Financial Performance Highlights

Q4 FY26 Financials:

  • Revenue: ₹7,375 lakhs
  • EBITDA: ₹71 lakhs
  • PAT: ₹1 lakh

Full Year FY26 Performance:

  • Revenue from Operations declined approximately 8% Year-over-Year (YoY)
  • Profitability compressed significantly (specific percentage not quantified beyond "sharply")

Key Factors Impacting Performance

Revenue Decline Drivers:

  • US business declined nearly 50% in absolute terms during the year
  • US is the company's largest export market
  • Tariff disruption occurred during Q2 & Q3 (highest order intake period)
  • West Asia conflict created fresh uncertainty putting customer projects on hold
  • Sharp rise in polymer prices stretched customers' working capital cycles and delayed capex decisions

Profitability Compression Factors:

  • Lower export mix (exports are higher margin business)
  • Adverse product mix
  • Commodity price inflation
  • One-time provisioning of approximately ₹3.05 crore in Employee Benefit Expenses due to recent labour code amendments
  • Exhibition expenses increased to ₹10.2 crore from ₹6.2 crore (several marquee exhibitions in FY26)
  • Negative operating leverage from lower top line

Operational Highlights and Business Developments

Packaging Division Performance:

  • Remains key growth driver
  • Secured significant multi-machine order for VFFS packaging machines from leading Indian snacks and namkeen brand
  • Received first packaging machine order from South Africa (outside traditional US & India markets)

Market Expansion:

  • Africa identified as first new market to show results
  • Maiden appearance at Interpack 2026 in Düsseldorf to showcase packaging technology portfolio and strengthen international footprint
  • Targeting European market expansion

Technology Innovation:

  • Launched RecTech at Plastindia 2026 - advanced fully recyclable mono-material film
  • Technology delivers superior barrier protection and mechanical performance compared to conventional non-recyclable composite structures (PET+PE and PET+MPET+PE)

Management Commentary and Outlook

FY26 Assessment:

  • Year of consolidation
  • Underlying business health remains strong despite reported declines
  • Organization demonstrated agility in absorbing nearly 50% US market decline within same year

FY27 Expectations:

  • Return to growth track
  • Profitability normalization expected
  • Priority to recoup lost ground in US market
  • US market becoming more conducive following amendments to tariff policy

Growth Strategies:

  • Pursuing growth in domestic converting business
  • Scaling packaging business through new geographies and new channel partners
  • Other strategic initiatives underway
  • Packaging growth story and strategic direction remain intact

Company Background

Mamata Machinery Limited is a leading global provider of total flexible packaging machinery solutions offering comprehensive range across value-chain from co-extrusion to converting and advanced packaging machinery.

Key Company Statistics:

  • Over 35 years of industry experience
  • More than 5,400 machine installations in 80 countries worldwide
  • Known for consistent innovation and industry-first product introductions

Forward-Looking Statements Disclaimer

The document contains forward-looking statements subject to risks and uncertainties including government actions, local/political/economic developments, technological risks, and other factors that could cause actual results to differ materially from contemplated results.