Cosmo First chemicals rose 84% as Plastech scaled

Cosmo First reported Rs 90 crore of specialty-chemicals revenue in Q2 FY27, up 84% from Rs 49 crore a year earlier, while its rigid-packaging business, Cosmo Plastech, generated Rs 39 crore of revenue with an 8% earnings before interest, tax, depreciation and amortisation (EBITDA) margin.

How fast did Cosmo First specialty chemicals grow in Q2 FY27?

Cosmo First specialty chemicals revenue grew 84% year on year in Q2 FY27, increasing by Rs 41 crore to Rs 90 crore from Rs 49 crore in Q2 FY26. EBITDA rose 57% to Rs 21 crore from Rs 13 crore over the same period. The business therefore added revenue and EBITDA in absolute terms, although EBITDA growth was lower than revenue growth.

The Q2 FY27 EBITDA margin was 23%, compared with 26% in Q2 FY26, a decline of 3 percentage points. Cosmo First did not provide a segment-level explanation for the margin change. The presentation nevertheless characterises specialty chemicals as an R&D-led platform of niche chemistries serving captive and external markets.

For H1 FY27, specialty chemicals revenue was Rs 156 crore, up 59% from Rs 98 crore in H1 FY26. H1 EBITDA increased 53% to Rs 39 crore from Rs 25 crore, while the margin remained unchanged at 25%. The 25% H1 margin was 2 percentage points above the Q2 FY27 margin, but matched the H1 FY26 level.

Which businesses support Cosmo First specialty chemicals?

Cosmo First identifies coating chemicals, masterbatches and adhesives as the three specialty-chemicals verticals. Management presents the platform as having more than 25% return on capital employed (ROCE) and more than 20% EBITDA characteristics, but it does not disclose quarterly revenue, EBITDA or ROCE separately for the three verticals.

Coating chemicals have capacity of 7,000 metric tonnes (MT) and address an Indian market that Cosmo First puts at 1,200,000 MT, growing at 8% to 10% annually. The portfolio includes heat-seal coatings for foil packaging, oil-and-grease barriers for paper and paperboard, adhesive and extrusion primers, and coatings for analogue printing and inkjet applications.

Masterbatches have 10,000 MT of capacity, against an Indian filmic market of 350,000 MT that the presentation says is growing 10% annually. Products include CosmoWhite for polypropylene and polyethylene applications, as well as CosmoAdd additives for polymer processing aid, slip, antistatic and matt features.

Adhesives have capacity of 2,800 MT and serve a stated Indian market of Rs 30,000 crore, growing at 8% to 10% annually. The range includes water-based lamination products, solvent-free flexible-packaging adhesives for uses including noodles and chips, and water-based side-pasting adhesives. Cosmo First has stated an FY30 specialty-chemicals revenue target of Rs 500 crore, against Rs 156 crore reported in H1 FY27.

What did Cosmo Plastech report in Q2 FY27?

Cosmo Plastech reported Q2 FY27 revenue of Rs 39 crore, up 90% year on year, with an 8% EBITDA margin. In H1 FY27, revenue was Rs 75 crore, up 73% year on year, and the EBITDA margin was 7%. The presentation does not provide Plastech’s prior-year revenue amount, EBITDA amount or prior-year EBITDA margin.

Plastech’s direct-to-brand sales mix was 67% in Q2 FY27, compared with 63% for H1 FY27. The presentation attributes the Q2 sales surge to barrier sheets and separately states that specialty sales were 67%. The 4-percentage-point difference between the Q2 and H1 brand-sales mix reflects reported period measures, rather than a disclosed change from a comparable prior-year period.

The business makes plastic sheets, thin-wall containers, thermoformed cups and trays, and injection-moulded in-mould-label containers. Its sheet range includes polyethylene terephthalate grades, polypropylene, barrier sheets, high-impact polystyrene and electrostatic-discharge sheets. Applications cited by Cosmo First include food trays, medical packaging, electronics and fast-moving consumer goods.

Cosmo Plastech also lists polypropylene and high-barrier trays, including polypropylene-ethylene vinyl alcohol trays for ready-to-eat food, meat and snacks. New products include electrostatic-discharge sheets and high-margin trays. The presentation says margins are linked to cost of production and notes FSSC 22000 food-safety certification.

What is Cosmo First planning for Cosmo Plastech?

Cosmo First plans to add 10,000 MT of Cosmo Plastech capacity in H2 FY27, compared with current capacity of 18,000 MT. The disclosed plan would increase capacity by 56% relative to the existing base. The presentation does not disclose the project cost, an exact commissioning date, or the products that will use the additional capacity.

Management has set an FY30 revenue target of Rs 350 crore to Rs 400 crore for Cosmo Plastech, alongside double-digit EBITDA and ROCE targets. The company describes the rigid-packaging industry as a Rs 10,000 crore market growing at more than 10% annually. These are management targets and market estimates, not reported FY27 performance.

The two businesses operated at different reported scales in Q2 FY27. Specialty chemicals produced Rs 90 crore of revenue and Rs 21 crore of EBITDA, whereas Cosmo Plastech generated Rs 39 crore of revenue with an 8% EBITDA margin. Specialty chemicals disclosed a year-on-year margin comparison, falling from 26% to 23%, while Plastech did not disclose a comparable prior-year margin.

Conclusion

Cosmo First’s Q2 FY27 presentation shows rapid reported revenue growth in both newer business lines. Specialty chemicals delivered the larger revenue base at Rs 90 crore and retained a 23% EBITDA margin despite a 3-percentage-point year-on-year reduction. Cosmo Plastech reported 90% revenue growth to Rs 39 crore and an 8% EBITDA margin, with barrier sheets identified as a Q2 sales driver.

The next disclosed milestone is the 10,000-MT Cosmo Plastech capacity addition planned in H2 FY27, against its current 18,000-MT capacity. Investors can also monitor progress toward management’s FY30 revenue targets of Rs 500 crore for specialty chemicals and Rs 350 crore to Rs 400 crore for Cosmo Plastech, as well as whether chemicals returns to its 25% H1 FY27 EBITDA margin.