NITCO on a transformation path
With rising revenues, improving profitability, and prestigious project wins, NITCO Ltd, which makes design-led surfaces and has a presence across tiles, marble, and mosaic, has made a strong comeback. It has implemented its restructuring exercise, thereby resulting in operational efficiency and renewed business momentum.
Elaborating on NITCO’s transformation strategy, Vivek Talwar, CMD, NITCO, says: “The past few years marked a necessary recalibration for us. While demand remained steady, we faced the challenge of maintaining a stable supply chain and developing a scalable business model. Our earlier restructuring efforts yielded limited outcomes, which in turn impacted revenue growth, compressed margins, and placed pressure on the working capital cycle. Concurrently, rising input costs and increased competition from low-cost manufacturers added further operational complexity. These circumstances forced the company to build a more robust financial structure and initiate a comprehensive operational reset – one that could support a broad product portfolio, ensure timely supply, and enable long-term growth.”
“In response to shifting cost dynamics, we restructured our operational model to build efficiency and resilience. Though it caused short-term limitations, the moves were necessary for creating a more robust foundation,” adds Talwar.
The Mumbai-headquartered NITCO’s transformation began gaining momentum in 2018, when JM Financial & Asset Reconstruction Company (JMFARC) acquired 98 per cent of the company’s outstanding debt and initiated a debt-restructuring process. As part of this effort, JMFARC took over Rs1,240 crore of debt and acquired a strategic equity stake. The next significant milestone in NITCO’s financial transformation came in April 2024, when Authum Investment & Infrastructure stepped in as the new financial partner. JMFARC assigned the financial assets of the company, including underlying rights, titles, securities, and guarantees, to Authum Investment & Infrastructure.
Under the revised restructuring plan, Rs150 crore of sustainable debt was retained with revised terms, while Rs1,037.81 crore of unsustainable debt was converted into equity through the issuance of 11.25 crore shares at Rs92.25 per share to Authum Investment & Infrastructure. The move strengthened NITCO’s balance sheet and set the stage for its recovery and growth.
“The support from Authum marked a pivotal point in NITCO’s journey,” says Talwar. Ownership is currently diversified across key stakeholders: existing promoters hold 16.23 per cent, Authum 49.19 per cent, and public shareholders 34.58 per cent. Furthermore, the promoter has been issued 2,34,10,000 warrants convertible into an equal number of equity shares, which will increase the promoter’s holding to 24.01 per cent on a fully diluted basis, post-conversion.
Sitanshu Satapathy, CFO at NITCO, adds: “Recognising the need to improve financial flexibility, we restructured our debt portfolio. We now operate with long-term instruments, including preference shares worth Rs150 crore at 0 per cent interest (repayable in 2028) and NCDs worth Rs50 crore at 5 per cent interest (repayment due in 2028).”
Adds Talwar: “It gave us the financial headroom to unlock working capital and focus on building a scalable, future-ready business. With this new foundation in place, our vision is to strengthen NITCO’s position as a leading design-led surfaces brand across tiles, marble, and mosaic. Each of these verticals holds strategic importance – tiles for their scale and network expansion potential, marble for its premium appeal and global sourcing strengths, and mosaic for its unique design versatility. We are now in a position to innovate faster, grow deeper into key markets, and re-engage meaningfully with our channel partners and customers across India and overseas.”
Armed with renewed financial strength, the company has implemented a structured roadmap: stabilising supply through long-term sourcing partnerships, re-energising its sales and marketing functions, and expanding its presence across both urban and Tier 2-3 markets. It has seen promising traction, with project tie-ups with marquee names like Runwal Group, Prestige Group, and M3M. The brand’s emphasis on design-led surfaces and consistent service has started to reflect in increased market confidence.
NITCO’s tile business is experiencing strong momentum, with quarterly growth exceeding 40 per cent and a double-digit expansion of its retail network across India. The company is aggressively scaling its footprint through its ‘exclusive franchisee channel’ and premium experience centres under the ‘Le Studio’ brand, currently operating in nine locations. Supported by a pan-India infrastructure of 15 offices and over 650 dealers, NITCO’s presence spans all major urban centres and deeper Tier-2 and Tier-3 markets, anchored by a stable and growing network.
Looking ahead, the company plans to further strengthen its domestic footprint by adding 100 new franchisees, 100 dealers, and over 500 sub-dealers in the current financial year. The expansion is aimed at improving last-mile visibility, enhancing customer access, and deepening engagement across base towns and emerging regions.
Alongside tiles, NITCO continues to build on its leadership in natural marble, with sourcing relationships spanning more than 25 countries and state-of-the-art, industry-leading capabilities in marble processing. The company also brings design-driven innovation through its niche mosaic category, making it one of the few brands in India with strong expertise across all three surface verticals – tiles, marble, and mosaic.
On the international front, NITCO exports to over 55 countries, with the United States, Nepal, and Kenya emerging as key growth markets. Leveraging a mix of retail alliances and large-scale project partnerships, NITCO aims to become a disruptive global player in surface solutions, driven by scale, design, and service excellence.
Unlocking value
NITCO, along with its subsidiaries, owns over 330 acres of land parcels in the Mumbai Metropolitan Region Development Authority (MMRDA). Most of these land parcels are located in prime areas, such as Mumbai, Alibaug, Virar, Goa, Panvel, and Pune. The company is strategically executing its real estate projects by engaging with some of India’s top real estate developers through a combination of joint development agreements and outright land sales. The land parcels are in various stages of clearance and will be handed over in phases based on project readiness and development timelines. NITCO is in the final stages of executing the conveyance deed for its Kanjurmarg land parcel, valued at Rs232 crore. The company has already received Rs143 crore, with the remaining Rs89 crore expected shortly. As part of the transaction, NITCO will also receive a 30,000 sq ft area share, projected to be valued at Rs90 crore upon completion. Moreover, the company holds an option to purchase an additional area of approximately 60,000 sq ft at a discounted rate. This move could unlock a value of over Rs180 crore once the development is complete.
As part of its asset monetisation strategy, NITCO has entered into a joint development agreement with Bengaluru-based developer Total Environment for an initial 70-acre land parcel in Alibaug. Additional land may be integrated into the project in subsequent phases. The development is expected to generate a minimum revenue of Rs500 crore over the next 3-5 years, reinforcing NITCO’s focus on unlocking long-term value from its real estate assets. From the joint development agreements of its factory plot, NITCO has already received an interest-free adjustable advance of Rs58.42 crore.
Earlier, NITCO had entered into an assignment of leasehold rights in Plot No F-6/3, spanning 4,144 sq m at Trans Thane Creek Industrial Area, MIDC, Thane, with Manometer (India) LLP. As part of the agreement, NITCO has secured 7,459.2 sq m (80,293 sq ft) of constructed carpet area or 25 per cent of the FSI area, whichever is higher, in the upcoming development by Manometer on the said plot. This asset is projected to generate approximately Rs100 crore in profit over the next 3-4 years.
Following the debt restructuring, NITCO reported a strong set of FY25 numbers, with total revenue at Rs314 crore and a positive net worth of Rs246.62 crore as of the end of FY25. Independent SEBI-registered analyst Avinash Gorakshakar adds: “Based on NITCO’s transformation story, we expect NITCO’s revenue to touch Rs665 crore in FY26, followed by Rs1,015 crore in FY27 and Rs1,320 crore in FY28. On a bottom-line level, we expect the company to record a net profit of Rs36.75 crore in FY26, which is expected to bounce back to Rs184.56 crore in FY27 and Rs250.70 crore in FY28.”
Considering NITCO’s steady financial track record, strong business domain, and extensive business opportunities expected from the real estate sector, Gorakshakar says: “We anticipate the stock will be re-rated in the future. The stock is currently trading in the Rs141.60-144.47 range, with a 52-week high of Rs163.95 and a 52-week low of Rs69.00. With a market capitalisation of Rs3,262 crore, analysts expect the stock to outperform the market.” He believes NITCO is a remarkable transformation story, holding a stock target of around Rs215-225 over the next 18 months.