AGI Greenpac Limited — Q2 FY26 earnings call

Call held 23 Oct 2025

Management summary

AGI Greenpac delivered robust H1 FY26 performance with strong revenue and net profit growth, driven by operational efficiency and product premiumization. Q2 saw marginal revenue growth but significant margin expansion. The company is executing major capacity expansion projects for glass and aluminum cans, funded by internal accruals and debt, with potential equity raise. Management expects H2 FY26 to be stronger than H1.

Highlights

  • H1 FY26 Revenue from Operations (excl. Other Income) grew by a solid 10.6% year-on-year, rising to ₹1,289 crore.

  • H1 FY26 Net Profit surged by 21.9% year-on-year to ₹165 crore.

  • Q2 FY26 EBITDA margin (excluding other income) was a healthy 24.9%, representing a significant 250 basis point jump compared to Q1's 22.4%.

  • Completed a term loan prepayment of ₹193 crore in July 2025, substantially reducing term loan borrowings to just ₹233 crore as of September 2025.

  • Production capacity utilization remained high at around 95% in Q2 FY26.

Concerns

  • Q2 FY26 revenue from operations increased marginally by 0.4% year-on-year to ₹602 crore, with sequential decline from Q1.

  • Sales volume in Q2 was slightly impacted by higher intensity of monsoons and flooding in various states.

  • Temporary increase in current assets holding days by around 15 days as of September 2025, though expected to normalize.

Key financials

2 periods

Q2 FY26

  • Revenue from Operations
    ₹602 Cr
    YoY +0.4%
  • EBITDA
    ₹150 Cr
  • EBITDA Margin (excl. Other Income)
    24.9%
    QoQ +2.5%
  • Net Profit
    ₹76 Cr
    YoY +5.6%

H1

  • FY26 Revenue from Operations (excl. Other Income)
    ₹1,289 Cr
    YoY +10.6%
  • FY26 EBITDA (excl. Other Income)
    ₹292 Cr
  • FY26 Net Profit
    ₹165 Cr
    YoY +21.9%

What they filed

Q1 FY27: revenue up 14.1%, net profit up 11.2% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue599 658 705 688 602 +1%634 −4%742 +5%785 +14%
EBITDA154 169 154 142 150 −3%150 −11%153 −1%175 +23%
Net profit72 91 97 89 76 +6%71 −22%115 +19%99 +11%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

low confidence
The company manufactures packaging products and does not report an 'order book' in the traditional capital goods sense of project-based orders. Discussions revolve around production capacity, utilization, and market demand for packaging products.

Source: Inferred

Capital allocation

high confidence
  • Capex ₹1,900 Cr Mix of internal accruals (₹1,000-1,200 crores over 3 years) and long-term debt, with potential equity raise.
    • North India Greenfield Glass Plant (Madhya Pradesh) ₹700 Cr
    • Aluminum Beverage CAN facility (Uttar Pradesh) - Phase 1 ₹850 Cr
    • Existing facilities debottlenecking/expansion (Container & Specialty Glass) ₹50 Cr
    • Caps and Closures business expansion and other unspecified for next 2 years ₹300 Cr
    Sandeep Sikka: "We would be spending around Rs. 50 crores on the de-bottlenecking exercise. Apart from this, we are also undertaking some expansion for our caps and closures business. The overall spend in the next one year, I think, on a rolling basis excluding Gwalior plant or Aluminum beverage CAN, should be in range of odd Rs. 120 crores to Rs. 150 crores." and "If I add up, let's say we benchmark Rs. 700 crores for the expansion of container glass, another Rs. 850 crores on the Aluminum beverage CAN, Rs. 150 crores on the other de-bottlenecking and the expansion which we already spoken of, and take another Rs. 100 crores each for the remaining 2 years. So the total is 900 plus. That is somewhere around Rs. 1,900 to Rs. 2,000 crores of CAPEX happening in March '28. Even without an equity, let's say even if the current state of operations going through the way we have been generating EBITDA and I'll benchmark last year numbers, let's say we generate around Rs. 425 crores-Rs. 450 crores of cash flow from operations before the CAPEX and before any working capital adjustments, so in the span of three years, we should have let's say Rs. 1,000 crores to Rs. 1200 crores bare minimum coming from this. And we can easily take a debt because assuming even the current run rate of EBITDA of somewhere around Rs. 650 crores to Rs. 700 crores, two times debt is around Rs. 1,300 crores. We have a fair headroom to punch in the growth, which is targeted by the management."
  • Debt Debt disclosed
    • Repayment Term loan prepayment in July 2025. ₹193 Cr
    Om Prakash Pandey: "This has substantially reduced our term loan borrowings to just 233 crore as of September 2025, significantly strengthening our financial position."

Guidance & targets

Profitability

  • EBITDA Margin Enhancement (overall) Profitability · next 24 months · Medium confidence 1-2%
    Sandeep Sikka: "We have already gone on record to various media by saying, if everything gets implemented, we should be able to further enhance our EBITDA margins ranging around 1% to 2% in next 24 months before the other project starts coming in."

    — Sandeep Sikka

  • Specialty Glass EBITDA Margin Expansion Profitability · next 18 months · High confidence 4-5%
    Sandeep Sikka: "There, for the EBITDA margin expansion, you can easily consider maybe 4% to 5% over the next 18 months happening on the specialty glass."

    — Sandeep Sikka

Revenue

  • Revenue Growth Revenue · next two years · High confidence 8-10%
    Sandeep Sikka: "We should continue for the next two years to grow in a range of around 8% to 10% every year."

    — Sandeep Sikka

Volume

  • Volume Growth (post Gwalior plant) Volume · after next two years · High confidence 25% more volume
    Sandeep Sikka: "And after that, the Gwalior project will come, and after that, the Aluminum beverage CAN project will come. We have a series of growth benchmarked for each year. For financial year, let's say FY'25-'26, 8% to 10%, FY'26-'27, another 8% to 10%, and then followed by we will have a 25% more volume."

    — Sandeep Sikka

Capacity

  • Container Glass Capacity Capacity · by March 2026 · High confidence 1,900 TPD

    From 1,850 TPD today

    Rajesh Khosla: "Our Container Glass capacity will increase from 1,850 TPD to 1,900 TPD, while our Specialty Glass capacity will see a significant expansion from 154 TPD to 200 TPD – further strengthening our ability to serve both mass and premium segments effectively."

    — Rajesh Khosla

  • Specialty Glass Capacity Capacity · by March 2026 · High confidence 200 TPD

    From 154 TPD today

    — Rajesh Khosla

  • North India Greenfield Glass Plant Capacity Capacity · by March 2027 · High confidence 500 TPD
    Rajesh Khosla: "The project is on track to be operational by March 2027 and will add 500 TPD of new capacity - a 25% increase in our overall glass production - taking our total to 2,600 TPD."

    — Rajesh Khosla

  • Aluminum Beverage CAN Capacity (Phase 1) Capacity · by Q3 FY28 · High confidence 950 million CANS
    Rajesh Khosla: "The facility will be developed in two phases, starting with an annual capacity of 950 million CANS and scaling up to 1.6 billion CANS by FY30."

    — Rajesh Khosla

  • Aluminum Beverage CAN Capacity (Phase 2) Capacity · by FY30 · High confidence 1.6 billion CANS

    — Rajesh Khosla

Market Share

  • Export Percentage (total) Market Share · Medium confidence 10-15%

    From 5-7% today

    Rajesh Khosla: "As on today, our export percentage falls anywhere between 5% to 7%. We have an aspiration of increasing our export to 10% to 15%, total."

    — Rajesh Khosla

  • Specialty Glass Export Percentage Market Share · Medium confidence 40%
    Rajesh Khosla: "In a specialty glass, this percentage is quite high. And we have an aspiration of taking this percentage to 40% in the specialty glass."

    — Rajesh Khosla

What to watch in Q3 FY26

Working Capital Normalization

next 1-2 quarters
Current Increased by ~15 days as of Sep 30, 2025
Target Normalization to previous levels

Why it matters

To ensure efficient cash flow management and reduce capital blockage.

Om Prakash Pandey: "These current assets holding levels will normalize during next 1-2 quarters in line with last year's numbers."

Risks & concerns

  • Global market instability affecting exports

    medium

    USA tariffs, Europe FTA settlement, and geopolitics create instability, making export growth challenging despite aspirations.

    Rajesh Khosla: "looking to the instability in the global market as on today, for example, like USA has a tariff, Europe, we have yet to settle with the FTA agreement, and other areas there are some disturbances because of either war, or because of geopolitics."

    Management acknowledged

  • Temporary impact on sales volume due to monsoons and flooding

    low

    Q2 sales volume was slightly impacted by higher intensity of monsoons and flooding in various states.

    Om Prakash Pandey: "This year, we also saw a slight impact on sales volume due to the higher intensity of monsoons and flooding in various states."

    Management acknowledged

  • Temporary increase in current assets holding days

    low

    Current assets holding days increased by ~15 days as of Sep 30, 2025, but expected to normalize in 1-2 quarters.

    Om Prakash Pandey: "There has been a temporary increase in our current assets holding days by around 15 days as on 30th September 2025 as compared to corresponding last year's figures. These current assets holding levels will normalize during next 1-2 quarters in line with last year's numbers."

    Management acknowledged

  • Software blip affecting debtor days

    low

    A temporary software issue delayed bill uploads for major customers, causing an increase in receivables, but it has since normalized.

    Om Prakash Pandey: "Coming to the receivable, there was a certain blip in the software of some of the major customers where the uploading of the bill was delayed which was subsequently uploaded but could not meet the schedule of payment cycle of customer. However the payment has come in the first week after the end of the quarter. So it will become normal going forward."

    Management acknowledged

Q&A highlights

7 direct
Aluminum Beverage CAN plant breakeven and ROCE Direct
Sandeep Sikka: "Most of these facilities which we do, they should break even at somewhere around 65%-70% capacity utilization. There are some initial fixed costs which are attached to all plants and they generally get captured ranging between 60%-70%. The factor was higher for the glass but for the Aluminum segment, I think 60%-65% is where the breakeven should happen.

Provides clarity on the financial viability and operational threshold for the new Aluminum CAN business.

Asked by Rehan Syed

Impact of debottlenecking on EBITDA margins Direct
Sandeep Sikka: "On the specialty glass, there, for the EBITDA margin expansion, you can easily consider maybe 4% to 5% over the next 18 months happening on the specialty glass.

Quantifies the expected margin improvement from strategic capacity enhancements, particularly in the higher-value specialty glass segment.

Asked by Rehan Syed

Potential removal of import curbs on beer cans and impact on AGI's plans Direct
Rajesh Khosla: "So, it will be very, very expensive because of the freight element and taxation elements and other local freight elements. And they are not at all viable, but they are only to fill up the gap. So, it is a very good thing that the market is going to grow. And for us, when we will enter into this market by FY27, so there will be a ready-made platter for us and we do not have to do anything. We just have to replace the imports, whatever is coming.

Addresses a potential competitive threat and explains why imports are not a long-term concern for AGI, while highlighting the growing market opportunity for their upcoming CAN facility.

Asked by Parikshit Gupta

Finalization of terms for equity raise Partial
Sandeep Sikka: "The board passed a resolution to raise equity through various instruments. And we are in process of seeking shareholder approval also and I think it is already up with the shareholders. The plan is that we may raise this in the next 12 months. We are just trying to see how market stabilizes and how we plan it. Right now, it is difficult for us to give a guidance on this, but I think maybe in next 3 to 6 months, we should be there.

Provides an update on the company's capital raising plans, indicating a timeline for more definitive information on the equity issuance.

Asked by Parikshit Gupta

Revenue loss during debottlenecking process Direct
Rajesh Khosla: "So, for all practical purposes, it is not to be taken in account and everything remains standstill. So, these are up and downs only because of the small adjustment or synchronization of the new machinery to the old machinery. And same thing is applicable in the, what do you call, commercial glass. But in the commercial glass, whatever is 1,850 ton facility is there, that is distributed among four furnaces, and the debottlenecking has to be done in one of the furnaces. So, I do not see any remarkable any change or dip on any of the revenues because of this debottlenecking.

Reassures investors that the ongoing debottlenecking projects will not significantly impact revenue, mitigating concerns about short-term operational disruptions.

Asked by Parikshit Gupta

Total CAPEX required for all projects and funding strategy Direct
Sandeep Sikka: "So the total is 900 plus. That is somewhere around Rs. 1,900 to Rs. 2,000 crores of CAPEX happening in March '28. Even without an equity, let's say even if the current state of operations going through the way we have been generating EBITDA and I'll benchmark last year numbers, let's say we generate around Rs. 425 crores-Rs. 450 crores of cash flow from operations before the CAPEX and before any working capital adjustments, so in the span of three years, we should have let's say Rs. 1,000 crores to Rs. 1200 crores bare minimum coming from this. And we can easily take a debt because assuming even the current run rate of EBITDA of somewhere around Rs. 650 crores to Rs. 700 crores, two times debt is around Rs. 1,300 crores. We have a fair headroom to punch in the growth, which is targeted by the management.

Provides a comprehensive overview of the significant capital expenditure plans and the company's strategy to fund them through a mix of internal accruals and debt, with a clear indication of debt capacity.

Asked by Nishita

Reasons for increased inventory and debtors in H1 Direct
Om Prakash Pandey: "Actually, the inventory is on account of our continuity of the production, because the upcoming season of 3rd Quarter and 4th Quarter. So we stock the finished goods to be ready when the seasonal market demand in Q3 & Q4. So that is a temporary holding of stock of Finished goods that will get liquidated during the next coming quarters. Coming to the receivable, there was a certain blip in the software of some of the major customers where the uploading of the bill was delayed which was subsequently uploaded but could not meet the schedule of payment cycle of customer. However the payment has come in the first week after the end of the quarter. So it will become normal going forward.

Explains the temporary nature of working capital increases, attributing them to seasonal stocking and a one-off software issue, reassuring that these are not systemic problems.

Asked by Sheel Kumar Shah

Whether EBITDA per ton is fixed irrespective of raw material prices Direct
Rajesh Khosla: "No, madam. EBITDA per ton cannot be fixed with the customer. There are only basic and big raw materials, only those fluctuations are being neutralized by understanding and formulas. So, I don't think so anybody is going to fix up your EBITDA. Otherwise, a lot of what do you call, inefficiencies will be built up in the system. Nobody may like to do it.

Clarifies the company's pricing strategy and margin protection mechanism, indicating that while raw material fluctuations are managed, EBITDA is not fixed and continuous efficiency improvements are key to profitability.

Asked by Ishpreet Kaur

3 min read 6 chapters

Detailed narrative

Robust Half-Year Performance Driven by Strategic Focus

AGI Greenpac reported a strong H1 FY26, with Revenue from Operations (excluding Other Income) growing 10.6% YoY to ₹1,289 crore, up from ₹1,166 crore in H1 FY25. Net Profit saw a significant surge of 21.9% YoY, reaching ₹165 crore compared to ₹135 crore in the prior year. This performance is attributed to the company's focus on operational efficiency and product premiumization, expanding its footprint in high-margin segments like cosmetics, perfumery, and alco-beverage.

Q2 FY26 Margins Expand Despite Modest Revenue Growth

For Q2 FY26, revenue from operations increased marginally by 0.4% YoY to ₹602 crore. Despite this modest top-line growth and a slight impact on sales volume due to monsoons, the company achieved a healthy EBITDA margin (excluding Other Income) of 24.9%. This represents a significant 250 basis point improvement from Q1's 22.4%, reflecting improved efficiencies and a better product mix. Q2 Net Profit grew 5.6% YoY to ₹76 crore.

Aggressive Capacity Expansion and Diversification Plans

AGI Greenpac is undertaking several interconnected capacity expansion projects. The North India Greenfield Glass Plant in Madhya Pradesh, adding 500 TPD (25% increase) for a total of 2,600 TPD, is on track for March 2027 commissioning with an outlay of approximately ₹700 crore. The company is also making a strategic entry into the Aluminum Beverage CAN segment with a new facility in Uttar Pradesh, targeting 950 million CANS annual capacity by Q3 FY28 (Phase 1) and 1.6 billion CANS by FY30, with a Phase 1 outlay of around ₹850 crore. Existing facilities are undergoing debottlenecking, increasing Container Glass capacity from 1,850 TPD to 1,900 TPD and Specialty Glass from 154 TPD to 200 TPD by March 2026, with a spend of ₹50 crore.

Capital Expenditure and Funding Strategy

The total capital expenditure for all ongoing projects is estimated to be between ₹1,900 to ₹2,000 crore by March 2028. This includes ₹700 crore for the MP glass plant, ₹850 crore for the UP CAN facility, ₹50 crore for debottlenecking, and an additional ₹300 crore for other expansions over the next two years. The funding will be a mix of internal accruals, expected to generate ₹1,000-1,200 crore cash flow from operations over three years, and long-term debt. The company also has a fair headroom for debt, with current EBITDA run rate of ₹650-700 crore, implying a two-times debt capacity of ₹1,300 crore. An equity raise is also being considered, with clarity expected in 3-6 months.

Financial Prudence and Working Capital Management

The company demonstrated financial prudence by prepaying a term loan of ₹193 crore in July 2025, reducing total term loan borrowings to ₹233 crore as of September 2025. While there was a temporary increase in current assets holding days by about 15 days due to seasonal stock building for Q3/Q4 demand and a software blip affecting debtor collections, management expects these to normalize within the next 1-2 quarters. The company also prepaid some operational creditors by availing additional discounts.

Outlook on Growth and Margins

Management guided for revenue growth of 8-10% YoY for the next two years, followed by a 25% volume increase post the Gwalior plant commissioning. They anticipate an overall EBITDA margin enhancement of 1-2% in the next 24 months, with a more specific 4-5% EBITDA margin expansion targeted for the specialty glass segment over the next 18 months. The company maintains a high production capacity utilization of around 95% and aims to increase cullet usage beyond the current 40% to further improve energy efficiency.

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