Kanpur Plastipa.

Kanpur Plastipack reported a total income of INR183.1 crores for Q4 FY26, marking a 6.16% year-on-year growth. EBITDA for the quarter stood at INR25.06 crores with a margin of 13.69%, while PAT reached INR14.53 crores, growing approximately 14% year-on-year. For the full year FY26, the company achieved a total income of INR726.67 crores, representing a 26.26% year-on-year growth, and PAT grew by 68% to INR38.19 crores, with EBITDA margins improving to 10.29%.

The company is transitioning towards a more balanced mix of scale and specialization, strengthening its core industrial packaging presence while building capabilities in value-added segments like premium polypropylene yarns and non-woven fabrics. This shift is expected to improve margin visibility and earnings quality. Non-woven technical textiles are identified as a strategic growth area, with applications across automotive interiors, geo-textiles, artificial leather, carpets, and footwear, and commercial production expected by September.

The existing FIBC capacity of 18,000 tons per annum is currently utilized at 85%. An expansion project at Unit 3, aimed at 6,000 tons, is underway, with the building expected to be complete by May '26. The company anticipates producing 1,800 tons from this new capacity by the end of FY27, reaching a run rate of 2,400 tons, and eventually 6,000 tons over the next four years, which could generate INR130 crores in revenue. The non-woven facility's first machine is expected to be commissioned by September, contributing INR20-25 crores in FY27 and INR100-120 crores by FY28 with 15-16% EBITDA margins.

The latter part of FY26 saw significant volatility in raw material prices, particularly polypropylene, which increased sharply from USD1,000 to USD1,700 per ton due to geopolitical developments like the Iran conflict. This led to supply chain disruptions and input cost fluctuations. Management expects a 'new normal' for polypropylene prices between USD1,200 and USD1,350 per ton in the medium term, and aims to maintain manufacturing gross margins at 45-47% by effectively managing price risk and prioritizing margin-attractive segments.

Exports remain a key driver, with a diversified geographical presence: Europe accounts for 56.5%, South America 21.8%, and North America 16.9%. The company emphasizes its long-standing customer relationships, with many clients associated for over 20 years, providing stability and repeat business. While demand saw some moderation due to inventory correction and cautious customer procurement, underlying demand remains intact, especially in essential segments like food and agriculture (52% of end-user revenue).

Net debt as of March 31, 2026, stood at INR112 crores, comprising INR78 crores in short-term borrowing, INR23.8 crores in GECL loans, and INR9.01 crores in long-term loans. The company has made capital advances of INR12.3 crores for non-woven machinery and the FIBC building. Strategic initiatives include the acquisition of Valex Ventures in the UK to strengthen global presence and a joint venture with Essegomma for high-performance yarns, with a capex of INR3 crores for the JV.