Mamata Machinery

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.

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.

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.

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.

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.

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.

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.