ALLTIME

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.

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.

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.

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.

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.

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.