Time Technoplast Limited — Q3 FY26 earnings call

Call held 13 Feb 2026

Management summary

Time Technoplast delivered a robust performance in Q3 and 9 Months FY26, marked by strong revenue and PAT growth driven by composite products. The company is actively pursuing strategic initiatives including capacity expansion, automation, and consolidation to enhance efficiency and margins. A significant focus on debt reduction has positioned the company to be debt-free within six months, while green energy projects are set to yield substantial cost savings.

Highlights

  • Q3 Revenue increased 13% YoY to INR1,567 crores, demonstrating strong top-line growth.

  • Q3 PAT grew 25% YoY to INR126 crores, indicating improved profitability.

  • 9M PAT rose 21% YoY to INR337 crores, reflecting sustained performance.

  • Composite volume increased 21% in 9M FY26, with the CNG Composite Cascade segment growing 23%.

  • Total debt was significantly reduced by INR380 crores to INR266 crores, with a clear target to become debt-free within the next 6 months.

Key financials

2 periods

Q3

  • Revenue
    ₹1,567 Cr
    YoY +12.8%
  • EBITDA
    ₹236 Cr
    YoY +16.8%
  • PAT
    ₹126 Cr
    YoY +24.8%

9M

  • Revenue
    ₹4,433 Cr
    YoY +11%
  • EBITDA
    ₹655 Cr
    YoY +13.9%
  • PAT
    ₹337 Cr
    YoY +21.2%
  • India EBITDA Margin
    15%
  • Overseas EBITDA Margin
    14.5%

What they filed

Q1 FY27: revenue up 25.1%, net profit up 21.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,371 1,388 1,469 1,353 1,511 +10%1,565 +13%1,677 +14%1,693 +25%
EBITDA196 201 214 195 223 +14%234 +16%241 +13%224 +15%
Net profit100 102 112 97 117 +17%129 +26%134 +20%118 +22%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Composite Products
    21% Volume Growth (9M)17% EBITDA Margin
  • CNG Composite Cascade
    23% Growth (9M)
  • Industrial Packaging
    12% EBITDA Margin
  • Value-Added Products
    17% Growth (9M)30% Share of Total Sales (9M)

Order book

high confidence

Total value

₹165 Cr

as of 2025-12-31 quantified

Pipeline

other

Confirmed order pipeline for Industrial Packaging for current calendar year

Healthy order book for Type 4 composite cylinders and strong pipeline for Industrial Packaging.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed
    • Total capex for 9 months FY26, including regular maintenance, automation, reengineering, and expansion, mostly for value-added products. ₹177 Cr
    • Regular maintenance capex for 9 months FY26 ₹80 Cr
    • Automation, reengineering, and expansion capex for 9 months FY26 ₹97 Cr
    • Investment in Time Ecotech for recycling plant ₹75 Cr
    • Investment in TPL Plastech's Lote-Parshuram plant for packaging ₹30 Cr
    capex in the 9 months, INR177 crores, which included INR80 crores regular maintenance capex and the balance is regular maintenance, automation, reengineering and the expansion, INR97 crores. And this mostly of the capital expenses are on account of the value-added product where the company has a higher margin.
  • Debt Gross ₹266 Cr
    • Repayment Total debt reduced by INR380 crores, including QIP funds payment. ₹380 Cr
    And now the total debt as of -- in the 9 months ended stood only INR266 crores as against INR647 crores.
  • M&A Ebullient Packaging Acquisition · Pending regulatory · Consideration ₹[object Object] (undisclosed)

    To expand into the flexible IBC market, which is a huge market, and to leverage the target company's projected INR250 crores annualized business.

    But I'm just telling you that the revenue figure, EBITDA figure is not accounted anywhere because I remember very well. We have signed the in-principle agreement. We will review, we will do the due diligence. Yesterday, we discussed our Board meeting due diligence for the 6 months because we signed that agreement of the in the month of August or September somewhere. So data is encouraging.
  • Liquidity Cash ₹460 Cr Balance QIP funds of INR460 crores are lying in FD account, earmarked for value-added products and brownfield expansion.
    balance INR460 crores, company is lying in the FD account, which is also the consideration is available on the NSE and BSE site.

Guidance & targets

Profitability

  • ROCE Profitability · FY26 · High confidence 20%

    From 18.6% today

    Now this year is targeting to 20%. Already in the 9 months, it is 18.6%.

    — Mr. Bharat Vageria

  • EBITDA Margin Increase Profitability · year-on-year · Medium confidence 2% year-on-year
    Now to increase the EBITDA margin, which will finally will increase the ROCE, which company is targeting 2% year-on-year increase

    — Mr. Bharat Vageria

Product Mix

  • Value-added product share of total sales Product Mix · in 2 years · Medium confidence 35%

    From 30% today

    Value-added products will reach to 35% in the 2 years' time.

    — Mr. Bharat Vageria

Growth

  • Consolidated Growth Growth · Medium confidence Above 15%
    So all put together, I can say the consolidated growth will be above 15%.

    — Mr. Bharat Vageria

Debt

  • Debt Status Debt · next 6 months · High confidence Debt-free

    From INR266 crores gross debt today

    I think it can be very clear visibility is there to have a complete debt-free in the next 6 months' time.

    — Mr. Bharat Vageria

Operational Efficiency

  • Working Capital Cycle Operational Efficiency · next 2 to 3 years · Medium confidence 90 days

    From 98-99 days today

    And the next 2 to 3 years' time, it is targeting to reduce to 90 days.

    — Mr. Bharat Vageria

Cost Savings

  • Solar Power Annual Savings (Gujarat) Cost Savings · from next year onwards · High confidence INR10 crores
    Gujarat, where we have a major facilities, the benefits have been started... I can say that '26, '27 company will have a power benefit on account of the power benefit will be approximately INR10 crores

    — Mr. Bharat Vageria

New Product Commercialization

  • Fire Extinguisher (6kg and 9kg) New Product Commercialization · April 2026 · High confidence Commercialization

    From Ready today

    Now I'm pleased to tell you both the products of 6 kg and 9 kg is ready, and that will be the commercialization will take place from April 2026.

    — Mr. Bharat Vageria

  • CNG Cylinders (250 liters) New Product Commercialization · next 45 to 60 days · High confidence Ready with approval

    From Currently manufacturing 156 liters today

    You will very shortly heard that 250 liters CNG cylinders ready, so that number of the cylinder in one category will reduce from 60 to 36, that will be the more cost competitive and per liter cost will be reduced. And the substantial savings will be there. So you will heard very slowly in the next 45 to 60 days' time about this approval.

    — Mr. Bharat Vageria

Capacity Expansion

  • New Composite Plant Revenue Generation Capacity Expansion · in 2 years · Medium confidence INR800 crores
    So at one place, you will find the company can generate the revenue of INR800 crores in the 2 years' time from the new plant after the consolidation of the existing plus the new expansion facilities.

    — Mr. Bharat Vageria

Subsidiary Performance

  • TPL Plastech Revenue Subsidiary Performance · in 3 years' time · Medium confidence >INR100 crores
    So this Lote-Parshuram, TPL is coming with a packaging product where they are going to investment of INR30 crores to INR35 crores, so they can have a revenue of more than INR100 crores in the 3 years' time.

    — Mr. Bharat Vageria

Segment Growth

  • PE Pipe Business Growth Segment Growth · Medium confidence >20-25%
    So I'm very sure as per PE pipe business, growth will be more than 20% to 25%.

    — Mr. Bharat Vageria

What to watch in Q4 FY26

Debt-free status

next 6 months
Current INR266 crores gross debt
Target Debt-free

Why it matters

Achieving debt-free status will significantly de-risk the balance sheet and improve profitability by eliminating interest costs.

I think it can be very clear visibility is there to have a complete debt-free in the next 6 months' time.

Q&A highlights

7 direct
Value-added product contribution and margins post-expansion Direct
Currently, if I remember the 27% is the value-added product is there, composite, how much? 27%. We are targeting overall growth is 15%. For value-added products will reach to 35% in the 2 years' time. ... In the standard product in the range of 12% to 13.5%. But the composite products and the value-added product margin in the range of 17% to 18%.

Clarifies the expected shift in product mix towards higher-margin value-added products and their specific margin profiles.

Asked by Jatin from Svan investments

Cost benefits from automation, consolidation, and power savings Direct
Total automation cost (QIP portion): INR75 crores. Payback 4 years (including 1 year completion). Expected EBITDA margin increase from automation: INR20 crores. ... In Gujarat, my requirement is INR4 crores unit. If I'm saving INR2.5 crores, INR2.5 per unit, the saving will be INR10 crores.

Quantifies the financial impact of strategic cost reduction initiatives, including automation and green energy.

Asked by Jatin from Svan investments

Viability and ROCE target for the new recycling subsidiary, Time Ecotech Direct
Time Ecotech I consider it as a separate company. As a Time Techno, I'm investing INR75 crores in that project. Now the INR75 crores, I should have an ROCE of 20% more than that because I don't want to go below that.

Highlights the company's commitment to a new, high-ROCE business segment and its strategic rationale for using recycled materials.

Asked by Jatin from Svan investments

Status and financial projections of the Flexible IBC acquisition Direct
We have signed the in-principle agreement. We will review, we will do the due diligence. ... As per the company projected, they are going to have a business of INR250 crores annualized business.

Provides an update on a significant inorganic growth opportunity and its potential revenue contribution.

Asked by Jatin from Svan investments

Commercialization timeline and capacity for hydrogen cylinders for drones Direct
As far as this drone is concerned, we have made one pilot project so that whoever customer would like to use the hydrogen cylinder for the drone, they are very welcome to my plant. ... We will be ready for the hydrogen cylinder, for the expansion, any new requirement comes, for the automotive supply -- in supply of the CNG cylinder for auto industry also, we will be ready after our expansion. So from April 2026, we'll be ready.

Details the progress and future plans for a high-potential, value-added product in an emerging market.

Asked by Dhananjai from Alchemy

TPL Plastech's expansion, revenue contribution, and ROCE Direct
This Lote-Parshuram, TPL is coming with a packaging product where they are going to investment of INR30 crores to INR35 crores, so they can have a revenue of more than INR100 crores in the 3 years' time. ... Their ROCE is also more than us. Our ROCE is 20%, we are doing this year in '25, '26, but they are more than 22% ROCE.

Outlines the growth and profitability expectations from a key subsidiary's expansion, indicating its strong financial performance.

Asked by Vishvender Singh from Prudent Equity

Debt-free timeline and components of remaining finance cost Direct
Next 6 months. Very clear. ... I don't count the interest cost. I can say it's a financial cost. It's a document -- I'm doing export, I'm doing imports. So always some will be the minimum document charges. ... So INR25 crores to INR30 crores is going to be continuation of the utilization of the non-fund facilities?

Confirms the aggressive debt reduction target and clarifies that the remaining 'finance cost' is primarily for non-fund based facilities, not interest on debt.

Asked by Deepak Poddar from Sapphire Capital

2 min read 6 chapters

Detailed narrative

Q3 and 9 Months FY26 Financial Performance

Time Technoplast reported a strong Q3 FY26 with revenue increasing 13% YoY to INR1,567 crores and PAT growing 25% YoY to INR126 crores. For the 9-month period, revenue rose 11% to INR4,433 crores, and PAT increased 21% to INR337 crores. Volume growth for 9 months stood at 15%, with composite volume growing 21% and the CNG Composite Cascade segment achieving 23% growth. The company's ROCE for 9 months reached 18.6%, nearing its FY26 target of 20%.

Debt Reduction and Financial Management

The company made significant progress in debt reduction, decreasing total debt by INR380 crores to INR266 crores as of the 9-month period end. Management aims to achieve a debt-free status within the next 6 months. This reduction is expected to lower annualized finance costs from INR90-100 crores to INR25-30 crores, primarily covering non-fund based facilities. The balance of INR460 crores from the QIP is currently held in FD accounts, earmarked for value-added products and brownfield expansion.

Composite Products Expansion and New Offerings

Demand for Type 4 composite cylinders remains strong, reflected in a healthy order book of INR165 crores. The expansion of the composite product facility, which began two years ago, is nearing completion, with commercialization expected from April 2026. This expanded capacity, combined with existing facilities, is projected to generate INR800 crores in revenue within two years. New products like 6kg and 9kg fire extinguishers are ready for commercialization by April 2026, and 250-liter CNG cylinders are awaiting approval within 45-60 days.

Green Energy Initiatives and Cost Savings

Time Technoplast is actively transitioning to green energy, with solar power initiatives expected to yield substantial cost savings. Benefits from solar power in Gujarat have commenced this month, projected to save INR10 crores annually from next year onwards. Similar benefits are anticipated from Maharashtra following policy clearances. The company's overall power benefit for FY26-27 is estimated at approximately INR10 crores, with the investment equivalent to one year's savings and benefits extending for 14 years.

Operational Efficiency and Working Capital

The company is focused on enhancing operational efficiency through automation, consolidation of manufacturing units, and reengineering. Automation investments, totaling INR75 crores from QIP funds, are expected to contribute INR20 crores to EBITDA margin and have a payback period of four years. The working capital cycle has improved from 120 days to 98-99 days and is targeted to reach 90 days within the next 2-3 years, driven by better inventory, receivables, and creditor management.

Strategic Growth Drivers and Subsidiary Performance

Key growth drivers include packaging (11-13% growth), composite products (25-30% growth), and PE pipes (>20-25% growth), leading to a consolidated growth projection of over 15%. The subsidiary TPL Plastech, which is 75% owned, has shown strong growth exceeding 25% in both revenue and PAT, with an ROCE of over 22%. Its new Lote-Parshuram plant, involving an investment of INR30-35 crores, is expected to generate over INR100 crores in revenue within three years.

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