AGI Greenpac: Bottling Up Success with Strategic Expansion and Robust H1 FY26 Performance

AGI Greenpac Limited, a prominent player in India's packaging industry, has delivered a strong performance for the second quarter and first half of the financial year 2026. The company's latest earnings call and investor presentation highlight a period of robust growth, strategic execution, and a clear roadmap for future expansion and diversification. Despite some seasonal challenges in Q2, AGI Greenpac's underlying profitability and strategic initiatives underscore its commitment to long-term value creation.

For the first half of FY26, AGI Greenpac reported a solid 10.6% year-on-year growth in Revenue from Operations (excluding Other Income), reaching ₹1,289 crore, up from ₹1,166 crore in H1 FY25. This impressive top-line growth was complemented by a significant surge in Net Profit, which increased by 21.9% year-on-year to ₹165 crore, compared to ₹135 crore in the corresponding period last year. The company's focus on operational efficiency and product premiumization, particularly in high-margin segments like cosmetics, perfumery, and alco-beverage, has been instrumental in driving this enhanced profitability.

While Q2 FY26 saw a marginal 0.4% year-on-year increase in revenue from operations to ₹602 crore, it was sequentially lower than Q1. Management attributed this to a planned seasonal shift, where the company focuses on building stock for products like beer for subsequent quarters. Additionally, higher intensity monsoons and flooding in various states had a slight impact on sales volume. However, the quarter's profitability remained robust, with the Q2 EBITDA margin (excluding other income) standing at a healthy 24.9%. This represents a significant 250 basis point jump compared to the adjusted Q1 margin of 22.4%, showcasing improved efficiencies and the positive impact of a better product mix.

Strategic Growth and Diversification

AGI Greenpac is embarking on an ambitious multi-year growth trajectory, underpinned by a three-pronged strategy: operational excellence, portfolio diversification, and capacity expansion. A key initiative is the greenfield 500 TPD Glass Plant in Madhya Pradesh, which is on track to be operational by March 2027. This project will increase the company's overall glass production capacity by 25%, taking the total to 2,600 TPD, and is crucial for efficiently serving the burgeoning North Indian market.

In a significant diversification move, AGI Greenpac is strategically entering the high-growth Aluminum Beverage CAN segment with a new facility in Uttar Pradesh. This facility is projected to achieve an annual capacity of 950 million CANS by Q3 FY28, expanding to 1.6 billion CANS by FY30. This move complements the company's core glass packaging business and positions it in a rapidly growing, sustainable packaging category.

Furthermore, the company is enhancing its existing facilities through debottlenecking exercises. The Container Glass capacity will increase from 1,850 TPD to 1,900 TPD, and the Specialty Glass capacity will expand from 154 TPD to 200 TPD. Both upgrades are expected to be operational by March 2026, further strengthening AGI Greenpac's ability to serve both mass and premium segments effectively.

Financial Prudence and Outlook

AGI Greenpac has demonstrated strong financial prudence, notably by completing a term loan prepayment of ₹193 crore in July 2025. This action substantially reduced its term loan borrowings to just ₹233 crore as of September 2025, significantly strengthening its financial position. The company's existing businesses generate substantial cash flow from operations, around ₹400 crores plus annually, which will be utilized alongside long-term debt to fund these expansions. Management also indicated plans to raise equity in the next 12 months, providing additional financial flexibility.

Management expects EBITDA margins to enhance by 1% to 2% in the next 24 months. Revenue growth is projected to be in the range of 8% to 10% annually for the next two years (FY26-FY27), followed by a 25% increase in volume once the new plants become operational. The overall capital expenditure for the Madhya Pradesh plant is estimated at ₹700 crore, and for the Aluminum beverage CAN plant, the first phase outlay is around ₹850 crore.

AGI Greenpac's strategic investments, disciplined execution, and focus on high-value segments position it as a leading packaging solutions provider. The company remains committed to creating long-term value through innovation, quality, and disciplined execution, reinforcing investor confidence in its future growth trajectory.