Financial Performance (Consolidated)

Q2FY27 Performance:

  • Revenue from Operations: ₹4,105 lakh (down 23% YoY from ₹5,337 lakh in Q2FY26)
  • Other Income: ₹102 lakh (up 28% YoY from ₹80 lakh)
  • COGS: ₹1,695 lakh (down 21% YoY from ₹2,143 lakh)
  • Gross Profit: ₹2,409 lakh (down 25% YoY from ₹3,194 lakh)
  • Gross Margin: 59% (down 115 bps from 60%)
  • Operating Expenses: ₹2,494 lakh (down 1% YoY from ₹2,517 lakh)
  • EBITDA: Loss of ₹85 lakh (down 113% from profit of ₹678 lakh)
  • EBITDA Margin: -2% (down 1,476 bps from 13%)
  • Finance Cost: ₹36 lakh (up 55% YoY from ₹23 lakh)
  • Depreciation: ₹119 lakh (up 18% YoY from ₹102 lakh)
  • Profit before Tax: Loss of ₹137 lakh (down 122% from profit of ₹633 lakh)
  • Profit after Tax: Loss of ₹105 lakh (down 123% from profit of ₹453 lakh)
  • PAT Margin: -3% (down 1,087 bps from 8%)
  • Basic EPS: -₹0.43 (down 123% from ₹1.84)

H1FY27 Performance:

  • Revenue from Operations: ₹7,732 lakh (down 16% YoY from ₹9,203 lakh in H1FY26)
  • Other Income: ₹280 lakh (up 22% YoY from ₹229 lakh)
  • COGS: ₹3,098 lakh (down 14% YoY from ₹3,597 lakh)
  • Gross Profit: ₹4,634 lakh (down 17% YoY from ₹5,606 lakh)
  • Gross Margin: 60% (down 99 bps from 61%)
  • Operating Expenses: ₹5,189 lakh (up 12% YoY from ₹4,619 lakh)
  • EBITDA: Loss of ₹555 lakh (down 156% from profit of ₹987 lakh)
  • EBITDA Margin: -7% (down 1,791 bps from 11%)
  • Finance Cost: ₹57 lakh (up 61% YoY from ₹35 lakh)
  • Depreciation: ₹227 lakh (up 24% YoY from ₹183 lakh)
  • Profit before Tax: Loss of ₹558 lakh (down 156% from profit of ₹998 lakh)
  • Profit after Tax: Loss of ₹452 lakh (down 163% from profit of ₹718 lakh)
  • PAT Margin: -6% (down 1,325 bps from 8%)
  • Basic EPS: -₹1.84 (down 163% from ₹2.92)

Management Commentary

Revenue decline was attributed to macroeconomic factors (elevated crude oil and polymer prices straining customer working capital) and company-specific factors (flooding at Ahmedabad plant causing 5-day shutdown in late July and 5-6 weeks of operational disturbance).

Management expects FY27 revenue to be on par with FY26 (₹23,300 lakh) through higher execution and dispatches in H2FY27. The Converting business is in line with annual targets, while Packaging and Co-extrusion are expected to pick up pace in H2. Domestic packaging demand remains firm, but US business faces persistent headwinds.

Profitability pressure came from lower revenue and higher operating expenses. Other Expenses increased 18% YoY in H1FY27 (including higher exhibition costs in Q1), while Employee Benefit Expenses rose 7%.

Operational Highlights

  • RecTech recyclable film technology received 100% Recyclability Certification in the European Union from Institut cyclos-HTP GmbH in August 2026
  • RecTech received APR Design® for Recyclability Recognition from the Association of Plastic Recyclers (APR), USA in October 2026
  • Two patents granted in India in August 2026 for technologies used in HFFS and Quadra 600 machines

Strategic Priorities

Long-term focus remains on: entering new export markets for packaging, expanding product base into new categories, and optimizing operating costs.

Business Overview

  • India's leading converting machinery player and among top 5 globally
  • Leading domestic player in Packaging machinery
  • 5,400+ global machine installations across 80+ countries
  • 63% of revenue from exports
  • Net-debt free balance sheet with healthy cash reserves
  • 198 team members in India with 17 in USA subsidiary
  • DSIR recognized in-house R&D center

Capital Markets Overview (as of November 6, 2026)

  • Current Market Price: ₹320
  • 52-week High/Low: ₹455/297
  • Market Capitalization: ₹788 crore
  • Shares Outstanding: 2.46 crore