All Time Plastics Limited: Navigating Growth and Diversification in Q2 FY26

All Time Plastics Limited, a prominent player in the Indian plastic consumer ware sector, has reported a robust top-line performance for the second quarter and first half of fiscal year 2026. Despite facing some short-term margin pressures, the company is strategically investing in capacity expansion, product diversification, and operational efficiencies to solidify its market position and drive future growth. The management's commentary highlights a proactive approach to market challenges and a clear vision for long-term value creation.

For Q2 FY26, the company's consolidated revenue from operations stood at INR 147.4 crore, marking a healthy 12.5% year-on-year growth. The first half of FY26 also demonstrated strong momentum, with consolidated revenue reaching INR 305.4 crore, an impressive 17% increase compared to H1 FY25. However, profitability metrics saw a slight dip. Gross profit for Q2 FY26 was INR 53.3 crore, a marginal decrease of 0.7% YoY, leading to a gross margin of 36.18%, down from 39.27% in Q1 FY26. EBITDA for the quarter was INR 16.3 crore, a 36.7% decline YoY, with the EBITDA margin contracting to 11.0% from 19.6% in Q2 FY25. Profit After Tax (PAT) for Q2 FY26 was INR 4.2 crore, a 68.6% decrease YoY. For H1 FY26, EBITDA was INR 45.0 crore, down 11.1% YoY, and PAT was INR 17.0 crore, a 33.5% decline YoY. The management attributed the margin compression primarily to a change in customer mix, favoring lower-margin clients, a one-off raw material sale, and the initial fixed costs associated with new plant expansions in Manekpur and Guwahati.

Strategic Expansion and Operational Excellence

All Time Plastics is actively pursuing several strategic initiatives to bolster its manufacturing capabilities and diversify its product offerings. The expansion of the Khatalwada plant is progressing as planned, with the factory building expected to be completed by December end or early January. This expansion is crucial for ramping up capacity and meeting future demand. The company has already increased its total manufacturing capacity to 37,000 metric tons by the end of Q2 FY26, with an additional 4,000 metric tons installed in September 2025. Further capacity additions are planned, targeting 46,500 MT by FY26 and 52,500 MT by FY27.

A significant operational highlight is the company's continued investment in all-electric injection moulding machines. These advanced machines offer substantial benefits in terms of sustainability and cost efficiency, reducing power consumption by 50-60% compared to conventional machines. This technological upgrade enhances productivity, repeatability, and reliability, positioning All Time Plastics competitively in the global market. The company's commitment to operational excellence was recognized by a major customer, Target, which awarded them for COPD / Operational Excellence & Precision / Agility. Additionally, All Time Plastics received two 'First Place' awards from Plexconcil India for Houseware Exports and Plastic Furniture Exports for both FY 2023-24 and FY 2024-25.

Diversification into New Avenues

In a strategic move to diversify its product portfolio, All Time Plastics has ventured into bamboo products. The pilot project has shown promising results, with samples approved by a large customer and a trial order secured for shipment in the current quarter. Management views the bamboo business as a significant opportunity, potentially growing to a scale comparable to its existing plastic businesses. This initiative leverages the company's first-mover advantage in India and its established customer base. Furthermore, the company is expanding its product lines to include silicone products, hydration solutions, and blow moulding capabilities, aiming to broaden its market reach and reduce concentration risks.

Geographical diversification is also a key focus. The company has successfully secured orders from two new customers through its joint venture, All Time Plastics PTE Limited, including entry into the Australian market. A new Japanese retailer has also been added to its customer base. While acknowledging the sluggishness in markets like the UK and the impact of US tariffs, the company is actively exploring new geographies and expects benefits from potential trade agreements like the EU FTA, which could enhance its competitiveness against Chinese manufacturers.

Financial Prudence and Future Outlook

All Time Plastics has demonstrated strong financial prudence, particularly in debt management. Following its IPO, the company has utilized 95% of the funds to repay debt, significantly reducing its debt-equity ratio to 0.2. This move strengthens the balance sheet and provides greater financial flexibility for future growth initiatives. While management did not provide specific numerical guidance for FY26 revenue, EBITDA, and PAT, they expressed confidence in improving performance in Q3 and Q4, citing a healthy order book and ongoing project execution.

Management is focused on balancing capacity ramp-up with margin structures, aiming to restore gross margins to their historical average of 39-40% through operational efficiencies. The B2C segment, currently contributing 17% to the revenue mix, is targeted to grow to 25%. The company's strategic investments in capacity, technology, and new product development, coupled with its focus on operational excellence and market diversification, position All Time Plastics Limited for sustained growth and enhanced shareholder value in the coming years. The company remains committed to serving its customers and investors with transparency and disciplined execution.