Nirav Commercial approves sale of aluminium unit for $0.13M to Hind Aluminium

Nirav Commercial Limited has approved the sale of its aluminium business segment through a Business Transfer Agreement. The decision was taken at a board meeting held on February 04, 2026, at the company’s registered office, marking a strategic move for the Mumbai-based commercial entity.

The board cleared the sale of the aluminium business operating under the “Elesar Focchi” brand to Hind Aluminium Industries Limited. The transaction, valued at INR 12.5 million (USD 0.13 million), is structured as a Material Related Party Transaction and will require regulatory compliance as well as shareholder approval. The company expects the deal to be completed by March 31, 2026.

According to the last audited financial statements as of March 31, 2025, the Elesar Focchi aluminium unit formed a substantial part of operations. The division generated income of INR 304.745 million (USD 3.3 million), accounting for 100 per cent of the company’s revenue, while its net worth stood at INR 97.26 million (USD 1 million), representing the full value of the business.

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The sale is aimed at offloading a high-revenue division that had been incurring losses, helping the company address its operational challenges as the unit contributed all revenue but saw widening losses.

To move forward with the Business Transfer Agreement, the board has approved conducting a postal ballot to obtain shareholder consent. The step aligns with SEBI regulations governing Material Related Party Transactions and gives shareholders the authority to decide on the proposed disposal.

The financial report card says the same thing, the company reported challenging results in Q1 2025. Total income declined 7.4 per cent year-on-year to INR 25.4 billion (USD 0.28 billion) from INR 27.4 billion (USD 0.3 billion) in the same quarter of the previous year, reflecting difficult market conditions for the sector. Net loss widened by 14.4 per cent to INR 16.4 billion (USD 0.18 billion) compared with INR 14.3 billion (USD 0.15 billion) a year earlier, indicating continued pressure on cost management amid falling sales. Loss per share improved slightly to INR 1.06 from INR 1.22, even as declining revenue and expanding losses pointed to ongoing operational challenges.

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