Financial Performance Summary

Key Financial Metrics (Rs. Crores):

| Metric | Q2 FY27 | Q2 FY26 | FY25-26 |

| Net Revenue | 1,388 | 919 | 3,639 |

| EBITDA | 177 | 128 | 479 |

| EBITDA % | 12.8% | 14.0% | 13.4% |

| PBT | 98 | 57 | 201 |

| PAT | 99 | 47 | 156 |

| EPS (Rs.) | 38.0 | 18.1 | 60.3 |

Performance Drivers and Business Segment Analysis

Overall Performance Drivers:

  • Q2 FY27 EBITDA improved year-over-year due to 15% higher sales volume
  • Specialty sales increased by 20% year-over-year
  • Better base BOPP film margins contributed to performance
  • Enhanced performance of USA film business post reduction in USA tariffs
  • Better performance by other B2B businesses (specialty chemical and rigid packaging)

One-Time Items Impacting EBITDA:

  • Positive impact: Write-back of additional custom duties by USA subsidiary post receiving duty refund - Rs 24.8 crores
  • Negative impact: Stock loss of Rs 7 crores due to drop in raw material prices

Tax Regime Change:

  • Company elected to exercise option to adopt concessional tax regime under Section 200 of Income Tax Act, 2025
  • Effective from Tax Year 2026-27
  • Tax provision for the quarter includes benefit from this changeover

Business Segment Performance:

Specialty Films Business:

  • Investing in high-end chemical-coated film expansion
  • Facility powered by one of world's most advanced coating lines
  • Will introduce 16,000 MT of annual capacity
  • Expected commissioning in H2 FY27

Specialty Chemical Subsidiary:

  • 80%+ topline growth on YoY basis in Q2 FY27
  • 23% EBITDA margin in Q2 FY27
  • Performance driven by three niche verticals: coating chemicals, masterbatches, and adhesive

Cosmo Plastech (Rigid Packaging):

  • Over 90% topline growth in Q2 FY27 on YoY basis
  • 8% EBITDA margin
  • Expansion planned in H2 FY27 with 9 layers barrier sheet line
  • New line will have annual capacity of 10,000 MT
  • Will enable higher and improved specialty products with minimal capex
  • FY27 focus on achieving higher profitability through higher capacity utilization and improved efficiency

Consumer Businesses:

Zigly (Petcare):

  • 47% topline growth in Q2 FY27 (YoY basis)
  • Continuing scale-up phase

Cosmo Consumer (Window films, Paint Protection Films & Ceramic Coatings):

  • 70% topline growth in Q2 FY27 (YoY basis)
  • Started brand building with TV advertisements from July 2026
  • Expanded presence in automotive segment through launch of first 4C Cosmo Car Care Centre in Pune

Financial Position and Debt Management

Debt Position:

  • Net Debt as at September 2026: Rs 1,057 crores (1.9 times to EBITDA)
  • Previous Net Debt as at March 2026: Rs 1,159 crores
  • Net working capital increased by Rs 148 crores due to increased raw material prices post West Asia war
  • Majority of debt related to two growth capex projects already included in September 2026 balance sheet
  • Company focus continues on substantially reducing net debt in next 2 years

Management Commentary

Mr. Pankaj Poddar, Group CEO, Cosmo First Ltd stated: \"All our B2B businesses are profitable. The FY27 focus will be on higher ROCE with specialty films sale, improved capacity utilization and substantially grow new B2B and B2C businesses.\"

Company Background

  • Founded in 1981 by Mr. Ashok Jaipuria
  • Currently has 5 businesses: 2 consumer (Zigly Petcare and Cosmo Consumer) and 3 industrial (Cosmo Films, Cosmo Plastech, Cosmo Specialty Chemicals)
  • Cosmo Films is pioneer of specialty BOPP films in India and largest business for Cosmo First
  • Other four businesses started post Covid and in process of being scaled up