Financial Performance Overview
Kanpur Plastipack Limited reported exceptional FY26 consolidated financial results with revenue increasing 26% to ₹726.67 crores and net profit surging 245% to ₹36.89 crores. The company achieved EBITDA of ₹74.76 crores, representing a 37.89% YoY increase, with EPS reaching ₹16.29. Key financial ratios showed significant improvement including current ratio at 1.74 (from 1.21), debt-equity ratio at 0.13 (from 0.39), and return on equity at 16.65% (from 5.76%).
AGM and Corporate Governance
The company will hold its 55th Annual General Meeting on August 10, 2026, to consider adoption of financial statements, declaration of final dividend @12% (₹1.20 per share), and various director appointments. Key resolutions include re-appointment of Manoj Agarwal as Chairman cum Managing Director for three years and changes in remuneration terms for Shashank Agarwal and Usha Agarwal. The AGM will utilize both physical and e-voting through NSDL with record date set for August 3, 2026.
Discontinued Operations and Restructuring
The Board disposed of the Cast Polypropylene Unit (CPP) through a sale contract executed on March 11, 2025, for ₹50.24 crores. The unit was classified as discontinued operations, resulting in an impairment loss of ₹11.62 crores recognized in FY25 under exceptional items. FY26 results show loss from discontinued operations of ₹1.30 crores, with comparative FY25 figures restated accordingly.
Government Grants and Subsidies
The company received various government grants totaling ₹90.84 lakhs under schemes including ATUFS (₹26.19 lakhs capital subsidy), UP Textile Policy (₹51.05 lakhs interest subsidy), and UP Export Policy (₹13.60 lakhs freight subsidy). Additionally, DFIA benefits amounting to ₹703.39 lakhs were not recognized due to government waiver of import duty on polypropylene granules.
Auditor Report and Key Matters
Rajiv Mehrotra & Associates provided an unmodified audit opinion while highlighting three key audit matters: presentation of CPP Unit as discontinued operation and restatement, impairment assessment of goodwill on consolidation from Valex Ventures acquisition, and non-recognition of DFIA benefits disclosed as contingent asset.
Capital Structure and Corporate Developments
The company increased equity share capital to ₹24.49 crores through preferential issue of shares and warrants. Promoters' shareholding stood at 68.03%. Significant corporate developments include acquisition of 76.19% stake in Valex Ventures Limited for ₹8.02 crores and formation of joint venture Essekan Private Limited with investment of ₹2.00 lakhs.
Compliance and Regulatory Framework
The company confirmed compliance with SEBI Listing Regulations, Companies Act 2013, and all applicable secretarial standards. The notice and financial statements were prepared in accordance with Regulation 34(1) and Regulation 44 of SEBI (LODR) Regulations, 2015, with no defaults on loans or wilful defaulter status.