Mold-Tek Packaging: Navigating Seasonal Headwinds with Strategic Growth in Q2 & H1 FY26

Mold-Tek Packaging Limited, a prominent player in India's rigid plastic packaging sector, has demonstrated resilience and strategic agility in its Q2 and H1 FY26 performance. Despite facing seasonal challenges, the company reported robust financial growth, underpinned by strong contributions from high-value segments and ongoing strategic initiatives. For the first half of FY26, Mold-Tek recorded a consolidated revenue of INR 450.32 crore, marking a 16% increase year-over-year. EBITDA surged by 23% to INR 86.88 crore, while Profit After Tax (PAT) saw an impressive 24% jump to INR 37.88 crore. The second quarter alone contributed INR 209.76 crore in revenue, growing 10% YoY, with EBITDA up 16% and PAT rising 10%. This performance highlights the company's ability to maintain profitability and expand its market presence even amidst external pressures.

Segmental Performance: High-Value Segments Lead the Charge

The Q2 period, typically a low-volume season due to monsoons, presented mixed results across Mold-Tek's diverse product portfolio. The paint and lubricant segments experienced muted growth, with paints growing modestly by 3.36% and lubes seeing a decline of 13.45% in Q2 compared to Q1. This was largely attributed to heavy rains impacting goods movement and sales. However, the company's strategic focus on high-growth, high-margin segments proved to be a significant buffer.

The pharma packaging vertical emerged as a star performer, registering a massive 45% growth over Q1, with Q2 revenues reaching INR 10.81 crore. This growth was primarily driven by demand for EV tubes, caps, and bottles used in nutraceuticals, leveraging Mold-Tek's IML expertise and DMF-certified facilities. The Food & FMCG segment also showed a strong resurgence, posting a 19.55% growth in Q2. Furthermore, the Q Pack segment achieved its highest-ever sales in Q2, indicating an encouraging trend in bulk packs. The company's product mix shift towards food and pharma contributed to a higher sales realization, with revenue growth outpacing volume growth.

Strategic Initiatives and Future Outlook

Mold-Tek Packaging is actively pursuing several strategic initiatives to sustain its growth trajectory. The company has established a new Off-set printing machine in Q2, enhancing its printing capabilities and improving turnaround times for small-run jobs. A significant development is the new manufacturing unit in Panipat, which is expected to become operational from Q3 onwards. This unit will cater to the Food & FMCG market in North India, aiming to reduce supply costs and time, and introduce new product shapes from Q4.

In a move to optimize operations, Mold-Tek has integrated all its In-Mold Labelling (IML) operations under one roof at Sultanpur, Hyderabad. This integration, coupled with in-house manufacturing of HTL labels, is projected to yield cost reductions in IML manufacturing from Q3-Q4. The company is also expanding its pharma segment capacity through both brownfield additions and a new greenfield facility on acquired land, targeting substantial revenue growth in the coming fiscal years.

Sustained Momentum and Investor Confidence

Despite the challenges posed by seasonality and initial GST implementation, Mold-Tek Packaging's management remains confident about achieving its full-year targets. The company anticipates a double-digit volume growth, with Q4 expected to see a strong pickup. The EBITDA per kg is projected to remain above 40 in the second half of FY26, an improvement from the previous year, driven by the favorable product mix. The strategic focus on pharma and Food & FMCG, coupled with geographical expansion and operational efficiencies, positions Mold-Tek for sustained momentum. The company's disciplined capital allocation, with a projected CAPEX of INR 100-105 crore for the current year, further reinforces investor confidence in its long-term growth prospects. Mold-Tek Packaging continues to demonstrate strategic clarity and disciplined execution, ensuring its leadership in the evolving packaging landscape.