PEARLPOLY - Pearl Polymers

📊 NSE: PEARLPOLY 🏢 Plastics Products 📅 Last Updated: 12/14/2025 10:57

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment (Bottles, Jars & Containers). Revenue from operations for H1 FY26 was INR 9.41 Cr, representing an 8.19% decline compared to INR 10.25 Cr in H1 FY25. For the full year FY25, revenue was INR 21.97 Cr.

Geographic Revenue Split

Not disclosed in available documents. The company operates primarily out of its registered office in New Delhi.

Profitability Margins

Net Profit Ratio for FY25 was -23.30%, a significant drop from 3.99% in FY24 due to operating losses. For H1 FY26, the company reported a Net Profit of INR 0.96 Cr, down 37.29% from INR 1.52 Cr in H1 FY25.

EBITDA Margin

Operating profit before working capital changes for H1 FY26 was a loss of INR 2.67 Cr, compared to a loss of INR 6.21 Cr for the full year FY25. Core profitability is under pressure due to high operating expenses relative to revenue.

Capital Expenditure

Capital expenditure for H1 FY26 (additions to fixed assets) was INR 0.06 Cr (INR 6.02 lakhs). For the full year FY25, additions to fixed assets were INR 0.45 Cr (INR 45.32 lakhs).

Credit Rating & Borrowing

The company maintains a Debt-Equity Ratio of 0.00 as of March 31, 2025, indicating no long-term debt. Interest expenses for H1 FY26 were minimal at INR 0.016 Cr (INR 1.56 lakhs).

⚙️ Operational Drivers

Raw Materials

Virgin plastics (PET - Polyethylene Terephthalate) and certified food-grade raw materials. Specific percentage of total cost for each material is not disclosed.

Import Sources

Not disclosed in available documents; however, materials are stated to be compliant with USFDA and EU Directive 2002/72/EC standards.

Capacity Expansion

Current installed capacity is not explicitly stated in MT. The company utilizes state-of-the-art CAD and in-house mould development for its PearlPet brand products.

Raw Material Costs

Cost of materials consumed for H1 FY26 was INR 0.013 Cr (INR 1.30 lakhs). The company focuses on using non-toxic, BPA-free, and 100% recyclable virgin plastics to maintain premium quality.

Manufacturing Efficiency

Inventory Turnover Ratio improved by 24.52% to 6.45 in FY25 from 5.18 in FY24, indicating better movement of stock. Net Capital Turnover Ratio increased by 33.18% to 5.86 in FY25.

Logistics & Distribution

The company is shifting toward direct-to-consumer (D2C) engagement and digital channels to improve distribution efficiency and respond faster to innovation cycles.

📈 Strategic Growth

Growth Strategy

Growth is targeted through product diversification into steel, glass, and biodegradable materials to meet sustainability trends. The company is also leveraging digital channels for D2C sales and direct engagement to capture rising discretionary spending in the houseware market.

Products & Services

PET bottles, jars, and containers; storage solutions made of steel, glass, and biodegradable materials.

Brand Portfolio

PearlPet

New Products/Services

Expansion of the portfolio to include steel, glass, and biodegradable storage solutions. Expected revenue contribution percentage is not disclosed.

Market Expansion

Focusing on digital marketplaces and direct-to-consumer (D2C) platforms to reach an expanding online shopper base.

🌍 External Factors

Industry Trends

The industry is shifting toward sustainability, recyclability, and digital discovery. Brands must localize assortments and engage directly with consumers to remain competitive against marketplaces.

Competitive Landscape

Competes with local players in the market. Advantage is derived from being BPA-free, 100% recyclable, and having superior barrier properties for food preservation.

Competitive Moat

Moat is built on brand heritage (PearlPet), safety certifications (USFDA, EU, BIS), and technical expertise in CAD/mould development. This is sustainable as long as the brand successfully transitions to non-plastic materials as per consumer trends.

Macro Economic Sensitivity

Sensitive to rising discretionary spending and consumer demand for safe, hygienic storage solutions. GDP growth and digital penetration directly impact the D2C sales channel.

Consumer Behavior

Demand is tilting toward responsible, recyclable products with differentiated functionality and digital-first purchasing journeys.

Geopolitical Risks

Exposed to political risks and potential changes in international regulations regarding plastic usage and recyclability.

⚖️ Regulatory & Governance

Industry Regulations

Operations must comply with BIS IS: 12252-1987 for plastic food storage and SEBI (LODR) Regulations for corporate governance. No material weaknesses in internal financial controls were observed during the review period.

Environmental Compliance

Products are 100% recyclable and environment-friendly. Compliance with USFDA and EU Directive 2002/72/EC for food-grade safety is maintained.

Taxation Policy Impact

The company reported a total tax expense of INR 0.0007 Cr (INR 0.07 lakhs) for H1 FY26. Deferred tax assets stood at INR 0.335 Cr.

⚠️ Risk Analysis

Key Uncertainties

Operating losses (FY25 loss of INR 5.12 Cr) and the ability to successfully pivot to non-plastic materials are primary uncertainties. Debt Service Coverage Ratio fell to -33.70 in FY25.

Geographic Concentration Risk

Operations are concentrated in India, with the registered office in New Delhi.

Third Party Dependencies

Dependent on suppliers of virgin, food-grade plastics that meet USFDA and BIS standards.

Technology Obsolescence Risk

Risk of technological changes in manufacturing processes or material science (e.g., new biodegradable polymers) that could render current PET-focused lines less competitive.