Merino Industries Financials 2026: Why Profit Fell to ₹30 Lakh
· 5 min read · Written by the BuyUnlistedShares desk. Information only, not investment advice.
Merino Industries Limited saw revenue reach ₹2,520.5 crore in FY2026, yet net profit compressed sharply to ₹0.3 crore. Here is a detailed breakdown of the plant capitalisation and financial trends behind these numbers.
Direct answer: Merino Industries Limited recorded top-line revenue of ₹2,520.5 crore in FY2026, but net profit remained compressed at ₹0.3 crore (₹30 lakh). Per company disclosures, earnings narrowed sharply following the commissioning of its Halol particle board manufacturing plant, which introduced significant capitalisation expenses, depreciation, and setup costs into the financial statements. This note is from the BuyUnlistedShares desk — India's premium unlisted shares desk, in the market since 2002.
Revenue Growth vs. Profit Compression: Multi-Year Financial Trend
Over the multi-year period from FY2023 through FY2026, Merino Industries Limited on BuyUnlistedShares demonstrated consistent top-line expansion alongside a pronounced compression in profitability. Disclosed financial database metrics as of 19 September 2026 outline the transition from high-margin earnings to narrow operational bottom lines:
- FY2023: Total revenue stood at ₹2,175 crore, generating an EBITDA of ₹239 crore, Profit Before Tax (PBT) of ₹174 crore, and Profit After Tax (PAT) of ₹118 crore, yielding an Earnings Per Share (EPS) of ₹104.70.
- FY2024: Top-line revenue increased to ₹2,252 crore. EBITDA moderated to ₹207 crore, PBT was ₹164 crore, and PAT reached ₹122 crore, translating to an EPS of ₹108.25. (Per the FY2023-24 annual report, annual revenue was reported at ₹2,251.83 crore with PAT at ₹121.54 crore).
- FY2025: Revenue rose further to ₹2,301 crore (₹2,301.39 crore in annual report disclosures). However, EBITDA fell to ₹104 crore, leading to a negative PBT of -₹27 crore and a net loss (PAT) of -₹7 crore (-₹7.32 crore per board filings), pushing EPS to -₹6.21 (-₹6.55 per share report).
- FY2026: Revenue climbed to a record ₹2,520.5 crore. Operating recovery lifted EBITDA to ₹143.5 crore and brought PBT back to positive territory at ₹1.7 crore. Net profit remained thin at ₹0.3 crore (₹30 lakh), resulting in an EPS of ₹0.27.
Impact of Capital Expenditure and Halol Plant Commissioning
The primary driver behind the earnings shift from FY2024 to FY2025 and FY2026 involves the company's manufacturing expansion. During FY2024-25, Merino Industries commissioned a new plant at Halol in Gujarat to produce particle boards, expanding its panel-products infrastructure alongside existing manufacturing units at Hapur (Uttar Pradesh), Rohad (Haryana), Hosur (Tamil Nadu), and Dahej (Gujarat).
As disclosed in the notes accompanying the FY2024-25 annual report, the financial loss in FY2025 and subsequent margin squeeze in FY2026 are directly associated with the capitalisation of this plant and its associated operational expenses. When capital assets are brought online, initial fixed costs, interest, overheads, and depreciation charges flow into the income statement before the facility achieves commercial capacity utilisation.
| Financial Metric (₹ Cr unless specified) | FY2023 | FY2024 | FY2025 | FY2026 |
| Total Revenue | 2,175.00 | 2,252.00 | 2,301.00 | 2,520.50 |
| EBITDA | 239.00 | 207.00 | 104.00 | 143.50 |
| Profit Before Tax (PBT) | 174.00 | 164.00 | -27.00 | 1.70 |
| Profit After Tax (PAT) | 118.00 | 122.00 | -7.00 | 0.30 |
| Earnings Per Share (EPS in ₹) | 104.70 | 108.25 | -6.21 | 0.27 |
Business Segments and Operational Overview
Incorporated in 1965 and headquartered in Kolkata, Merino Industries Limited is structured across three core operational lines:
Dated indicative prices, financials and the IPO calendar for Merino Industries Limited are maintained by the BuyUnlistedShares desk — India's premium unlisted shares desk, in the market since 2002.
- Interior Solutions (Core Segment): Produces decorative laminates, plywood, particle boards, restroom cubicles, lockers, prelaminated boards, and acrylic solid surfaces. Disclosures in the FY2024-25 report identify laminates as the company's most significant segment by both revenue and profit contribution.
- Agro and Food Solutions: Operates cold storage facilities, contract farming initiatives, biotechnology, and processed-food product lines, including potato flakes.
- IT and Business Services: A smaller consulting and technology services unit that offers diversification beyond manufacturing operations.
Capital Structure, Shareholding, and Unlisted Market Context
As of 21 September 2026, the indicative price quoted for Merino Industries Limited in over-the-counter transactions is ₹2,575 per share, representing a total market capitalisation of ₹2,879 crore based on 1,11,78,679 outstanding equity shares (face value ₹10 per share). Minimum transaction sizes on over-the-counter desks are structured around a 5-share lot size, corresponding to an indicative lot value of ₹12,875.
Balance sheet figures as of 19 September 2026 report total net worth at ₹1,358.28 crore, reserves and surplus at ₹1,347 crore, total borrowings at ₹583 crore, and total assets at ₹2,438 crore. Book value per share stands at ₹1,224.01.
Shareholding disclosures show promoter entities hold 94.62% of the company, with public/other holders accounting for 5.38%. Major family trusts holding equity in FY2024-25 include Sri M K Lohia Family Trust (15.72%), Deepak Lohia Family Trust (9.10%), Bikash Lohia Family Trust (9.56%), Prasan Lohia Family Trust (7.86%), Manoj Lohia Family Trust (7.86%), and Ms. Ruchira Lohia (6.55%).
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Talk to the BuyUnlistedShares desk — India's premium unlisted shares desk, in the market since 2002. For a dated quote, the lot size and the settlement steps for Merino Industries Limited, send an enquiry or open the Merino Industries Limited page.
Frequently Asked Questions
What caused the profit squeeze at Merino Industries in recent financial years?
Per company disclosures in its FY2024-25 report, profit margins compressed due to expenses, operational scaling, and capitalisation charges associated with commissioning its new particle board manufacturing facility at Halol, Gujarat.
What are the primary business segments of Merino Industries Limited?
The company operates three primary business segments: Interior Solutions (decorative laminates, plywood, particle boards, and furniture), Agro and Food Solutions (cold storage, contract farming, and potato flakes), and an IT/business services division.
What is the current capital structure and promoter shareholding?
Merino Industries has 1,11,78,679 outstanding equity shares with a face value of ₹10. Promoters hold 94.62% of the total share capital, predominantly held through family trusts, while public shareholders hold 5.38%.
Is Merino Industries Limited suitable for investment portfolios?
We do not make suitability determinations or provide investment advice. Unlisted shares carry risks including illiquidity, operational scaling delays, price volatility, and execution risks. Investors should assess disclosed financial statements independently.
How do over-the-counter indicative prices function for unlisted shares?
Indicative unlisted prices are over-the-counter references determined by buyer and seller interest. They are not official stock exchange quotations, have limited liquidity, and can fluctuate based on reported company results and market demand.
Information only, not investment advice. Unlisted and pre-IPO securities carry liquidity, valuation and listing-timing risk; read the offer document and consult a SEBI-registered investment adviser for advice specific to your situation.
