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    Kanpur Plastipack Q1 FY27 earnings call

    KANPRPLA
    Capital Goods·29 Jul 2026
    Management Summary

    Kanpur Plastipack Limited reported a strong Q1 FY27, with total income exceeding ₹200 crores for the first time and significant YoY growth in EBITDA (58.98%) and PAT (112%). The company successfully operationalized its JV for premium Taslan yarn and obtained key sustainability certifications. However, increased employee costs, volatile ocean freight, and a temporary dip in FIBC volumes due to disruptions posed challenges, though management expressed confidence in mitigating these impacts.

    Highlights

    5

    • Total income for Q1 FY27 exceeded ₹200 crores for the first time, reflecting business resilience.

    • EBITDA for Q1 FY27 stood at ₹22.19 crores, registering a strong growth of 58.98% year-on-year.

    • PAT for Q1 FY27 was ₹12.14 crores, representing an impressive growth of 112% year-on-year.

    • EBITDA margin improved significantly to 10.69% in Q1 FY27 from 7.66% in the corresponding quarter of the previous year.

    • Successfully operationalized joint venture with Essegomma, Italy, commencing commercial production and sales of premium Taslan yarn.

    Concerns

    4

    • Employee costs increased by approximately ₹3.5 crores compared to the previous quarter due to annual salary revision and minimum wage policy.

    • Ocean freight costs increased substantially from $2,000 to $5,000, posing a risk to demand and margins.

    • FIBC volume declined to 3,000 tons in Q1 FY27 from 3,500-3,800 tons in previous quarters due to polymer and labor disruptions.

    • An impairment loss of ₹25 lakh was recognized for a coating supply contract to the government (FCI) as a prudent policy.

    Key financials

    Single quarter

    06 metrics
    1. 01Total Income₹207.49 Cr+7.1%YoY
    2. 02EBITDA₹22.19 Cr+59.0%YoY
    3. 03EBITDA Margin10.7%
    4. 04PAT₹12.14 Cr+112.0%YoY
    5. 05Basic EPS₹4.96+64.8%YoY

    Segment breakdown

    FIBC
    52% Share of Product Portfolio3,000 tons Volume Q1 FY27
    Fabric
    20% Share of Product Portfolio
    Small Bags
    12% Share of Product Portfolio
    Multifilament Yarns
    8% Share of Product Portfolio
    Others
    8% Share of Product Portfolio
    List

    Order Book

    medium confidence

    Inflow this qtr

    ₹ 3,000 tons

    Composition

    Mix5 geographys
    • Europe60.0%
    • South America20.0%
    • North America16.0%
    • Australia4.5%
    • Africa0.5%

    Share of order book by geography

    Pipeline

    other

    Inquiry pipeline strengthened through international trade fairs.

    "Demand visibility is about four weeks, reflecting current procurement patterns where customers avoid high prices. FIBC volume in Q1 was impacted by polymer and labor disruptions but is expected to build up."

    Source:
    Prepared remarks
    Q&A

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Net ₹132 crores

    M&A

    Essegomma, Italy

    joint venture · Other

    Guidance & targets

    9
    CategoryTargetPriority
    Volume
    FIBC production volume
    5,000 tons per quarter
    		High
    Revenue
    ESSEKAN (JV) revenue
    ₹10 crores
    		High
    Revenue
    ESSEKAN (JV) long-term revenue
    ₹100 crores
    		High
    Revenue
    Company revenue aspiration (installed capacity)
    ₹1,000 crores
    		Medium
    Profitability
    ESSEKAN (JV) EBITDA margin
    20-25%
    		High
    Profitability
    Non-woven technical textiles EBITDA margin
    mid-level double-digit
    		Medium
    Working Capital
    Working capital days for non-woven business
    30-40 days
    		High
    Cost Savings
    Annual cost savings from renewable power
    ₹3-5 crores
    		High
    Debt
    Long-term debt
    ₹67-68 crores
    		High

    What to watch in Q2 FY27

    5

    FIBC production volume recovery

    next quarter
    Current3,000 tons in Q1 FY27
    TargetIncreased volume towards 5,000 tons/quarter target

    Why it matters

    FIBC is the cash cow; recovery in volumes is crucial for overall performance.

    So, I think both the questions are in the same direction that what is going to happen to FIBC, which is the cash cow of the company and the main focus of the company. So, we are committed to reaching 5,000 tons per quarter. That is the target for our next Q1 FY28.

    Risks & concerns

    4
    RiskSeverity

    Raw material price volatility

    Geopolitical developments caused volatility, but market has stabilized, and costs can be passed on to customers. — Analyst acknowledged

    medium

    Elevated ocean freight costs

    Freight costs increased from $2,000 to $5,000, which could disrupt demand and potentially impact margins if costs need to be shared. — Management acknowledged

    high

    Increased employee costs

    Employee costs increased by ₹3.5 crores due to salary revisions and minimum wage policy, impacting Q1 margins, but mitigation expected in 12-18 months. — Management acknowledged

    medium

    FIBC volume decline due to disruptions

    Q1 FY27 FIBC volume was 3,000 tons, lower than previous quarters, attributed to polymer and labor disruptions, though management expects recovery. — Management acknowledged

    medium

    Q&A highlights

    8

    “Now even while the crisis continues to be there, the market has understood the crisis and the supply chains and the governments are taking actions that are required to be taken now. So, there is more stability. That kind of extreme volatility is not there. So, it was moving plus minus 25% at that time. Now it is moving plus minus 10%.”

    Addresses a key external risk, indicating stabilization and ability to pass on costs to customers.

    asked by Shubhi Gupta

    2 min read5 chapters

    Detailed Narrative

    01

    Q1 FY27 Financial Performance Highlights

    Kanpur Plastipack Limited commenced FY27 with a strong performance, achieving a total income exceeding ₹200 crores for the first time. The company reported an EBITDA of ₹22.19 crores, marking a substantial 58.98% year-on-year growth, with the EBITDA margin improving to 10.69% from 7.66% in the prior year. PAT also saw impressive growth, reaching ₹12.14 crores, a 112% increase year-on-year, and basic EPS rose to ₹4.96 from ₹3.01.

    02

    Strategic Milestones and Diversification

    A key milestone in Q1 FY27 was the successful operationalization of the joint venture with Essegomma, Italy, initiating commercial production and sales of premium Taslan yarn. This venture marks the company's entry into a new value-added product segment and strengthens its technical textile capabilities. Additionally, the company secured two internationally recognized certifications, Global Recycle Standards (GRS) and OEKOTEX, enhancing its sustainable innovation and global competitiveness.

    03

    Operational Challenges and Cost Pressures

    Despite strong financial results, the company faced operational headwinds including a ₹3.5 crore increase in employee costs due to annual salary revisions and minimum wage hikes. Ocean freight costs surged significantly from $2,000 to $5,000, posing a risk to demand and margins. Furthermore, FIBC volumes in Q1 FY27 declined to 3,000 tons from 3,500-3,800 tons in previous quarters, attributed to polymer and labor disruptions, though management expects recovery.

    04

    Product Portfolio and Capacity Expansion

    FIBC remains the core business, contributing 52% of the product portfolio in Q1 FY27, with Fabric at 20%, Small Bags at 12%, and Multifilament Yarns at 8%. The company's FIBC capacity expansion plan to add 6,000 metric tons per annum over five years is on track, with a new building's ground floor completed. The non-woven technical textile segment is also progressing, with commercial production expected to commence by Q3 FY27, targeting mid-level double-digit EBITDA margins.

    05

    Long-Term Vision and Capital Allocation

    Kanpur Plastipack aims for a long-term revenue aspiration of ₹1,000 crores, targeting ₹900-950 crores in FY27-28 and ₹1,000-1,050 crores by 2029, leveraging current projects and installed capacity. The ESSEKAN JV is projected to achieve ₹10 crores in revenue this year with 20-25% EBITDA. Net debt stood at ₹132 crores as of June 30, 2026, with long-term debt expected to be ₹67-68 crores by year-end after a new ₹40 crore term loan for projects and ₹5-7 crore repayments.

    This is an AI-generated summary of a publicly available earnings call transcript.