Cosmo First Limited – Investor Presentation Summary

Key Operational Highlights

  • BOPP specialty and semi-specialty mix reached ~60% volume in Q2 FY27
  • Overall volume growth of 15% YoY in Q2 FY27
  • Improved capacity utilization to 90%+ across all B2B businesses
  • 48 Cosmo Car Care Centers operational with ₹100 Cr Annualized GMV run-rate
  • Specialty chemicals business achieved 23% EBITDA margin
  • Rigid packaging business turned profitable with 8% EBITDA margin

Key drivers of operational performance: Higher sales volume, increased specialty sales by 20%, enhanced performance of USA film business, better performance by specialty chemical and rigid packaging businesses.

Segment-wise Performance

  • Packaging Films: Q2 FY27 Revenue ₹1,232 Cr (+48% YoY), EBITDA ₹171 Cr (+33% YoY), EBITDA margin 13.9%
  • Specialty Chemicals: Q2 FY27 Revenue ₹90 Cr (+84% YoY), EBITDA ₹21 Cr (+57% YoY), EBITDA margin 23%
  • Rigid Packaging: Q2 FY27 Revenue ₹39 Cr (+90% YoY), EBITDA ₹3 Cr (turned profitable), EBITDA margin 8%
  • Cosmo Consumer: Q2 FY27 Revenue ₹8.5 Cr (+70% YoY), EBITDA (₹4 Cr)
  • Zigly (Petcare): Q2 FY27 Revenue ₹19 Cr (+47% YoY), EBITDA (₹14 Cr)

Explanation of significant changes in segment performance: Growth driven by improved traction in US business for films, new coatings for water extrusion in chemicals, and brand mix optimization in rigid packaging (67% brand mix, 69% specialty mix).

Financial Highlights

Revenue: Rs. 1,388 Cr

EBITDA: Rs. 177 Cr (including write-back of additional custom duties by USA subsidiary of Rs 24.8 Cr and stock loss of Rs 7 Cr due to raw material price drop)

PAT: Rs. 99 Cr

EPS: Rs. 38.0 (not annualized)

Margins: EBITDA margin 12.8%, PAT margin 7.1%

YoY/QoQ comparison: Revenue +51% YoY, EBITDA +38% YoY, PAT +111% YoY

Drivers of financial performance: Higher sales volume 15%, higher specialty sales by 20%, enhanced USA film business performance, better performance by other B2B businesses, concessional tax regime adoption.

Key Risks: Raw material price volatility post West Asia war, increased marketing spend for consumer businesses.

Geographical Revenue Split

Domestic vs Export/Regional Revenue: ~50% of film business revenue from exports (100+ countries)

Balance Sheet Snapshot

Net Debt/Equity: Net Debt ₹1,057 Cr (1.9x EBITDA vs 3.0x in Sep-25)

Net Worth: Not specified

Current Assets/Liabilities: Net working capital increased by ₹148 Cr due to higher raw material prices

Working Capital/Leverage Metrics: Net Debt/EBITDA improved to 1.9x from 3.0x in Sep-25

Financial Health Insights: Continued focus to reduce net debt substantially in next 2 years

Capex & Cash Flow Health

Capital Expenditure: ₹1,250+ Cr strategic capex done since FY24

Free Cash Flow: Not specified

Operating Cash Flow: Not specified

Net Debt Movement: Reduced by ₹102 Cr vs Mar-26 despite net working capital increase of ₹148 Cr

Investment Rationale: Focus on capacity expansion in specialty areas, technology upgrades

Strategic & R&D Initiatives

Investments in Innovation: High-end chemical-coated film expansion with 16k MT annual capacity in H2 FY27; 9-layer barrier sheet line with 10k MT capacity for rigid packaging; KARO IV lab stretcher for film development; 30+ R&D resources including PhDs

Expected impact on growth: Targeting 10% CAGR growth in specialty films

Strategic Rationale: Expanding into high-growth specialty markets, reducing operational costs through efficiency improvements

Industry Trends & Business Environment

Macro/Industry Trends: India BOPP market ~900K MT pa | ₹13,000 Cr | 8–10% growth; Window films market ~₹1,000 Cr pa growing ~8%; Paint Protection Films market ~₹500 Cr growing 30% YoY

Impact on Company: Raw material price increases post West Asia war affected working capital; export demand supporting premium realizations

Management Commentary & Growth Outlook

Strategic Outlook: "The company continues to target increase in specialty films (including new capacity) with target 10% CAGR growth"

FY Guidance: Targeting rise in non-film EBITDA over 3 years; focus on achieving higher profitability through higher capacity utilisation and improved efficiency

Market Share Targets: Globally among top four players in BOPP Specialty films; Second largest in specialty labels worldwide; World's largest supplier of thermal lamination films

Risks and Opportunities: Raw material price volatility; export market opportunities with higher margins; regulatory tailwinds for energy efficiency mandates

ESG Updates

  • CareEdge "Good" ESG Rating
  • 1.02 Lac MT Carbon Emission CO₂ Reduction (Scope 1)
  • 35%+ Water Treated at Cosmo
  • 72,000 Students Impacted
  • 7,78,000 Lives Touched Through CSR
  • 60% Independent Directors, 2 Women Directors
  • ~50% Renewable Power Usage targeting 2/3rd mix in 12-18 months (₹25cr pa savings)
  • ₹5.8 Cr spent on CSR activities in FY26