Atharva Polyplast H1 Revenue Rises 77.5% as Margin Falls

Atharva Polyplast Limited recorded H1 FY27 revenue from operations of Rs 36.69 crore, 77.5% above H1 FY26, but earnings before interest, tax, depreciation and amortisation margin fell 15.4 percentage points to 20.3% as raw-material cost reached about 75% of revenue. The September 2026 result was its first half-year disclosure after listing in July 2026.

Why did Atharva Polyplast revenue rise in H1 FY27?

Atharva Polyplast said revenue rose because new customer growth avenues moved into production across its three verticals. Revenue from operations was Rs 36.69 crore for the half year ended 30 September 2026, compared with Rs 20.67 crore in H1 FY26. The company attributed the 77.5% increase to ramp-ups in premium furniture, home appliances, and engineering and other activities.

The company also reported sequential growth from H2 FY26, when revenue from operations was Rs 33.72 crore. Total income reached Rs 38.42 crore in H1 FY27, up 13.7% from Rs 33.79 crore in H2 FY26 and 73.7% from Rs 22.11 crore in H1 FY26. Revenue from operations therefore rose faster than total income on both comparisons.

Premium furniture remained Atharva Polyplast's largest revenue vertical, contributing 53.40% in H1 FY27 versus 52.72% in FY26. Home appliances increased its share by 2.54 percentage points to 26.90%, while engineering and others, which include co-designed products and automotive components, declined by 3.21 percentage points to 19.70%.

Why did Atharva Polyplast EBITDA margin decline?

Atharva Polyplast's EBITDA margin declined because raw-material costs increased during production ramp-ups. EBITDA was Rs 7.45 crore in H1 FY27, only 1.0% above Rs 7.37 crore in H1 FY26 despite the 77.5% increase in revenue. The company states that EBITDA includes other income.

Raw-material cost was about 75% of revenue in H1 FY27, compared with about 54% in H1 FY26. As a result, EBITDA margin fell to 20.3% from 35.7%, a decline of 15.4 percentage points. Management linked the change to higher input costs during ramp-up, without disclosing individual material prices, supplier terms or product-level costs.

The sequential comparison was more favourable. EBITDA rose from Rs 3.88 crore in H2 FY26 to Rs 7.45 crore in H1 FY27, while the margin improved from 11.5% to 20.3%. Management said the H1 FY27 margin was in line with the full-year FY26 EBITDA margin of 20.7%, although it remained below the H1 FY26 level.

How did Atharva Polyplast profit change in H1 FY27?

Atharva Polyplast reported profit after tax of Rs 4.38 crore in H1 FY27, down 7.1% from Rs 4.72 crore in H1 FY26. Profit after tax margin declined to 11.9% from 22.8%, a reduction of 10.9 percentage points. The lower year-on-year profit followed the reduction in EBITDA margin despite higher revenue.

Compared with H2 FY26, profit after tax increased 150.3% from Rs 1.75 crore to Rs 4.38 crore. Profit after tax margin also rose from 5.2% in H2 FY26 to 11.9% in H1 FY27. This means the company improved materially from the preceding half year but did not match the profit level reported in the first half of FY26.

Earnings per share were Rs 3.03 in H1 FY27, compared with Rs 3.82 in H1 FY26 and Rs 1.42 in H2 FY26. The per-share figure, which is not annualised, was down 20.7% year on year and up 113.4% sequentially. Atharva Polyplast describes the H1 FY27 figures as unaudited and limited-reviewed, while H2 FY26 is calculated as FY26 less H1 FY26.

How did the IPO change Atharva Polyplast's balance sheet?

Atharva Polyplast's net worth increased to Rs 46.06 crore in September 2026 from Rs 19.58 crore in March 2026 following its initial public offering. The company raised Rs 27 crore through the offering and listed on the BSE SME platform on 7 July 2026. It described H1 FY27 as its first half-year result as a listed company.

Total borrowings fell 53% between March 2026 and September 2026, according to the presentation. Debt to equity declined to 0.10 times from 0.50 times, while the current ratio rose to 1.85 times from 1.23 times. The company did not disclose the absolute borrowing amount for either balance-sheet date.

Management said the IPO strengthened Atharva Polyplast's balance sheet and reduced debt. The company owns 5.5 acres, or 2,34,614 square feet, of land, with 40,000 square feet built up. Its plant has more than 20 injection-moulding machines with capacities ranging from 100 tonnes to 1,000 tonnes and produces more than 300 products.

What capacity and growth plans does Atharva Polyplast have?

Atharva Polyplast reported capacity utilisation of 67% in H1 FY27, compared with 78% in FY26, leaving about one-third of installed capacity available for new business. Management cited this spare capacity and the available land as support for expansion in premium furniture, engineering services and the chair-mechanism business.

Premium furniture represented 53.40% of H1 FY27 revenue, compared with 28% in FY23. Atharva Polyplast's next-phase plan includes tilt-and-recline mechanisms for premium chairs, engineering services, and localisation work for global original equipment manufacturers. Management estimates the chair-mechanism market at about 6.7 million units annually, or Rs 670 crore, and targets a 30% share representing a revenue opportunity of about Rs 201 crore.

The company also said it has co-designed a pressure-compensating drip-irrigation product with Toro, for which the customer funds moulds and development. Atharva Polyplast said this avenue has five years of assured business. These are management plans and disclosed opportunities rather than reported H1 FY27 revenue streams, and the presentation does not give a date for commercial-scale chair-mechanism revenue.

Conclusion

Atharva Polyplast combined rapid revenue growth with lower year-on-year profitability in H1 FY27. Revenue from operations reached Rs 36.69 crore, while the rise in raw-material cost to about 75% of revenue reduced EBITDA margin to 20.3% and left profit after tax at Rs 4.38 crore, below the Rs 4.72 crore reported in H1 FY26. Sequentially, EBITDA and profit improved from H2 FY26.

The next result will indicate whether raw-material intensity moves from the H1 FY27 level and whether 67% capacity utilisation converts into further volume growth. Management's disclosed plans centre on chair mechanisms, engineering services, OEM localisation and co-designed products, alongside 5.5 acres of owned land and a September 2026 debt-to-equity ratio of 0.10 times.