Detailed Narrative
Q4 FY26 & FY26 Performance Overview
Pyramid Technoplast concluded FY26 with strong results, driven by successful capacity expansion and improved operational efficiency. Q4 FY26 revenue reached ₹196 crore, growing 14% YoY, while full-year FY26 revenue increased 15% to ₹684 crore. Gross profit for Q4 FY26 was ₹56 crore (up 33% YoY), and for FY26, it was ₹186 crore (up 28% YoY). EBITDA for Q4 FY26 surged 68% YoY to ₹20 crore, contributing to a full-year EBITDA of ₹59 crore, up 26% YoY, with margins improving to 8.6% from 7.9%. PAT for FY26 stood at ₹29 crore, representing a 4.2% margin.
Capacity Expansion and Utilization Targets
The company's installed production capacity increased 22% YoY to 76,931 metric tons per annum, following the completion of a major CAPEX cycle. Capacity utilization in Q4 FY26 improved to 69% overall, with specific rates of 72% for HDPE drums, 68% for IBCs, and 51% for MS drums. Management expects overall utilization to reach 80% in FY27, with Polymer Drum and IBC utilization targeting 70-75% within the next 3-6 months. The Wada plant, now fully operational, contributed ₹65 crore to revenue in FY26 and has a revenue potential of ₹200 crore for its first phase.
Solar Power Initiative Progress and Benefits
Pyramid Technoplast is advancing its captive solar power initiative, with an initial 6 MW plant in Gujarat commissioned on October 30, 2025. An additional 5 MW in Baruch and 2.25 MW in Maharashtra were commissioned on February 2, 2026, with the remaining 1 MW in Baruch expected shortly. This ₹60 crore investment is projected to reduce annual power costs by ₹15 crore, with a payback period of four years. The project is expected to contribute ₹10 crore in benefits in FY27, rising to ₹15 crore thereafter.
Recycling Plant Development and Cost Savings
The plastic recycling plant processed approximately 200 metric tons during Q4 FY26, primarily in a testing phase. The company is awaiting final license approval from the Pollution Control Board, which is expected by June/July 2026. The plant, with an annual capacity of 5,000 metric tons, is anticipated to meet 10-12% of raw material requirements and is projected to save at least ₹5 crore annually once fully operational and licensed.
Product Segment Performance and Future Mix
In Q4 FY26, MS-Drums revenue grew 29% (volume up 35%), HDPE Drums revenue increased 20% (volume up 8%), and the IBC segment delivered 5% revenue growth (volume up 6%). For FY26, IBC's contribution to total revenue increased to 41% from 34% in the previous year. Management expects IBC's revenue contribution to further increase to 43-45% in FY27, with Polymer Drums making up 45% and MS Drums 10-12% of the product mix.
Working Capital and Debt Management
The company has adjusted its inventory strategy, reducing inventory days to approximately 25-30 days from 45 days by shifting from imports to increased local sourcing. This change aims to mitigate risks from potential price drops. Debt repayment for term loans has commenced, with a projected repayment period of 3 to 4 years. Long-term borrowing stands at ₹73 crore (linked to the solar project), and short-term borrowing has increased to ₹8-10 crore, primarily to support higher working capital needs driven by raw material price increases.