Knack Packaging Limited submitted its earnings presentation for Q1 FY27 ended June 30, 2026, approved by the Board of Directors in their meeting held on August 9, 2026.

Financial Performance (Consolidated)

  • Revenue: ₹2,647.71 million, representing 41.50% YoY growth from Q1 FY26 revenue of ₹1,871.17 million
  • EBITDA: ₹591.73 million, up 53.14% YoY from ₹386.41 million in Q1 FY26
  • EBITDA Margin: 22.35%, improved from 20.65% in Q1 FY26
  • PAT: ₹305.28 million, up 47.96% YoY from ₹206.33 million in Q1 FY26
  • PAT Margin: 11.53%, improved from 11.03% in Q1 FY26
  • EPS (Basic): ₹3.05, increased from ₹2.06 in Q1 FY26
  • Net Worth: ₹3,384.57 million as of Q1 FY27

Financial Performance (Standalone)

  • Revenue: ₹2,590.96 million, representing 40.50% YoY growth
  • EBITDA: ₹557.60 million with 21.52% margin
  • PAT: ₹315.06 million with 12.16% margin
  • EPS (Basic): ₹3.15
  • Net Worth: ₹3,361.21 million

Key Financial Ratios (Consolidated)

  • Return on Capital Employed (RoCE): 54.73%, improved by 868 basis points from 46.05% in Q1 FY26
  • Return on Equity (RoE): 37.45%, improved by 41 basis points from 37.04% in Q1 FY26
  • Debt-Equity Ratio: 0.59x, improved from 0.74x in Q1 FY26
  • Working Capital Cycle: 86 days

Operational Highlights

Knack Packaging Limited is described as one of India's leading integrated packaging solutions providers specializing in Printed and Laminated Woven Polypropylene (PLWPP) bags and PLWPP Pinch Bottom bags. The company serves food products, pet foods, and other sectors.

Strategic Developments

  • Mexico JV Plant: Commissioned in April 2026 through joint venture Knack-BESSHER HOLDING S.A.P.I. DE C.V (50:50 partnership)
  • Capacity Expansion: Planning to commission new facility by October 2027 to increase effective capacity
  • Product Diversification: Focus on expanding into modern trend packaging, PLWPP bags over 50kg, and high-growth sectors including pulses, spices, rice, and pet food
  • Global Expansion: Increasing presence in Europe, Australia, Gulf, and Africa markets; leveraging partnership with Cargill
  • Sustainability Initiatives: Adopting solar energy with proposed installations at new manufacturing facility

Market Position

  • Largest manufacturer of PLWPP bags and PLWPP Pinch Bottom bags in India based on FY25 revenue
  • First company in India and Asia to offer laser-cut and easy-open features in PLWPP pinch bottom bags
  • No material dependency on any single market or segment

Industry Outlook

  • PLWPP Bag Market projected at 15% CAGR (FY24-29)
  • WPP Bag Market projected at 9.2% CAGR (FY24-29)
  • PLWPP Pinch Bag Market currently <0.5% of overall WPP bags market, projected to grow at 8-10% CAGR
  • Food, beverage & bulk agri commodities drive ~68% of flexible plastic packaging demand

Management Updates

Key management appointments effective July 18, 2025:

  • Whole-Time Director with over 35 years finance experience
  • Head of Operations with experience across packaging companies
  • Independent Director serving on multiple boards

Additional appointments:

  • Finance head since May 2025 with 18 years experience
  • Company Secretary & Compliance Officer since August 9, 2026 with 15 years experience

Awards and Recognition

The company has received multiple awards including:

  • 2025: First Position in Innovative Packaging Material Solutions, Packaging and Materials Awards
  • 2025: Responsible Packaging award from Foundation for Innovative Packaging and Sustainability
  • 2023-2024 & 2024-2025: First Best Exporter of Woven Sacks/Bags by Plastics Export Promotion Council