COOLCAPS - Cool Caps

📊 NSE: COOLCAPS 🏢 Plastics Products 📅 Last Updated: 12/13/2025 21:11

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew by 68% to INR 268.40 Cr in FY25 compared to INR 159.71 Cr in FY24. This growth was driven by the addition of revenue from two fully operational subsidiaries (Purv Ecoplast and Purv Technoplast) and an increase in liaisoning services which contributed INR 6.36 Cr in FY24. Standalone revenue for H1 FY25 reached INR 130.04 Cr.

Geographic Revenue Split

Not specifically disclosed in available documents; however, operations are centered in Howrah, West Bengal, with the registered office in Kolkata.

Profitability Margins

Net profit margin improved significantly from 4.69% in FY24 to 10.83% in FY25 (standalone). Consolidated PAT margin for H1 FY25 was 4.62% (INR 5.09 Cr) compared to 2.44% in FY24. The improvement is attributed to a higher proportion of manufacturing and service-based liaisoning revenue in the mix.

EBITDA Margin

Consolidated EBITDA margin improved to 11.85% in FY25 from 8.80% in FY24. Absolute EBITDA rose to INR 31.82 Cr in FY25 from INR 14.06 Cr in FY24, representing a 126% increase due to better scale and operational efficiencies in new subsidiaries.

Capital Expenditure

The company recently executed significant capex in its subsidiaries, leading to a capital work-in-progress (CWIP) of INR 16.69 Cr as of September 30, 2025, up from INR 10.71 Cr in March 2025. This investment is aimed at expanding manufacturing capacity for plastic caps and closures.

Credit Rating & Borrowing

Ratings were upgraded on September 11, 2025, to IVR BBB-/Stable (Long Term) and IVR A3 (Short Term) from IVR BB+/Positive. The upgrade reflects improved business performance and scale. Interest coverage ratio improved 45.45% to 3.36x in FY25.

⚙️ Operational Drivers

Raw Materials

Plastic granules (Polypropylene/HDPE) and plastic caps/closures for trading. Raw material costs represent a significant portion of expenses, with standalone cost of materials consumed at INR 29.34 Cr for H1 FY25.

Import Sources

Not specifically disclosed; however, the parent company Purv Flexipack is a distributor of plastic granules, suggesting a localized supply chain within India.

Capacity Expansion

The company is expanding through its fully operational subsidiaries, Purv Ecoplast and Purv Technoplast. CWIP increased by INR 5.98 Cr in H1 FY25, indicating ongoing installation of manufacturing lines for plastic closures.

Raw Material Costs

Susceptibility to volatility in raw material prices is a key risk. In FY24, a drop in recycled plastic prices and lower demand in the recycling market impacted sales realization, though margins were protected by liaisoning revenue.

Manufacturing Efficiency

Return on Capital Employed (ROCE) improved by 66.09% to 24.53% in FY25, reflecting higher efficiency in utilizing the newly deployed capital in subsidiaries.

Logistics & Distribution

The company utilizes a network of distributors to manage distribution; logistics costs are inherent in the 'Other Expenses' category but not individually itemized.

📈 Strategic Growth

Expected Growth Rate

68%

Growth Strategy

Growth is targeted through the stabilization of new subsidiaries (Purv Ecoplast and Purv Technoplast), expansion of high-margin liaisoning services (which grew to INR 6.36 Cr), and a 5-for-1 stock split in July 2025 to improve liquidity and investor participation.

Products & Services

Plastic caps and closures for packaged drinking water, carbonated soft drinks, and soda; liaisoning services for plastic products.

Brand Portfolio

COOLCAPS

New Products/Services

Expansion into liaisoning services for plastic-based products and increased manufacturing of specialized closures through subsidiaries.

Market Expansion

The company is leveraging its NSE SME listing and subsidiary operations to increase its footprint in the plastic packaging market across India.

Market Share & Ranking

Not disclosed; however, the industry is described as 'highly fragmented' with intense competition.

Strategic Alliances

Operates as a subsidiary of Purv Flexipack Limited, which provides a strategic link to plastic granule distribution.

🌍 External Factors

Industry Trends

The packaging industry is seeing healthy growth prospects driven by increased consumption of packaged water. The company is positioning itself by shifting from pure manufacturing to a mix of manufacturing and liaisoning services to improve margins.

Competitive Landscape

Intense competition from both organized and unorganized players in the plastic closures segment.

Competitive Moat

Moat is based on a established distributor network and the ability to provide specialized closures. Sustainability is challenged by low entry barriers in plastic molding, but the 22.84% Return on Equity suggests a strong current competitive position.

Macro Economic Sensitivity

Highly sensitive to crude oil prices (affecting plastic granule costs) and consumer spending on packaged beverages.

Consumer Behavior

Increasing preference for branded, packaged drinking water supports long-term demand for caps and closures.

Geopolitical Risks

Indirect exposure via global plastic resin price fluctuations driven by geopolitical tensions in oil-producing regions.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with Section 133 of the Companies Act, 2013 and SEBI (LODR) Regulations 2015. Manufacturing is subject to environmental pollution control board norms.

Environmental Compliance

The company operates in the plastic industry, subject to Extended Producer Responsibility (EPR) and plastic waste management rules; acquisition of Re.Act Waste Tech suggests a strategic move toward compliance.

Taxation Policy Impact

Effective tax rate for H1 FY25 was approximately 23.5% (INR 1.95 Cr tax on INR 8.30 Cr standalone PBT).

Legal Contingencies

Secretarial audit for FY25 reported general compliance; no specific high-value pending litigation or consumer cases were quantified in the provided documents.

⚠️ Risk Analysis

Key Uncertainties

Volatility in raw material prices and the ability to stabilize and scale the Purv Packaging subsidiary are primary risks. High debt levels (Gearing 2.87x) pose a financial risk if cash flows are interrupted.