Financial Performance Highlights

Q1 FY27 Results (Quarter Ended June 30, 2026)

  • Total Income: INR 9,532.78 lakhs, representing 11.62% YoY growth from INR 8,540.39 lakhs in Q1 FY26
  • EBITDA: INR 1,549.48 lakhs, showing 209.50% YoY growth
  • EBITDA Margin: 16.29%, expanding by 1041 basis points from 5.87% in Q1 FY26
  • Net Profit: INR 873.83 lakhs, registering 566.23% YoY growth from INR 131.16 lakhs in Q1 FY26
  • Net Profit Margin: 9.18% compared to 1.54% in corresponding quarter last year
  • Earnings Per Share: INR 6.44 compared to INR 0.97 in Q1 FY26

Sequential Performance

  • EBITDA increased from INR 1,422.74 lakhs in Q4 FY26 to INR 1,549.48 lakhs in Q1 FY27
  • Net Profit increased from INR 771.73 lakhs in Q4 FY26 to INR 873.83 lakhs in Q1 FY27

Operational and Strategic Updates

Capacity Expansion

  • Proposed addition of 3,550 metric tons per annum to existing manufacturing capacity
  • Existing capacity: 32,450 metric tons per annum
  • New capacity is already operational as of the conference call date
  • Capex requirement for expansion: Approximately INR 2 crores
  • Funding: Through internal accruals and debt
  • FY26 capacity utilization stood at 64%

Manufacturing Infrastructure

  • Four manufacturing facilities operational
  • 53 blow molding machines
  • 22 injection molding machines
  • Serves multiple industries: pharmaceuticals, chemicals, agrochemical, FMCG, food, healthcare

Product Portfolio

  • Three main verticals: containers, furniture parts, and other products
  • Healthcare furniture under Furnastra brand contributes approximately 19.8% of revenue
  • Packaging portfolio includes paint containers, jerry cans, specialized caps and closures
  • Approximately 500 SKUs with ongoing rationalization of low-margin products

Export Business

  • Export presence across 17 countries
  • Export contribution: Approximately 2% of total revenue
  • Domestic revenue: Approximately 98%

Customer Base

  • More than 700 customers
  • Added more than 30+ customers in Q1 FY27
  • Added more than 150 customers in the previous year

Forward-Looking Guidance

  • Long-term revenue target: INR 1,000 crores by FY28
  • Focus on profitability (bottom line) rather than top-line growth
  • Sustainable EBITDA margin guidance: 10-12% (though Q1 was 16.29%)
  • IBC (Intermediate Bulk Container) project expected to start commercial production in Q3 FY27

Raw Material and Pricing Strategy

  • Company has stopped buying imported raw materials
  • Sources locally from Indian producers
  • Raw material price increases are passed through to customers
  • Pricing adjustments typically occur on monthly basis
  • Cost-plus markup arrangement with clients

Q&A Session Key Points

Margin Sustainability

  • Management attributes margin improvement to operational efficiency, product mix optimization, and value engineering
  • Geopolitical situation affecting raw material prices, but company maintains good relationships with local suppliers
  • Double-digit EBITDA margins expected to be sustainable

Growth Strategy

  • Focus on all three product verticals (containers, furniture, others)
  • Adding new customers while managing existing relationships for better profitability
  • 80-20 revenue mix between packaging and healthcare furniture expected to continue

Capacity Utilization

  • Seasonality affects capacity utilization (can reach 85% in some quarters)
  • Capacity expansion planned ahead due to 6-9 month lead time for machinery procurement and commissioning

Recent Fundraising

  • Warrant allotment to Rikhav Securities Limited (2 lakh warrants)
  • Funds to be used for working capital requirements
  • Rikhav Securities has no existing investment or advisory relationship with the company

IBC Project

  • Complete new machinery required
  • Separate from existing capacity
  • Investment details to be announced later

Management Participants

  • Mr. Manish Dedhia – Managing Director and Chief Financial Officer
  • Ms. Kashmira Dedhia – Vice President – Finance and Accounts
  • Moderator: Mr. Karan Thakur – Kirin Advisors Private Limited