Mixed quarter: revenue grew 9.2% YoY and EBITDA margin held near 17.4%, but PAT plunged 42.9% due to exceptional items, higher tax, and depreciation; export markets were subdued. quarter Investor Presentation One-Pager? Mar 2026

Revenue

₹465.2 Cr

+9.2% YoY (consolidated total income)

EBITDA Margin

17.4%

Down 42 bps YoY; raw material cost pressure

PAT

₹21.7 Cr

Down 42.9% YoY; hit by exceptional items of ₹2.22 Cr

Cash PAT

₹60.8 Cr

Up 5.0% YoY; depreciation up 11.8%

What Went Right

Consolidated total income rose 9.2% YoY to ₹465.2 Cr, driven by resilient domestic demand.
Flexible packaging business delivered strong capacity utilisation across plants; last commissioned line operating optimally.
Chennai Greenfield paperboard facility scaling up with encouraging customer traction.
EcoVadis Bronze Medal in debut assessment (top 35% globally) and UNGC commitment strengthen ESG positioning.
Cash profit grew 5.0% YoY to ₹60.8 Cr, supported by stable EBITDA generation.

What to Watch

PAT crashed 42.9% YoY to ₹21.7 Cr due to a ₹2.22 Cr exceptional item and a jump in tax expense (₹18.5 Cr vs ₹1.5 Cr in Q4 FY25).
EBITDA margin contracted 42 bps to 17.4% as raw material costs rose 14% YoY and pricing pass-through lagged.
Exports were impacted by geopolitical disruptions in the Middle East, weighing on overall revenue mix.
FY26 PAT fell 31.6% to ₹97.8 Cr; full-year finance costs surged 36.2% to ₹79.4 Cr, eroding profitability.
Exceptional items for FY26 totalled ₹13.79 Cr, a large drag on reported net income.

Investor Lens

This quarter exposed the gap between revenue growth and earnings quality. Despite a 9.2% revenue increase, PAT collapsed 42.9% because of exceptional items, higher taxes, and a 14% spike in raw material costs that squeezed margins 42 bps. The company acknowledges the cost pass-through lag and is banking on calibrated pricing actions and product mix improvements to restore margins. The 36.2% full-year finance cost jump is a concern, though net debt of ₹554.7 Cr against net worth of ₹1,293.5 Cr keeps leverage manageable. The export headwind from Middle East disruptions is temporary, with management expecting normalisation. The domestic volume story remains intact, and ESG credentials are improving, but near-term profitability will depend on how quickly costs are recovered and whether the exceptional charges recur. Next quarter's margin trajectory and export momentum will be critical to watch.

From investor presentation · AI-generated analysis · Not investment advice

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📉 WEAK Net profit drops 40% YoY, OPM falls to 15% despite revenue growth.

Revenue

Revenue for Mar 2026 quarter stood at ₹436.0 Cr, up 6.3% YoY from ₹410 Cr but down 3.8% QoQ from ₹453 Cr. The growth is moderate but sequential decline suggests demand softness.

Profitability

Net profit fell sharply by 40% YoY to ₹21.0 Cr (vs ₹35 Cr) and 16% QoQ. EPS dropped from ₹38.79 to ₹23.26. High effective tax rate of 47% further compressed bottom line.

Margins

Operating profit margin contracted to 15% from 17% a year ago and prior quarter, indicating cost pressures or pricing headwinds. Operating profit fell 4.3% YoY despite revenue growth.

Cash Flow

Cash flow data not provided in the results.

Balance Sheet

Total borrowings stand at ₹599 Cr with reserves of ₹711 Cr, resulting in a debt-to-equity ratio of 0.97, which is elevated. Total assets of ₹1,657 Cr reflect a leveraged capital structure.

Key Risks

High leverage (D/E 0.97) and falling profitability increase financial risk. The sharp 40% PAT decline and margin compression signal operational stress. Elevated tax rate of 47% may persist.

Outlook

Given weakening margins and rising debt, near-term earnings may remain under pressure unless revenue momentum improves significantly. Cost control and debt reduction will be critical for recovery.

Generated by AI · Mar 2026 results · Not investment advice

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