Mamata Machinery Navigates Market Headwinds with Robust H1 FY26 Performance and Strategic Innovations

Mamata Machinery Limited, a prominent player in the flexible packaging machinery sector, has reported a strong financial performance for the second quarter and first half of fiscal year 2026. Despite facing certain market challenges, the company demonstrated resilience and strategic foresight, driven by innovation and a diversified global presence. For H1 FY26, Mamata Machinery recorded a significant 31% year-on-year increase in revenue, building on a 25% YoY growth in Q2. This robust top-line expansion translated into a 47% YoY surge in Profit After Tax (PAT) for the first half, underscoring the inherent operating leverage within its business model.

However, Q2 FY26 profitability experienced a marginal decline compared to the previous year. This was primarily attributed to higher, albeit budgeted, expenses related to exhibitions, marketing, and travel, amounting to INR 5.3 crore in Q2 and INR 9.6 crore for H1. These investments are strategic, aimed at enhancing global visibility and strengthening customer engagement, particularly with major international trade shows scheduled during this period. The company also highlighted the seasonal nature of its business, with activity typically building up towards the second half of the fiscal year, and Q4 often being the busiest period.

Segmental Performance and Strategic Initiatives

Mamata Machinery's performance across its product verticals showcased a mixed but generally positive trend. The co-extrusion division, despite a temporary dip in H1 revenue due to lumpiness in order delivery, secured three new orders for advanced 9-layer blown-film plants. Two of these high-value, technologically sophisticated solutions are slated for delivery within the current financial year, validating Mamata's expertise in complex co-extrusion solutions. The packaging division also showed strong traction, with assured business for FY26 projected at INR 63 crore, a substantial increase from INR 46 crore in FY25. The converting segment, while currently lagging internal targets, is expected to catch up within the remaining order intake window.

Financial Summary (INR Crore)

(Note: H1 FY26 figures are for the half-year period. All other figures are for the full fiscal year.)

Innovation and Market Leadership

A key highlight of the quarter was the company's strong showing at two marquee trade shows. At PACK-EXPO USA in Las Vegas, Mamata launched its new HFSS Duplex Packaging Line, a second-generation product that received excellent feedback from North American customers, with initial orders anticipated soon. At K 2025 in Düsseldorf, the company showcased an innovative wicketter capable of handling both conventional and side-sealed bags, enhancing operational flexibility. Additionally, a new pouch-making machine designed for mono-material recyclable films, featuring full job set-up automation, underscored Mamata's commitment to sustainable packaging and reducing set-up time and wastage.

Mamata Machinery continues to be a pioneer in recyclable flexible packaging technologies, developing next-generation machinery solutions compatible with mono-material films. These innovations address critical industry challenges, offering cost-efficient solutions that enable brand owners to transition to sustainable packaging and meet their ESG commitments. The company's in-house R&D capabilities, coupled with its asset-light manufacturing model, provide a competitive edge, allowing for quick response to market demand and efficient scalability.

Global Footprint and Future Outlook

Despite transient tariff-related headwinds in the US market, Mamata Machinery remains fully committed to the region. The company is actively expanding its sales team and services in the US, viewing these challenges as temporary. Its diversified product portfolio and global presence, with installations in over 80 countries, position it well to navigate market complexities. The current order book stands at INR 144 crore as of September 30, 2025, with a 70:30 export-to-domestic sales ratio, providing clear visibility for the remainder of the year. Management expects INR 134 crore of this order book to be executed by the end of H2 FY26.

Mamata Machinery's strategic focus on innovation, sustainability, and market expansion, combined with its robust financial health and debt-free status, positions it for continued growth. The company is actively building a 'war chest' to fund organic expansion and potential opportunistic acquisitions, reinforcing its long-term strategic goals. The management's balanced commentary, acknowledging both achievements and challenges, reflects a transparent approach to investor communication.

Product-Wise Revenue Breakdown (FY25)

Sustained Growth and Strategic Clarity

Mamata Machinery's Q2 and H1 FY26 performance demonstrates sustained growth and strategic clarity in a dynamic global market. The company's commitment to innovation, particularly in sustainable packaging solutions, positions it as a leader in addressing evolving industry demands. With a strong order book, a robust global footprint, and a disciplined approach to capital allocation, Mamata Machinery is well-equipped to continue its growth trajectory and build investor trust.