💰 Financial Performance

Revenue Growth by Segment

In H1 FY26, the Paint segment grew by 12.34% and Pharma-Packs recorded excellent volume growth, while Lubes-Packs registered a negative growth of 9.77%. Overall revenue for H1 FY26 reached INR 450.32 Cr, a 16.05% increase from INR 388.03 Cr in H1 FY25.

Geographic Revenue Split

Not disclosed in available documents, though the company operates 11 manufacturing facilities strategically located across India to serve regional demand.

Profitability Margins

Gross Profit for H1 FY26 was INR 50.82 Cr (+24% YoY). Net Profit Ratio stood at 7.76% for FY25, down from 9.57% in FY24, a decrease of 18.92% due to higher overheads from new units and increased borrowings.

EBITDA Margin

EBITDA margin for H1 FY26 was approximately 19.3% (INR 86.89 Cr on INR 450.32 Cr revenue), representing a 22.72% YoY increase in absolute EBITDA. EBITDA per KG improved by 11% to INR 40.61 in H1 FY26.

Capital Expenditure

The company planned a capex of INR 80-110 Cr for FY25 and expects to incur INR 75-85 Cr in FY26 for capacity expansion and maintenance. Total investment of INR 200-250 Cr was slated for 5 new plants to reach 60,000 MTPA capacity.

Credit Rating & Borrowing

ICRA revised the long-term rating outlook to Positive from Stable (ICRA A). Gearing was 0.3 times as of March 31, 2025, with a Debt Service Coverage Ratio (DSCR) of 5.50 times.

⚙️ Operational Drivers

Raw Materials

Polypropylene (implied as rigid plastic packaging material) and other polymers, with material costs accounting for 55% of total revenue (INR 247.96 Cr out of INR 450.32 Cr in H1 FY26).

Import Sources

Primarily domestic sourcing from Reliance Industries Limited (RIL), with the ability to use imported raw materials to mitigate supply disruption risks.

Key Suppliers

Reliance Industries Limited (RIL) is the primary supplier, creating high supplier concentration risk.

Capacity Expansion

Current capacity is expanding from 46,000 MTPA (FY23) to a target of 60,000 MTPA by FY25. New units include Sultanpur (Pharma) and Panipat (Food & FMCG).

Raw Material Costs

Material costs increased 12% YoY in H1 FY26 to INR 247.96 Cr. The company uses a pass-through mechanism for price fluctuations with a time lag of one month to one quarter.

Manufacturing Efficiency

The company focuses on Machine and Mould Modernization. Panipat F&F plant utilization is currently low (INR 0.40 Cr sales in Oct 2025) but expected to ramp up by Q1 FY27.

Logistics & Distribution

Not disclosed as a specific percentage, but the strategic location of 11 plants near major clients like Asian Paints and Grasim is designed to optimize distribution costs.

📈 Strategic Growth

Expected Growth Rate

12-16%

Growth Strategy

Growth is driven by a 30% capacity expansion to 60,000 MTPA, entry into the high-margin Pharmaceutical packaging segment (Sultanpur unit), and securing major contracts for the Food & FMCG segment in Panipat (expected INR 4-5 Cr additional turnover in FY27).

Products & Services

Rigid plastic packaging, In-Mould Labelling (IML) containers, round and square pails for paints and lubricants, pharmaceutical packs, and food/FMCG containers.

Brand Portfolio

Mold-Tek Packaging (Corporate Brand); provides packaging for external brands like Asian Paints, Gulf Oil, Castrol, and Grasim.

New Products/Services

Pharmaceutical packaging (commenced Q1 FY25) and new IML-based Food & FMCG products; Pharma sales grew from INR 7.42 Cr in Q1 to INR 10.81 Cr in Q2 FY26.

Market Expansion

Expansion into Northern India via the Panipat plant and deepening presence in the Pharma sector through the Sultanpur facility.

Market Share & Ranking

Established leader in the plastic pail packaging segment in India; specific market share percentage not disclosed.

Strategic Alliances

Not disclosed as formal JVs, but maintains deep technical integration with customers like Grasim Industries for dedicated supply units.

🌍 External Factors

Industry Trends

The industry is shifting toward In-Mould Labelling (IML) for better aesthetics and anti-counterfeiting. Mold-Tek is positioned as an early adopter with integrated in-house IML capabilities.

Competitive Landscape

Faces stiff competition from both organized and unorganized plastic packaging manufacturers, which limits aggressive pricing.

Competitive Moat

Durable advantage through in-house mould design, IML technology, and 11 strategically located plants that create high switching costs and logistics advantages for large clients.

Macro Economic Sensitivity

Sensitive to crude oil prices (affecting polymer costs) and general industrial growth in the paint and FMCG sectors.

Consumer Behavior

Increased demand for better-packaged food and FMCG products and a shift toward square pails for better stacking efficiency in retail.

Geopolitical Risks

Supply disruptions of raw materials due to force majeure at RIL; mitigated by the ability to import polymers.

⚖️ Regulatory & Governance

Industry Regulations

Subject to plastic waste management rules and occupational health and safety standards (SOPs and regular safety audits implemented).

Environmental Compliance

Moderate risk; the company is integrating renewable energy and upgrading machines to reduce its carbon footprint and comply with environmental norms.

Taxation Policy Impact

Not disclosed as a specific percentage, but the company follows standard Indian corporate tax norms.

⚠️ Risk Analysis

Key Uncertainties

Raw material price volatility (impacts margins by 1-2% during lag periods) and high sector concentration in Paints (44-50% of revenue).

Geographic Concentration Risk

Revenue is concentrated in India, though diversified across 11 domestic manufacturing locations.

Third Party Dependencies

High dependency on Reliance Industries Limited for raw material supply (~80-90% of procurement).

Technology Obsolescence Risk

Low risk due to continuous investment in IML and mould modernization; digital surveillance (CCTV) and internal audit systems are in place.

Credit & Counterparty Risk

Low risk; major customers like Asian Paints and Castrol have strong credit profiles, though the paint segment has a long receivable cycle of 75-100 days.