NCL Industries Q4 Net Profit Slumps 71% YoY to ₹7 Crore

NCL Industries, a diversified player in the building materials segment, has reported a sharp decline in earnings for the fourth quarter of FY25. The company's latest financial results reflect the impact of a challenging macro environment, cost pressures, and weak demand trends that affected its performance during the January–March 2025 quarter.

Q4 FY25 Results: Profit and Revenue Decline Significantly

For the quarter ended March 31, 2025, NCL Industries posted a standalone net profit of ₹7 crore, a 71% year-on-year fall compared to ₹24 crore in the same quarter of FY24. The company also reported an 8.5% decline in total revenue from operations, which dropped to ₹382.9 crore from ₹418.6 crore a year ago.

The decline in both top-line and bottom-line figures was accompanied by a sharp fall in operating margins and overall profitability. EBITDA for the quarter came in at ₹20.4 crore, a steep 57.5% drop from ₹48 crore in Q4 FY24. Correspondingly, the operating margin contracted significantly to 5.33%, compared to 11.47% in the same period last year.

Performance Trends and Operating Challenges

The Q4 FY25 numbers suggest that NCL Industries faced multiple headwinds in the final quarter of the financial year. The compression in EBITDA and margins could be due to higher input costs, weak pricing power, or slower demand for its core products.

The dip in operating margins points to lower cost efficiency and possibly increased expenditure in areas such as raw materials, logistics, or maintenance. The challenging conditions reflect broader trends within the construction and infrastructure sectors, which have seen fluctuations due to regulatory shifts, interest rate changes, and inflationary pressures.

Business Overview and Segment Focus

NCL Industries operates across several key segments: cement, cement-bonded particle boards, ready-mix concrete, readymade doors, and hydel power. Its cement business remains the backbone of operations, while the particle board and door segments support its broader positioning in the building materials sector.

Founded in 1979 as Nagarjuna Cements Ltd and renamed NCL Industries in 1987, the company has built a pan-India distribution network and invested in production infrastructure to cater to residential, commercial, and industrial demand.

Though segment-wise performance details for the quarter are yet to be disclosed, the broader decline indicates pressure across the board.

NCL Industries Share Price Performance

On May 30, 2025, NCL Industries share price opened higher at ₹218.60, up from the previous close of ₹214.48. Despite the positive start, the stock closed slightly lower at ₹214.00 on the NSE. The 52-week high of ₹260.00 was recorded on July 8, 2024. The 52-week low stood at ₹179.21, recorded on April 7, 2025.

Conclusion

NCL Industries concluded Q4 FY25 on a subdued note, with declines in revenue, profit, and operating margins reflecting operational and market-related challenges. While the company’s core cement and building materials businesses remain intact, the weak quarterly showing raises concerns about cost management and demand environment. Investors and analysts will be watching closely for the company’s full-year results and management commentary to assess recovery prospects in the coming quarters.

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