/** blogpostTitle: Glen Industries H2 FY26: Growth Holds, Margins Normalise, Expansion Nears Start blogpostSlug: glen-fy26 blogpostCoverImageUrl: null blogpostCoverImageDescription: Ultra-realistic corporate finance themed image showing a clean desk scene with a laptop displaying three charts: a revenue mix pie chart dominated by thin wall containers (~83%), a bar chart of FY24-FY26 total income rising, and a capacity expansion bar showing food container capacity increasing from 7,986 to 21,095 MT per year alongside a new paper cups capacity of 7,696 MT per year. In the background, a blurred factory floor with injection moulding equipment silhouettes to reflect packaging manufacturing. No logos or text labels. blogpostShortTitle: Glen FY26 margins and expansion timeline */

Glen Industries H2 FY26: Growth Holds, Margins Normalise, Expansion Nears Start

Glen Industries Limited closed FY26 with higher scale but softer reported margins, a combination management linked to raw material dynamics in PLA and the mechanics of pass-through pricing. On a consolidated basis, FY26 revenue was INR 203.13 crore, while total income was INR 205.16 crore. EBITDA came in at INR 39.07 crore and profit after tax at INR 16.50 crore.

The second half of the year showed momentum on the top line. H2 FY26 revenue was INR 107.57 crore versus INR 86.52 crore in H2 FY25. Yet H2 EBITDA fell to INR 18.88 crore from INR 22.49 crore, and H2 PAT declined to INR 8.20 crore from INR 9.72 crore. Management’s explanation was consistent through the call: FY25 margins were elevated due to PLA pricing, and FY26 represented a return towards what it described as sustainable margins.

A key point in this business model is that Glen operates as a converter in packaging, and management repeatedly stressed it cannot absorb sharp raw material movements. As raw material prices move up or down, selling prices typically reset, protecting absolute value addition but altering percentage margins.

Mix remained container-led, straws stayed seasonal

Glen’s revenue mix remained heavily tilted towards thin wall food containers. In H2 FY26, thin wall containers contributed 80.77 percent of revenue, while PLA straws were 12.84 percent and paper straws 5.43 percent. Mould design services were under 1 percent.

For the full year, the presentation disclosed thin wall containers revenue of INR 168.03 crore in FY26, up from INR 125.49 crore in FY25. PLA straws revenue fell to INR 23.89 crore from INR 34.51 crore, while paper straws grew to INR 10.97 crore from INR 9.69 crore.

Management also addressed a recurring investor concern: capacity utilisation in straws. FY26 utilisation was 28.33 percent for PLA straws and 34.13 percent for paper straws. Management said these are seasonal beverage-linked products and that full-year utilisation is structurally capped, indicating it may not exceed about 35 percent on an annual average. Importantly, it also clarified that current expansion plans are not aimed at the beverage-straw segment.

Geography: domestic share rose in FY26

The company’s domestic share increased in FY26. The presentation showed domestic revenue at INR 147.53 crore and exports at INR 55.59 crore in FY26. As a mix, domestic was 72.63 percent and exports were 27.37 percent.

On the call, management argued that the apparent export decline in certain periods was largely price-led rather than volume-led. It suggested that when polymer prices are lower, export turnover can look lower in rupee terms even if quantities are stable.

Glen also reiterated its footprint: presence across more than 26 states in India and exports to 30 plus countries, with 40 plus recurring international customers. However, it disclosed that export turnover is meaningfully driven by a small group of large customers, with 4 to 5 customers contributing roughly 50 to 60 percent of export sales.

Margin debate: what changed and what management calls sustainable

Investors focused heavily on margin movement, especially the decline from FY25 to FY26. Management’s answer was that FY25 benefited from high PLA raw material prices where the company did not pass benefits or changes in the same way, resulting in elevated EBITDA margins. In FY26, as PLA raw material prices softened, management said it started passing on the benefit to customers, which lowered reported EBITDA margin.

It also tried to reframe the discussion towards absolute EBITDA rather than percentage margin. The explanation was that if polypropylene prices rise sharply, reported revenue increases due to pass-through, but absolute EBITDA remains tied to value addition. This makes EBITDA margin appear lower even if the company earns similar rupee EBITDA per unit.

The call also gave a clear margin band: management stated sustainable EBITDA margins are 18 to 19 percent.

Raw material risk and working capital: war-driven volatility in focus

The concall contained specific commentary on polypropylene. Management stated PP prices were around INR 90 to 92 per kg before the war, peaked up to INR 150 per kg, and later stabilised near INR 135 per kg. It said there was no meaningful pushback from customers on price revisions.

Supply continuity, however, pushed the company to hold high inventories. Management said it normally imports about 85 percent of raw material and buys about 15 percent domestically. In the war period, it imported additional material from China and indicated it had ensured raw material supply cover for several months.

Inventory levels were described as elevated. Management said raw material inventory was more than three months, finished goods could be another 2 to 2.5 months, and overall inventory cycle could be 5 to 5.5 months at the time of the call. It also said normalised inventory could settle around four months after stabilisation.

This working-capital intensity is visible in return ratios. The presentation shows FY26 RONW at 11.82 percent and ROCE at 11.88 percent, lower than FY25.

Expansion: capacity step-up and commissioning timeline

The most material forward driver discussed was the expansion plan. The presentation’s planned capacity table shows food containers capacity increasing from 7,986 MT per year to 21,095 MT per year, and a new paper cups capacity of 7,696 MT per year. Management also discussed that the project includes both injection and thermoforming capabilities and targets the HoReCa and food sector.

Timeline was clearly stated with a caveat. Management said it wanted the project ready in Q1, but approvals and state election-related slowdowns delayed building plan approvals, leading to a delay of about three months. The updated expectation was commercial production from September, and full operational readiness by October to December, with only a small staggering.

Capex guidance also changed. Management said the project was earlier expected around INR 100 crore and is now expected to be about INR 130 to 133 crore. Drivers cited were currency movement affecting imported machinery and scope expansion including added printing capabilities. It said the incremental INR 30 to 32 crore will be funded through internal resources, without additional external funding for that incremental portion.

What management guided for FY27 and FY28

The concall included multiple quantitative guideposts. Management stated:

It is targeting FY28 turnover of 500 plus crore with EBITDA of 90 plus crore.

It expects newly added capacities to contribute about INR 100 crore to INR 125 crore to FY27 revenue, depending on how fast production stabilises.

It reiterated sustainable EBITDA margin expectations at 18 to 19 percent.

These statements create a clear near-term scorecard: commissioning in September, stabilisation by December, and visible incremental revenue in FY27.

Takeaways

FY26 showed that Glen can grow revenue while navigating volatility in raw materials and mix, but it also underlined that reported margins can fluctuate meaningfully in a pass-through model. The biggest variable is now execution: bringing the expanded food packaging and paper cups capacity on stream by the stated timeline.

If commissioning and ramp-up stay on track, the company’s FY27 incremental revenue guidance and FY28 500 plus crore target become the central metrics for investors to track, alongside working-capital discipline as the scale expands.