Cosmo First Q4 FY26 Results 2026: ₹1,021 Cr sales, EBITDA up 53%

Key highlights from the Q4 and full-year update

Cosmo First Limited reported a strong March quarter, with consolidated sales rising 37% year-on-year (YoY) to about ₹1,021 crore for the quarter ended March 31, 2026. The company said the quarter’s performance was largely driven by a 41% volume increase, aided by new capacities. EBITDA for the quarter increased 53% to ₹130 crore as per the company’s commentary, supported by a better mix and higher specialty contribution. Separately reported consolidated quarterly numbers showed EBITDA at ₹137.64 crore and an EBITDA margin of about 11%, up from 9.43% a year ago. Consolidated net profit for the quarter rose 36.2% to ₹36.91 crore. The results came as the company continued to expand beyond packaging films into specialty chemicals, rigid packaging, and consumer-facing categories.

What drove growth in Q4 FY26

Management attributed the incremental EBITDA in Q4 to three main factors. First was the 41% jump in sales volumes, “largely because of the new capacities” commissioned. Second was specialty sales volume growth, which the company said has been growing at close to a 10% CAGR year-on-year. Third was improved performance at the specialty chemical subsidiary, which added about ₹7 crore to EBITDA in the quarter. The company also pointed to higher specialty sales and volume growth as the key drivers behind the sharp YoY improvement.

Consolidated and standalone Q4 numbers at a glance

The company’s reported standalone and consolidated numbers for the March 2026 quarter show broad-based YoY improvement across revenue, EBITDA, profit, and EPS.

Dividend recommendation for FY26

Cosmo First’s Board recommended a dividend of ₹4 per equity share for FY25-26. The dividend is subject to shareholder approval. The announcement comes alongside management’s stated focus on improving cash flows as the company moves past a heavy investment phase.

FY26 performance and the role of new capacities

For the full year FY26, the company said revenue increased 26%, supported by a 27% volume increase after the commissioning of BOPP and CPP lines during the year. Management commentary stated that EBITDA increased 32% to ₹479 crore, driven by volume, specialty sales, and improved specialty chemical performance. Another set of full-year reported numbers showed revenue of ₹3,741 crore (INR 37,410 million) versus ₹2,969.57 crore (INR 29,695.7 million) in the previous year, and net income of ₹155.98 crore (INR 1,559.8 million) versus ₹133.37 crore (INR 1,333.7 million). Basic EPS from continuing operations for the full year was reported at ₹60.31 versus ₹51.46 in the previous year.

Specialty chemicals, rigid packaging, and other new verticals

Newer verticals were repeatedly highlighted as contributors to incremental profitability. The specialty chemical subsidiary reported Q4 sales of ₹54 crore with over 25% EBITDA in Q4 FY26. For the full year, the subsidiary reported topline of ₹204 crore with 25% plus EBITDA, and its EBITDA was reported at ₹53 crore compared with ₹33 crore in the previous year.

Rigid packaging under the Cosmo Plastech brand posted over 70% topline growth in Q4 on a YoY basis and reached EBITDA breakeven. Zigly posted 54% topline growth in Q4 FY26. Cosmo Consumer, which includes Window Films and Paint Protection Films, was described as gaining traction, with gross margins expected between 35% and 40%; the company also stated it is expanding its distributor network domestically and in export markets, targeting a 50% CAGR for this segment.

Debt, capex, and return metrics in focus

Cosmo First said its capex cycle is largely complete after investing about ₹1,200 crore over the last three years, and the focus is now on improving utilization and returns. Net debt stood at ₹1,159 crore, after a reduction of ₹75 crore over the last six months, and was stated as 2.4 times EBITDA. Management expects to bring the debt-to-EBITDA ratio below 2x within the next 12 to 18 months. FY26 ROCE was 11%, with expectations of 14% to 15% in the coming years as utilization ramps up.

Operating context: capacity ramp-up, tariffs, and one-offs

The company noted that installed capacity grew 94% over the last one year, with overall capacity utilization at about 80%. Management commentary also indicated a new line operated at 70% capacity in Q3, with an expectation of reaching full capacity by March as performance improved. On the external environment, Cosmo First said a recent reduction in USA tariffs is expected to improve profitability from US operations from next year onwards.

At the same time, the company disclosed several headwinds: margin decline in the BOPP core due to increased imports in India, an additional impact of close to ₹8 crore from USA tariffs in the quarter, a non-repetitive inventory loss of ₹8.4 crore due to a drop in raw material prices, and a one-time past-period gratuity liability increase of about ₹4 crore. It also cited a volume loss of about 6% due to a shutdown on one of the major BOPP lines. On a full-year basis, the USA tariff impact on profitability was expected to be about ₹50 crore.

Outlook: utilisation-led growth and mix improvement

For the film business, the company expects double-digit topline growth in the coming year, driven by improved utilization of newly added BOPP and CPP capacities. Management also indicated it expects a 25% to 30% increase in output from current levels, with full utilization of BOPP and CPP lines anticipated. The strategy described across the update remains consistent: push higher-margin specialty volumes, scale new verticals, and reduce leverage.

Conclusion

Cosmo First’s Q4 FY26 results combined higher volumes, a stronger specialty mix, and improving contributions from specialty chemicals and other new verticals. Alongside the ₹4 per share dividend recommendation, management’s near-term priorities are clearer utilisation of expanded capacities and lowering net debt from ₹1,159 crore. The next key monitorables flagged by the company are the pace of capacity ramp-up, the effect of reduced US tariffs on profitability, and progress toward a debt-to-EBITDA ratio below 2x over the next 12 to 18 months.