Mamata Machinery Limited

Mamata Machinery experienced a challenging FY26, with revenue from operations declining 8% to ₹233.1 crores from ₹254.6 crores in FY25. The fourth quarter revenue also saw a significant drop to ₹73.9 crores from ₹111 crores in Q4 FY25. This downturn was primarily attributed to external events, including a nearly 50% decline in the US business, which is a major export market for the company's converting machinery. Consequently, EBITDA compressed sharply to ₹19.1 crore (8.2% margin) from ₹54.64 crores (21.4% margin) in FY25, and PAT fell to ₹15.1 crore from ₹40.8 crore.

The significant compression in EBITDA margin was driven by several factors. Gross margin declined from 60.8% in FY25 to 54.6% in FY26, mainly due to a lower share of higher-margin exports and an adverse product mix. Additionally, a one-time^📎 provisioning impact of approximately ₹3.05 crores was booked in Q4 for employee benefit expenses due to new labor and wage code amendments. Elevated exhibition expenses, totaling ₹10.2 crores in FY26 compared to ₹6.2 crores in FY25, and negative operating leverage from the top-line decline further contributed to the margin pressure.

Despite the financial challenges, Mamata Machinery made significant operational progress in strategic diversification. The company expanded its packaging business into new geographies, securing its first packaging machine order from South Africa for delivery in Q2FY27. It also made its maiden appearance at Interpack 2026 in Düsseldorf to strengthen its international footprint and open the European market. Furthermore, plans are underway to open a branch office for CIS business in Russia, partnering with local channel partners to aggressively distribute machines.

The packaging division, a key growth driver, demonstrated robust domestic performance with sales growing 55% in FY26, despite an overall marginal decrease of 1% due to a 20% decline in US packaging sales. The company secured a significant multi-machine order for VFFS packaging machines from a leading Indian brand, with 18 machines scheduled for delivery in H1FY27. The total order book at the end of FY26 stood at ₹89.59 crores, a 34% increase from ₹66.64 crores in FY25, providing healthy revenue visibility for FY27.

Mamata Machinery launched RecTech, a breakthrough recyclable packaging technology, offering advanced, fully recyclable mono-material film with superior barrier protection. This technology is expected to accelerate the adoption of sustainable packaging among domestic brands, though its contribution will build gradually over the medium to long term. The company also secured an EU patent for its proprietary cross-sealing device, which is embedded in its advanced packaging machines, enabling it to offer this technology to European customers.

Looking ahead to FY27, Mamata Machinery expects to return to its growth track and aims for profitability to normalize to historical averages of around 20%. The company anticipates delivering approximately 15% higher top-line revenue compared to FY26. Specific growth objectives include a comeback in the US market, double-digit growth in domestic converting, and a 30-40% growth in the packaging business. Initial business from South East Asia is targeted at US$1 million, with Europe expected to contribute US$2-3 million incrementally over the next three to five years.