Pyramid Technoplast Limited — Q3 FY26 earnings call

Call held 10 Feb 2026

Management summary

Pyramid Technoplast reported a mixed Q3 FY26, with revenue growing 5% YoY to ₹162 crores, driven by strong performance in IBC and HDPE Drums. However, profitability was impacted, with EBITDA declining 2% to ₹12 crores and PAT falling 29% to ₹4.8 crores, primarily due to higher operating costs, interest burden, and one-time expenses. The company commissioned its recycling and solar power plants, which are expected to drive significant cost savings and margin improvement in the coming quarters, with management targeting 10-12% EBITDA margins by the June quarter.

Highlights

  • Revenue of ₹162 crores, up 5% YoY for Q3 FY26.

  • Gross profit rose 22% YoY to ₹44 crores in Q3 FY26 and 26% to ₹130 crores for nine months.

  • HDPE DRUMS volume grew 16% YoY, with revenue up 10% YoY.

  • IBC volume grew 37% YoY, with revenue up 27% YoY.

  • Recycling plant commissioned in October, expected to reduce raw material cost by 10% annually.

  • Solar power plant commissioned in October, expected to reduce power cost by ₹15 crores annually.

  • Wada plant is now profitable and capacity utilization improving above 65%.

Concerns

  • EBITDA declined by 2% to ₹12 crores in Q3 FY26.

  • PAT declined by 29% YoY to ₹4.8 crores in Q3 FY26.

  • EBITDA margin at 7.4% and PAT margin at 3% in Q3 FY26, impacted by higher base costs, interest burden (₹80-90 lakhs), increased depreciation (₹33-34 lakhs), and Diwali bonus (₹1 crore).

  • MS-Drum volume increased by 1% YoY, but revenue declined by 2%.

Key financials

2 periods

Q3 FY26

  • Revenue
    ₹162 Cr
    YoY +5%
  • Gross Profit
    ₹44 Cr
    YoY +22%
  • EBITDA
    ₹12 Cr
    YoY -2%
  • EBITDA Margin
    7.4%
  • PAT
    ₹4.8 Cr
    YoY -29%
  • PAT Margin
    3%
  • Capacity Utilization
    67%

9M FY26

  • Revenue
    ₹486 Cr
    YoY +16%
  • Gross Profit
    ₹130 Cr
    YoY +26%

What they filed

Q1 FY27: revenue up 35.4%, net profit up 25.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue133 153 171 164 161 +21%161 +5%195 +14%222 +35%
EBITDA9 11 11 13 12 +33%11 +0%20 +82%20 +54%
Net profit6 7 7 8 6 +0%5 −29%10 +43%10 +25%
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.

Segment breakdown

SegmentVolume Growth (YoY)Revenue Growth (YoY)
MS-Drum1%-2%
HDPE Drums16%10%
IBC37%27%
Wada Plant——

Order book

low confidence
The demand has not been seen yet, but it seems that the demand will come. Yes, there is demand. I think 8-10% growth will be seen in the quarter.

Source: Q&A

Capital allocation

high confidence
  • Capex ₹10 Cr
    • Recycling plant investment ₹10 Cr
    • Solar power plant investment ₹60 Cr
    • Maintenance and balanced capex ₹10 Cr
    At WADA, the IBC and SDP lines are fully operational, with the MS line has been commissioned, with the remaining expansion on track for completion by December. Beyond this, we expect only maintenance and balanced capex of around 10 to 20 crore for FY27. Our strength continue to lie in backward integration with all major backward products we have been manufacturing in-house. It gives us better cost control and supply reliability. ... The recycling plant set up on 4,400 square meters of plot in Bharuch with an investment of around 10 crores... In parallel, our six megawatt solar power plant in Gujarat marks the first phase of 14.25 megawatt captive solar project across Gujarat and Maharashtra. ... with a total investment of 60 crore in the payback period of four years.
  • Debt Debt disclosed Cost 8%
    • Repayment Repayment has started, leading to a decrease in interest cost.
    the interest burden is 80-90 lakhs and the depreciation is 33-34 lakhs extra plus the bonus of diwali is around 1 crore Rs. 2.5 crore is gone, so it was less than Rs. 2 crore. ... Around 8%.
  • Liquidity Undrawn ₹30 Cr Working capital limit is unused, with a balance of 30-40 crores available.
    Utilization, if we see in today's date, my working capital will be used and I have a balance of 30-40 crores. It is not being used. ... Yes, it is not being used. The limit is unused.

Guidance & targets

Capacity

  • Capacity Utilization Capacity · next financial year · High confidence 75%
    Capacity utilization during the quarter stood at 67%, and we expect this to steadily improve to 75% for the next financial year.

    — Jaiprakash Agarwal

Cost Savings

  • Annual Power Cost Reduction (Solar) Cost Savings · annually · High confidence ₹15 crore
    the project is expected to reduce power cost by approximately 15 crore annually.

    — Jaiprakash Agarwal

  • Raw Material Cost Reduction (Recycling) Cost Savings · annually · High confidence 10%
    The recycling plant is expected to further reduce our raw material cost requirement by 10% annually, supporting margin expansion going forward.

    — Jaiprakash Agarwal

Profitability

  • EBITDA Margin Profitability · next quarter onwards · Medium confidence 10-11%
    So we are expecting around 10% to 11% EBITDA from next quarter onwards. ... Hopefully, you will see it from June quarter.

    — Majid Ahmed (reaffirmed by Bijaykumar Agarwal)

  • Overall Margins Profitability · June quarter · Medium confidence 11-12%
    Sir I am hoping in June quarter we will be a able to see 11-12%

    — Bijaykumar Agarwal

Revenue

  • Revenue (FY26) Revenue · this year (FY26) · High confidence ₹670 crores
    this year we will be around 670 crores

    — Bijaykumar Agarwal

  • Revenue (FY27) Revenue · FY27 · High confidence ₹800 crores
    In 27 we will touch 800 crores

    — Bijaykumar Agarwal

Volume/Revenue

  • Growth Volume/Revenue · this quarter · Medium confidence 8-10%
    I think 8-10% growth will be seen in the quarter.

    — Bijaykumar Agarwal

What to watch in Q4 FY26

Capacity Utilization Improvement

next financial year
Current 67% (Q3 FY26)
Target 75%

Why it matters

Higher utilization drives operational leverage and overall profitability.

Capacity utilization during the quarter stood at 67%, and we expect this to steadily improve to 75% for the next financial year.

Risks & concerns

  • Market downturn and export restrictions

    medium

    Market was down and export was closed, impacting volume growth in Q3 FY26, though demand is expected to return.

    Management acknowledged

  • Project delays impacting profitability

    medium

    Delays in solar and recycling plant commissioning, along with accounting for subsidies, caused a shortfall in expected EBITDA.

    Management acknowledged

  • Higher operating costs during ramp-up phase

    low

    Higher base costs during the capacity ramp-up phase contributed to margin pressure in Q3 FY26, expected to ease as utilization improves.

    Management acknowledged

Q&A highlights

7 direct
Q3 FY26 Profitability Decline Direct
Nothing has happened, all the projects that we have implemented have started whether it is a recycling plant or a Wada plant, all the projects that we have done have started this time you are seeing a profit of 2 crores, there are 2 reasons, the interest burden is 80-90 lakhs and the depreciation is 33-34 lakhs extra plus the bonus of diwali is around 1 crore Rs. 2.5 crore is gone, so it was less than Rs. 2 crore.

Management explains the specific cost items (interest, depreciation, bonus) that led to the significant PAT decline in Q3 FY26 despite new projects being operational.

Asked by Deepesh Sancheti

Wada Plant Volume Growth Post-Commissioning Partial
But the market was down and the export was closed. We had the capacity so we didn't lose anything. There has been some growth.

Addresses the analyst's concern about the lack of significant volume growth from the newly operational Wada plant, attributing it to external market conditions and export closures.

Asked by Deepesh Sancheti

Future Volume Growth Expectation Direct
In this quarter. In Wada, there is a sale of 8-9 crores per month.

Provides a specific current sales figure for the Wada plant, indicating its ongoing ramp-up and contribution to volume.

Asked by Deepesh Sancheti

Achieving 12% Margin Target Direct
Sir I am hoping in June quarter we will be a able to see 11-12%

Management reaffirms a specific timeline for achieving a key profitability target, which has been a point of concern for investors due to previous delays.

Asked by Divyesh Vohra

Discrepancy in EBITDA Target vs. Achievement Direct
The main shortfall was of solar, the recycling plant has also been delayed for 1-2 months, which is showing a difference. Plus, the profit that will come in this quarter is more, which is going to get a subsidy in the Wada plant. We have not taken it in books yet, after March it will be closed and when we get the subsidy certificate, we will do the provision.

Explains the reasons for missing the previously indicated EBITDA target, citing project delays and the timing of subsidy recognition for the Wada plant.

Asked by Saket Kapoor

Impact of Raw Material Price Increase Direct
It will not have an impact, it will increase. If the price increases, then it is beneficial. There is no loss if the price increases, because we have a stock. so we ask for a pass on as soon as the price impacts and the old stock that I have, I get a benefit out of it.

Clarifies that rising raw material prices are not a negative but rather beneficial for the company due to existing inventory and the ability to pass on costs to customers.

Asked by Prateek Dedhia

Operating Leverage and EBITDA Margin Outlook Direct
Hopefully, you will see it from June quarter.

Confirms the timeline for improved EBITDA margins, indicating that the benefits from operational leverage and new projects are expected to materialize soon.

Asked by Majid Ahmed

Future Capacity Expansion at Wada Direct
See, the customers who are of low margin in Wada, who came in the start, We will refine it and use that plant 100% and after that I will do CAPEX in Wada.

Indicates the company's strategic approach to optimizing the Wada plant's customer mix and capacity utilization before undertaking further capex for expansion.

Asked by Manish Moonka

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Detailed narrative

Q3 FY26 Performance Overview and Profitability Challenges

Pyramid Technoplast reported a 5% year-on-year revenue growth, reaching ₹162 crores in Q3 FY26, with 9-month revenue at ₹486 crores, up 16%. Gross profit saw a healthy increase of 22% YoY to ₹44 crores for the quarter. However, profitability was significantly impacted, with EBITDA declining 2% to ₹12 crores (7.4% margin) and PAT falling 29% to ₹4.8 crores (3% margin). This decline was attributed to higher base costs during the capacity ramp-up, an interest burden of ₹80-90 lakhs, increased depreciation of ₹33-34 lakhs, and a Diwali bonus expense of ₹1 crore.

Strategic Initiatives and Capacity Expansion Progress

The company successfully commissioned key projects during the quarter, including a recycling plant on October 3rd and a solar power plant on October 30th. The recycling plant, with an investment of ₹10 crores, has an annual capacity of 5,000 metric tons. The solar power plant, part of a larger ₹60 crore project, is expected to significantly reduce power costs. The Wada plant is now fully operational and profitable, with its capacity utilization improving from 40-50% in the last quarter to 60-70% since January.

Operational Efficiencies and Cost Savings Outlook

The newly commissioned recycling plant is projected to reduce raw material cost requirements by 10% annually, enhancing supply chain resilience and reducing import dependence. The solar power plant is expected to reduce annual power costs by approximately ₹15 crores, with about ₹3 crores of benefit anticipated in Q4 FY26. These initiatives, combined with backward integration and an expanded in-house logistics fleet of over 100 vehicles, are set to improve cost control and supply reliability.

Segmental Performance and Capacity Utilization

In Q3 FY26, MS-Drum volume increased by 1% YoY, though revenue declined by 2%. HDPE DRUMS showed strong growth with 16% YoY volume increase and 10% YoY revenue increase. IBC delivered robust performance, with 37% YoY volume growth and 27% YoY revenue growth. Overall installed production capacity increased from 62,887 MTPA to 75,856 MTPA. Capacity utilization stood at 67% in Q3 FY26, with management expecting it to steadily improve to 75% in the next financial year.

Future Outlook and Profitability Targets

Management expressed confidence in driving consistent growth and improving profitability. They are targeting EBITDA margins of 10-11% and overall margins of 11-12% by the June quarter, as the benefits from new projects fully materialize. The company projects revenue to reach approximately ₹670 crores for FY26 and ₹800 crores for FY27. With the expansion phase nearing completion and sustainability initiatives in place, the focus is on maximizing utilization and leveraging operational efficiencies.

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