Financial Performance Summary

Revenue:

  • Revenue from Operations for Q1FY27 was ₹3,628 lakhs
  • This represents a 6% year-over-year (YoY) decline

Profitability:

  • EBITDA for the quarter was negative ₹(470) lakhs
  • Gross margins remained healthy and registered an increase on both YoY and quarter-over-quarter (QoQ) basis

Performance Drivers and Challenges

Revenue Decline Causes:

  • Slower execution as customers deferred machine deliveries
  • Continued effects of polymer price escalation triggered by the West Asia crisis
  • Significant rise in polymer prices increased working capital requirements for customers, particularly the converter category
  • Customers diverted capital from CAPEX projects towards immediate working capital needs
  • Customers requested push back deliveries, making revenue booking and dispatches challenging in the near term

Profitability Impact Factors:

  • Other Expenses were higher due to exhibitions and trade shows during the quarter, including presence at Interpack 2026 in Düsseldorf in May
  • Employee Benefit Expenses registered some increase
  • These costs weighed on EBITDA during the quarter

Operational and Business Metrics

Order Intake & Visibility:

  • Order intake remained healthy during the quarter
  • Business visibility remained healthy, in line with business outlook for FY27
  • Healthy order backlog at the end of FY26

Technology Development:

  • RecTech recyclable film technology received 100% Recyclability Certification in the European Union in August 2026
  • Awaiting certification from the Association of Plastic Recyclers (APR), USA

Management Commentary

Near-term Outlook:

  • Expect execution to pick up in the latter part of the year as working capital pressures subside
  • Exhibition and trade show expenses should normalize as a percentage of the top line over the rest of the year

Business Outlook:

  • Cautiously optimistic about business outlook for FY27
  • Some headwinds from previous year (such as tariffs) have subsided
  • Newer headwinds have emerged in the form of the West Asia crisis
  • Company is navigating these strategically, ensuring business growth while maintaining a robust balance sheet position

Company Background

Mamata Machinery Limited is a leading global provider of total flexible packaging machinery solutions offering comprehensive range of products across the value-chain from co-extrusion to converting and advanced packaging machinery. The company has over 35 years of industry experience with more than 5,400 machine installations in 80 countries worldwide.