Kanpur Plastipa.

Kanpur Plastipack demonstrated robust financial growth in H1 FY26, with total income increasing by 20% year-on-year to INR34.83 crores and net profit surging over 52 times to INR14.47 crores, resulting in an EPS of INR6.26. For Q2 FY26, total income stood at INR166 crores, an 8% increase from Q2 FY25, while net profit grew fourfold to INR7.56 crores, with an EPS of INR3.25. The company's Q2 FY26 EBITDA was INR16.33 crores, up 44% year-on-year, and EBITDA margins improved from 7.4% to 9.8%, driven by strong demand in FIBC and fabric segments, better product mix, and operational efficiencies.

The company strategically expanded its market reach by completing the acquisition of a 76.19% stake in Valex Ventures Limited, which provides direct access to high-value FIBC customers in the UK and EU markets. Valex currently generates approximately GBP 1.5 million in revenue with gross margins of 15-20%. Additionally, the Board approved a 50-50 joint venture with Essegomma S.p.A. Italy to introduce high-performance Taslan yarn technology to India, marking entry into a high-margin technical and luxury textile segment. This JV is projected to contribute INR25 crores in annual revenue in its initial years with 5-10% margins.

Kanpur Plastipack plans a substantial capex of INR105 crores over the next 12-18 months, with 90% of this investment occurring within the next 12 months. This includes INR58.04 crores for a greenfield needle-punching non-woven project, aiming to enter high-growth segments like automotive interiors and artificial leathers, with an estimated turnover of INR120-125 crores at full production (95% utilization by FY28). An additional INR47 crores will be invested in the FIBC Division at Unit 3, adding 1,200 metric tons of conversion capacity annually over the next five years, totaling 6,000 metric tons. The capex will be funded through internal accruals and INR35 crores of debt.

The company continues to prioritize operational efficiency through automation and debottlenecking, including the deployment of a modern automated warehousing system for improved inventory control and safety. Sustainability is a core focus, with a goal to source over 60% of power from renewable energy (currently 53% from solar) and implement zero-liquid discharge and recycling initiatives. All manufactured products are 100% recyclable, and the company offers products made from 100% recycled materials, aligning with European regulations.

Exports remain the primary growth engine, contributing 74% of revenue with a volume of 6,600 metric tons valued at INR119 crores in Q2 FY26. Europe is the largest export market with a 51% share, followed by South America (27%) and North America (17%). The company is actively pursuing further geographical diversification into Asia and Africa, including Japan and Northern African countries, to balance its portfolio and ensure sustainable growth, leveraging the 'Brand Bharat' in the global market.