All Time Plastics Limited — Q1 FY26 earnings call

Call held 3 Sep 2025

Management summary

All Time Plastics Limited reported a strong Q1 FY26 with revenue growing 21.5% and EBITDA up 15.6%. The company is actively expanding capacity and acquiring new customers, while maintaining high capacity utilization. However, profitability ratios like ROCE and Fixed Asset Turnover saw a decline, attributed to pre-IPO equity and ongoing CAPEX investments.

Highlights

  • Revenue increased 21.5% YoY to ₹158 crores in Q1 FY26.

  • EBITDA grew 15.6% YoY to ₹29.4 crores.

  • PAT increased 4.9% YoY to ₹12.8 crores.

  • Capacity utilization reached 89.7%, an increase of 2.30% YoY.

  • Successfully acquired 12 new export customers and 10 new domestic customers.

Concerns

  • ROCE declined from 23.3% in Q1 FY25 to 19.5% in Q1 FY26 due to additional equity from the pre-IPO round.

  • Fixed Asset Turnover declined from 2.28% to 1.84% due to major CAPEX at the Khatalwada plant.

  • EBITDA margin saw a quarterly drop due to initial costs at the Khatalwada plant, though expected to improve.

  • Customer concentration risk with approximately 60% of sales coming from IKEA.

Key financials

  1. Revenue ₹158 Cr +21.5%YoY
  2. EBITDA ₹29.4 Cr +15.6%YoY
  3. PAT ₹12.8 Cr +4.9%YoY
  4. EBITDA Margin 18.5%
  5. ROCE 19.5%
  6. Capacity Utilization 89.7%

What they filed

Q1 FY27: revenue up 1.9%, net profit down 7.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue131 149 148 158 147 +12%159 +7%146 −1%161 +2%
EBITDA26 26 24 29 16 −38%24 −8%22 −8%23 −21%
Net profit13 12 10 13 4 −69%9 −25%9 −10%12 −8%
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.

Capital allocation

high confidence
  • Capex ₹113.7 Cr from IPO proceeds
    • Additional capacity installation at Khatalwada plant
    • Expansion of building and admin block at Khatalwada plant
    For the CAPEX, in IPO we have given Rs. 113.70 crores. So, we have already done the CAPEX and the remaining CAPEX is 113.7, which will be from the IPO proceeds.
  • Debt Debt disclosed
    The debt equity ratio in Q1 FY25 was 0.61 and in Q1 FY26 it is 0.64.

Guidance & targets

Capacity

  • Total annual capacity Capacity · by FY27 · High confidence 52,500 metric tons

    Previously 33,000 metric tons → 52,500 metric tons

    So, the total capacity will go from 33,000 to 52,500.

    — Manish Gattani

  • Additional capacity at Khatalwada-Manekpur plant Capacity · by end of FY26 · High confidence 16,500 metric tons
    Yes, financial year '27. So, this financial year '26, it will be 16,500. By end of financial year '26, 16,500 will be the capacity at Khatalwada-Manekpur plant.

    — Manish Gattani

Revenue

  • Revenue growth Revenue · going forward · Medium confidence maintain historical (~15% CAGR)
    We will be trying to maintain whatever we have been doing historically. We will try to maintain that. Till now, we are doing that and we are able to maintain that. So, we think we will be able to maintain in future also.

    — Manish Gattani

Brand Sales

  • Expansion of brand sales Brand Sales · ongoing · Medium confidence push more and more

    From 9% of sales today

    Yes, we have the focus on expanding the brand sales.

    — Nilesh Shah

New Initiatives

  • Bamboo project revenue New Initiatives · by FY26 · Medium confidence some revenue
    So we are expecting that something this year will definitely materialize by financial year '26. So we can see some revenue this year.

    — Manish Gattani

What to watch in Q2 FY26

EBITDA Margin Improvement

next quarter
Current 18.5% (Q1 FY26)
Target Improvement from Q1 levels

Why it matters

To confirm the expected benefits from increased utilization of the Khatalwada plant offsetting initial costs.

But now when we are, we will be utilizing the Khatalwada capacity now. So, it will definitely be better now.

Risks & concerns

  • Customer concentration

    medium

    Approximately 60% of sales come from IKEA, a single customer, without a formal long-term contract, though management highlights a 28-year relationship.

    Analyst downplayed

  • Potential US tariffs

    medium

    While currently no impact on orders or margins due to FOB terms, management acknowledges potential future impact and is taking measures and exploring other markets.

    Analyst acknowledged

  • Decline in profitability ratios

    low

    ROCE declined from 23.3% to 19.5% and Fixed Asset Turnover from 2.28% to 1.84%, attributed to pre-IPO equity infusion and major CAPEX, with expected improvement as assets are utilized.

    Management acknowledged

Q&A highlights

7 direct
EBITDA margin decline Direct
If we talk about the quarter, yes, definitely there is a drop. But then the reason was that this Khatalwada plant also started afterwards. So, the initial cost was there. But now when we are, we will be utilizing the Khatalwada capacity now. So, it will definitely be better now.

Clarified the reason for the quarterly EBITDA margin drop and indicated expected improvement with capacity utilization.

Asked by Amit

Capacity expansion timeline and CAPEX Direct
So, the total capacity will go from 33,000 to 52,500. For the CAPEX, in IPO we have given Rs. 113.70 crores. So, we have already done the CAPEX and the remaining CAPEX is 113.7, which will be from the IPO proceeds.

Provided specific targets for total capacity expansion by FY27 and detailed the funding source for the remaining CAPEX.

Asked by Amit

Customer concentration risk (IKEA) Direct
So, there is no long-standing contract with the customer. It is a relationship of 28 years. So, there is no such contract. It's just the relationship of 28 years and we are doing continuous business with them from last so many years.

Addressed concerns about high reliance on a single customer (IKEA) by emphasizing a long-standing relationship over formal contracts.

Asked by Raman K. V.

Impact of US tariffs Partial
And as of now, today there is no certainty about the tariff and as of now no clarity from our customer, nothing is there. But definitely, if it will be there, then impact will be there. But then we are taking our measures, whatever we can do, we are doing our best.

Acknowledged the potential risk of US tariffs but stated no current impact, while also indicating proactive mitigation efforts.

Asked by Akshay Chheda

New client ramp-up time Direct
So, the domestic customers join in very quickly and the turnaround time is hardly a few weeks. Whereas the clientele in the export business and who are big retail chains, they would take normally a period of about six months or a season change when they would like to join in hands.

Provided insight into the sales cycle and customer acquisition timelines for different client types.

Asked by Om Prakash

Brand sales expansion and margin profile Direct
So definitely, if you are selling your own brand, the margins are higher. But then it depends on the customer also. Like there are customers in domestic market also who are big. So the margin differs to customer and product.

Confirmed higher margins for own-brand sales and explained the factors influencing margin variability across customer and product mixes.

Asked by Raman K. V.

Bamboo project timeline and products Direct
So we are expecting that something this year will definitely materialize by financial year '26. So we can see some revenue this year. ... The products which we are going to be doing are more of homeware products, kitchenware products, like how we have been doing in plastic.

Provided a timeline for initial revenue from the pilot bamboo project and described the product categories being explored.

Asked by Amit

Dragon Bridge JV business Direct
So right now, the JV is signed. But right now, all the businesses which we're talking about are on our own. The takeoff of the JV will happen in future now.

Clarified that current new business is independent of the recently signed Dragon Bridge JV, indicating future potential for the JV.

Asked by Om Prakash

2 min read 6 chapters

Detailed narrative

Q1 FY26 Financial Performance Overview

All Time Plastics Limited reported a robust Q1 FY26 with revenue increasing 21.5% year-on-year to ₹158 crores, up from ₹130 crores in Q1 FY25. EBITDA also saw a healthy growth of 15.6% to ₹29.4 crores, resulting in an EBITDA margin of 18.5%. Despite this, the company experienced a decline in ROCE from 23.3% to 19.5% and Fixed Asset Turnover from 2.28% to 1.84%, primarily due to the additional equity introduced in the pre-IPO round and significant CAPEX at the Khatalwada plant.

Capacity Expansion and Utilization

The company maintained a high capacity utilization of 89.7% across its three plastic manufacturing facilities in Q1 FY26, an increase of 2.30% year-on-year. Strategic expansion plans are in motion, with an additional 4,000 metric tons of capacity currently under installation at the Khatalwada plant. The company aims to increase its total annual capacity from 33,000 metric tons to 52,500 metric tons by FY27, with the remaining ₹113.7 crores from IPO proceeds earmarked for this CAPEX.

Customer Acquisition and Market Strategy

In Q1 FY26, All Time Plastics successfully expanded its customer base by acquiring 12 new export customers, including one each in Europe and the USA, and 10 new domestic clients. Export sales constituted 83.6% of the total revenue. While IKEA remains a significant customer, accounting for approximately 60% of sales, management emphasized a 28-year relationship built on continuous business rather than a formal contract, mitigating concentration risk concerns.

New Product Development and Diversification

The company launched two new articles in the domestic market, contributing to higher SKU numbers. Beyond traditional plastic products, All Time Plastics is actively diversifying into new categories such as drinkware and silicon articles. A pilot project for bamboo-based homeware and kitchenware products, including items like chopping boards and bowls, is underway, with initial revenue expected to materialize by FY26.

US Tariffs and Risk Mitigation

Management addressed analyst concerns regarding potential US tariffs, clarifying that current export terms are Free On Board (FOB), meaning the tariff cost is borne by the customer, and thus there has been no immediate impact on orders or margins. However, the company is proactively exploring other international markets and implementing measures to mitigate any future tariff-related risks, acknowledging the fluid nature of trade policies.

Margin Outlook and Operational Efficiency

The EBITDA margin for Q1 FY26 stood at 18.5%. Management noted a quarterly drop compared to the previous year, attributing it to initial costs associated with the newly operational Khatalwada plant. They expressed confidence that margins would improve as the plant's utilization increases, though they refrained from providing specific margin expansion targets due to the variable nature of customer and product mix.

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