there is 40,000 tonnes a year.
The defining corporate event of recent years was a rights issue, an offer of new shares to existing shareholders. The company raised roughly ₹36.58 crore through an issue of about 2.43 crore equity shares. The letter of offer, the document setting out the terms, was dated September 2024. That money shows up across these financials: in the cash balance, in the enlarged equity base, and in a reduced promoter percentage.
FY26 brought two further corporate actions. In May 2026 the board approved a sub-division of shares, splitting each ₹10 face-value share into two ₹5 shares. A sub-division cuts the price per share without changing what the holder owns in total.
In late June 2026 the board approved a postal ballot to change one of the objects of the rights issue. An object is a stated purpose the money was raised for. The board appointed a scrutinizer to oversee that vote. Both actions remain subject to shareholder approval.
The statutory auditor, Jain Kedia & Sharma, issued an unmodified opinion on the FY26 results. An unmodified opinion means the auditor found nothing it needed to flag in the accounts. The company also confirmed no default on loans or debt securities.
Business model
The revenue splits roughly down the middle. In FY25 cattle feed was 52% of sales and cottonseed products were 48%. The company describes that near-even divide as protection against leaning on a single category.
The feed side sells Compound Cattle Feed in pellet form and Cattle Feed in mesh form under the Pashu Aahar banner. Brands include Gaay Chhaap, Narmada Super, Kala Sona and Churma.
The cottonseed side squeezes several products out of one seed. The list runs to cottonseed meal, bleached cotton linters, delinted cotton seed and cottonseed oil. Linters are the short fibres left on the seed after ginning, used as industrial cellulose. So one crop by-product fans out into livestock feed, industrial material and cooking oil.
The model is explicitly high-volume and low-margin, selling business to business. Buyers are distributors, cooperatives and exporters. No consumer brand is doing the heavy lifting here.
What does the work instead is a plant, a procurement desk and a distribution network. That network runs to more than 1,000 retail points and more than 150 wholesale points.
That structure explains the margin profile better than any slide. When the whole pitch is bulk agro inputs at competitive prices, 6% operating margins are the genre rather than the exception.
Quarterly results, balance sheet, cash flow, ratios, shareholding and the filings themselves are on the full page for Narmada Agrobase Limited.
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