Value Added Product Mix Shift
Expected: OngoingMEDIUM confidence
What: Premium Board Share: 42%
Impact: Margin expansion
N R Agarwal Industries Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +16.8%Average4w Streak
In , N R Agarwal Industries Ltd (Paper) is outperforming Nifty 500 with +16.8% relative strength. Fundamentals: Average. On a 4-week streak.
N R Agarwal Industries Ltd Key Facts
- PE Ratio
- 32.4x
- Market Cap
- ₹861 Cr
- PAT Growth YoY
- +8%
- Revenue Growth YoY
- +35%
- OPM
- 10.0%
- RS vs Nifty 500
- +16.8%
PE: At PeakDanger Bubble
What's Happening
⚠️PE rising despite falling earnings — price running ahead of reality
💰Trading 86% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Value Added Product Mix Shift
OngoingMEDIUM
2. Operating Leverage Inflection
Q1 FY26MEDIUM
Key Risks
1. Volatility in imported waste paper prices and chemical costs impacting gross mar
HIGH2. Rising ocean freight rates for imported raw materials
MEDIUMSector-Specific Signals
Capacity Utilization92%-200 bps
Raw Material Cost to Sales58.4%+310 bps
Power & Fuel CostINR 52.14 Cr+4.2%
Inventory Days42 days-3 days
Key Numbers
PAT Growth YoY
+8%
Inflection Up
Revenue YoY
+35%
Stable
Operating Margin
10.0%
+300 bps YoY
PE Ratio
32.4
Current Price
₹506
Dividend Yield
0.40%
Fundamental Score
51/100
Average
3Y PAT CAGR
-33%
Market Cap
861 Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are N R Agarwal Industries Ltd's Earnings Accelerating?
Based on Q3 FY26 (web) earnings • Updated Apr 19, 2026
Operating Leverage Inflection
Expected: Q1 FY26MEDIUM confidence
What: Capacity Utilization: 92%
Impact: Fixed cost absorption
What Are the Key Risks for N R Agarwal Industries Ltd?
Earnings deceleration risks from management commentary
Volatility in imported waste paper prices and chemical costs impacting gross mar
HIGHTrigger: Volatility in imported waste paper prices and chemical costs impacting gross margins.
Impact: PAT impact: 8-12%
Management view: Increasing domestic sourcing of waste paper.
Monitor: commodity
Rising ocean freight rates for imported raw materials
MEDIUMTrigger: Rising ocean freight rates for imported raw materials.
Impact: PAT impact: 5%
Management view: Optimizing supply chain and port selection.
Monitor: logistics
What Did N R Agarwal Industries Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
INR 397.69 Cr
YoY -10.02%QoQ -1.45%
Revenue declined primarily due to lower realization per ton despite stable volume throughput in the duplex board segment.
EBITDA
INR 48.12 Cr
YoY -18.4%Margin 12.1%
Margins were compressed by higher chemical costs and energy expenses which offset the benefits of lower waste paper prices.
PAT
INR 22.14 Cr
YoY -24.12%QoQ -8.3%
Profitability was impacted by the double-digit decline in top-line and a slight increase in finance costs during the quarter.
Other Highlights
• Finance costs increased to INR 5.42 Cr from INR 4.88 Cr YoY.
• Total expenses for the quarter stood at INR 371.21 Cr.
• Inventory levels decreased to INR 184.32 Cr from INR 212.15 Cr in March.
What Sector Metrics Matter for N R Agarwal Industries Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Capacity Utilization
92%
YoY -200 bpsQoQ 0
Why: Slight slowdown in newsprint demand led to lower run rates in specific units.
Raw Material Cost to Sales
58.4%
YoY +310 bpsQoQ +120 bps
Why: Higher prices for imported waste paper and specialty chemicals.
Power & Fuel Cost
INR 52.14 Cr
YoY +4.2%QoQ +1.5%
Why: Increase in coal prices and grid electricity tariffs.
Inventory Days
42 days
YoY -3 daysQoQ -1 day
Why: Better working capital management and inventory liquidation.
Export Revenue Share
12%
YoY -300 bpsQoQ -100 bps
Why: Global slowdown and competitive pricing from Southeast Asian manufacturers.
Debt to Equity Ratio
0.38x
YoY -0.05xQoQ 0
Why: Scheduled repayment of long-term borrowings.
What Is N R Agarwal Industries Ltd's Management Guidance?
Forward-looking targets from management
Capex Plan
₹150 Cr
Capex Plan
INR 150 Cr
Modernization of Unit PM4 and PM5 for efficiency gains
Volume
Targeting 5-7% growth in production volume
Management Tone: CAUTIOUS
How Fast Is N R Agarwal Industries Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +35% | +1% | Stable |
| PAT (Net Profit) | +8% | -33% | Inflection Up |
| OPM | 10.0% | +300 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 19, 2026.
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Frequently Asked Questions: N R Agarwal Industries Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were N R Agarwal Industries Ltd's latest quarterly results?
N R Agarwal Industries Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +7.7% (turning around (inflection up))
- Revenue Growth YoY: +34.7%
- Operating Margin: 10.0% (volatile)
Is N R Agarwal Industries Ltd's profit growing or declining?
N R Agarwal Industries Ltd's profit is growing with an turning around (inflection up) trend.
- PAT Growth YoY: +7.7% (latest quarter)
- PAT Growth QoQ: +1500.0% (sequential)
- 3-Year PAT CAGR: -33.4%
- Trend: Turning around (inflection up) — consistent growth pattern
What is N R Agarwal Industries Ltd's revenue growth trend?
N R Agarwal Industries Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +34.7%
- Revenue Growth QoQ: +7.2% (sequential)
- 3-Year Revenue CAGR: +0.9%
How is N R Agarwal Industries Ltd's operating margin trending?
N R Agarwal Industries Ltd's operating margin is volatile.
- Current OPM: 10.0%
- OPM Change YoY: +3.0% basis points
- OPM Change QoQ: +2.0% basis points
What is N R Agarwal Industries Ltd's 3-year profit and revenue CAGR?
N R Agarwal Industries Ltd's long-term compounding rates
- 3-Year Profit CAGR: -33.4%
- 3-Year Revenue CAGR: +0.9%
Is N R Agarwal Industries Ltd's growth accelerating or decelerating?
N R Agarwal Industries Ltd's earnings growth is turning around (inflection up) with mixed signals on a sequential basis.
- YoY Acceleration: +87.7% bps
- Sequential Acceleration: +100.0% bps
What is N R Agarwal Industries Ltd's trailing twelve month (TTM) performance?
N R Agarwal Industries Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹23 Cr
- TTM PAT Growth: -42.5% YoY
- TTM Revenue: ₹2,000 Cr
- TTM Revenue Growth: +39.3% YoY
- TTM Operating Margin: 7.2%
Is N R Agarwal Industries Ltd overvalued or undervalued?
N R Agarwal Industries Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Current PE: 32.4x
- Price-to-Book: 1.1x
What is N R Agarwal Industries Ltd's current PE ratio?
N R Agarwal Industries Ltd's current PE ratio is 32.4x.
- Current PE: 32.4x
- Market Cap: 861 Cr
- Dividend Yield: 0.40%
How does N R Agarwal Industries Ltd's valuation compare to its history?
N R Agarwal Industries Ltd's current PE is 32.4x.
- Current PE: 32.4x
- Valuation Assessment: Significantly Overvalued
What is N R Agarwal Industries Ltd's price-to-book ratio?
N R Agarwal Industries Ltd's price-to-book ratio is 1.1x.
- Price-to-Book (P/B): 1.1x
- Book Value per Share: ₹462
- Current Price: ₹506
Is N R Agarwal Industries Ltd a fundamentally strong company?
N R Agarwal Industries Ltd is rated Average with a fundamental score of 51.24/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +34.7% (10% weight)
- PAT Growth YoY: +7.7% (10% weight)
- PAT Growth QoQ: +1500.0% (10% weight)
- Margins stable (10% weight)
Is N R Agarwal Industries Ltd debt free?
N R Agarwal Industries Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹644 Cr
What is N R Agarwal Industries Ltd's return on equity (ROE) and ROCE?
N R Agarwal Industries Ltd's return ratios over recent years
- FY2023: ROCE 22.0%
- FY2024: ROCE 14.0%
- FY2025: ROCE 6.0%
Is N R Agarwal Industries Ltd's cash flow positive?
N R Agarwal Industries Ltd's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹176 Cr
- Free Cash Flow (FCF): ₹1 Cr
- CFO/PAT Ratio: 978% (strong cash conversion)
What is N R Agarwal Industries Ltd's dividend yield?
N R Agarwal Industries Ltd's current dividend yield is 0.40%.
- Dividend Yield: 0.40%
- Current Price: ₹506
Who holds N R Agarwal Industries Ltd shares — promoters, FII, DII?
N R Agarwal Industries Ltd's shareholding pattern (Mar 2026)
- Promoters: 74.3%
- FII (Foreign): 0.4%
- DII (Domestic): 0.0%
- Public: 25.3%
Is promoter holding increasing or decreasing in N R Agarwal Industries Ltd?
N R Agarwal Industries Ltd's promoter holding has increased recently.
- Current Promoter Holding: 74.3% (Mar 2026)
- Previous Quarter: 74.1% (Dec 2025)
- Change: +0.17% (increasing — positive signal)
How long has N R Agarwal Industries Ltd been outperforming Nifty 500?
N R Agarwal Industries Ltd has been outperforming Nifty 500 for 4 consecutive weeks, indicating building momentum.
Is N R Agarwal Industries Ltd a new momentum entry or an established outperformer?
N R Agarwal Industries Ltd is an established outperformer with 4 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for N R Agarwal Industries Ltd?
N R Agarwal Industries Ltd has 2 key growth catalysts identified from recent earnings analysis
- Value Added Product Mix Shift — Higher realizations in premium segments partially offset the volume pressure in newsprint.
- Operating Leverage Inflection — Increased volume will lower the per-unit cost of production.
What are the key risks in N R Agarwal Industries Ltd?
N R Agarwal Industries Ltd has 2 key risks worth monitoring
- [HIGH] Volatility in imported waste paper prices and chemical costs impacting gross mar — Volatility in imported waste paper prices and chemical costs impacting gross margins.
- [MEDIUM] Rising ocean freight rates for imported raw materials — Rising ocean freight rates for imported raw materials.
What is N R Agarwal Industries Ltd's management guidance for growth?
N R Agarwal Industries Ltd's management has provided the following forward guidance
- Revenue outlook: Not Given
- Margin outlook: Not Given
- Capex plan: ₹150 Cr for Modernization of Unit PM4 and PM5 for efficiency gains
- Management tone: cautious
What sector-specific metrics matter most for N R Agarwal Industries Ltd?
N R Agarwal Industries Ltd's most important sub-sector-specific KPIs from the latest concall
- Capacity Utilization: 92% (YoY -200 bps) (QoQ 0) — Slight slowdown in newsprint demand led to lower run rates in specific units.
- Raw Material Cost to Sales: 58.4% (YoY +310 bps) (QoQ +120 bps) — Higher prices for imported waste paper and specialty chemicals.
- Power & Fuel Cost: INR 52.14 Cr (YoY +4.2%) (QoQ +1.5%) — Increase in coal prices and grid electricity tariffs.
- Inventory Days: 42 days (YoY -3 days) (QoQ -1 day) — Better working capital management and inventory liquidation.
- Export Revenue Share: 12% (YoY -300 bps) (QoQ -100 bps) — Global slowdown and competitive pricing from Southeast Asian manufacturers.
- Debt to Equity Ratio: 0.38x (YoY -0.05x) (QoQ 0) — Scheduled repayment of long-term borrowings.
Is N R Agarwal Industries Ltd worth studying for long term investment?
Based on quantitative research signals, here is why N R Agarwal Industries Ltd may be worth studying
- Earnings growing at +7.7% YoY
- Cash flow is positive — CFO ₹176 Cr
What is the investment thesis for N R Agarwal Industries Ltd?
N R Agarwal Industries Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +34.7% YoY
- Growth catalyst: Value Added Product Mix Shift
Risk Factors (Bear Case)
- Appears significantly overvalued
- Key risk: Volatility in imported waste paper prices and chemical costs impacting gross mar
What is the future outlook for N R Agarwal Industries Ltd?
N R Agarwal Industries Ltd's forward outlook based on current data signals
- Earnings Trend: turning around (inflection up)
- Revenue Trend: stable
- Margin Trend: volatile
- Valuation: Significantly Overvalued
- Key Catalyst: Value Added Product Mix Shift
- Key Risk: Volatility in imported waste paper prices and chemical costs impacting gross mar
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.