Q1FY27 Financial Highlights (Standalone)

Revenue: ₹161.7 crore

Raw Material Cost: ₹97.5 crore

Gross Profit: ₹64.2 crore (39.7% margin)

Employee Cost: ₹17.1 crore

Other Expenses: ₹23.6 crore

EBITDA: ₹23.4 crore (14.5% margin)

Other Income: ₹3.5 crore

Depreciation: ₹8.2 crore

EBIT: ₹18.7 crore (11.6% margin)

Finance Cost: ₹2.5 crore

Profit Before Tax: ₹16.2 crore (10.0% margin)

Tax: ₹4.3 crore

PAT: ₹12.0 crore (7.4% margin)

Cash PAT: Not quantified in disclosure

Management Commentary

Chairman and Managing Director Mr. Kailesh Punamchand Shah stated that Q1FY27 demonstrated business resilience amid increased volatility. The West Asia crisis triggered an unprecedented spike in polymer prices from March 2026, while port congestion and container non-availability disrupted raw material inflows and export shipments.

Operational Performance:

  • Revenue grew sequentially by over 10%
  • Volume processed increased over 25% sequentially
  • Capacity utilization improved to nearly 65% from about 52% in preceding quarter
  • Gross margin compression was approximately 240 basis points sequentially

Pricing Actions: The company has passed on price increases across domestic business in full and across substantial majority of export accounts, with remainder following standard rollover mechanism over coming weeks.

Guidance and Outlook

FY27 Targets:

  • Capacity utilization target of approximately 75%
  • Domestic growth target of 30-35%

Expansion Plans:

  • Orders placed for about 14 new machines to add 1,500 tons of incremental capacity in Q4FY27
  • Bamboo initiative machinery expected at Guwahati facility by mid-August 2026
  • Commercial contribution from bamboo division anticipated from Q4FY27

Margin Outlook: Management expects margins to trend back toward historical levels as cost pass-through completes and conditions stabilize.

Business Overview

Company History: 50+ years operating history, 20+ years design experience, 2,200+ active workforce. Originally established as "Chhaya Plastics" in 1971, incorporated in 2001, listed on BSE and NSE in 2025.

Manufacturing Facilities:

  • Daman Facility: 9,500 TPA capacity (domestic & export markets)
  • Silvassa Facility: 19,500 TPA capacity (100% EOU)
  • Khatalwada Facility, Gujarat: 10,000 TPA capacity (100% EOU)

Business Model: B2B white-label manufacturing partner for global retailers supplying customized plastic consumerware across kitchen, storage, cleaning, bath, organization and junior categories.

Strategic Initiatives

Bamboo Division:

  • Memorandum of Understanding with NECBDC (statutory body under MDoNER, GoI)
  • Empanelled as Product and Market Development Partner for engineered bamboo initiatives
  • Initial focus on Assam and Nagaland
  • Engagement focuses on product development, process standardization and market linkage

Sustainability Initiatives:

  • 8,000 KWH energy saved/year
  • 1,812 MWh of energy produced via solar panels
  • Rainwater harvesting at manufacturing facilities
  • Use of recycled materials (recycled polypropylene, recycled ABS-PC blends, recycled polyethylene terephthalate)
  • ISCC PLUS Certificate for Silvassa plant
  • FSC certified paper for packaging material

Historical Financial Performance (Consolidated)

FY26 Financials:

  • Revenue: ₹610.5 crore
  • Gross Profit: ₹239.4 crore (39.2% margin)
  • EBITDA: ₹89.9 crore (14.7% margin)
  • PAT: ₹35.4 crore (5.8% margin)
  • ROCE: 10.3%
  • Debt to Equity: Not quantified

Historical Trend (FY23-FY26):

  • Revenue growth from ₹443.5 crore (FY23) to ₹610.5 crore (FY26)
  • PAT margin declined from 8.7% (FY24) to 5.8% (FY26)
  • Employee cost increased from ₹35.0 crore (FY23) to ₹58.7 crore (FY26)

Corporate Structure and Management

Board of Directors:

  • Kailesh Shah: Chairman & Managing Director (40+ years experience)
  • Bhupesh Shah: Whole-time Director (40+ years experience)
  • Nilesh Shah: Whole-time Director (40+ years experience)
  • Three Independent Directors

Senior Management Team: Includes CFO, Deputy General Managers, Head - Supply Chain, VP – International Business, VP - Operations, CHRO, Strategic Business Head, Company Secretary, and General Managers.

Industry Context

Global Market: The global plastic consumerware and houseware industry benefits from stable, non-discretionary demand driven by everyday household usage and replacement cycles.

India Advantage: India has emerged as preferred manufacturing base due to trade agreement tailwinds (EU–India FTA, US–India trade framework) and China+1 strategy.

Domestic Market: India's plastic houseware market set for strong, replacement-led growth driven by premiumisation and rising dominance of branded, organised players.