Kanpur Plastipa. Q1 FY27 Results (NSE: KANPRPLA)
Signal: Margin expansion
The read
Kanpur Plastipack delivered a strong Q1FY27 with revenue ₹207.49 Cr (+13.86% YoY), EBITDA margin expansion of 303bps to 10.69% (third consecutive quarter of YoY margin expansion: Q3FY26 9%, Q4FY26 10%, Q1FY27 10.69%), and PAT ₹12.14 Cr (+112% YoY). The EBITDA growth gap (59% vs revenue 14%) confirms operating leverage through product mix improvement and cost optimisation, as stated in management commentary. Key positives: commercial production of Taslan Yarn through JV commenced, Non-Woven project on track for September 2026 commissioning, and diversified export mix (Europe 59%, Americas 35%) provides resilience. Key concerns: EPS growth materially lagging PAT growth suggests possible dilution, and QoQ margin contraction of 31bps from Q4FY26's 11% warrants monitoring.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹207.49 Cr | 13.86% | 15.27% |
| EBIT | ₹22.19 Cr | 58.98% | |
| Net profit | ₹12.14 Cr | 112.01% | |
| EPS | ₹4.96 | 64.78% | |
| EBIT margin | 10.69% |
P&L walk
Standalone-only filing (no subsidiaries on consolidated P&L); revenue growth of 13.86% YoY paired with EBITDA surging 58.98% YoY — operating leverage evident: EBITDA margin expands 303bps to 10.69%, while PAT doubles on a low base.
Key positives
- Revenue ₹207.49 Cr, +13.86% YoY, driven by value-added product mix (FIBC 52%).
- EBITDA margin expanded 303bps YoY to 10.69% — third consecutive quarter of YoY expansion, confirming operating leverage.
- PAT ₹12.14 Cr, +112% YoY, on a low base and margin improvement.
- Commercial production and sales of Taslan Yarn through JV ESSEKAN commenced during the quarter.
- Non-Woven Fabrics facility on track for commissioning by September 2026, adding growth optionality in technical textiles.
Key concerns
- EPS growth (64.78%) lagged PAT growth (112.01%) — potential dilution from warrants/ESOP needs explanation.
- EBITDA margin slipped 31bps QoQ from Q4FY26's 11% — seasonal or one-off?
- Supply chain disruptions and global disturbances cited in commentary as ongoing risks.
Research and educational content only. Not investment advice.