Rajshree Polypack Limited

Rajshree Polypac Limited achieved a significant milestone in FY25, crossing ₹300 crores in revenue to reach ₹329.74 crores, marking a 20.17% year-on-year increase from ₹274.39 crores. EBITDA for the year grew 26.12% to ₹46.30 crores, with margins improving to 14.04% from 13.38% in FY24. The strong momentum continued into Q4 FY25, with operational revenue of ₹90.05 crores, up 29.82% YoY, and PAT showing a substantial increase of 78.8% YoY and 113.83% QoQ.

Exports played a crucial role in the company's growth, with Q4 FY25 export revenues reaching ₹19.55 crores, contributing 21.71% to the total quarterly revenue, marking the highest export contribution to date. For the full year, export revenue grew 27.53% to ₹53.87 crores from ₹42.24 crores in FY24. Injection moulding volumes significantly increased from 1,420 MT in FY24 to 2,654 MT in FY25, now contributing 12.84% of annual revenue, driven by export demand. Thermoformed packaging and sheet sales also saw healthy growth of 9.68% and 29.96% respectively in FY25.

The joint venture, Olive Ecopak, generated ₹16.38 crores in revenue for FY25, with ₹8.91 crores in Q4 FY25. Despite improved Q4 EBITDA loss of ₹1.14 crores (from ₹6.28 crores in Q3), the JV recorded an overall EBITDA loss of ₹8.37 crores and a net loss of ₹22.63 crores for FY25. Management projects Olive Ecopak to achieve ₹90-95 crores in revenue for FY26 and break even at the depreciation level, with a long-term target of ₹210-220 crores revenue and 16-17% EBITA margin at full scale.

The company plans to focus on consolidation in the ongoing financial year, aiming to enhance profitability with minimal capital investment and optimal utilization of existing capabilities. Major capex plans, including the Odisha expansion, have been deferred for 12-15 months. Future growth for Rajshree is expected to be 15-20% per annum through small expansions and a capital-light toll manufacturing model, with injection molding investments limited to ₹1-1.5 crores for molds.

Rajshree Polypac intends to reduce its borrowings, both term loans and cash credit limits, over the next 1.5 to 2 years by deploying surplus cash flows. The term loan has an annual repayment schedule of ₹6-7 crores. For FY25, the company has decided to hold dividends to prioritize investment and debt reduction, with a commitment to consider dividends from FY26 onwards as cash flows improve.

The JV partner in Olive Ecopak, also involved in plastic packaging with a turnover exceeding ₹200 crores, brings a robust distribution network across India with over 200 distributors. This network is crucial for driving sales in the general market segment for Olive Ecopak. The JV's unique selling proposition lies in its vertically integrated, in-house processes for paper coating and packaging product manufacturing, enabling end-to-end quality control and eco-friendly innovation.