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View Promises →Kanpur Plastipack Ltd — Q4 FY26
Kanpur Plastipack reported Q4 FY26 standalone revenue of ₹183.1 crore (+6.16% YoY) and EBITDA margin of 13.69%, with PAT of ₹14.53 crore (+14% YoY).
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Kanpur Plastipack reported Q4 FY26 standalone revenue of ₹183.1 crore (+6.16% YoY) and EBITDA margin of 13.69%, with PAT of ₹14.53 crore (+14% YoY). Full-year revenue grew 26.26% to ₹726.67 crore, driven by improved realizations and value-added product mix. The company is executing a strategic shift from volume-driven to value-added segments, including FIBC capacity expansion (6,000 tons over 4 years) and entry into non-woven technical textiles (commercial production from September). Management guided for 10-15% revenue growth in FY27 with sustained margins, though near-term order book faces headwinds from inventory correction and raw material volatility. Key risk: sustained high polypropylene prices (new normal $1,200-1,350/ton) could pressure margins if pass-through lags.
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Raw material price volatility
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FIBC capacity utilization
83%
flat YoY
Utilization at unit 2 is 83% (15,000 tons produced vs 18,000 tons capacity).
Export geographic mix - Europe
56.5%
stable YoY
Europe remains the largest export region, followed by South America (21.8%) and North America (16.9%).
FIBC expansion run-rate target FY27
2,400 tons
+100% YoY
New unit 3 FIBC capacity to reach 2,400 tons run-rate by end of FY27, up from 1,200 tons in FY26.
Non-woven revenue guidance FY28
₹100-120 crore
+300-380% YoY
Non-woven technical textiles expected to generate ₹100-120 crore revenue in FY28 at 15-16% EBITDA margin.
What Changed vs Last Quarter
NEW
Revenue growth 10-15% in FY27
Management expects top-line growth of 10-15% in FY27, driven by FIBC expansion and non-woven contribution.
NEW
EBITDA margins to sustain at ~11%
Management indicated that EBITDA margins will remain similar to current levels (~11% for manufacturing segment) in FY27.
NEW
Non-woven commercial production from September 2026
First non-woven machine to start commercial production by September 2026, second by December 2026, targeting ₹20-25 crore revenue in FY27.
UPDATED
FIBC capacity expansion to 1,800 tons in FY27
New FIBC unit 3 to produce 1,800 tons in FY27, ramping to 6,000 tons over four years.
DROPPED
PP yarn JV revenue of ₹20-25 crore in FY27
The Segma JV for premium polypropylene yarns is expected to generate first revenues in the next financial year.
DROPPED
Q4 manufacturing turnover to be better than Q3
Management expects sequential improvement in manufacturing revenue in Q4 FY26.
DROPPED
FIBC share to increase to 70-75% of manufacturing
Over the next few years, FIBC will grow from 54% to 70-75% of manufacturing turnover, improving blended margins.
NEW RISK
Raw material price volatility
Polypropylene prices surged from $1,000 to $1,700/ton due to Iran conflict; new normal expected at $1,200-1,350/ton, which could compress margins if not fully passed through.
NEW RISK
Order book moderation from inventory correction
Lead times reduced from 6-8 weeks to 3-4 weeks as customers order smaller quantities more frequently, indicating near-term demand softness.
NEW RISK
DFIA income reversal risk
Government suspension of import duty on petrochemicals led to a ₹3.65 crore reversal of DFIA income in Q4; further reversals possible if suspension extends.
NEW RISK
Execution risk in non-woven segment
Entry into technical textiles is new; achieving targeted margins of 15-16% depends on capacity utilization and market acceptance, with no prior track record.
RISK GONE
US tariff uncertainty
Although 18% tariff was announced, 25% is currently applied; any reversal could impact export competitiveness.
RISK GONE
Trading division loss unexplained
Segment results showed a loss of ₹3.53 crore in trading despite ₹47 crore revenue; management could not explain on call.
RISK GONE
Slow ramp-up of new ventures
Valex Ventures and the Segma JV are expected to take years for meaningful contribution; near-term financial impact is limited.
RISK GONE
Employee cost increase
Employee costs rose by ₹2.5 crore in Q3, partly due to new wage code provisions; margin impact needs monitoring.
Fast read
Guidance and risk preview
Management expects top-line growth of 10-15% in FY27, driven by FIBC expansion and non-woven contribution.
Polypropylene prices surged from $1,000 to $1,700/ton due to Iran conflict; new normal expected at $1,200-1,350/ton, which could compress margins i...
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