Pakka Limited – Investor Presentation Summary

Key Operational Highlights

  • Achieved highest ever quarterly revenue of ₹119.60 crore in Q1 FY27
  • Project Jagriti progress at 85% completion with PM4 commissioning targeted for November 2026
  • New power boiler and recovery boiler start-up scheduled for September 2026
  • 22 new cities and 34 accounts added in Food Services segment during Q1
  • Retail scaling approximately 3x with new chains added continuously
  • Delivery range developed with cost optimization underway
  • Large-scale trials in progress with marquee customers

Key drivers of operational performance: Expansion into new cities and accounts, retail scaling, product development including delivery range, and progress on Project Jagriti capacity expansion.

Segment-wise Performance

Wrap & Carry Segment:

  • Revenue: ₹101.14 crore (vs ₹70.49 crore in Q1 FY26, +43% YoY; vs ₹87.62 crore in Q4 FY26, +15% QoQ)
  • PBT: ₹10.39 crore (vs ₹7.15 crore in Q1 FY26, +45% YoY; vs ₹12.42 crore in Q4 FY26, -16% QoQ)

Food Services Segment:

  • Revenue: ₹18.45 crore
  • PBT: -₹1.62 crore (vs -₹0.61 crore in Q1 FY26; vs -₹6.91 crore in Q4 FY26)

Explanation of significant changes in segment performance: Wrap & Carry segment showed strong growth driven by market expansion, while Food Services significantly reduced losses compared to previous quarter despite slight increase in losses year-over-year.

Financial Highlights

Revenue: ₹119.60 crore

EBITDA: ₹17.85 crore

PBT: ₹8.77 crore

YoY/QoQ comparison:

  • Revenue: +42% YoY vs Q1 FY26 (₹84.26 crore), +14% QoQ vs Q4 FY26 (₹104.49 crore)
  • EBITDA: +31% YoY vs Q1 FY26 (₹13.61 crore), +36% QoQ vs Q4 FY26 (₹13.11 crore)
  • PBT: +34% YoY vs Q1 FY26 (₹6.54 crore), +59% QoQ vs Q4 FY26 (₹5.52 crore)

Drivers of financial performance: Higher revenue growth across segments, operational efficiencies, and reduced losses in Food Services segment.

Key Risks: Middle-East market crises, high cost of finance, product adoptability in the market.

Geographical Revenue Split

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Balance Sheet Snapshot

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Capex & Cash Flow Health

Capital Expenditure: Project Jagriti ongoing with 85% major equipment work completed

Investment Rationale: Focus on capacity expansion with PM4 commissioning, new boiler systems, and delivery container facility setup

Strategic & R&D Initiatives

Investments in Innovation: Building Pakka Centre for Material Sciences with focus on Base Materials, Biotech, Conversion, Biodegradation, and Valorization

Collaborations: Incubation, Acceleration, Global R&D, Customers, Convertors

Exploration: LLM Building, Cross Pollination, Biomimicry, Fermentation, Design

Talent Attraction: Global University tie-ups, Infrastructure, Facilities, Internships, Leadership

Applications: Flexibles (Wrap, Carry, Food Service) and Rigids

Expected impact on growth: New product categories to widen customer base and improve margins

Strategic Rationale: Expanding material science capabilities to drive innovation in sustainable packaging solutions

Industry Trends & Business Environment

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Management Commentary & Growth Outlook

Strategic Outlook: "The growth trend will continue through the year – and with fixed costs holding, we expect to break after years of losses" for Food Services segment

FY Guidance: Continued growth through festive season, break-even for Food Services segment

Risks and Opportunities: Middle-East market challenges being addressed by exploring alternative markets in Australia, timely PM4 commissioning critical

Q2 2026 Commitments:

  • Jagriti: Commission Recovery & Power, PM4 readiness
  • Delivery: Set up initial facility for launch
  • Innovations: Establish Material Science Centre
  • flexC: Pilot trials complete and soft launch
  • Profitability: Effective performance

ESG Updates

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Digital Transformation

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