💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations grew by 90.9% YoY to INR 337.06 Cr in H1 FY26 compared to INR 176.54 Cr in H1 FY25. Standalone revenue for H1 FY26 was INR 70.92 Cr, a decline of 11.6% from INR 80.26 Cr in H1 FY25, indicating that growth is heavily driven by subsidiaries like Cool Caps Industries and Purv Ecoplast.

Geographic Revenue Split

The company primarily operates in West Bengal and Bihar as a del credere agent for IOCL and an authorized dealer for SRF Limited. While specific regional percentages are not disclosed, its distribution network is concentrated in Eastern India, which accounts for the bulk of its trading and distribution volume.

Profitability Margins

Consolidated PAT margin stood at 3.42% in FY25, up from 2.74% in FY24. However, H1 FY26 consolidated PAT was INR 6.19 Cr, a 14.2% decrease from INR 7.22 Cr in H1 FY25, primarily due to higher finance costs which rose 15.4% YoY to INR 8.70 Cr.

EBITDA Margin

EBITDA margin improved significantly to 8.08% in FY25 from 5.46% in FY24. This 262 bps improvement was driven by better scale of operations and a shift towards higher-margin manufacturing activities through subsidiaries, despite volatility in raw material prices.

Capital Expenditure

The company is undergoing project execution in its stepdown subsidiary, Purv Packaging Private Limited. While the exact INR Cr value for the current phase is not specified, the group is managing stabilization risks associated with this new capacity which is intended to diversify the revenue base beyond trading.

Credit Rating & Borrowing

Infomerics assigned a 'IVR BBB-/Stable' rating for long-term bank facilities of INR 86.15 Cr and 'IVR A3' for short-term facilities of INR 10.50 Cr in September 2025. Conversely, CARE downgraded the company to 'CARE B+; Stable; ISSUER NOT COOPERATING' due to lack of information.

⚙️ Operational Drivers

Raw Materials

Key raw materials include plastic granules such as LDPE, HDPE, and PP (Polypropylene), along with Polyester Film, Metallised Polyester Film, and BOPP film. These materials constitute the bulk of the cost of goods sold, which was INR 63.61 Cr for the standalone entity in H1 FY26.

Import Sources

Raw materials are primarily sourced domestically from major petrochemical hubs in India, particularly to serve the West Bengal and Bihar markets where the company holds agency rights.

Key Suppliers

The company maintains critical relationships with Indian Oil Corporation Limited (IOCL) as a del credere agent and SRF Limited as an authorized dealer for specialized films.

Capacity Expansion

Current operations are focused on distribution and trading, but the group is expanding manufacturing capacity through Purv Packaging Private Limited. The stabilization of this subsidiary is a key sensitivity for future credit rating upgrades.

Raw Material Costs

Cost of materials consumed and purchase of stock-in-trade represents approximately 85-90% of total revenue. In H1 FY26, standalone purchases were INR 63.61 Cr against revenue of INR 70.92 Cr, highlighting the thin-margin nature of the trading business.

Manufacturing Efficiency

Manufacturing efficiency is currently a risk factor as the Purv Packaging subsidiary is in the 'stabilisation' phase. Success is measured by the ability to transition from trading margins to higher value-added manufacturing margins.

Logistics & Distribution

Distribution costs are a significant component of 'Other Expenses', which totaled INR 5.86 Cr standalone in H1 FY26, representing approximately 8.2% of standalone revenue.

📈 Strategic Growth

Expected Growth Rate

15-20%

Growth Strategy

Growth is targeted through the stabilization of the Purv Packaging manufacturing unit and increasing the scale of operations in subsidiaries like Cool Caps Industries. The strategy involves moving up the value chain from distribution to manufacturing flexible packaging components.

Products & Services

The company sells plastic granules (LDPE, HDPE, PP), BOPP films, Polyester films, Metallised films, holographic films, masterbatches, colorants, inks, and adhesives used in the flexible packaging industry.

Brand Portfolio

The company operates primarily as a distributor for brands like IOCL and SRF, while manufacturing activities are conducted under subsidiary names such as Cool Caps.

New Products/Services

The company is expanding into the manufacturing of packaging materials through its stepdown subsidiaries, aiming to contribute a higher percentage to the consolidated bottom line compared to the traditional trading business.

Market Expansion

Expansion is focused on deepening the reach in the SME segment for plastic raw materials in Eastern India and scaling the manufacturing output of subsidiaries to serve national packaging clients.

Market Share & Ranking

The company is a prominent player in the Eastern India polymer distribution market, specifically as a key agent for IOCL in West Bengal and Bihar.

Strategic Alliances

The company maintains long-term agency and dealership agreements with IOCL and SRF Limited, which serve as the backbone of its trading revenue.

🌍 External Factors

Industry Trends

The flexible packaging industry is growing at approximately 10-12% annually in India. The trend is shifting toward sustainable and recyclable plastics, which the company is addressing through subsidiaries like Re.Act Waste Tech.

Competitive Landscape

Competes with other large-scale polymer distributors and regional agents of petrochemical majors like Reliance Industries and GAIL.

Competitive Moat

The moat is built on 30 years of promoter experience and 'longstanding relations with principals' like IOCL. This provides a barrier to entry in the distribution space, though it is vulnerable to changes in principal agency policies.

Macro Economic Sensitivity

Highly sensitive to industrial growth in the FMCG and food packaging sectors, which drive demand for flexible plastic materials. GDP growth in the manufacturing sector directly correlates with polymer demand.

Consumer Behavior

Increased consumer demand for packaged food and hygiene products is driving the volume growth for the company's film and granule distribution business.

Geopolitical Risks

Geopolitical tensions affecting global crude oil supply pose a risk to raw material pricing and availability, given the company's reliance on petroleum-based polymers.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by pollution control board norms for manufacturing units and stringent quality standards for food-grade packaging materials distributed to the FMCG sector.

Environmental Compliance

The company is subject to Plastic Waste Management Rules. Its subsidiary, Re.Act Waste Tech, is likely a strategic move to manage compliance and circular economy trends in the plastic industry.

Taxation Policy Impact

The effective tax rate is approximately 25-26%. For H1 FY26, consolidated tax expense was INR 5.28 Cr on a PBT of INR 11.47 Cr.

Legal Contingencies

The company sought shareholder approval for loans and guarantees to subsidiaries (Purv Packaging) and related parties (Om Education Trust, Purv Agro Farms) under Sections 185 and 186 of the Companies Act, indicating active inter-corporate financial management.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the successful stabilization and profit contribution of the new manufacturing projects in stepdown subsidiaries, which currently pose an execution risk.

Geographic Concentration Risk

High concentration in West Bengal and Bihar for the distribution business, making the company vulnerable to regional economic downturns or policy changes in those states.

Third Party Dependencies

Heavy reliance on IOCL and SRF Limited for product supply. Any termination of these agreements would impact over 70% of standalone revenue.

Technology Obsolescence Risk

Risk of shift from traditional plastic packaging to alternative materials; the company is mitigating this by diversifying into different types of films and recycling.

Credit & Counterparty Risk

Receivables management is a concern; consolidated trade receivables increased by INR 49.93 Cr in just six months (H1 FY26), indicating a potential stretch in the credit cycle of customers.