Time Technoplast Limited

Time Technoplast reported a strong Q1 FY26, with revenue increasing by 10% year-on-year to INR 1,354 crores, up from INR 1,231 crores in Q1 FY25. This growth was underpinned by a 14% year-on-year volume increase, despite a 4-5% reduction in input costs tempering revenue. Profit After Tax (PAT) saw a significant 20% year-on-year rise to INR 95 crores, compared to INR 79 crores in the previous year. The company's EBITDA margin improved by 30 basis points, reaching 14.5% for the quarter, reflecting strong operational resilience.

The composite products segment was a key driver of performance, achieving an impressive 18% overall volume growth. The CNG segment within composites showed particularly strong momentum, growing by approximately 20%. The company highlighted a healthy order book of INR 175 crores for Type 4 composite cylinders. Management projects continued robust growth for composite products, targeting 28-30% growth for FY26 and maintaining a 30% growth rate over the next 2-3 years, driven by LPG, CNG, and hydrogen applications.

Time Technoplast is advancing several strategic initiatives, including the establishment of Time Ecotech Private Limited (TEPL) for recycled material processing, with the first plant in Gujarat expected to be commissioned in the next 3-4 months. The company is also developing hydrogen cylinders for drone applications, having signed an exclusive MOU with Drone Stark Technologies. Additionally, efforts are underway to develop 14.2 kg LPG composite cylinders, which are expected to take 6 months for design approvals and full development, aiming to capture a significant share of the Indian market.

The company is undertaking significant capacity expansion, particularly for CNG and hydrogen cylinders. An expansion project in Vapi, Gujarat, will increase cascade capacity from 480 to 1,080 units annually (equivalent to 36,000 cylinders per month), with commercial operations expected to commence within the next 60 days. This expansion is projected to increase the potential business generated from CNG and hydrogen to INR 700 crores from the current INR 350 crores. The industrial packaging division also has a confirmed order pipeline of INR 425 crores for the current calendar year.

In Q1 FY26, the company reduced its debt by INR 37 crores, aligning with its focus on becoming debt-free within the next 18 months. Total capital expenditure for the quarter was INR 43 crores, allocated towards maintenance, expansion, automation, and value-added products like IBC and composite products. The board has recommended a 1:1 bonus share issue, the first in the company's 35-year history, subject to shareholder approval. The merger of Power Build batteries into Time Technoplast (97% ownership) was also completed, streamlining the energy storage business.

The company continues to pursue its Qualified Institutional Placement (QIP) approval, valid until November 2025, with the primary objectives of debt reduction and funding strategic growth initiatives, including automation, reengineering, and new greenfield products. Management clarified that the QIP is preferred over a rights issue to attract institutional investors and facilitate faster growth, aiming to achieve a debt-free status and maintain a cost of debt around 9% per annum.