Mamata Machinery Limited — Q2 FY26 earnings call

Call held 15 Nov 2025

Management summary

Mamata Machinery delivered a healthy Q2 and H1 FY26, driven by robust revenue and PAT growth. The company's order book expanded to INR 144 crores, providing strong visibility. Strategic focus on high-value co-extrusion and new product launches at global exhibitions were key highlights, despite a marginal Q2 profitability dip due to increased marketing spend and temporary US market uncertainties.

Highlights

  • Revenue for Q2 FY26 increased by 25% year-on-year, and H1 FY26 revenue grew by 31% year-on-year, demonstrating strong top-line growth.

  • Profit after tax for H1 FY26 was significantly higher by 47% year-on-year, indicating improved profitability.

  • The order book increased to INR 144 crores as of November 15, 2025, up from INR 131 crores in September 2024, providing good visibility for the remainder of the year.

  • Secured three new orders for advanced 9-layer blown-film plants, with two scheduled for delivery within the current financial year, aligning with the strategy for high-value co-extrusion solutions.

  • Successfully unveiled a new HFFS Duplex Packaging Line and two innovative machines (wicketter and pouch-making for mono-material recyclable films) at major international exhibitions, receiving positive customer reception.

Concerns

  • Q2 profitability saw a marginal decline year-on-year primarily due to higher spending on exhibitions, marketing, and travel, totaling INR 5.3 crores in Q2 and INR 9.6 crores in H1.

  • The converting line segment is currently lagging internal targets, though management expects to make up for it within the remaining order intake window.

  • Tariff-related headwinds in the US market have created temporary uncertainties for exporters, although management views these as transient.

Key financials

3 periods

Headline

  • Revenue Growth Q2 YoY
    25%
  • Revenue Growth H1 YoY
    31%
  • PAT Growth H1 YoY
    47%
  • Exhibition Expenses Q2
    ₹5.3 Cr
  • Exhibition Expenses H1
    ₹9.6 Cr

Q1

  • Margin
    8%

Q2

  • Margin
    12%

What they filed

Q1 FY27: revenue up 17.0%, net profit down 117.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue40 48 110 28 40 +2%55 +15%66 −40%32 +17%
EBITDA0 11 34 2 4 +14600%6 −40%3 −92%-1 −143%
Net profit0 8 25 2 3 +2431%6 −26%-1 −103%-0 −118%
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.

Order book

high confidence

Total value

₹144 Cr

as of 2025-11-15 quantified

9.9% YoY

Execution

INR 10 crores of the order book will spill over into H1 FY27, with the remaining INR 134 crores expected to be executed by the end of H2 FY26.

Composition

Mix 2 geographies
  • Exports 70%
  • Domestic 30%

Share of order book by geography

Cancellations & deferrals

  • deferred: One nine-layer line order valued at INR 10 crores will spill over into H1 of next financial year.
  • deferred: Approximately INR 2 crores of revenue deferment in H1 FY26.
  • deferred: Deferred sale of around INR 20 crores from previous year in Mamata Enterprises Inc. (MEI) is now part of current financial year's execution of INR 41 crores.
The order book provides good visibility for the remainder of the year, with most orders expected to be executed by H2 FY26, barring a small spillover.

Source: Prepared remarks

Capital allocation

high confidence
  • Debt Gross ₹0 Cr · Net ₹0 Cr
    We continue to remain debt free almost and we do not see that thing changing. We are operating through our own approvals. We do not even have a line of credit from the bank.
  • Liquidity Cash ₹71 Cr The company is building up a war chest for financing expansion plans and opportunistic acquisitions.
    The answer is INR 71 crores and not INR 41 crores. So, I stand corrected. The cash on hand as on 30th September was INR 71 crores. ... We are building up war chest for financing our expansion plans and also finance any opportunistic acquisitions that we may identify in near future because the growth can be had organically as well as inorganic and for inorganic growth, we will need money. So, we are building a war chest.

Guidance & targets

Profitability

  • Overall Margin Profitability · FY26 · Medium confidence around 14%
    I think we did about 14% last year. We see something similar.

    — Apurva Kane

Revenue

  • Packaging Segment Revenue Revenue · FY26 · High confidence INR 60-65 crores

    From INR 46 crores (FY25) today

    Last year, our total packaging division performance was about INR 46 crores. That was in FY'25. As of now, our assured business stands at about INR 63 crores as compared to INR 46 crores. ... at least we will do INR 60 crores to INR 65 crores of revenues in the packaging part.

    — Apurva Kane

Exhibition Expenses

  • Total Annual Exhibition Expenses Exhibition Expenses · FY26 · High confidence INR 12 crores

    From INR 8 crores (last year) today

    So, basically, we have published our last year's figures. Everybody knows that. Last year, we spent on exhibitions about INR 8 crore in the entire year. This year, we will be spending about INR 12 crore.

    — Apurva Kane

Growth

  • Medium-to-Long Term Growth Growth · medium-to-long term · Medium confidence 18-20%
    In the previous conference calls, you have stated our aspiration to grow at 18% to 20% over the medium-to-long term. Are we on track with that aspiration? The aspiration has not changed.

    — Apurva Kane

What to watch in Q3 FY26

FY26 Overall Revenue Guidance

Next quarter (within 6 weeks)
Current Pending
Target Specific revenue figure

Why it matters

This guidance will provide a clearer picture of the company's full-year revenue expectations and market outlook.

Like I said, we still have a window for new order booking and execution in coming in current financial year. That window is approximately six weeks. So, we would like to wait for six weeks before we can give a figure, or we can float a figure for our investors.

Risks & concerns

  • US Tariff-Related Headwinds

    medium

    Temporary uncertainties for exporters across India due to recent tariff-related headwinds in the US market, though management believes these are transient.

    Management downplayed

  • Q2 Profitability Decline due to Increased Expenses

    low

    Marginal year-on-year decline in Q2 profitability attributed to higher, but budgeted, spending on exhibitions, marketing, and travel (INR 5.3 crores in Q2, INR 9.6 crores in H1).

    Management acknowledged

  • Seasonality of Business Operations

    low

    The business carries an element of seasonality, with Q1 typically being the slowest and Q4 the busiest, leading to sequential variations in quarterly numbers.

    Management acknowledged

  • Converting Line Segment Lagging Targets

    low

    The converting line segment is currently lagging internal targets, though management expects to make up for it within the remaining order intake window.

    Management acknowledged

Q&A highlights

7 direct
Order Book Execution Timeline and US Exposure Direct
Out of the INR 144 crores that we have earlier mentioned, there is one nine-layer line order that is going to spill over into H1 of next financial year, the value of which is approximately INR 10 crores. ... Out of that 70%, the US exposure is about INR 15 crores.

Clarified the execution schedule for the current order book and provided specific figures for US market exposure, which is relevant given tariff headwinds.

Asked by Nishita Shantesha

Margin Guidance for FY26 Direct
I think we did about 14% last year. We see something similar. ... So, we are expecting much higher margin in Q3 and Q4.

Provided an expectation for full-year margins, indicating a recovery in Q3 and Q4 after lower Q1/Q2 margins due to exhibition expenses.

Asked by Nishita Shantesha

Overall Revenue Guidance for FY26 Partial
Like I said, we still have a window for new order booking and execution in coming in current financial year. That window is approximately six weeks. So, we would like to wait for six weeks before we can give a figure, or we can float a figure for our investors.

Indicated that full-year revenue guidance would be provided later, highlighting the dynamic nature of order intake and execution windows.

Asked by Nishita Shantesha

Packaging Segment Order Book and Revenue Outlook Direct
Last year, our total packaging division performance was about INR 46 crores. That was in FY'25. As of now, our assured business stands at about INR 63 crores as compared to INR 46 crores. ... at least we will do INR 60 crores to INR 65 crores of revenues in the packaging part.

Provided specific revenue targets and current order book for the packaging segment, detailing the split between India and USA.

Asked by Lakshmi Narayan

Recyclable Film Opportunity and Cost Breakthrough Direct
We have been able to create a film structure by making special designs in our co-extrusion blown film lines. That would allow somebody to make a good barrier film at a much lower cost. So, we think that brand owners can access a good quality recyclable barrier film then at around Rs.250 a kilo.

Revealed a significant technological breakthrough in producing cost-effective recyclable barrier films, which could drive future demand and help brand owners meet ESG norms.

Asked by Lakshmi Narayan

Clarification on Total US Exposure and Tariffs Direct
Mamata Enterprises Inc., which is 100% owned subsidiary of Mamata, operating from the US, is responsible not only for the United States of America, but is also responsible for sales in Canada as well as Central South America. ... If you purely look at sales within USA, then it amounts to about 15% of the top line historically. ... Only for the sales that happen within USA. There is no tariff applicable within USA for sales that are done by Mamata Enterprises into Central South America or Canada.

Clarified the actual US market exposure and the applicability of tariffs, addressing a potential misunderstanding from investor presentations.

Asked by Sanyam Shah

Cash on Books and Strategic Use Direct
As on 30th September, it's around INR 71 crores. ... We are building up war chest for financing our expansion plans and also finance any opportunistic acquisitions that we may identify in near future.

Provided the exact cash balance and outlined the strategic intent behind maintaining a strong liquidity position for future growth initiatives.

Asked by Sahil Doshi

Mamata Enterprises Inc. (MEI) Deferred Revenue Direct
There was a deferred sale of around INR 20 crores from the previous year in MEI, out of INR 31 crores that we talked about when we did the last earnings call six months ago. Now, as things stand today in Mamata Enterprises, the execution in current financial year in Mamata Enterprises is approximately INR 41 crores.

Confirmed the successful execution of previously deferred revenue from the US subsidiary, providing clarity on revenue recognition.

Asked by Sahil Doshi

3 min read 7 chapters

Detailed narrative

Robust H1 FY26 Performance Driven by Revenue and PAT Growth

Mamata Machinery reported a healthy financial performance for Q2 and H1 FY26. Revenue for Q2 increased by 25% year-on-year, while H1 FY26 saw an even higher growth of 31% year-on-year. This strong top-line growth translated into a 47% year-on-year increase in Profit After Tax for H1 FY26, demonstrating the inherent operating leverage of the business. The export to domestic sales ratio was maintained at 70:30.

Strategic Focus on High-Value Co-extrusion Solutions

The company secured three new orders for advanced 9-layer blown-film plants, with two slated for delivery within the current financial year. These orders represent technologically sophisticated, high-value co-extrusion solutions, aligning with Mamata's strategy to be a preferred partner for customized high-end projects. The company is actively pursuing additional orders for similar seven and nine-layer co-extrusion lines, expecting them to materialize in coming quarters.

New Product Launches and Market Reception

Mamata unveiled its new HFFS Duplex Packaging Line at the PACK-EXPO USA event in September, an upgraded product offering higher outputs, better efficiency, and advanced functionality. This new line was well-received by North American customers, with commercial orders anticipated shortly. Additionally, two new machines were showcased at K2025 in Dusseldorf: an innovative wicketter for conventional and side-sealed bags, and a pouch-making machine designed for fully mono-material recyclable films.

Advancements in Recyclable Flexible Packaging Technology

The company has made significant progress in developing next-generation machinery solutions capable of processing recyclable or mono-material films. A key breakthrough involves creating a good barrier recyclable film at approximately INR 250 per kilo, significantly lower than existing options at INR 320 per kilo, and more competitive than non-recyclable films at INR 180 per kilo. This innovation aims to help brand owners meet EPR norms at a lower cost, and Mamata plans to engage brand owners in the coming months.

Order Book and Execution Outlook

As of November 15, 2025, Mamata's order book stands at INR 144 crores, an increase from INR 131 crores in September 2024. Of this, INR 10 crores from a nine-layer line order will spill over into H1 FY27, with the remaining INR 134 crores expected to be executed by the end of H2 FY26. The order book maintains a 70:30 export-to-domestic ratio, with US exposure at approximately INR 15 crores. Management noted a minor deferment of INR 2 crores in H1 FY26 and confirmed the execution of INR 20 crores deferred from FY25 in Mamata Enterprises Inc. is now part of current year's INR 41 crores execution.

Financial Discipline and Cash Management

Mamata Machinery remains debt-free, operating through its own approvals without a line of credit from the bank. The company reported cash on hand of INR 71 crores as of September 30, 2025. This cash is being strategically built up as a 'war chest' to finance future expansion plans and potential opportunistic acquisitions, supporting both organic and inorganic growth initiatives.

US Market Dynamics and Global Diversification

The company acknowledged temporary uncertainties due to tariff-related headwinds in the US market but views them as transient, reaffirming its commitment to the region. Mamata's diversified product portfolio, growing global footprint, and increasing penetration in alternate export markets provide a natural hedge against such developments. The US subsidiary's sales include Canada and Central/South America, with pure US sales historically representing about 15% of the top line, and tariffs applying only to sales within the USA.

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