PREMIERPOL - Premier Polyfilm

📊 NSE: PREMIERPOL 🏢 Plastics Products 📅 Last Updated: 12/14/2025 11:14

💰 Financial Performance

Revenue Growth by Segment

Total revenue grew by 1.95% YoY to INR 301.39 Cr in FY2025 from INR 295.63 Cr. While specific segment percentages are not broken down, the company reported a 10% YoY volume growth in FY2024, though revenue growth was tepid at 3% due to declining realizations.

Geographic Revenue Split

Exports contributed INR 34.33 Cr (11.39% of total revenue) in FY2025, representing a 13.26% decline from INR 39.58 Cr in FY2024. Domestic sales account for the remaining ~88.61% of revenue.

Profitability Margins

Operating margin improved to 11.75% in FY2025 from 9.86% in FY2024 (a 19.18% increase). Net profit margin rose to 8.53% in FY2025 from 6.93% in FY2024 (a 23.16% increase). Margins are driven by a shift toward value-added products and moderation in raw material costs.

EBITDA Margin

Operating margin reached 14% for the first nine months of FY2025. The company aims to sustain margins at 13-14% through better pass-through of raw material price hikes and volumetric growth of 5-6%.

Capital Expenditure

The company utilized term debt for capacity expansion in recent years, though specific INR Cr figures for planned future capex are not disclosed. Total non-current assets stood at INR 69.45 Cr as of March 31, 2025.

Credit Rating & Borrowing

The company maintains a comfortable financial risk profile with a gearing ratio of 0.18 in FY2025 (up from 0.16). Interest coverage ratio improved by 113.84% to 30.73 times in FY2025. Gearing is expected to improve to 0.09-0.12 times over the medium term.

⚙️ Operational Drivers

Raw Materials

PVC Resin is the primary raw material. Costs are sensitive to PVC price volatility, which significantly impacted revenue in FY2022 and FY2023.

Import Sources

Not specifically disclosed, though the company notes a dependency on a few domestic manufacturers for certain grades of resin.

Key Suppliers

Not disclosed by name, but the company identifies a risk due to the limited number of manufacturers for specific resin grades in India.

Capacity Expansion

The company witnessed a 10% YoY volume growth in FY2024 supported by increased capacity utilization. It is currently focusing on increasing the manufacturing of value-added products like pool liners to optimize existing capacity.

Raw Material Costs

Total expenditure was INR 270.01 Cr in FY2025. Raw material price moderation was a key driver for the margin expansion to 14% in 9M FY2025. The company strategy involves fully passing on resin price hikes to customers to protect margins.

Manufacturing Efficiency

Focus on increasing capacity utilization and shifting the product mix toward value-added items to improve the financial risk profile.

Logistics & Distribution

Not disclosed as a specific percentage of revenue.

📈 Strategic Growth

Expected Growth Rate

9-10%

Growth Strategy

The company targets growth through a 5-6% volumetric increase and a strategic shift toward value-added products like pool liners. It aims to acquire new customers in each segment and leverage its 30-year promoter experience to maintain relationships with key clients like RMG Polyvinyl India Limited.

Products & Services

Polyvinyl Chloride (PVC) films, pool liners, and other PVC-based value-added products.

Brand Portfolio

Premier Polyfilm Limited.

New Products/Services

Increased focus on pool liners and specialized PVC films for diversified industrial segments.

Market Expansion

Focus on adding new customers in existing segments and maintaining a presence in export markets, which currently account for ~11% of turnover.

Market Share & Ranking

Not disclosed.

Strategic Alliances

The company has a significant relationship with RMG Polyvinyl India Limited, a key customer contributing substantially to revenue.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward value-added PVC products. PPL is positioning itself by moving away from commodity PVC films toward specialized products like pool liners to sustain 13-14% margins.

Competitive Landscape

The company competes with both local and global suppliers, particularly for its business with RMG Polyvinyl India Limited.

Competitive Moat

Moat is built on 30+ years of promoter experience and established relationships with large clients like RMG Polyvinyl. This provides a competitive advantage in understanding market dynamics and securing consistent offtake.

Macro Economic Sensitivity

Sensitive to PVC price cycles and industrial demand for PVC films. Revenue growth in FY2022-23 was largely driven by sharp increases in PVC prices.

Consumer Behavior

Increased demand for specialized PVC applications in diversified segments is driving the shift toward value-added manufacturing.

Geopolitical Risks

Export performance declined by 13.26% YoY, suggesting sensitivity to global demand or trade dynamics.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to the Companies Act 2013 and environmental/safety standards for PVC manufacturing. Resin availability is impacted by domestic manufacturing capacity constraints.

Environmental Compliance

The company prioritizes safety and conducts regular safety audits, though specific ESG compliance costs are not disclosed.

Taxation Policy Impact

Effective tax rate for FY2025 was approximately 24.9% (INR 8.63 Cr tax on INR 34.63 Cr PBT).

Legal Contingencies

Pending litigations exist and their impact is disclosed in Note 37 of the financial statements, though the specific INR value is not provided in the summary.

⚠️ Risk Analysis

Key Uncertainties

Raw material price volatility and supply chain disruptions for specific resin grades are the primary risks, potentially impacting margins by 1-2% if price hikes cannot be passed on.