GSMFOILS - GSM Foils

📊 NSE: GSMFOILS 🏢 Aluminium and Aluminium Products 📅 Last Updated: 12/13/2025 22:38

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations grew by 111.1% YoY, reaching INR 110.14 Cr in H1 FY26 compared to INR 52.17 Cr in H1 FY25, driven by increased demand in the pharmaceutical sector.

Geographic Revenue Split

The company serves the domestic Indian market and exports to destinations including Bangladesh; however, the specific percentage split per region is not disclosed.

Profitability Margins

Gross Profit Margin was 14.63% in H1 FY26, down from 19.02% in H1 FY25. Net Profit Margin significantly improved to 7.47% in H1 FY26 from 3.35% in H1 FY25 due to better operational scaling.

EBITDA Margin

EBITDA Margin improved to 11.32% in H1 FY26 from 6.61% in H1 FY25, representing a YoY increase of 471 basis points as the company optimized its conversion processes.

Capital Expenditure

Planned CAPEX of INR 4 Cr to 5 Cr for a new plant to replicate existing capacity within one year; historical gross block was approximately INR 2 Cr.

Credit Rating & Borrowing

The company utilizes facilities from Bank of India with a strategy to repay all debts in under two years; finance costs for H1 FY26 were INR 1.29 Cr.

⚙️ Operational Drivers

Raw Materials

Bare aluminium foil and granules are the primary raw materials, with bare foil being the critical input for coating and lamination processes.

Import Sources

Foil stock is imported from China, which is currently subject to potential Anti-Dumping Duties.

Key Suppliers

Key suppliers include Tier-1 aluminium players such as Hindalco, PG Foil, and MMP Foil.

Capacity Expansion

Current operations are based in Vasai; planned expansion includes a new facility with similar capacity within 12 months and backward integration into rolling mills.

Raw Material Costs

Cost of materials consumed was INR 100.70 Cr in H1 FY26, accounting for 91.4% of total revenue, up from 89.5% in H1 FY25.

Manufacturing Efficiency

Efficiency is driven by using fully depreciated machinery (4-5 years old) and focusing on Stage 2 (coating/lamination) and Stage 3 (printing) processes.

📈 Strategic Growth

Expected Growth Rate

22%

Growth Strategy

Growth will be achieved through backward integration into rolling mills to control raw material costs, entering underpenetrated domestic regions, and expanding the export share in the pharmaceutical packaging market.

Products & Services

Blister Foils and Aluminium Pharma Foils (Strip Foils) used for packaging capsules and tablets.

Brand Portfolio

GSM Foils.

New Products/Services

Development of barrier-grade primary packaging specifically for the biosimilars market, which requires high-quality printed aluminum foils.

Market Expansion

Strategic roadmap includes entering new Indian regions and increasing export volumes to Bangladesh and other international markets.

Market Share & Ranking

Management claims to be the only listed player specifically focused on Stage 2 and Stage 3 of the aluminium foil packaging value chain.

🌍 External Factors

Industry Trends

The industry is shifting from bottle packaging to unit-dose formats like blisters and strips for better compliance, with the Indian biosimilars market expected to reach USD 12 billion by 2025.

Competitive Landscape

Competes with large Tier-1 players like Hindalco (who also supply them) and cheaper imports from Chinese manufacturers.

Competitive Moat

Competitive advantage lies in a specialized focus on Stage 2/3 processing with low CAPEX requirements (INR 4-5 Cr) compared to the high-CAPEX Tier-1 rolling mill sector.