Creative Graphic — Q4 FY25 earnings call

Call held 31 May 2025

Management summary

Creative Graphics reported a strong Q4 FY25, with consolidated revenue exceeding ₹250 crores (up 91% YoY) and PAT crossing ₹20 crores. The flexography business achieved ₹100 crores in top line, while the Warren (Alu-Alu) segment grew significantly but faced suboptimal 50% capacity utilization. The company is expanding aggressively with new facilities and product lines (PVDC), though some capacity additions are delayed, impacting near-term cash flow.

Highlights

  • Consolidated revenue of over ₹250 crores in FY25, representing a 91% YoY growth.

  • Flexography business achieved a top line of ₹100 crores for the first time in its history.

  • Consolidated bottom line (PAT) crossed ₹20 crores for the first time.

  • Strategic expansion with new flexography facilities in Oman and India, and new Warren capacity coming online in H2 FY26.

  • PVDC commercial production is expected to start by Q2 FY26, adding a new revenue stream.

Concerns

  • New Warren capacity (12,000 metric tonne) delayed from Q1 to H2 FY26 due to supplier issues.

  • Warren's capacity utilization was suboptimal at 50% for FY25, resulting in an 11% EBITDA margin compared to 18%+ for Flexography.

  • Operating cash flow for FY26 is uncertain as it depends on the ongoing expansionary phase.

Key financials

  1. Consolidated Revenue ₹250 Cr +91%YoY
  2. Consolidated PAT ₹20 Cr
  3. Consolidated EBITDA Margin 15%
  4. Warren Capacity Utilization 50%
  5. Warren Receivable Days 90 days

What they filed

Q4 FY26: revenue up 102.4%, net profit up 75.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ4 FY23Q2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue48 48 84 113 138 +188%176 +267%170 +102%
EBITDA8 12 7 13 19 +138%21 +75%12 +71%
Net profit5 7 4 9 12 +140%12 +71%7 +75%
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.

Segment breakdown

  • Flexography Business
    ₹100 Cr Revenue18% EBITDA Margin
  • Pharmaceutical Packaging (Warren)
    ₹150 Cr Revenue (FY25)₹35 Cr Revenue (FY24)11% EBITDA Margin

Order book

low confidence
No specific order book or order inflow numbers were disclosed during the call, though management discussed strong market demand and capacity expansion.

Source: Inferred

Capital allocation

high confidence
  • Capex Capex disclosed
    • New capacity for Warren (Alu-Alu)
    • Two new flexography facilities (one in Oman, one in India)
    • Procurement of PBDC line and tandem exclusion machine (PVDC)
    We have procured 2 significant machineries at almost 10% of the cost of a new machinery. We are adding another capacity, which was supposed to come in the Q1, which has been delayed because of unavoidable circumstances by the supplier... We are adding 2 new facilities, who are existing 7 factories. And again, as a first in our history, one of those factories will be overseas.
  • Debt Debt disclosed
    We have funds from the IPO as well and we have unutilized bank credit lines also available. So, in our calculations, we won't need any significant debt from outside. We are looking forward to sell it off to improve our working capital and to reduce our debt.
  • M&A Assets from Radha Madhav Corporation Limited Acquisition · Closed

    Procured two good machines (PBDC line, tandem exclusion machine) at a very low cost through NCLT, providing synergetic lines.

    Machineries procured at almost 10% of the cost of a new machinery.

    We have procured two good machines from a company, Radha Madhav Corporation Limited through NCLT... We have not bought any company out of NCLT. We have bought assets, machinery from a company that has gone through NCLT.
  • Liquidity Liquidity disclosed Company has funds from IPO and unutilized bank credit lines available, aiming to sell Noida plot to improve working capital.
    We have funds from the IPO as well and we have unutilized bank credit lines also available. We are looking forward to sell it off to improve our working capital and to reduce our debt.

Guidance & targets

Revenue

  • Top Line Growth Revenue · Year on year · Low confidence Double year on year
    But from an overall trend perspective, we would like to state that yes, we are looking to double our top line year on year. It might not happen every year, but that is the trend we are looking to follow.

    — Deepanshu Goel, Managing Director

  • PVDC Annual Revenue Potential (Full Utilization) Revenue · Per annum · Medium confidence ₹100-150 crores
    So, on the PVDC business, you mentioned annual capacity of 12,000 tonnes that can fetch 100 to 150 crores revenue on a full utilisation basis.

    — Deepanshu Goel, Managing Director

Margin

  • Consolidated EBITDA Margin Margin · Next two years · Medium confidence Mid-teens (15-17%)
    Overall, I think you should assume EBITDA margins of mid-teens for the combined business for the next two years.

    — Pulkit, CFO

Capacity Utilization

  • Warren Capacity Utilization Capacity Utilization · Medium confidence At least 80%

    From 50% today

    we are targeting at least 80% of the capacity utilisation in the earlier facility

    — Deepanshu Goel, Managing Director

  • Flexography Capacity Utilization Capacity Utilization · Medium confidence Not less than 80%

    From 60% today

    So what is the utilisation level right now? I suppose it is close to 60%... we should easily do not less than 80% in the earlier facility.

    — Deepanshu Goel, Managing Director

Commercial Production

  • PVDC Commercial Production Commercial Production · Q2 · High confidence Start commercial sales
    it will be commercialised in Q2, not H2 for the PVDC line or this brand. They are on the last stage of getting commissioned... by Q2 we will start having commercial sales out of this new expansion.

    — Deepanshu Goel, Managing Director

Working Capital

  • Sustainable Working Capital Days Working Capital · High confidence Around 90 days
    On a sustainable level, you should look at our working capital should be around 90 days.

    — Pulkit, CFO

What to watch in Q1 FY26

Warren New Capacity Commercialization

H2 FY26
Current Delayed from Q1 to H2 FY26
Target Commercial operations begin in H2 FY26

Why it matters

Essential for achieving targeted revenue growth and improved utilization in the high-growth Warren segment.

adding another capacity, which was supposed to come in the Q1, which has been delayed because of unavoidable circumstances by the supplier... Now it is in the H2, it should be commercially workable.

Risks & concerns

  • Delay in Warren New Capacity Commercialization

    medium

    New 12,000 metric tonne capacity for Warren (Alu-Alu) delayed from Q1 to H2 FY26 due to supplier issues.

    Management acknowledged

  • Suboptimal Warren Capacity Utilization

    medium

    Warren's overall capacity utilization for FY25 was 50%, leading to lower EBITDA margins (11%).

    Management acknowledged

  • Operating Cash Flow Uncertainty due to Expansion

    medium

    Operating cash flow for FY26 will depend on the nature and pace of ongoing expansion activities.

    Management acknowledged

  • Regulatory Approvals for PVDC Commercialization

    low

    Certain approvals are required for PVDC commercial production, which are currently in process.

    Management acknowledged

  • Global Supply Chain Uneasiness

    low

    High uncertainty in global supply chains led to proactive stocking of inventory.

    Management acknowledged

Q&A highlights

6 direct
EBITDA Margins for Business Segments Direct
So the consolidated EBITDA margin was around 15% for the overall business. For creative graphics, it was 18% plus... Warren... EBITDA margins were 11%.

Provides clarity on the profitability drivers and segment-wise performance, highlighting the impact of suboptimal utilization in Warren.

Asked by Tushar Grewal

Revenue Growth Target and Financial Guidance Partial
Deepak ji, we are not giving any financial guidance. But from an overall trend perspective, we would like to state that yes, we are looking to double our top line year on year. It might not happen every year, but that is the trend we are looking to follow.

Clarifies that the 'doubling revenue' statement is an aspirational trend rather than a firm financial guidance, managing investor expectations.

Asked by Deepak Poddarji

Flexography Capacity Expansion and Market Opportunity Direct
So there has been an opportunity when we were talking to some of the clients who were willing to accommodate us, because there have been not even a single flexographic printing unit in the whole of Oman. We found a huge opportunity as it is a gateway for the whole of Africa and the Middle East for us.

Highlights the strategic rationale and market potential behind the new overseas flexography facility in Oman.

Asked by Deepak Poddarji

Working Capital Cycle and Efficiency Direct
If you look at our working capital for the last year, in terms of days, our receivable days were upwards of 150 days. Our inventory was upwards of 80-90 days... On a sustainable level, you should look at our working capital should be around 90 days.

Addresses concerns about working capital intensity and provides a clear target for improving efficiency, especially in the growing Warren business.

Asked by Rishabh Joshi

Noida Plot Sale and Capital Allocation Direct
We are looking forward to sell it off to improve our working capital and to reduce our debt.

Reveals a specific capital allocation strategy to enhance liquidity and reduce debt through asset monetization.

Asked by Nikunj Purania

PVDC Commercialization Timeline and Approvals Direct
it will be commercialised in Q2, not H2 for the PVDC line or this brand. They are on the last stage of getting commissioned. So, there are certain approvals for sure. And we are on the process of getting those approvals.

Provides a specific timeline for the launch of the new PVDC product line and acknowledges the ongoing regulatory approval process.

Asked by Sameer Mithraji

Impact of EPR Norms on Flexography Business Direct
it is all about the sustainability. It is also about the recyclability. So, when we have a process like flexography, it enables us to, one, use a recycled product... it uses a monolayer instead of having a multi-product layer, which makes it a recyclable product.

Explains how regulatory changes (EPR norms) create a significant tailwind and competitive advantage for the flexography segment by driving demand for sustainable packaging.

Asked by Gaurav Agarwal

Future Revenue Contribution from Segments Partial
As of September, we were I think 50-55% contribution. Now, we are at 60% contribution and this contribution should increase. That is all I can say as of now.

Offers insight into the evolving business mix, indicating a growing dominance of the Warren (Alu-Alu) segment in the overall revenue.

Asked by Tahir ji

2 min read 6 chapters

Detailed narrative

Overview of Business Segments and Market Leadership

Creative Graphics operates in three main areas: flexographic printing plates (Creative Graphics), pharmaceutical packaging (Warren, primarily Alu-Alu foil), and software services (CGP Media). The company is the market leader in flexographic printing plates in India. Warren, established two years ago, focuses on cold-formed Alu-Alu foil for critical pharmaceutical packaging, serving over 300 clients including major pharmaceutical companies.

Strong Financial Performance in FY25

The company reported a robust financial performance in FY25, with consolidated revenue exceeding ₹250 crores, marking a 91% year-on-year growth. The consolidated bottom line (PAT) crossed ₹20 crores for the first time. The flexography business alone achieved a top line of ₹100 crores, while the Warren segment contributed ₹150 crores to the top line in FY25, up from ₹35 crores in FY24.

Aggressive Capacity Expansion and New Projects

Creative Graphics is undertaking significant capacity expansion. This includes adding new capacity for Warren's Alu-Alu production, though its commercialization has been delayed from Q1 to H2 FY26. Two new flexography facilities are being added, one in Oman to serve the Africa and Middle East markets, and another in India. Additionally, the company has procured PBDC and tandem exclusion machines, with PVDC commercial production expected to commence by Q2 FY26, adding 1000 tonnes per month capacity.

Leveraging Regulatory Tailwinds and Market Shift

The flexography business is benefiting from stricter Extended Producer Responsibility (EPR) norms, which are driving a shift towards sustainable and recyclable packaging solutions. Flexography enables the use of recycled products and monolayer structures, making it an attractive alternative to multi-layer gravure printing. Major brands like Tata Salt and Unilever have already converted to flexography, and others like PepsiCo and Maggi are exploring similar transitions.

Focus on Working Capital Efficiency and Debt Reduction

The company is actively working to improve its working capital cycle, aiming for sustainable receivable and inventory days around 90 days, down from previous levels of over 150 days for receivables. To enhance liquidity and reduce debt, Creative Graphics plans to sell a plot in Noida. Management indicated that with IPO funds and unutilized bank credit lines, they do not anticipate needing significant external debt for their expansion plans.

Future Outlook and Strategic Growth Drivers

Creative Graphics aims for 'mid-teens' consolidated EBITDA margins (15-17%) for the next two years. This will be driven by improved capacity utilization in Warren (targeting 80% from current 50%) and Flexography (targeting 80% from current 60%). The company aspires to double its top line year-on-year, with the Warren segment's contribution to total revenue expected to increase beyond the current 60%.

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