Knack Packaging Limited's Board of Directors approved the unaudited financial results for Q2 and H1 FY27 ended September 30, 2026, during their meeting held on October 27, 2026.

Financial Performance Highlights

Consolidated Results (₹ in Million):

  • Q2 FY27 Revenue: ₹3,044.61 (up 52.52% YoY from ₹1,995.48 in Q2 FY26)
  • Q2 FY27 EBITDA: ₹497.65 (EBITDA Margin: 16.35%)
  • Q2 FY27 PAT: ₹250.20 (PAT Margin: 8.22%)
  • Q2 FY27 EPS: ₹2.07
  • H1 FY27 Revenue: ₹5,692.31 (up 47.2% YoY from ₹3,867.37 in H1 FY26)
  • H1 FY27 EBITDA: ₹1,089.37 (EBITDA Margin: 19.14%)
  • H1 FY27 PAT: ₹555.48 (PAT Margin: 9.76%)
  • H1 FY27 EPS: ₹5.03

Standalone Results (₹ in Million):

  • Q2 FY27 Revenue: ₹2,993.15
  • Q2 FY27 PAT: ₹258.44
  • H1 FY27 Revenue: ₹5,584.12
  • H1 FY27 PAT: ₹573.49

Key Financial Ratios (Consolidated)

  • Return on Capital Employed (RoCE): 28.76% in Q2 FY27 (down from 43.70% in Q2 FY26)
  • Return on Equity (RoE): 19.42% in Q2 FY27 (down from 34.81% in Q2 FY26)
  • Debt-Equity Ratio: 0.26x (improved from 0.68x in Q2 FY26)
  • Net Worth: ₹7,223.24 Mn as of September 30, 2026

Major Business Development

The company announced a significant 3-year contract renewal with an international customer, described as one of the largest private corporations in the world, for supply of packaging bags for pet food/animal nutrition, including to the United States.

  • Annual Order Value: Approximately ₹1,500 Mn per annum
  • Volume: ~60 million bags annually (PLWPP & Pinch Bottom)
  • Contract Duration: Renewed through December 2028
  • Product: PLWPP Pinch Bottom Bags for animal nutrition

Margin Pressure and Explanations

EBITDA margin compression to 16.35% in Q2 FY27 (from 22.35% in Q1 FY27) was attributed to:

  • Global input cost headwinds from crude oil-driven polymer price inflation
  • Red Sea-linked freight cost surges impacting the entire packaging industry
  • As an exporter to 75+ countries, customer pricing revisions to pass on input cost increases are underway, with adjustments expected to reflect in realizations from Q3 FY27 onwards

PAT Margin of 8.22% was impacted by a ₹60.60 Mn loss from the Mexico Joint Venture (Knack-BESSHER HOLDING S.A.P.I. DE C.V) in H1 FY27. The JV is in peak scale-up investment phase with zero revenue offset currently.

Balance Sheet Position

As of September 30, 2026:

  • Total Assets: ₹10,269.96 Mn
  • Property, Plant and Equipment: ₹2,509.66 Mn
  • Inventories: ₹1,462.54 Mn
  • Trade Receivables: ₹1,787.77 Mn
  • Cash and Cash Equivalents: ₹680.49 Mn
  • Other balances with banks: ₹2,647.34 Mn
  • Total Borrowings: ₹1,910.55 Mn (₹299.50 Mn non-current, ₹1,611.05 Mn current)
  • Equity Share Capital: ₹1,223.65 Mn (increased from ₹1,000.00 Mn as of March 31, 2026)

Cash Flow Statement (H1 FY27)

  • Cash from Operating Activities: ₹220.59 Mn
  • Cash used in Investing Activities: ₹3,051.30 Mn (including ₹2,643.41 Mn investment in FD)
  • Cash from Financing Activities: ₹3,449.89 Mn (including ₹3,800.00 Mn from issue of share capital)
  • Net increase in cash: ₹619.18 Mn

Business Overview and Market Position

Knack Packaging is one of India's leading integrated packaging solutions providers specializing in Printed and Laminated Woven Polypropylene (PLWPP) bags and PLWPP Pinch Bottom bags. Key positioning highlights:

  • Holds ~10.10% market share in Indian flexible bulk PLWPP bags market
  • Largest manufacturer of PLWPP bags and PLWPP Pinch Bottom bags in India by revenue in FY25
  • First company in India and Asia to provide laser cut and easy-open feature in PLWPP pinch bottom bags
  • Serves 2,040+ customers across 75+ countries with 13,974 SKUs
  • Diverse end-user industries including food products, pet foods, FMCG, and agriculture

Growth Strategy and Future Outlook

  • Capacity Expansion: Commissioning new facility to increase effective capacity by October 2027
  • Product Diversification: Expanding into Modern Trend Packaging and PLWPP bags (more than 50kg) market
  • Market Focus: Targeting high-growth sectors like pulses, spices, rice and pet food
  • Global Expansion: Increasing presence in Europe, Australia, the Gulf, and Africa
  • Sustainability Initiatives: Adopted solar energy with installations planned for proposed manufacturing facility

Management and Governance

The company is led by experienced promoters and directors:

  • Alpesh Tulsibhai Patel: Promoter, Chairman & Managing Director (32+ years experience)
  • Rashminbhai Tulsibhai Patel: Promoter & Whole-time Director (28+ years experience)
  • Pravinkumar Ambalal Patel: Promoter & Whole-time Director (32+ years experience)

Three independent directors were appointed on July 18, 2025: Rajnish Magan, Vittaladevini S. Balaji, and Deepti Sharma.

Awards and Recognition

The company has received numerous industry awards including:

  • First Best Exporter of Woven Sacks/Bags (2023-2024, 2024-2025) by Plastics Export Promotion Council
  • Innovative Packaging Material Solutions award (2023)
  • Various export performance recognitions from 2020-2025