Caprihans India - Caprihans India

📊 BSE: 509486 🏢 Plastic Products - Industrial 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment: Pharma packaging solutions. Total operating revenue and other income grew by 6.82% YoY, reaching INR 752 Cr in FY25 compared to INR 704 Cr in FY24.

Geographic Revenue Split

Export revenue grew by 11.40%, increasing from INR 193 Cr to INR 215 Cr, now contributing approximately 28.59% of total revenue. The remaining 71.41% is primarily derived from the domestic Indian market.

Profitability Margins

Profitability has been under pressure with net losses reported in FY24 and 9M FY25. Return on Equity (ROE) deteriorated by 35.06%, moving from -10.58% to -14.29% due to margin erosion caused by USD appreciation.

EBITDA Margin

Return on Capital Employed (ROCE) saw a significant decline of 78.32%, dropping from 3.39% in the previous year to 0.74% in FY25, primarily impacted by Redeemable Preference Shares (RPS) redemption and margin compression.

Capital Expenditure

The company is actively investing in new coating technologies to reduce material weight and improve barrier performance; however, specific historical and planned INR Cr values for CapEx were not disclosed in the available documents.

Credit Rating & Borrowing

The company faces credit challenges with CARE Ratings downgrading long-term facilities to 'CARE B+; Stable; ISSUER NOT COOPERATING'. Infomerics assigned a rating of 'IVR BB/ Stable' for bank facilities totaling INR 610.63 Cr.

⚙️ Operational Drivers

Raw Materials

Key raw materials include Polyvinyl Chloride (PVC) resins, PVDC films, and Aluminum foils, which are critical for manufacturing pharmaceutical solid dosage packaging.

Import Sources

While specific countries are not listed, the company reports significant margin erosion due to USD appreciation, indicating a high reliance on imported raw materials or USD-linked pricing.

Capacity Expansion

Current installed capacity is not specified in MT; however, the company employs 540 permanent staff and is shifting strategy toward increasing in-house consumption of base films to reduce costs.

Raw Material Costs

Raw material costs are subject to high volatility; the company manages this through long-term supplier contracts and strategic inventory management to mitigate price spikes.

Manufacturing Efficiency

The company is leveraging R&D to develop complex formulations for moisture-sensitive APIs and biologics to improve value-add per unit.

📈 Strategic Growth

Expected Growth Rate

Growth Strategy

Growth will be driven by expanding into export markets (which grew 11.4% recently), increasing in-house consumption of base films to improve margins, and investing in advanced coating technologies for high-barrier pharma applications like biologics.

Products & Services

Polyvinyl chloride (PVC) films, PVDC films, and aluminium foils used for packaging solid dosage pharmaceutical products.

Brand Portfolio

Caprihans (The company also operates under the Bilcare group umbrella as per document headers).

New Products/Services

New coating technologies aimed at reducing material weight while maintaining barrier performance for moisture-sensitive APIs.

Market Expansion

Targeting increased penetration in regulated global pharmaceutical markets to leverage the 8% industry CAGR.

Strategic Alliances

The company operates within a consortium of lenders for its INR 610.63 Cr debt facilities.

🌍 External Factors

Industry Trends

The Indian pharma packaging market is valued at USD 2.2 billion (2024) and is growing at 8% CAGR. Trends include a shift toward track-and-trace serialization, anti-counterfeit printing, and sustainable, low-weight materials.

Competitive Landscape

The company competes in the specialized pharma packaging sector against domestic and international film manufacturers.

Competitive Moat

Moat is built on long-standing expertise in PVC/PVDC films and established relationships with global pharma majors. Sustainability is supported by high regulatory barriers in pharma-grade packaging.

Macro Economic Sensitivity

Highly sensitive to currency fluctuations (USD/INR) and global pharmaceutical outsourcing trends.

Consumer Behavior

Increased demand for patient-centric packaging, including QR code-enabled information and improved adherence features.

Geopolitical Risks

Exposure to international packaging regulations and global distribution timelines for pharma products.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with international packaging standards, tamper-evidence requirements, and track-and-trace serialization for pharmaceutical supply chains.

Environmental Compliance

Increasing investment in sustainable technology to comply with evolving international environmental legislation.

Legal Contingencies

The company has contingent liabilities (claims against the company not acknowledged as debt) amounting to INR 49.49 Cr.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the 'Issuer Not Cooperating' status with CARE Ratings, which may impact future borrowing costs, and the continued impact of USD volatility on margins.