Financial Performance Q1 FY27

Consolidated Results:

  • Sales: ₹1,166 crores, up 46% YoY from June 2025 quarter
  • Volume growth: 9% YoY
  • EBITDA: ₹147 crores, up 26% YoY from ₹116 crores
  • EBITDA margin: 12.6% vs 14.5% in June 2025Q
  • PAT improvement described as "moderate" due to increased depreciation and interest from new capacities

Segment-wise Performance:

  • Film Business: Higher volume by 9% with specialty sales volume up 12%
  • BOPP gross margin: ₹30/kg (includes stock gain) vs ₹20/kg in March 2026Q and ₹23/kg in June 2025Q
  • BOPET gross margin: ₹9/kg vs ₹18/kg in March 2026Q and ₹13/kg in June 2025Q
  • Semi-specialty contribution: ₹45/kg vs ₹36/kg in Q4
  • Specialty film margins: Stable at ₹63/kg
  • Specialty Chemicals: 34% topline growth YoY with 25% EBITDA margin
  • Rigid Packaging (Cosmo Plastech): 58% topline growth YoY, turned EBITDA positive at 7%
  • Consumer Businesses:
  • Zigly: ~70% YoY growth, monthly run rate of ~₹100 crores annualized
  • Cosmo Consumer: Building momentum with TV advertisements from July 2026

Operational Highlights

  • All B2B businesses are now profitable
  • US subsidiary received USD 7 million refund in July 2026 from reversal of additional custom duty
  • Capacity utilization: Film business at 85%, with 15% spare capacity
  • New product launches: Synthetic paper film, PVC-free green graphic films, anti-fog transparent BOPET lidding films
  • Patent portfolio: 6 patents granted, 11 in pipeline

Capital Structure & Debt

  • Net Debt: ₹1,166 crores (flat vs Q4 FY26)
  • Net Debt to EBITDA: 2.3x
  • Working capital: Increased by ₹85 crores due to higher raw material prices
  • Capex: Major phase complete with ₹1,200 Cr invested over last 3 years

Outlook & Guidance

  • Overall topline growth: ~20% expected in FY27
  • New businesses growth: ~60% expected
  • ROCE target: 15-20% over next 12-24 months (from current 11%)
  • Net debt reduction: Target below 2x EBITDA in next 12 months
  • Capacity expansions:
  • Rigid packaging: 50% capacity addition over next 2 quarters with minimal capex
  • Specialty chemicals: Expected to reach ₹400-500 crores by FY29

Business-specific Targets

  • Rigid Packaging: Target revenue of ₹200-250 crores next year (from ₹100 crores last year)
  • Specialty Chemicals: 50% growth expected in FY27
  • Zigly: Breakeven expected at ₹250 crores revenue
  • Cosmo Consumer: Can breakeven earlier than ₹100 crores revenue

Q&A Highlights

  • Management emphasized focus on specialty films mix improvement from current 61% to 70%
  • BOPET margins expected to improve with recent anti-dumping duty
  • Renewable power savings of ₹25 crores per annum expected from Q3 FY27 and Q1 FY28
  • Debt reduction target: ₹400-500 crores over next 2 years
  • All business verticals have potential to reach ₹500-1000 crores revenue in medium term