Nandan Denim share price jumped more than 7% on Thursday, August 13, following the company’s June quarter results. However, the rise came despite a sharp decline in revenue, with the improvement in net profit largely supported by a tax-related adjustment rather than stronger operating performance.
Nandan Denim reported a net profit of ₹14.79 lakh for Q1FY27, up 31.8% from ₹11.20 lakh in the year-ago quarter. However, revenue from operations declined by 40.6% year-on-year to ₹622.39 lakh, down from ₹1,047.68 lakh in Q1FY26. Total expenses also fell to ₹614.50 lakh from ₹1,034.40 lakh during the same period.
The company’s profit before tax stood at ₹10.32 lakh, compared with ₹14.82 lakh in the corresponding quarter last year. The bottom-line growth was supported by a ₹5.07 lakh credit related to the short provision for income tax/deferred tax for earlier years. Meanwhile, deferred tax expense for the current quarter stood at ₹58.98 lakh. Basic earnings per share increased to ₹0.10 from ₹0.08 a year earlier.
Separately, the company’s Board approved the reappointment of Jyotiprasad Devkinandan Chiripal as Managing Director for another five-year term, subject to shareholder approval. His proposed tenure will run from 1 June 2027, to 31 May 2032.
Chiripal has more than four decades of experience in the fabric and yarn industry and has served as Nandan Denim’s Managing Director since 2017. He also serves as a director in several other Chiripal Group entities, including Chiripal Industries, True Green Bio Energy and Grew Technologies. He is the father of Deepak Chiripal, CEO of Nandan Denim.
