RPPL - Rajshree Polypac

📊 NSE: RPPL 🏢 Packaging 📅 Last Updated: 12/14/2025 11:34

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single primary segment: Rigid packaging products. Revenue grew 20.17% YoY to INR 329.74 Cr in FY25 from INR 274.39 Cr in FY24. H1 FY26 revenue showed a modest growth of 1.17% YoY reaching INR 168.94 Cr.

Geographic Revenue Split

Domestic sales contribute approximately 84-85% of total revenue. Export revenues contribute 15-16% of total sales in FY24 and FY25, a significant increase from 5.5% in FY23, with presence in Europe, UK, and planned expansion to the US.

Profitability Margins

Net Profit margin improved to 4.38% in FY25 from 3.35% in FY24. PAT grew 57.2% YoY to INR 14.46 Cr in FY25. Return on Equity (ROE) increased to 8.56% from 5.96% due to better profit margins.

EBITDA Margin

Overall EBITDA margin was 14.78% in H1 FY26. The company targets an EBITDA margin of 15-16% as it scales revenue by an additional INR 30-40 Cr and ramps up its JV operations.

Capital Expenditure

The company is undertaking debt-funded capital expenditure for newly installed facilities and a planned greenfield plant in Odisha. Debt-Equity ratio increased 29.38% to 0.62 in FY25 due to capex borrowings.

Credit Rating & Borrowing

CRISIL Ratings maintains a 'Stable' outlook. Interest coverage ratio is adequate at 4.85 times. Bank limit utilization averaged 69% through March 2025.

⚙️ Operational Drivers

Raw Materials

Plastic raw materials and granules (resins) represent the primary input cost. Specific polymer types are not listed but are integral to rigid sheet and thermoformed container production.

Capacity Expansion

Current manufacturing units are in Daman and Sarigam. Planned expansion includes a greenfield plant in Odisha and the Olive Ecopak JV which has a full-scale revenue capacity of INR 200-215 Cr.

Raw Material Costs

Raw material price volatility is a key risk. Strategy includes backward integration and centralized procurement to leverage scale and achieve better bargaining power with suppliers.

Manufacturing Efficiency

Return on Capital Employed (ROCE) increased from 11.40% in FY24 to 13.82% in FY25, driven by improved asset utilization and higher operating leverage.

📈 Strategic Growth

Expected Growth Rate

8-10%

Growth Strategy

Growth will be achieved through the ramp-up of the Olive Ecopak JV (targeting INR 140-150 Cr revenue by FY27), entry into the US and UK markets, and the commissioning of a new greenfield plant in Odisha.

Products & Services

Rigid plastic sheets, thermoformed packaging containers, cups, bowls, punnets, lids, trays, and injection-molded (IML) products.

Brand Portfolio

Not disclosed (B2B operations).

New Products/Services

Sustainable and eco-friendly packaging through the Olive Ecopak JV and value-added injection-molded products with expected higher margins.

Market Expansion

Expanding geographical presence to the US and UK markets to de-risk the business and increase export contribution.

Strategic Alliances

Joint Venture with Olive Ecopak Private Limited for sustainable packaging solutions.

🌍 External Factors

Industry Trends

The industry is shifting toward sustainable, bio-based materials and advanced recycling. RPPL is positioning itself through the Olive Ecopak JV to meet increasing regulatory and consumer demand for eco-friendly packaging.

Competitive Landscape

Highly fragmented industry with intense competition from various players, including large firms like Huhtamaki and Amcor Flexibles.

Competitive Moat

Moat is built on 20 years of promoter experience, long-standing relationships with blue-chip clients, and a diversified product profile catering to multiple end-user industries.

Macro Economic Sensitivity

Sensitive to global economic slowdowns and trade disputes which can reduce demand in packaging-intensive industries like FMCG and Food & Beverages.

Consumer Behavior

Increasing consumer preference for health-conscious and eco-friendly products is driving the shift away from traditional plastic usage.

Geopolitical Risks

Geopolitical conflicts are cited as risks that can disrupt raw material supply chains and affect production schedules.

⚖️ Regulatory & Governance

Industry Regulations

Exposed to regulatory risks including potential imposition of discriminatory taxes on plastic and frequent changes in environmental compliance standards.

Environmental Compliance

The company proactively engages with stakeholders to develop sustainable packaging to comply with stringent environmental standards and plastic waste recovery requirements.

Legal Contingencies

No reportable material weaknesses in design or operations of internal controls were observed during testing for FY25.

⚠️ Risk Analysis

Key Uncertainties

Volatility in raw material prices and rapid technological shifts in bio-based materials could impact profitability by up to 10% if revenue declines steeply.