PYRAMID - Pyramid Technopl

📊 NSE: PYRAMID 🏢 Packaging 📅 Last Updated: 12/14/2025 11:24

💰 Financial Performance

Revenue Growth by Segment

Overall revenue grew 21.7% YoY in H1 FY26 to INR 324.6 Cr. MS Drums segment saw strong volumes but lower revenue translation due to pricing challenges. Polymer Drums and IBC segments contributed to the 21% growth in Q2 FY26 (INR 160.8 Cr).

Geographic Revenue Split

The company has a strong presence in Gujarat and has recently established production capacity across all drum categories in Maharashtra (Wada) to drive regional growth.

Profitability Margins

Gross Profit margin improved to 26.5% in H1 FY26 (up 122 bps YoY). Net Profit Margin (NPM) stood at 4.3% in H1 FY26 compared to 4.9% in H1 FY25, impacted by higher fixed costs during the ramp-up of new facilities.

EBITDA Margin

EBITDA margin was 8% in H1 FY26, a decrease of 35 bps YoY from 8.6%. Core profitability was INR 26.8 Cr, up 17% YoY in absolute terms.

Capital Expenditure

Planned capital expenditure of INR 15-20 Cr for adding machinery to the Wada plant in Maharashtra to increase capacity utilization.

Credit Rating & Borrowing

Long-term borrowing increased significantly to INR 74.1 Cr in H1 FY26 from INR 27.6 Cr in FY25. Interest costs rose 121% YoY to INR 2.9 Cr in H1 FY26 due to higher debt levels for expansion.

⚙️ Operational Drivers

Raw Materials

Specific raw materials include Polymer (for drums and IBCs) and Steel (for MS drums). Raw material costs represented 73.8% of revenue in H1 FY26 (INR 239.7 Cr).

Capacity Expansion

Current installed capacity includes 33,026 MTPA for Polymer Drums, 600,000 Units for IBCs, and 10,800 MTPA for MS Drums. Unit 9 (Recycling plant) was commissioned on October 3rd, 2025.

Raw Material Costs

Raw material costs were INR 239.7 Cr in H1 FY26, up 21% YoY. The new recycling plant is expected to reduce raw material costs by 10-12% annually through in-house processing.

Manufacturing Efficiency

Overall capacity utilization is expected to ramp up to 66% as the capex cycle nears completion. MS drum utilization is currently at 80%.

Logistics & Distribution

The company operates an in-house fleet of 88 trucks to ensure timely deliveries and cost efficiency, providing a strategic advantage near industrial hubs.

📈 Strategic Growth

Expected Growth Rate

15%

Growth Strategy

Growth will be achieved by ramping up utilization at the new Wada (Maharashtra) facility, adding machinery to existing plants (INR 15-20 Cr capex), and leveraging the 10-12% cost reduction from the new recycling plant to improve EBITDA margins to a guided 11-12%.

Products & Services

Rigid Intermediate Bulk Containers (IBCs), Polymer Drums, and Mild Steel (MS) Drums.

Brand Portfolio

Pyramid Technoplast Limited.

New Products/Services

Recycled polymer from the new Unit 9 plant and internal captive solar power generation.

Market Expansion

Expansion focused on the Maharashtra region through the Wada plant to capture demand from chemical and pharma hubs.

🌍 External Factors

Industry Trends

Current growth in industrial packaging is driven by the 'China Plus One' strategy in chemicals and pharma. The industry is shifting toward sustainable packaging, which Pyramid is addressing with its new recycling plant.

Competitive Landscape

Operates in a competitive industrial packaging market; positioning is based on logistics efficiency and integrated manufacturing.

Competitive Moat

Durable advantages include strategic location near industrial hubs, an in-house logistics fleet of 88 trucks, and backward integration for components like lids and handles, which ensure cost leadership and quality control.

Macro Economic Sensitivity

Highly sensitive to the growth of the Indian chemical and pharmaceutical sectors, which drive demand for industrial packaging.

Consumer Behavior

Industrial customers are increasingly prioritizing sustainability and cost-efficiency, favoring suppliers with recycling capabilities.

⚖️ Regulatory & Governance

Industry Regulations

Must comply with industrial packaging standards for hazardous and non-hazardous chemicals and pharmaceutical-grade manufacturing norms.

Environmental Compliance

Invested in a 6 MW captive solar plant and a recycling plant to meet sustainability goals and reduce environmental impact.

Taxation Policy Impact

Effective tax rate was approximately 25% in H1 FY26 (INR 4.7 Cr tax on INR 18.8 Cr PBT).

⚠️ Risk Analysis

Key Uncertainties

Raw material price volatility (Polymer/Steel) could impact margins by 5-10% if not managed. Ramp-up risk at the Wada plant could affect fixed cost absorption.