Volume Growth: Q2 FY27 sales volumes increased by 10.1% compared to Q2 FY26.
Profit Growth: Profits jumped by 36% YoY in Q2 FY27.
EBITDA per kg: Reached ₹46.5 in Q2 FY27, representing an 18% improvement from approximately ₹39 in Q2 FY26.
Segment Performance:
Pharma: 26.3% volume growth
Food and FMCG: 23.7% volume growth
Paints: Approximately 9% volume growth (8.6% specifically mentioned), 26% value growth
Lubricants: 12.3% volume decline
Capacity: Current capacity at 66,900 tons; expected to reach 70,000 tons by beginning of next financial year.
Finance Cost: Increased to approximately 5% of total revenue from 4.1%, attributed to higher working capital requirements due to elevated raw material prices.
Inventory Days: Carrying time is 52 days (approximately 25 days raw material, 25-27 days semi-finished and finished goods).
Operational and Strategic Updates
Hyderabad Consolidation: Consolidation of units at Hyderabad for IML label production under one roof resulted in considerable cost savings and improved efficiencies.
Sultanpur Unit: Removal of a couple of production units and clubbing them in the Sultanpur unit improved overall performance and cost controls.
Panipat Plant: Started picking up clients; expected to show good numbers from Northern region starting January-February 2027.
Iodex Project: Cleared after being on hold for over 3 years; chain molds getting ready by November 2026; commercial production of Iodex balm packs expected to start in December 2026 or January 2027.
New Products: Three new products under development for 3 MNCs with sizable quantities; expected launch in end of December 2026 or January 2027.
Future Growth Initiatives
Ophthalmic Eye Dropper Packs: Molds ordered; some molds being made in-house; expected to be ready by January 2027 with trial runs taking 2 months; product ready for testing and commercial production by March 2027; expected to contribute revenues in next financial year.
Semiconductor Trays: In touch with 3-4 top semiconductor companies coming up in India; discussing specifications, volumes and timelines; expected business to materialize in bigger way in FY28-29 onwards; management traveling to China and Korea next month to explore partnerships; requires variety of JEDEC trays.
Vibe (Specialty Closures): Seven products developed and approved by Vibe; undergoing client trials in November 2026; if successful, commercial molds to be made (4 months process); expected commercial production by March-April 2027; targeting ₹50-60 crores top line in 2 years with ~30% EBITDA margin; Phase 1 investment of ₹10-15 crores expected.
Auto-injector Pens: Development ongoing; samples being assessed by clients; working with patent owners in China; may start as trading initially; targeted for domestic pharma companies manufacturing diabetes or semaglutide products.
Guidance and Outlook
Volume Growth: Targeting double-digit volume growth for FY27 (currently at 8% for H1 FY27); confident of maintaining growth momentum.
EBITDA per kg: Confident of maintaining ₹45-₹46 range for full year FY27; targeting ₹50 EBITDA per kg in coming 2-3 years.
Segment Expectations:
Paint: Possible double-digit growth (10-11%) for full year
Pharma: On track to reach ₹50+ crores turnover in FY27 (₹24 crores in H1 FY27); targeting ₹70-75 crores for next financial year
Food and FMCG: Expected to maintain strong performance with new product additions
Financial Targets:
Aiming for EBITDA of ₹250 crores in FY27 (vs ₹173 crores in FY26)
Capex: ₹75-80 crores for full year FY27 (₹60 crores already spent in first 7 months)
Expecting cash surplus and potential reduction in long-term debt by year-end
