Key Board Approvals

The Board of Directors, at their meeting held on October 27, 2026 (3:30 PM to 5:30 PM), considered and approved the following:

1. Standalone and Consolidated Unaudited Financial Results for Q2 and H1 ended September 30, 2026 (Regulation 33)

2. Confirmation of no deviation/variation in utilization of IPO proceeds (Regulation 32(1))

3. Other businesses as per circulated agenda

Financial Results Highlights (Consolidated - Rs. in millions)

Quarter Ended September 30, 2026 (Q2 FY27):

  • Revenue from Operations: ₹2,947.57 (Up 52.52% YoY from ₹1,932.57 in Q2 FY26)
  • Other Income: ₹97.04
  • Total Income: ₹3,044.61
  • Profit Before Exceptional Items and Tax: ₹356.75
  • Exceptional Item: Impact of Labour Codes (₹10.77 million for FY26, already accounted)
  • Share of Loss from Joint Venture: ₹(26.15)
  • Profit Before Tax: ₹330.60
  • Total Tax Expense: ₹80.40
  • Net Profit After Tax: ₹250.20 (Up 21.24% YoY from ₹206.36)
  • Basic and Diluted EPS: ₹2.07 (Not annualized)

Half Year Ended September 30, 2026 (H1 FY27):

  • Revenue from Operations: ₹5,572.16 (Up 46.81% YoY from ₹3,795.56)
  • Net Profit After Tax: ₹555.48 (Up 34.51% YoY from ₹412.97)
  • Basic and Diluted EPS: ₹5.03 (Not annualized)

Comparative Performance:

  • Q1 FY27 Revenue: ₹2,624.59 million (QoQ growth of 12.31%)
  • Q1 FY27 PAT: ₹305.28 million (QoQ decline of 18.04%)

Key Balance Sheet Items (Consolidated - as at September 30, 2026)

  • Total Assets: ₹10,269.96 million (vs ₹5,952.48 million as at March 31, 2026)
  • Equity Share Capital: ₹1,223.65 million (post-IPO increase from ₹1,000.00 million)
  • Other Equity: ₹5,999.59 million
  • Total Equity: ₹7,223.24 million
  • Borrowings (Non-current + Current): ₹1,910.55 million
  • Cash and Cash Equivalents: ₹680.49 million
  • Other Bank Balances: ₹2,647.34 million

IPO Proceeds Utilization

The company completed its Initial Public Offering on July 06, 2026 (Allotment Date), with fresh issue of 22,365,164 equity shares at ₹170 per share (including premium of ₹160 per share) aggregating to ₹3,800 million.

Utilization status as at September 30, 2026:

  • Total amount raised: ₹3,800 million (fresh issue)
  • Total amount utilized: ₹560.76 million
  • Total unutilized amount: ₹3,239.24 million

Breakdown of utilization:

1. Capital expenditure for new manufacturing facility at Borisana, Gujarat: ₹7.04 million utilized (₹3,192.96 million unutilized)

2. General Corporate Purposes: ₹294.69 million utilized (₹16.80 million unutilized)

3. Issue Expenses: ₹259.03 million utilized (₹29.48 million unutilized)

The Audit Committee and Board confirmed no deviation or variation in the utilization of IPO proceeds from the objects stated in the Prospectus.

Joint Venture Update

The company holds 50% interest in Sayem Knack S.A. de C.V. (Mexico joint venture) which reported:

  • Q2 FY27 Net Loss: ₹26.15 million (Company's share)
  • H1 FY27 Net Loss: ₹60.60 million (Company's share)

The JV is in scale-up investment phase and currently contributes losses to consolidated profitability with zero revenue offset.

Management Commentary

Mr. Alpesh Tulsibhai Patel, Chairman and Managing Director, stated that:

  • Q2 FY27 achieved highest ever quarterly revenue
  • EBITDA margin of 16.35% was impacted by crude oil-driven polymer price inflation and Red Sea freight cost disruptions
  • Customer price revisions have been implemented with benefits expected to materialize from Q3 FY27 onwards
  • Mexico JV losses are temporary and expected to reverse as operations reach breakeven
  • Focus remains on strengthening manufacturing capabilities, expanding customer relationships, and operational efficiency

Additional Information

  • The company changed name from Knack Packaging Private Limited to Knack Packaging Limited
  • Manufacturing facility at Borisana, Kadi, Mehsana, Gujarat
  • Products: PE/PP Woven Fabrics/Bags & Printed and Laminated Woven PP Bags (PLWPP)
  • Serves 28 sectors with exports to 75 countries