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    Time Technoplast Limited

    TIMETECHNO
    Capital Goods·17 Nov 2025
    Management Summary

    Time Technoplast delivered a strong Q2 FY26, with double-digit growth in revenue, EBITDA, and PAT, driven by robust volume expansion in composite products, especially CNG cascades. The company successfully raised INR 800 crores through a QIP, significantly reducing net debt and providing capital for strategic investments in automation, recycling, and inorganic growth. New product developments and green energy initiatives are set to further enhance future performance and sustainability.

    Highlights

    12

    • H1 FY26 volume growth of 14% and revenue growth of 10%, despite raw material price reduction.

    • Q2 FY26 net sales grew 10% YoY to INR 1,512 crores (India 9%, overseas 13%), with volume up 14% (India 13%, overseas 16%).

    • Q2 FY26 EBITDA increased 14% to INR 224 crores, and PAT rose 17% to INR 115 crores.

    • CNG Composite Cascades segment grew 22%, and overall composite volumes increased 18.3%.

    • Value-added products grew 17% in H1 FY26, now constituting 28% of total sales, with an expected increase.

    • Net cash from operating activity in H1 FY26 stood at INR 226 crores, and total net debt reduced to INR 56.4 crores.

    • Completed INR 800 crores QIP, with significant participation from DIIs (+3.37%) and FIIs (+2.63%), and promoter holding reduced to 47.46% without any offer for sale.

    • Non-core asset sales reduced to INR 41 crores from an initial INR 125 crores target.

    • ROCE target of 20% for FY26, with a continuous 2% annual increase thereafter.

    • Secured an INR 190 crores order for HDPE Pipe for power duct applications in the Southern region, part of a larger INR 1,250 crores Amaravati Smart City project.

    • New composite fire extinguisher and 14.2 kg composite LPG cylinders are under development, with launch of fire extinguisher expected in Q4 FY26.

    • Pilot project for hydrogen cylinders for drone application expected next month.

    Concerns

    3

    • Revenue growth (10%) lagged volume growth (14%) in H1 FY26 due to a 4% reduction in raw material prices.

    • Experienced a connectivity issue during the conference call, causing a brief interruption.

    • QIP funds of INR 800 crores need to be effectively utilized within the next 6 months for planned capex and debt reduction.

    What Changed2

    vs Q3 FY26

    Guidance items12 → 14 (+2)Risks discussed0 → 2 (+2)
    Key financials

    Metrics

    7

    Periods

    2

    Q2 FY26

    3
    • Net Sales
      ₹1,512 Cr
      YoY+10%
    • EBITDA
      ₹224 Cr
      YoY+14.0%
    • PAT
      ₹115 Cr
      YoY+17%

    H1 FY26

    4
    • Net Sales
      ₹2,866 Cr
      YoY+10.1%
    • EBITDA
      ₹420 Cr
      YoY+13%
    • PAT
      ₹211 Cr
      YoY+18%
    • EBITDA Margin
      14.6%

    Segment breakdown

    India Business
    9% Sales Growth (Q2 FY26)13% Volume Growth (Q2 FY26)8.5% Sales Growth (H1 FY26)12.2% Volume Growth (H1 FY26)14.8% EBITDA Margin (FY26)
    Overseas Business
    13% Sales Growth (Q2 FY26)16% Volume Growth (Q2 FY26)13.2% Sales Growth (H1 FY26)16.4% Volume Growth (H1 FY26)14.3% EBITDA Margin (FY26)
    Value-Added Products
    17% Growth (H1 FY26)28.0% Share of Total Sales (H1 FY26)
    Established Products
    8% Growth (H1 FY26)
    CNG Composite Cascades
    22% Growth
    Composite Products (overall)
    18.3% Volume Growth
    Other Composite Products
    131 Mn Revenue (Q2 FY26)
    List

    Order Book

    high confidence

    Total Value

    ₹ 195 crores

    as of 2025-09-30

    quantified

    Inflow this qtr

    ₹ 190 crores

    Execution

    Amaravati Smart City project (HDPE Pipe) is a 2-year project.

    Composition

    Mix2 products
    • Type IV Composite Cylinders₹ 195 crores50.6%
    • HDPE Pipe for power duct applications₹ 190 crores49.4%

    Share of order book by product (derived from disclosed amounts)

    Pipeline

    qualified rfp

    Industrial Packaging confirmed order pipeline for current calendar year across domestic and international markets.

    "Healthy order book for Type IV composite cylinders and strong pipeline for Industrial Packaging and HDPE pipes, indicating sustained demand."

    Source:
    Prepared remarks

    Capital allocation

    4
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Net ₹56.4 crores

    M&A

    Ebullient Packaging Private Limited

    acquisition · pending regulatory · Consideration ₹NaN (undisclosed)

    Liquidity

    Liquidity disclosed

    Successfully completed INR 800 crores QIP, issuing 397.77 lakh equity shares at INR 201.12 per share, increasing paid-up share capital and attracting significant institutional investment.

    Guidance & targets

    14
    CategoryTargetPriority
    Profitability
    ROCE
    20%
    		High
    Profitability
    ROCE annual increase
    2%
    		High
    Profitability
    EBITDA Growth
    16-17%
    		Medium
    Profitability
    PAT Growth
    >20%
    		Medium
    Volume
    Volume Growth
    15%
    		High
    Margin
    EBITDA Margin Improvement
    20-30 bps
    		High
    Product Mix
    Value-Added Product Share
    increase
    		High
    Debt
    Financial Cost
    INR 35-40 crores
    		High
    Green Energy
    EBITDA from Green Energy
    INR 11 crores
    		High
    Green Energy
    Potential EBITDA from Green Energy
    INR 30 crores
    		Medium
    New Product Launch
    Composite Fire Extinguisher Launch
    Q4 FY26
    		High
    New Product Launch
    OPz batteries approval
    Q4 FY26
    		High
    Capacity
    CNG Cylinder Capacity (Revenue Potential)
    INR 800 crores
    		High
    New Market Entry
    OEM Automotive Business
    approach next year
    		Medium

    QIP fund utilization progress

    within 6 months
    CurrentINR 800 crores QIP completed, funds in escrow
    TargetSignificant deployment of funds for debt reduction and capex

    Why it matters

    Effective utilization of QIP funds is crucial for realizing projected interest cost savings and funding growth initiatives.

    So if you ask me the next year, definitely, as QIP we've received just now, which is lying in the escrow account. So whatever the direct payment, the reduction of the debt to be done, straight will go for that.

    How to verify

    capital_allocation.debt.actions

    Risks & concerns

    2
    RiskSeverity

    Raw material price volatility

    Revenue growth (10%) lagged volume growth (14%) in H1 FY26 due to a 4% reduction in raw material prices, impacting top-line realization despite strong volumes. — Management acknowledged

    medium

    Effective utilization of QIP funds

    The INR 800 crores QIP funds need to be deployed within 6 months for planned capex and debt reduction to realize the full benefits. — Management acknowledged

    medium

    Q&A highlights

    7

    “In the first half, we have reduced INR45 crores of debt and in QIP we have identified reduction for debt of INR400 crores, which easily can be benefit around INR30 crores. So if you ask me the next year, definitely, as QIP we've received just now, which is lying in the escrow account. So whatever the direct payment, the reduction of the debt to be done, straight will go for that. So simply INR400 crores, 8.5% interest rate, that will be the saving of INR34 crores, INR4 crores yearly saving.”

    Clarifies the financial impact of QIP on debt reduction and future interest cost savings, and outlines specific capex plans for automation, recycling, and inorganic growth.

    asked by Prakash Kapadia

    2 min read6 chapters

    Detailed Narrative

    01

    Strong H1 FY26 Performance Driven by Volume Growth

    Time Technoplast reported a robust H1 FY26, achieving 14% volume growth and 10% revenue growth, reaching INR 2,866 crores. This growth was sustained despite a 4% reduction in raw material prices. Q2 FY26 alone saw net sales increase by 10% YoY to INR 1,512 crores, with EBITDA growing 14% to INR 224 crores and PAT rising 17% to INR 115 crores, underscoring effective operational and financial management.

    02

    Strategic Focus on Value-Added Products and Composites

    The company's value-added product segment demonstrated strong momentum, growing 17% in H1 FY26 and now contributing 28% to total sales, up from 27%. The CNG Composite Cascades segment was a standout performer with 22% growth, boosting overall composite volumes by 18.3%. A healthy order book of INR 195 crores for Type IV composite cylinders and an INR 450 crores pipeline for Industrial Packaging highlight sustained demand.

    03

    Successful QIP and Debt Reduction

    Time Technoplast successfully completed an INR 800 crores Qualified Institutional Placement (QIP) on November 11, 2025, attracting significant institutional investors. This capital infusion has enabled a substantial reduction in net debt to INR 56.4 crores in H1 FY26. The company plans to utilize INR 400 crores from the QIP for debt repayment, expecting an annual interest saving of INR 34 crores, with financial costs projected to reduce to INR 35-40 crores from next year.

    04

    Capital Expenditure and Inorganic Growth Plans

    Total capex in H1 FY26 was INR 117 crores, with INR 75 crores allocated to value-added products like IBC and composite cylinder expansion. QIP funds are earmarked for INR 90 crores in automation, INR 55 crores for recycled sustainability initiatives, INR 150 crores for inorganic growth (including a potential 74% equity investment in Ebullient Packaging Private Limited), and INR 100 crores for general corporate purposes. The company aims for a 20% ROCE in FY26, with a 2% annual increase thereafter.

    05

    Sustainability & Green Initiatives

    The company is accelerating its transition towards sustainable growth, including green energy conversion. It has signed agreements to procure 4.5 crore units of solar power, expecting an INR 11 crores EBITDA benefit from next year, with a potential for INR 30 crores from 12 crore units. Additionally, Time Ecotech Private Limited, a new 100% subsidiary, will invest INR 120 crores in recycling plants across India, with the first plant in the Western region expected by January 2026.

    06

    New Product Development and Market Expansion

    Time Technoplast is actively developing new products, including a 14.2 kg composite LPG cylinder and higher capacity (200-250 liters) composite CNG cylinders. A pilot project for hydrogen cylinders for drone applications is expected next month. The company also plans to launch composite fire extinguishers in Q4 FY26 and is pursuing approvals for OPz batteries for the power sector, further diversifying its product portfolio and market reach.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.