Rajshree Polypack Ltd (RPPL) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator (Churchgate Advisory Private Limited): Ladies and gentlemen, good day, and welcome to Rajshree Polypack Limited Q2 and H1 FY '27 Earnings Conference Call hosted by Churchgate Advisory Private Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing "*" then "0" on your touchtone phone. Please note, this conference is being recorded. I now hand the conference over to Mr. Ram Swaroop, sir. Thank you, and over to you, sir.
Ram Swaroop (Rajshree Polypack Ltd): Thank you, Nazneen. Good afternoon, everyone, and welcome to Rajshree Polypack's Earnings Call for the second quarter and first half of FY '27. Joining me today is our CFO, Mr. Sunil Sharma. I hope you had an opportunity to review our results, investor presentation, and press release shared with the stock exchange. This quarter reflects our ability to adapt to changing market conditions while continuing to grow. Despite a sharp increase in raw material prices and softer export demand amid geopolitical uncertainties, we were able to grow and maintain our operating margin compared with the corresponding quarter last year. Domestic demand more than offset lower exports, reflecting the breadth of our customer relationship and the demand of our packaging solutions. Starting with our standalone financial performance, revenue from operations for Q2 FY '27 was ₹102.90 crore compared to ₹86.43 crore in Q2 FY '26, representing growth of approximately 19%. Operating EBITDA increased to ₹13.05 crore from ₹10.94 crore, with the margin maintained at 12.69% compared with 12.66% last year. Reported EBITDA was ₹13.60 crore, while profit after tax was ₹5.03 crore. In H1 FY '27, revenue from operations increased by 21.8% to ₹205.81 crore. Operating EBITDA grew by approximately 30.5% to ₹27.47
Ram Swaroop (Rajshree Polypack Ltd): with the margin improving by 89 basis points to 13.35%. Reported EBITDA reached Rs. 30.11 crore with profit after tax increased to Rs. 12.21 crore from Rs. 8.71 crore in H1 FY '26. Our performance reflects the benefits of a diversified product portfolio, better product mix and continued attention to manufacturing efficiency. Maintaining our Q2 operating margin despite higher raw material cost is an important outcome. As we grow, our focus remains on improving the quality of earnings through value added products, productivity and disciplined execution. In terms of geographical sales, domestic demand remained the principle driver of growth during the quarter. Export revenue was Rs. 14.46 crore in Q2 and Rs. 26.18 crore for H1. While international demand remained affected by geopolitical uncertainty, Q2 exports improved sequentially from Rs. 11.72 crore in Q1. We continue to work closely with overseas customers while expanding domestic applications, giving us greater flexibility to rebalance our sales mix as market conditions change. As a leader in rigid thermoforming food packaging in India, our vision is to build a diversified packaging business with technology, product innovation and capital efficiency at its core. Our integrated capabilities across extrusion, thermoforming, printing, sleeving and injection molding allow us to develop packaging solutions for a wide range of customer requirements. Looking at our product portfolio, we are focused on increasing the contribution of value-added packaging. Barrier packaging remains an important part of this approach, helping customers preserve product quality, extend shelf life and reach wider markets. Our emphasis is on applications wherever technical capabilities and product development expertise create lasting value for customers. Injection molding provides another avenue for expansion. Capacity is now at 1,800 metric ton per annum, compared with 1,000 metric ton in FY '23. We are expanding the product range with a specific focus on domestic sales, building a broader customer base alongside our export business. With capacity available, our immediate priority is to increase utilization through new products and customer applications. Further additions will remain phrased and aligned with visible demand. Coming to Olive Ecopack, I am pleased to share that the business delivered considerable progress, despite a flood-related disruption. Revenue for Q2 was Rs. 21.15 crore, compared with Rs. 17.22 crore in Q1. EBITDA increased to 6.72 crore, with the margin improving to 31.78% from 26.77% in the preceding quarter. For H1 FY '27, Olive reported revenue of Rs. 38.36 crore and EBITDA of Rs. 11.33 crore, with an EBITDA margin of 29.53%. Importantly, the business was profitable at the PBT level before the flood-related loss and the insurance claim is still under process. This marks progress in the underlying operating performance as a business as business case. Olive expands our presence in paper food packaging and complements our rigid plastic packaging business. With more than 150 SKUs commercialized, we are focused on widening customer reach, improving utilization and drawing on our joint venture partnership distribution network. Together our plastic and paper packaging capabilities allow us to serve a broader range of customer needs. On sustainability, our group captive wind-solar power arrangement of approximately 1.9 megawatt has been commissioned and we have commenced using renewable energy.
Ram Swaroop (Rajshree Polypack Ltd): project is expected to meet nearly 30% of our energy requirements. Our approach to sustainability also extends to packaging design and material use through recyclable, light-weight and compostable solution, we aim to help customers meet their packaging objectives while retaining product protection, functionality, and commercial viability. On financial discipline, cash flow from operations for H1 FY '27 was Rs. 17.72 crores. Our debt-to-equity ratio improved to 0.53 times from 0.57 times at the end of FY '26. We remain focused on cash generation, working capital management, and better utilization of exist existing assets as we prepare for the next phase of growth. Looking ahead, we'll deepen customer relationship, expand our value-added product range, and improve manufacturing productivity. Our expansion approach will remain phased guided by utilization and customer demand. The priority is to grow across thermoforming, injection molding and paper packaging while maintaining discipline in capital allocation. The external environment remains uncertain, but our progress this quarter reflects our ability to respond through a flexible sales mix, integrated manufacturing capabilities and a close customer engagement. With improving operating performance at Olive, the commencement of renewable energy supply, and continued cash generation, we are well-placed to build a more diversified, competitive, and profitable business. With that, I conclude the business update. Thank you for your continued interest in Rajshree Polypack. We would now be happy to take your questions.
Moderator (Churchgate Advisory Private Limited): Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Vishvendra Singh from Prudent Equity. Please go ahead.
Vishvendra Singh (Prudent Equity): Hi, sir. Am I audible?
Ram Swaroop (Rajshree Polypack Ltd): Yeah, you're audible very much.
Vishvendra Singh (Prudent Equity): Hi, sir. I wanted to ask on the Olive operations. Since the flood has disrupted that, so what sort of revenue guidance will you be looking at since we previously mentioned 90 plus minus 5 crores for that operations?
Ram Swaroop (Rajshree Polypack Ltd): Yeah, we still maintain same guidance. So we are looking at 95 plus minus 5 crore at Olive for this financial year.
Vishvendra Singh (Prudent Equity): Okay, so like flood has not disrupted mo- m- like all of the operations, is that correct assumption?
Ram Swaroop (Rajshree Polypack Ltd): No, there was a disruption of 12 to 14 days, that's it. Apart from that, there is no major disruption as such.
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