N R Agarwal Industries Limited (NRAIL) share price

₹584.00 on NSE as of 2026-09-04. +17.73% on the day. market cap ₹994 Cr. P/E 16.0. 52-week range ₹368.85 to ₹584.00. Forest Materials.

What the company does

N R Agarwal Industries Limited, incorporated in 1993, manufactures different types of duplex paper board and WPP. The company has three operational manufacturing facilities at Vapi and Sarigam, Gujarat , with a total production capacity of around 5 lakh MTPA. The manufacturing plants are well equipped; and most of the entity’s power requirement is met through captive power generation while the remaining is met through purchase from the Gujarat Electricity Board. The company is listed on NSE and BSE, and around 74.29% of its equity shares, as on March 31, 2026, were held by the promoter group.

Filed by ICRA, page 5.

N R Agarwal Industries Q1 FY27: Revenue ₹647 Cr, Operating Profit ₹74 Cr, and a ₹1,500 Crore Plant on the Way

At a glance

Paper is the least glamorous thing a listed company can make. Nobody writes a thread about duplex board. And yet, in the June 2026 quarter, N R Agarwal Industries turned ₹646.96 crore of revenue into ₹74.28 crore of operating profit and ₹34.98 crore of net profit — the largest quarterly profit in the ten quarters printed on its own results table.

The comparison quarter helps. June 2025 revenue was ₹452.14 crore and operating profit was ₹16.51 crore, which works out to a 3.6% margin — the sort of number that makes a finance team stop taking calls. Twelve months later, operating margin is 11%. Sales are up 43.1% and net profit up 111% year on year.

The full-year picture behind it: FY26 revenue ₹2,145.45 crore against FY25's ₹1,659.03 crore, PAT ₹43.70 crore against ₹17.65 crore. ICRA, reaffirming its rating in July 2026, attributes the FY26 improvement to ramp-up in utilisation of incremental capacity, better absorption of fixed costs, improvement in realisations in H2 FY2026, and gradual stabilisation of the new plant.

Borrowings at March 2026 stood at ₹820.53 crore, up from ₹643.53 crore a year earlier. The company has announced a new multilayer board plant — Unit VI — at 1,500 TPD and an estimated ₹1,500 crore, largely over FY2028–FY2030.

A paper company, three plants in Gujarat, and a ten-quarter high in profit. The interesting part is what happened to the middle of that P&L.

Introduction

N R Agarwal Industries was incorporated in 1993 and manufactures recycled paper along with grey-back and white-back duplex boards. Per ICRA, it operates three manufacturing facilities at Vapi and Sarigam in Gujarat, with aggregate installed capacity of around 5.0 lakh MTPA as on March 31, 2026, and its operations are managed by Mr. RN Agarwal, Chairman and Managing Director.

The recent chapter is a capacity story. ICRA records that the company commissioned a new duplex board plant of 2,40,000 MTPA in April 2024, then enhanced that machine from 725 TPD to 900 TPD in January 2026, taking overall installed capacity from around 4.4 lakh TPA to around 5 lakh TPA. The rating agency notes production capacity was fully utilised in FY2026.

The next chapter is bigger. On July 31, 2025 the company disclosed a ₹1,200 crore investment to set up a 1,000 TPD multilayer board plant — Unit VI — alongside the permanent closure of the non-viable Unit IV. In December 2025 it announced the acquisition of around 145 acres at Dahej for the project, with the first tranche sale deed executed on December 19, 2025. By May 12, 2026 the plant had been upgraded on paper to 1,500 TPD and the project cost revised to ₹1,500 crore. ICRA states around ₹227 crore was incurred in FY2026 towards land and an old machine procured from China, with commercial operations targeted by December 2029.

Other filings from the period: a fire at Vapi Unit-I on September 19, 2025, with a loss of around ₹4 crore and roughly 2,300 MT of production, the plant scheduled to restart in seven days and a claim lodged. Income Tax searches at the company, its plants and certain directors' residences were disclosed on September 2, 2025 and reported as concluded on September 8, 2025, with the company stating business was unaffected. In August 2025, ICRA downgraded the ratings to [ICRA]A- (Stable)/A2+; the July 2026 action reaffirmed those levels on an enhanced rated amount of ₹1,137.57 crore.

Business model

They buy other people's rubbish, wash the ink out of it, and sell it back as packaging.

That is genuinely the model, and it is a good one. NRAIL manufactures paper products using 100% deinked wood-free recycled furnish for domestic and international markets. The main raw material is wastepaper, which per ICRA accounts for 75–80% of total raw material costs, sourced from North America, West Asia and Europe through indenting agents. Around 62% of raw material requirements in FY2026 came from imports.

The product shelf has four items. Duplex boards, made from recovered grades, used in multi-purpose post-print applications and suited to gravure printing, embossing and foil stamping, with end application in FMCG packaging. Writing and printing paper, high in brightness and shade stability across GSM ranges. Copier paper with high bulk and good stiffness for both-side printing. And A-grade newsprint for newspaper companies — a product line whose addressable market is a demographic question rather than a business one.

The customer list reads like a supermarket aisle inventoried by someone who never left: Amul, Anchor, Boro Plus, Cadbury, Colgate, Complan, Fair and Lovely, NavNeet, Girnar, Godrej, Kellogs, Kit Kat. The company doesn't sell to you. It sells to the box that the thing you bought came in, which is a considerably more reliable customer, because the box has no brand loyalty and no opinions.

Distribution runs through an established network of agents and dealers focused on western India, with those agents tied up with printing and designing companies that make boxes to the specifications of pharmaceutical and FMCG end-users. Top ten customers generated around 37% of revenues in FY23.

Power is handled in-house. ICRA notes captive power generation facilities and cogeneration arrangements make the company largely self-sufficient, with steam from the captive plants used in manufacturing and for power generation. Power and fuel cost in FY26 was ₹248.28 crore, against ₹250.18 crore in FY25 — flat, while revenue went up 29%.

Quarterly results, balance sheet, cash flow, ratios, shareholding and the filings themselves are on the full page for N R Agarwal Industries Limited.

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