Antala lifted FY26 PAT margin as capacity use passed 76%

Antala Industries Limited lifted its profit after tax, or PAT, margin to 8.91% in FY26 from 5.68% in FY25 as revenue from operations rose 48.84% and printing and lamination capacity utilisation reached 76.05% and 76.67%, respectively. Antala said higher equipment use raised output and absorbed fixed manufacturing costs over more production.

How did Antala lift FY26 PAT margin as capacity use passed 76%?

Antala increased FY26 PAT by 133.21% to Rs 4.24 crore from Rs 1.82 crore in FY25, while PAT margin on a total-income basis rose 3.23 percentage points to 8.91%. Profit before tax increased 120.45% to Rs 5.66 crore from Rs 2.57 crore, and its margin increased to 11.91% from 8.03%. The improvement therefore reflected a change in the relationship between income and expenses as well as higher sales.

Revenue from operations increased 48.84% to Rs 47.40 crore in FY26 from Rs 31.85 crore in FY25. Total income grew 48.65% to Rs 47.53 crore, while total expenses increased 42.38% to Rs 41.87 crore. Income consequently grew 6.27 percentage points faster than expenses, supporting the expansion in pre-tax and after-tax margins even though several expense lines rose in absolute terms.

Antala discloses two PAT-margin definitions. The detailed statement of operations calculates the 8.91% FY26 margin using PAT of Rs 4.24 crore divided by total income of Rs 47.53 crore; the equivalent FY25 figure was 5.68%. The key performance indicators table instead divides PAT by revenue from operations, producing 8.94% in FY26 and 5.70% in FY25. The 8.91% comparison in this article uses the total-income definition.

What changed in Antala's printing and lamination utilisation?

Antala's printing machinery utilisation rose to 76.05% in FY26 from 51.26% in FY25, an increase of 24.79 percentage points. Lamination machinery utilisation increased to 76.67% from 51.68%, a 24.99-percentage-point increase, while cutting and stitching machinery utilisation reached 71.43% in FY26. These measures cover successive stages in Antala's integrated packaging production process.

Antala states that higher utilisation permits larger production volumes and sales while spreading fixed costs across more products sold. This mechanism is operating leverage, meaning costs that do not increase in direct proportion to each additional unit are absorbed over greater output. The company specifically attributed FY26 profitability to increased use of printing, lamination, cutting and stitching equipment and improved absorption of operating costs.

Capacity also increased during FY26. Antala purchased roll-to-roll printing machinery and an auto cutting machine in October 2025, which it says increased installed capacity and supported order execution. Its Shapar, Rajkot facility includes extrusion, coating and lamination, rotogravure printing, multi-colour printing, cutting, stitching and finishing infrastructure. Continued margin support from this equipment depends on customer orders sustaining sufficiently high use of the expanded assets.

Which costs shaped Antala's FY26 margin improvement?

Antala's cost of materials consumed increased 42.07% to Rs 42.58 crore in FY26 from Rs 29.97 crore, slower than the 48.65% increase in total income. Its inputs include polypropylene, or PP, granules, low-density polyethylene granules, filler granules, biaxially oriented polypropylene, or BOPP, film, PP woven fabric, printing inks and stitching threads. The change in inventories was negative Rs 2.93 crore in FY26, compared with negative Rs 1.91 crore in FY25, reflecting changes in finished goods, work in progress and traded goods.

Employee benefits increased 65.62% to Rs 65.90 lakh in FY26, other expenses rose 53.45% to Rs 86.13 lakh, and depreciation and amortisation rose 49.14% to Rs 39.73 lakh. Finance cost increased 154.14% to Rs 30.09 lakh, which Antala linked to financing and capital requirements during its higher manufacturing activity. Antala nevertheless reported that the larger operational scale and higher capacity utilisation improved cost absorption.

Antala manufactures BOPP Bags, BOPP Printing Rolls, BOPP Lamination Rolls, PP Woven Bags and PP Woven Lamination Rolls for sectors including food processing, fertilisers, chemicals, cement, construction materials, textiles and seeds. The product range enables printing, lamination, cutting, stitching, finishing and packaging within the facility. However, Antala generally sells against purchase orders rather than long-term contracts, leaving utilisation dependent on customer product requirements and procurement practices.

What does the FY25 comparison show about Antala's margin recovery?

Antala's FY26 margin expansion followed a FY25 decline in PAT margin despite rapid sales growth. FY25 revenue from operations rose 154.54% to Rs 31.85 crore from Rs 12.51 crore in FY24, while PAT increased 105.09% to Rs 1.82 crore from Rs 88.57 lakh. PAT margin on total income nevertheless declined to 5.68% in FY25 from 7.03% in FY24 because operating, finance and tax costs rose alongside the expansion.

FY25 included manufacturing expansion following a Business Transfer Agreement with Diya Overseas and Shree Industries dated September 11, 2024. Machinery received under that agreement was considered in installed capacity, while the FY25 financial information aggregates the partnership business through August 4, 2024 and the company after conversion on August 5, 2024. That structural change makes the FY25-to-FY24 comparison different from the subsequent FY26 comparison.

The FY26 result was more than a revenue-growth outcome because expenses rose more slowly than total income after equipment use increased. Antala also cites its integrated product portfolio and direct customer interaction as contributors to order execution. The company discloses, however, that a substantial portion of revenue depends on a few customers, so the capacity-utilisation outcome remains linked to customer retention and order flow.

Conclusion

Antala's FY26 PAT-margin rise combined higher revenue, a slower increase in total expenses and substantially greater use of printing and lamination equipment. The movement from 5.68% to 8.91% on the total-income basis occurred as printing utilisation rose by 24.79 percentage points and lamination utilisation increased by 24.99 percentage points, supporting the company's stated operating-leverage explanation.

The next disclosed update is the six months ended September 30, 2026, which Antala says is not comparable with a full financial year and has not annualised. In that period, the top 10 customers accounted for 56.43% of revenue and the largest customer for 19.61%, while inventories rose to Rs 17.96 crore from Rs 13.92 crore at March 31, 2026. These dependencies and working-capital movements will affect whether higher utilisation translates into a sustained full-year margin outcome.