Manika Plastech Has 59% Customer and 80% Supplier Exposure

Manika Plastech Limited had customer and supplier concentration in the three months ended June 30, 2026: its five largest customers generated 58.75% of revenue from operations, while five suppliers represented 79.79% of purchases. The company disclosed no long-term purchase agreements with those suppliers.

Why does Manika Plastech have customer and supplier concentration?

Manika Plastech relied on a limited group of buyers and suppliers despite serving approximately 168 customers in the three months ended June 30, 2026. Its top five customers generated Rs 95.435 crore of revenue from operations, or 58.75% of the total, and its top 10 customers generated Rs 124.552 crore, or 76.67%.

The company’s customer orders are based on their internal forecasts and operating requirements, which Manika Plastech says are linked to input costs, production schedules, end-market demand and broader economic conditions. Lower order volumes, delayed procurement cycles or cancellation of orders by large customers can therefore affect revenue, even though the company served 168 customers in the June 2026 quarter.

Manika Plastech’s operating model also connects production sites to key customers. The company had seven operating facilities, comprising six manufacturing facilities in Dehradun, Hosur, Panipat, Una and Dadar, plus one paint facility in Hosur, and typically locates facilities close to key customers’ manufacturing units. This approach is intended to support sourcing, production planning, inventory management and logistics, while making continuing volumes from major accounts relevant to facility use.

Has Manika Plastech’s customer concentration declined?

Manika Plastech’s top-five customer share declined to 58.75% in the June 2026 quarter from 68.37% in Fiscal 2025, but the five largest customers represented more than 58% of operating revenue in every disclosed period. The reduction shows a lower share of revenue from the largest five accounts, not the removal of dependence on a limited customer group.

The top-five customer share was 9.62 percentage points lower in the June 2026 quarter than in Fiscal 2025, while the top-10 share was 1.95 percentage points lower. Fiscal 2026 sat between those periods, with the top five generating 62.95% of revenue from operations and the top 10 generating 73.45%. Manika Plastech says the composition of its major customer base can change as order volumes change, so the lower quarterly percentage would need to continue through later order cycles to demonstrate a broader revenue base.

Product mix remains relevant to customer concentration because battery casings accounted for Rs 88.335 crore, or 54.38%, of June 2026-quarter revenue from operations. Battery casings represented 65.56% of revenue in Fiscal 2025, compared with 54.38% in the June 2026 quarter. Manika Plastech says demand for the category depends on battery-industry activity and end-use sectors including renewable energy, battery storage systems, home inverters, automobiles and electric vehicles.

How concentrated are Manika Plastech’s suppliers?

Manika Plastech obtained Rs 93.613 crore of purchases from its five largest suppliers during the three months ended June 30, 2026, equal to 79.79% of purchases. Its top 10 suppliers accounted for Rs 104.35 crore, or 88.95%, leaving 11.05% of purchases outside the top-10 supplier group.

The company identifies PPPCP as its primary raw material and names a major producer in India, ExxonMobil Chemicals Asia Pacific, Haldia Petrochemicals Limited and Borogue Pte Ltd among suppliers. Manika Plastech also sources recycled polymers from Gravita India Limited and terminal bushings from Aquila Forged Metals S.P.A. These materials support the manufacture of battery casings, pails and thinwall containers, making their availability, quality and cost relevant across the company’s product categories.

Supplier reliance increased while the top-five customer share declined. The top-five supplier share rose 12.99 percentage points from 66.80% in Fiscal 2025 to 79.79% in the June 2026 quarter, while the top-10 supplier share rose 11.86 percentage points. Fiscal 2025 had the lowest disclosed top-five supplier percentage, while the June 2026 quarter had the highest.

What could change Manika Plastech’s supplier exposure?

Manika Plastech has established supplier relationships but no long-term purchase agreements, meaning that continuous or timely supply at competitive prices is not assured under the arrangements it describes. The company states that it could be affected by a reduction, interruption or discontinuation of supply, or by an inability to secure alternative sources on acceptable terms.

Raw-material costs can rise because of market conditions, government restrictions, supply shortages or geopolitical factors, according to Manika Plastech. The company seeks to pass input-cost increases to customers through price adjustments, but those changes can be subject to pre-negotiated terms and may take effect after a delay. During that interval, production costs may rise before customer pricing is revised.

The company reported total installed capacity of 29,200 metric tonnes per annum for the three months ended June 30, 2026, compared with 28,300 metric tonnes per annum in Fiscal 2026. A material-supply disruption could impair production levels and order fulfilment across that capacity, while lower customer demand could reduce revenue while operating expenses continue. Manika Plastech says it continues to evaluate and engage local and international suppliers to diversify raw-material sourcing, but it does not disclose completed long-term supply contracts.

Conclusion

Manika Plastech’s June 2026-quarter disclosures show concentration across both sides of its operating chain: five customers generated 58.75% of revenue from operations and five suppliers represented 79.79% of purchases. Customer concentration was lower than Fiscal 2025’s 68.37%, but top-five supplier concentration was higher than Fiscal 2025’s 66.80%, while battery casings remained 54.38% of quarterly operating revenue.

The next disclosures will show whether Manika Plastech’s stated engagement with local and international suppliers lowers the top-five purchase share or results in long-term purchase arrangements. On the revenue side, the company’s stated geographic expansion, industry diversification and value-added products and services will be relevant to whether the top-five customer share remains below prior fiscal levels as installed capacity stands at 29,200 metric tonnes per annum.