💰 Financial Performance

Revenue Growth by Segment

The company reported total revenue from operations of INR 21.50 Cr for H1 FY26, representing a 32.2% YoY growth compared to INR 16.26 Cr in H1 FY25. While specific revenue splits per segment were not provided in numerical tables, the company operates in the Polymer and Power segments, with the Polymer segment historically being the primary driver.

Geographic Revenue Split

Not specifically disclosed in available documents, though the company is headquartered in Gwalior, Madhya Pradesh, and recently acquired land in Shajapur, M.P., suggesting a strong regional focus in Central India.

Profitability Margins

Net Profit Margin significantly improved to 20.64% in H1 FY26 from 11.06% in H1 FY25. Profit Before Tax (PBT) margin stood at 27.01% (INR 5.81 Cr) for H1 FY26, compared to 15.20% (INR 2.47 Cr) in the previous year, driven by better absorption of fixed costs.

EBITDA Margin

EBITDA margin is calculated at 34.05% for H1 FY26 (INR 7.32 Cr), up from approximately 20.45% in H1 FY25. This 1,360 bps improvement reflects enhanced operational efficiency in the polymer processing and power generation activities.

Capital Expenditure

The company has a massive planned Capex of INR 13.50 Cr for Solar projects, of which only INR 2.12 Cr (15.7%) has been utilized as of September 30, 2025. Additionally, INR 3.57 Cr has been fully utilized for Polymer Capex to expand manufacturing capacity.

Credit Rating & Borrowing

Total borrowings stood at INR 12.28 Cr as of Sept 2025, comprising Long-term borrowings of INR 5.73 Cr and Short-term borrowings of INR 6.54 Cr. Finance costs were INR 0.36 Cr for H1 FY26, implying an annualized interest rate of approximately 5.9% on total debt.

⚙️ Operational Drivers

Raw Materials

Polymer resins and plastic granules constitute the primary raw materials, with 'Cost of materials consumed' totaling INR 12.10 Cr, representing 56.3% of total revenue in H1 FY26.

Import Sources

Not disclosed in available documents; however, polymer raw materials in India are typically sourced from domestic petrochemical hubs like Gujarat or imported via Maharashtra ports.

Capacity Expansion

The company is expanding its footprint through the acquisition of 49,053 sq mtrs of land in Shajapur, M.P. for INR 1.19 Cr. Polymer Capex of INR 3.51 Cr has been fully deployed to increase production capacity from previous levels.

Raw Material Costs

Raw material costs as a percentage of revenue decreased to 56.3% in H1 FY26 from 73.1% in H1 FY25, indicating better procurement pricing or a shift toward higher value-added polymer products.

Manufacturing Efficiency

Depreciation and amortization expense rose to INR 1.15 Cr in H1 FY26 from INR 0.45 Cr in H1 FY25, reflecting the commissioning of new machinery and higher asset utilization.

Logistics & Distribution

Other expenses, which include distribution and logistics, stood at INR 0.64 Cr, representing 2.98% of revenue in H1 FY26.

📈 Strategic Growth

Expected Growth Rate

30%

Growth Strategy

Growth will be achieved through the operationalization of the INR 13.50 Cr Solar project and the utilization of the newly acquired 49,053 sq mtr land in Shajapur for industrial expansion. The company is transitioning from a pure polymer player to an integrated energy and polymer entity.

Products & Services

Polymer-based industrial products and Solar Power generation services.

Brand Portfolio

Manas Polymers and Energies (MPEL).

New Products/Services

Expansion into large-scale Solar Power generation is expected to contribute significantly to the top line once the remaining INR 11.38 Cr of allocated IPO funds are deployed.

Market Expansion

Expansion into Shajapur, M.P. through land acquisition for new industrial facilities, targeting the Central Indian industrial corridor.

🌍 External Factors

Industry Trends

The polymer industry is growing at 8-10% annually in India, while the renewable energy sector is seeing massive regulatory tailwinds. MPEL is positioning itself at the intersection of these two growth sectors.

Competitive Landscape

Operates in a fragmented polymer market but is differentiating through scale and energy integration.

Competitive Moat

The company's moat is built on integrated operations (Polymer + Power) and low-cost manufacturing in Gwalior. The shift to captive solar power will provide a long-term cost advantage over competitors relying on grid power.

Macro Economic Sensitivity

Highly sensitive to industrial growth in India and crude oil price cycles. A slowdown in the manufacturing sector would reduce demand for polymer components.

Consumer Behavior

Increasing demand for sustainable and 'green' manufactured products is driving the company's investment into solar energy.

Geopolitical Risks

Global supply chain disruptions in petrochemicals could impact raw material availability, as India is a net importer of several polymer feedstocks.

⚖️ Regulatory & Governance

Industry Regulations

Subject to plastic waste management rules and environmental norms for polymer processing, as well as state-specific solar power policies in Madhya Pradesh.

Environmental Compliance

The company is investing INR 13.50 Cr in Solar energy, which aligns with ESG goals and carbon footprint reduction mandates.

Taxation Policy Impact

The effective tax rate for H1 FY26 was 23.6% (INR 1.37 Cr tax on INR 5.81 Cr PBT), benefiting from deferred tax assets of INR 0.14 Cr.

Legal Contingencies

The statutory auditors issued a clean limited review report with no qualifications, and no material pending litigations were disclosed in the financial notes for the period ended Sept 30, 2025.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the execution risk of the INR 13.50 Cr solar project, as 84% of the funds remain unutilized. Delays could impact the projected 30% growth trajectory.

Geographic Concentration Risk

High concentration in Madhya Pradesh, with the main plant in Gwalior and new land in Shajapur, making it vulnerable to state-specific policy changes.

Third Party Dependencies

High dependency on polymer resin suppliers; material costs represent 56.3% of the total expenditure.

Technology Obsolescence Risk

Risk of shifting to biodegradable alternatives in the polymer segment; the company must adapt its machinery (INR 11.34 Cr net block) to handle new materials.

Credit & Counterparty Risk

Trade receivables increased by 66.6% to INR 9.42 Cr in Sept 2025 from INR 5.65 Cr in March 2025, indicating a potential stretch in the credit cycle or aggressive sales terms.