• Event Type: Investors' Conference Call to discuss fourth quarter and financial year ended 31st March, 2026 results.
  • Date and Time: Tuesday, 2nd June, 2026 at 04:00 p.m. IST.
  • Purpose: Discussion of financial performance for Q4 and FY26, challenges faced, funding update, project status, and future outlook.
  • Management Participants:
  • Ved Krishna (Group Lead)
  • Mayank Jindal (Manufacturing Business Head)
  • Shubham Tibrewal (Food Services Business Head)
  • Neetika Suryawanshi (Finance Head)
  • Himanshu Kapoor (Non-Independent, Non-Executive Director)
  • Pranay Pasricha (Brand and Marketing Lead)
  • Transcript Availability: The transcript has been made available on the company website at https://pakka.com/ as required under SEBI LODR Regulations.
  • UPSI Statement: The company did not explicitly state that no unpublished price sensitive information would be shared during the call.

Financial Highlights Discussed

Wrap and Carry Business (Paper):

  • Q4 FY26 revenue increased by 8% YoY and 4% QoQ
  • FY26 overall revenue declined by 13% YoY primarily due to PM3 machine shutdown
  • PM3 outage (40 days vs planned 20 days) impacted PBT by ₹11 crore
  • Pricing pressure from new entrants impacted NSR by ₹16 crore
  • Planned PM3 modification in June 2026 expected to increase production by 10 tons/day and boost PBT by ₹8 crore

Food Services Business:

  • Q4 FY26 revenue: ₹17 crore vs ₹11.5 crore YoY (significant growth)
  • Volume growth: 20% YoY (2,600 to 3,100 tons)
  • Expanded to 25 new cities across India
  • B2C channel grew 2.5x from ₹2.5 crore to ₹6.5 crore
  • PBT negatively impacted by ₹3 crore plant issues and ₹3 crore one-off write-offs

Project Updates

Project Jagriti Status:

  • New paper machine (PM4) installation underway
  • New recovery boiler and power boiler (15 MW turbine) being erected
  • Power plant and recovery boiler commissioning expected in July 2026
  • Paper machine expected to be producing by end of September 2026
  • Total project cost approximately ₹700 crore

Funding Update:

  • ₹540 crore refinancing secured from Neo Group (₹500 crore NCD + ₹40 crore greenshoe)
  • Promoter infusion of ₹85 crore through optionally convertible instruments
  • Neo Group equity investment of ₹30 crore
  • Security: First charge on fixed assets, second charge on current assets, personal and corporate guarantees
  • Terms: 4-month moratorium, no principal repayment for 16 months, 12% interest with effective rate of 16.95%

Strategic Initiatives

  • Focus on stabilizing India operations before international expansion
  • Asset-light expansion model through outsourcing partnerships (target: 500 tons/month)
  • Bangalore innovation facility moving to Ayodhya within 2 months
  • Food services business transformation through outsourcing sites to reduce costs and optimize freight
  • New product development: delivery containers, non-metallized flexible packaging, barrier coating papers
  • Cost optimization program across the organization

Forward Outlook

  • Project Jagriti commissioning and stabilization targeted for FY27
  • Target 60%+ production capacity utilization by end of FY27
  • Focus on higher contribution products and better product mix
  • EBITDA margin target of 22-25% in medium term
  • Planned in-person investor meet in Ayodhya in October 2026

Additional Notes

  • The document includes the full transcript of the investors' conference call as an enclosure
  • No actual financial statements or detailed financial data were included in the announcement itself
  • The company addressed multiple investor questions regarding funding structure, project timelines, product focus, and market conditions
  • Management acknowledged challenges and expressed commitment to regaining investor confidence