All Time Plastics Limited — Q2 FY26 earnings call

Call held 12 Nov 2025

Management summary

All Time Plastics Limited reported Q2 FY26 revenue of INR 147 crores, contributing to a 17% H1 FY26 growth to INR 305 crores. Gross margins compressed from 39.27% to 36.18% due to customer mix and a one-time raw material sale, impacting EBITDA. The company is actively expanding capacity, securing new international clients in Australia and Japan, and progressing with its bamboo product line, while aiming to improve B2C contribution and operational efficiency.

Highlights

  • H1 FY26 revenue grew 17% YoY to INR 305 crores, with Q2 FY26 revenue at INR 147 crores.

  • Debt-equity ratio improved to 0.2 after utilizing 95% of IPO funds to pay down debt.

  • Capacity utilization for Q2 FY26 stood at 83%, with the Khattalwada plant operating at 70%.

  • Successfully closed new business in the Australian market and secured a new client in Japan.

  • Bamboo product samples approved by a large customer, leading to trial orders and commercial plant setup in progress.

Concerns

  • Gross margin declined from 39.27% in Q1 FY26 to 36.18% in Q2 FY26, primarily due to customer mix change.

  • A one-time sale of raw material worth INR 3.3 crores contributed to a 0.83% dip in GP margin.

  • EBITDA was impacted by fixed expenses from new plants (Manekpur and Guwahati) and lower-than-expected sales.

  • The UK market remains sluggish, causing a slight impact on sales.

Key financials

3 periods

Headline

  • Debt-Equity Ratio
    0.2

Q2 FY26

  • Revenue
    ₹147 Cr
  • Gross Margin
    36.2%
    QoQ -7.9%
  • Capacity Utilization
    83%

H1

  • FY26 Revenue
    ₹305 Cr
    YoY +17%

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 Capex disclosed
    The expansion of the factory building is on track and we are closing the factory building expansion by December end, January first week. The expansion will be completed. The administrative block expansion is also on track and that also we will complete in time. Our new machines are also under installation which will further add up our capacities as per our planned ideas.
  • Debt Debt disclosed
    on the utilization of IPO funds, we have paid 95% of the debt as per the object. So, out of that, 95% we have paid and remaining will be paying in this Q3. So, debt equity now stands at 0.2. Debt equity ratio stands at 0.2 now.

Guidance & targets

Capacity

  • Capacity (metric tons) Capacity · FY26 · High confidence 46,500
    So right now to the 2,000, as per the prospectus, we are on line with that. So by FY 26, it will be 46,500.

    — Manish Gattani

  • Capacity (metric tons) Capacity · FY27 · High confidence 52,500
    And remaining 6,000 will be in '27. So it will be 52,500.

    — Manish Gattani

  • Bamboo Capacity Capacity · future · High confidence 4,000 cubic capacity
    So right now we are looking at 4,000 cubic capacity and then we'll increase our cubic ramp-up capacity there.

    — Kailesh Shah

Market Share

  • B2C Revenue Contribution Market Share · future · Medium confidence 25%

    From 17% today

    B2C is definitely going to be a growth factor ahead. And as Kalesh already said that we are at 17. And that pie we are expecting to grow towards to the 25% as a strategy. That's where we are.

    — Nilesh Shah

  • US Market Revenue Contribution Market Share · future · Medium confidence 15%-20%

    From 9%-10% today

    Internally, we would like to have that between the all like USA is right now at 9%-10%. Even if it's close up to 15%-20%, it is fine.

    — Kailesh Shah

Profitability

  • EBITDA Margin Profitability · future · Medium confidence maintained
    We expect that EBITDA will be maintained, maybe a little dip in the EBITDA margin, but it has been rewarded also.

    — Kailesh Shah

  • EBITDA Margin Profitability · early (once optimal utilization achieved) · Medium confidence 18%-19%
    So I think very early we'll be able to do that.

    — Manish Gattani

  • Gross Margin Profitability · future · Medium confidence 39%-40%
    41% is our one-off time, but our average is around 39%-40%, what our history is, the GP margins. It will take some time to reach there, but as a strategy, we are increasing the capacity and we are entering into new categories, we are approaching new customers, so definitely we want to be competitive and we want to get those business.

    — Manish Gattani

Revenue

  • Bamboo Business Revenue Revenue · few years · Low confidence as big as current businesses
    this opportunity is very big, because we will also have the first mover of advantage in this area. And we foresee that within a few years, once we structure, it could be as big as and as comparable to our current businesses, what we are running into in terms of volume.

    — Kailesh Shah

  • Q3/Q4 FY26 Performance Revenue · Q3, Q4 FY26 · Medium confidence improve
    It will be definitely improving as Q3, Q4 looks good. We have got enough orders. But then right now we can't comment on what will be it, but definitely it will improve. Yes. So yes, we have got enough projects in hands, which we need to execute in Q3, Q4. So things look good for Q3, Q4.

    — Manish Gattani

What to watch in Q3 FY26

Gross Margin Improvement

Next quarter (Q3 FY26)
Current 36.18% in Q2 FY26
Target Improvement towards 39-40% average

Why it matters

Key indicator of profitability recovery and successful customer mix management.

So, our gross margin has declined from quarter 1 to quarter 2 from 39.27% to 36.18%.

Risks & concerns

  • Gross Margin Compression

    medium

    Gross margin declined due to customer mix shift towards lower-margin clients and a one-time raw material sale.

    Management acknowledged

  • EBITDA Impact from Fixed Costs

    medium

    New plant expenses incurred before full sales ramp-up impacted EBITDA.

    Management acknowledged

  • New Capacity Ramp-up Time

    medium

    Achieving optimal utilization of new capacity will take 6-12 months due to product mix and business development cycles.

    Management acknowledged

  • International Market Sluggishness

    low

    General challenges in international markets, specifically the UK economy, are slightly impacting sales.

    Management acknowledged

Q&A highlights

7 direct
Gross margin decline in Q2 and potential seasonality Direct
So, our gross margin has declined from quarter 1 to quarter 2 from 39.27% to 36.18%. So, the reason for that 3% down is mainly due to the customer mix change. The customers who are having higher margin, the sales of those customers has gone down in Q2 and the customers where we are having lesser margin, the sale of those customers has gone up.

Directly addresses the primary financial concern (margin compression) with specific reasons, including customer mix and a one-time raw material sale.

Asked by Ananya

B2C margins compared to B2B and the dip in realization per kg Direct
So, the margins when B2C, it is a little better as compared to B2B... Yes. So, the material is also, because we are passing on the material, if the material cost has also gone down, then we are passing that to the customers. So, that is one of the reasons. And apart from that, the customer mix and all. So, if big customers are there, then the realization is lesser.

Clarifies margin dynamics across segments and explains the trend in realization, which impacts overall profitability.

Asked by Ananya

Impact of US tariffs on sales and profitability and mitigation steps Direct
So, as for the impact of US tariff on the margins, I will answer that question. So, it is very minimum, around 0.2% out of that 3% as the US share is lesser and we have not, we have not, up to H1, so the US market share is lesser. So, and we have not passed on that much discounts for the US tariff, but then it, a little bit is there, but not that much. It is around 0.2% out of that 3% which we have, that gross margin has gone down.

Quantifies the impact of a significant geopolitical risk and outlines management's strategy to mitigate it.

Asked by Maniyar Harshad

Revenue potential and timeline for the new bamboo product line Partial
As for bamboo numbers, as of now we cannot tell, but yes, we have secured orders, good number of orders from our, one of our biggest customer. So, we are in the process, right now these orders will be served from the pilot plant and now we are in the process of putting up the entire commercial plant. So, it will take time. So, right now we cannot comment on how much will be the number.

Details the progress and future outlook for a new strategic growth area, despite the lack of immediate quantification.

Asked by Maniyar Harshad

Timeline for EBITDA margins to return to historical 18-19% levels Direct
Once we achieve this optimal utilization of the additional capacity, we will be there and we look forward to get there very soon. Right now, we cannot comment on that, but then yes, the additional capacity, we start utilizing to optimal level, it will be there.

Provides insight into the conditions required for margin recovery, linking it directly to optimal capacity utilization.

Asked by Keshav

Ability to compete with Chinese pricing for bamboo houseware products Direct
Now, coming to the price point, the competitiveness, immediately in the first few years, we might not be so competitive in terms of to match China prices. But if I want to say that if I want to manufacture boards and look at board prices, CIF China to India, and our board cost, we are very, very competitive at that level, if someone wants to pick up boards from our company.

Addresses a key competitive challenge for a new product line and outlines the company's strategy to achieve cost competitiveness.

Asked by Keshav

Potential for Indian market revenue growth, especially with IKEA's expansion Direct
Yes, we are absolutely right. Even our own internal targets to diversify India is on radar. And we wish to currently our share is around 17%. We wish to move it to 25%, the needle to go up to 25%. And IKEA business will also grow on its own as the space of what the stores they open.

Highlights a significant domestic growth opportunity and a specific target for market share expansion in India.

Asked by Keshav

Speed of ramping up new capacity and achieving optimum utilization Direct
So it depends. From six months to 12 months, it takes, because the mix of products will come and then change over and everything. So six months to one year's time, it will take... Otherwise, our Khattalwada plant is also running quite right now at 70% utilization level right now.

Provides a realistic timeline for capacity ramp-up and current utilization, crucial for future revenue and margin realization.

Asked by Nirali

2 min read 6 chapters

Detailed narrative

Q2 FY26 Performance Overview

All Time Plastics Limited reported Q2 FY26 revenue of INR 147 crores, contributing to a 17% H1 FY26 growth, reaching INR 305 crores. Gross margins experienced a decline from 39.27% in Q1 to 36.18% in Q2, primarily due to a shift in customer mix towards lower-margin clients. This margin compression, coupled with fixed expenses from new plants in Manekpur and Guwahati and lower-than-expected sales, led to a decline in EBITDA.

Gross Margin Dynamics

The 3.09% decline in gross margin from Q1 to Q2 was attributed mainly to a change in customer mix, with sales to lower-margin customers increasing while higher-margin customer sales decreased. Additionally, a one-time sale of raw material worth INR 3.3 crores, due to unavailable forecast projections, contributed to an 0.83% dip in the gross profit margin. Management noted that while there is a slight Q2 seasonality, it is not significant enough to explain the full decline.

Capacity Expansion & Utilization

The company's factory building expansion at Khatalwada (formerly Manekpur) is on track for completion by December end or January first week, with administrative block expansion also progressing. As of September end, the company's capacity reached 37,000 metric tons, with an additional 4,000 metric tons recently added. Overall capacity utilization for Q2 FY26 stood at 83%, and the Khattalwada plant specifically operated at a 70% utilization level. The company plans to reach 46,500 metric tons by FY26 and 52,500 metric tons by FY27.

New Market & Customer Wins

All Time Plastics successfully closed a new business deal in the Australian market, which is identified as a significant growth opportunity. The company also secured a new client in Japan. Through its JV, two new customers were acquired, one from the USA (a breakthrough) and another from Australia. The company was also awarded for 'Country Of Production Diversity' by a prestigious customer, Target, recognizing its operational excellence and agility.

Bamboo Business Development

Progress on the bamboo houseware project is significant, with samples approved by a large customer and a trial order received, scheduled for shipment in the last quarter of the current year. The company is in the process of setting up a commercial plant, aiming for an initial capacity of 4,000 cubic units. Management believes this segment offers substantial long-term growth potential, comparable in volume to its existing businesses, and plans to diversify into various article ranges, integrating plastic for value-added products.

Strategic Outlook & Diversification

The company aims to increase its B2C revenue contribution from the current 17% to 25% as a strategic growth driver, anticipating improved margins. It also seeks to expand its US market exposure from 9-10% to 15-20%. While acknowledging the sluggish UK market, the company is eagerly awaiting the EU FTA, which is expected to provide a competitive advantage over Chinese rivals due to lower landed costs. The management expects Q3 and Q4 FY26 to show improvement, driven by existing orders and ongoing projects.

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