Textile Stock Under Rs 5 Posts Strong Q1 FY26 Results; Net Profit Jumps 50% YoY With Solid Revenue Surge

Penny stock Nandan Denim Ltd (NDL) has declared a stellar set of numbers for Q1FY26. The company reported that its profit after tax (PAT) stood at Rs 11.20 crore in Q1FY26 as against Rs 7.50 crore in the year-ago period, up by 50 per cent on a YoY basis. There was strong business momentum and operational efficiencies, as profit was up 5% sequentially from Rs 10.62 crore in Q4FY25.

The company's total revenue from operations for the June 2025 quarter was Rs 1,047.7 crore in the June 2024 quarter, which surged 45.18% YoY from Rs 721.62 crores in the same period last year. Profit before tax also grew by 31% to Rs 14.82 crore as against Rs 11.30 crore in Q1FY25.

Ramping up demand, production optimization and higher realization from value-added products have been catalysts to the sustained earnings growth of Nandan Denim. At a price-to-earnings (PE) multiple of 11x, the stock continues to trade at a discount to the industry PE of 22x.

Nandan Denim Ltd. is a flagship company of the Chiripal Group, founded in 1994. From a small textile trading company, it has grown to become India's leading denim fabric maker with customers spanning over 27 countries. A broad product portfolio with over 2,000 denim variants annually, shirting fabrics and sustainable organic cotton yarns is supported by a strong in-house R&D department that fuels innovation in textile design and manufacturing.

NDL has some of the largest Indian and international retailers as its customers, with increasing focus on sustainable manufacturing and value-added textile innovation to meet changing global fashion demands.

The share price of Nandan Denim is now trading at Rs 3.47 on the NSE as of August 7, 2025, a minor drop of 0.29% from the previous closing. Since its opening price of Rs 3.54, the stock has fluctuated between Rs 3.45 and Rs 3.55. Nandan Denim's stock, which has a market valuation of about Rs 502 crore, has experienced a sharp drop in value over the last 12 months, yielding a one-year return of about -28%. The 52-week high and 52-week low of the stock are Rs 7.35 and Rs 3.05. The company's P/B ratio is 0.81 and its P/E ratio is about 14.94.