JAICORPLTD - Jai Corp

📊 NSE: JAICORPLTD 🏢 Plastics Products 📅 Last Updated: 12/14/2025 8:33

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations grew 8.32% YoY to INR 277.61 Cr in H1 FY26. The Plastic Processing segment grew 7.75% to INR 273.15 Cr, while the Real Estate segment grew 75.6% to INR 4.46 Cr. This matters because it shows steady demand for the core plastic business which contributes 98.4% of total revenue.

Geographic Revenue Split

Not explicitly disclosed in available documents, though the company's registered office is in Nanded, Maharashtra, and corporate office is in Mumbai, suggesting a high concentration of operations in Western India.

Profitability Margins

Consolidated PBT margin for H1 FY26 was 35.6% of total income (INR 142.91 Cr PBT on INR 401.08 Cr total income). This matters because it is significantly boosted by non-operating 'Other Income' rather than core manufacturing efficiency.

EBITDA Margin

The Plastic Processing segment result margin improved from 12.66% to 13.56% YoY in H1 FY26. This matters because it indicates improved operational efficiency in the company's primary business line despite rising material costs.

Capital Expenditure

Standalone Property, Plant and Equipment (PPE) increased from INR 89.10 Cr to INR 90.87 Cr between March and September 2025, with Capital Work-in-Progress rising from INR 0.25 Cr to INR 1.09 Cr, indicating modest ongoing maintenance and expansion.

Credit Rating & Borrowing

Finance costs remained extremely low at INR 0.10 Cr for H1 FY26, suggesting a virtually debt-free status or very low borrowing costs, which matters because it makes the company immune to interest rate hikes.

⚙️ Operational Drivers

Raw Materials

Plastic resins and polymers (implied by the Plastic Processing segment) account for INR 183.56 Cr, representing 66.1% of revenue from operations. This matters because profitability is highly sensitive to global petrochemical price fluctuations.

Capacity Expansion

Not explicitly disclosed in units, but Capital Work-in-Progress increased by 336% to INR 1.09 Cr in H1 FY26, suggesting small-scale capacity enhancements.

Raw Material Costs

Cost of materials consumed rose 7.7% YoY to INR 183.56 Cr in H1 FY26, closely tracking the 7.75% revenue growth in the plastic segment, which matters because it indicates stable procurement strategies.

Manufacturing Efficiency

Segment results for Plastic Processing improved by 15.3% YoY to INR 37.03 Cr, outpacing revenue growth of 7.75%, which matters because it demonstrates rising manufacturing efficiency.

📈 Strategic Growth

Expected Growth Rate

8.32%

Growth Strategy

The company is focusing on its core Plastic Processing and Real Estate segments while exiting non-performing areas like Steel and Spinning (which reported zero revenue in H1 FY26). It is also rationalizing costs by liquidating inactive subsidiaries to simplify the legal structure.

Products & Services

Plastic processed products (such as woven sacks and industrial bags) and Real Estate development projects.

New Products/Services

Not explicitly detailed, though the company is maintaining a focus on the Plastic Processing segment which contributes 98.4% of revenue.

🌍 External Factors

Industry Trends

The plastic processing industry is seeing steady demand for industrial packaging, while the company's real estate segment is showing signs of recovery with a 75.6% revenue increase in H1 FY26.

Competitive Landscape

The company operates in a highly fragmented plastic processing market and a competitive regional real estate market in Maharashtra.

Competitive Moat

The company's moat lies in its cost leadership and operational efficiency in plastic processing, evidenced by its ability to grow segment profits (15.3%) faster than segment revenue (7.75%).

Macro Economic Sensitivity

The company is sensitive to industrial demand for packaging (Plastic segment) and urban development cycles in Maharashtra (Real Estate segment).

Geopolitical Risks

Fluctuations in global oil prices due to Middle East tensions could adversely impact raw material costs for the plastic division.

⚖️ Regulatory & Governance

Industry Regulations

The company must comply with Maharashtra Industrial Development Corporation (MIDC) norms as its registered office is in MIDC Nanded.

Taxation Policy Impact

The company has a deferred tax liability of INR 14.35 Cr as of September 30, 2025.

Legal Contingencies

The company was fined INR 2,06,500 (including GST) by both BSE and NSE for non-compliance with Regulation 17(1) regarding board composition (failure to appoint a woman director) and Regulation 19 regarding the Nomination and Remuneration Committee. The fine was paid on November 28, 2025.

⚠️ Risk Analysis

Key Uncertainties

Regulatory compliance risk is high, as evidenced by recent SEBI/Listing regulation fines. Segment concentration is also a risk, with 98.4% of revenue dependent on the Plastic Processing division.