Detailed Narrative
Q2 & H1 FY26 Performance Overview
Rajshree Polypack reported a modest H1 FY26 turnover of ₹168.94 crores, a 1.17% increase YoY, with EBITDA at ₹24.96 crores (14.78% margin) and PAT at ₹8.71 crores. Q2 FY26 saw revenue of ₹86.43 crores, slightly lower than last year's ₹88.28 crores, with EBITDA at ₹12.89 crores (14.91% margin) and PAT at ₹4.61 crores, down from ₹5.10 crores in Q2 last year. The quarter was described as 'slightly softer' overall.
Export vs. Domestic Market Dynamics
Exports were a standout performer, growing sharply by 79.66% in H1 FY26 to ₹35.46 crores, and more than doubling in Q2 alone to ₹22.05 crores, driven by strong demand for Injection Moulding products. However, domestic revenues declined to ₹133.48 crores in H1 FY26 from ₹147.24 crores last year, and to ₹64.37 crores in Q2 FY26 from ₹77.73 crores. This decline was primarily attributed to lower raw material prices and reduced off-take from large institutional customers impacted by early and extended monsoons.
Product-Wise Performance & Capacity Expansion
Injection Moulding revenue grew strongly by 142% in H1 FY26 to ₹31.44 crores and 176% in Q2 FY26 to ₹18.58 crores. Thermoformed packaging remained stable at around ₹100 crores in H1, while sheet sales were lower at ₹36.29 crores in H1 and ₹21.10 crores in Q2. The company expanded its Injection Moulding capacity by 1,500 MT, bringing the total to 4,800 MTPA, largely in response to growing export demand. There is potential to add another 1,000 to 1,200 MTPA in the same space.
Olive Ecopak (JV) Update
The Olive Ecopak JV continues to progress, with installed capacities of 27,000 MTPA for paper coating and 15,000 MTPA for packaging products. H1 revenue was ₹19.86 crores, with Q2 revenue at ₹12.05 crores, significantly higher than Q1's ₹7.81 crores. Q2 EBITDA turned slightly positive at ₹0.05 crores, a notable improvement from Q1's loss of ₹1.73 crores. The JV aims to break even at the PAT level by Feb/Mar 2026, targeting ₹90-95 crores annual revenue, and expects to reach ₹140-150 crores revenue in FY27, with full capacity utilization (₹200-215 crores) by FY27-28.
Revised FY26 Guidance & Capital Allocation Strategy
The company revised its FY26 revenue guidance downwards from ₹365 crores to ₹350 crores, reflecting the softer Q2 performance. Management expects Q3 revenue of ₹80-83 crores and Q4 revenue of ₹95-98 crores. For future capex, such as the initial phase of the Odisha plant estimated at ₹25-35 crores, the company intends to fund it entirely through internal accruals. Management emphasized a principle of not taking on additional debt for the next two years, focusing on efficient utilization of existing capacities.
Cost Management and Market Strategy
COGS improved from 62.75% to 60.26%. Fixed manufacturing costs increased due to Unit 3 operations ramping up, and employee costs rose by 15% due to higher Injection Moulding volumes. The company is exploring renewable power to reduce energy costs. To counter US tariff challenges🌐, Rajshree Polypack is actively expanding its presence in other regions, currently exporting to 13 countries, and participating in international exhibitions to convert interest into higher volumes and market penetration.