Kanpur Plastipack Q1 FY27 PAT Surges 112% YoY

Type of Event: Earnings Conference Call for the Standalone and Consolidated Unaudited Financial Results for the quarter ended June 30, 2026.
Date and Time: The call was held on Wednesday, July 29, 2026, at 4:00 PM IST.
Purpose: To discuss the company's financial and operational performance for Q1 FY27.
Management Participants: Mr. Manoj Agarwal (Chairman Cum Managing Director), Mr. Shashank Agarwal (Deputy Managing Director), Mr. Shobhit Agarwal (Chief Financial Officer), Mr. Ankur Srivastava (Company Secretary).
Availability of Transcript: The full transcript of the conference call is available on the company's website at: https://www.kanplas.com/reportpdf/KanpurPlastipack-Q1FY27EarningsCallTranscriptJul29-2026._1786076326.pdf

Q1 FY27 Standalone Financial Performance (Discussed Period):

Total Income: ₹207.49 crores, representing a healthy growth and exceeding ₹200 crores for the first time.
EBITDA: ₹22.19 crores, registering a strong growth of 58.98% year-on-year.
EBITDA Margin: Improved to 10.69% from 7.66% in Q1 FY26.
PAT: ₹12.14 crores, representing a growth of 112% year-on-year.
Basic EPS: Increased to ₹4.96 compared to ₹3.01 in Q1 FY26.
Net Debt: Stood at ₹132 crores as of June 30, 2026, with long-term debt at ₹34 crores.

Operational and Strategic Highlights:

Pricing & Costs: Average selling price increased by 31% QoQ, while average raw material price increased by 18% QoQ, leading to margin expansion.
Employee Costs: Increased by approximately ₹3.5 crores QoQ due to annual salary revision and revised state government minimum wage policy.
Trading Profit: Reported at ₹2.93 crores for Q1 FY27, compared to ₹1.25 crores in the corresponding quarter of the previous year. Management clarified this is opportunistic and not a strategic focus.
Product Mix: FIBC (52%), Fabric (20%), Small Bags (12%), Multifilament Yarns (8%), Others (8%).
Export Markets: Europe (60% of exports), South America (20%), North America (16%), Australia and Asia (4.5%), Africa (0.5%).

Growth Initiatives & Capex:

Essegomma JV (ESSEKAN): Successfully operationalized for manufacturing premium Taslan yarn. Commercial production and sales have commenced. Targeting revenues of ~₹10 crores in FY27 with an expected EBITDA margin of 20-25%. Peak capacity can support revenues of ~₹30 crores.
Certifications: Obtained Global Recycle Standard (GRS) and OEKOTEX certifications, described as a significant milestone for sustainable innovation and global competitiveness.
Non-Woven Technical Textiles: Project is on track. Commercial production is expected to commence in Q3 FY27. Target applications include automotive interiors, geotextiles, artificial leather, carpets, and filtration. Expected EBITDA margins are in the mid double-digits.
FIBC Capacity Expansion: Plan to add 6,000 metric tons per annum over the next five years is on track. A new building is under construction with the ground floor completed and production started. The first and second floors are expected to be completed by mid-September 2026. The long-term target is to reach 5,000 tons per quarter by Q1 FY28.
Debt & Capex Plan: Long-term debt was ₹34 crores. The company plans to take a new term loan of ₹40 crores for projects, with a year-end long-term debt target of ~₹67-68 crores after accounting for repayments.

Market Commentary & Outlook:

The global environment was dynamic due to geopolitical developments, tariff policies, raw material volatility, and elevated ocean freight costs (increased from ~$2,000 to ~$5,000).
Demand visibility is about four weeks, reflecting cautious customer procurement.
Despite challenges, management remains optimistic about FY27 performance, backed by diversified exports, customer relationships, and the commercialization of new growth initiatives.

The document is an official submission to the BSE and NSE pursuant to Regulation 30 of the SEBI (LODR) Regulations, 2015, intimating them of the earnings call and the availability of its transcript.
The enclosed transcript was included as part of the data provided.
The announcement itself does not contain unpublished price sensitive information (UPSI) as it is a disclosure about a past event (the earnings call) and a link to its already-held transcript.
The transcript contains extensive financial data and forward-looking statements, which have been summarized in the sections above.