Noble Polytetic piping utilisation fell to 65.97% at Unit I

Noble Polytetic’s piping utilisation at Manufacturing Facility I declined from 86.51% in FY 2023-24 to 65.97% in FY 2025-26. The second facility, purchased by slump sale on March 31, 2025, reported 45.88% utilisation on proportionate FY 2025-26 capacity, adding capacity while Facility I had unused output potential.

Why did Noble piping utilisation fall at Facility I?

Noble piping utilisation fell at Facility I because production declined while the reported capacity across the 11 disclosed lines stayed at 11,147,000 kg in FY 2024-25 and FY 2025-26. Production was 8,843,932 kg in FY 2023-24, when utilisation was 86.51%. It then fell to 7,545,045 kg and 67.69% in FY 2024-25, followed by 7,353,168 kg and 65.97% in FY 2025-26.

The FY 2025-26 rate was 20.54 percentage points below FY 2023-24 and 1.72 percentage points below FY 2024-25. Facility I production in FY 2025-26 was 1,490,764 kg below FY 2023-24 and 191,877 kg below FY 2024-25. The comparison shows that the principal change over the two-year period was lower output rather than a further increase in Facility I’s capacity after FY 2024-25.

The movement differed by machine line in FY 2025-26. Rolent Plast Machine 11 utilisation declined to 61.73% from 81.33% in FY 2024-25, and R.R. Plast Machine 2 declined to 43.62% from 54.59%. In contrast, Kabra Machine 10 increased to 78.61% from 73.42%, while R.R. Plast Machine 9 rose to 81.68% from 78.02%; those increases did not offset the reduction in total Facility I production.

How much piping capacity was unused in FY 2025-26?

Noble had 3,793,832 kg of unused annual capacity at Facility I in FY 2025-26, calculated from 11,147,000 kg of disclosed capacity and 7,353,168 kg of production. The 65.97% utilisation rate therefore represented just under two-thirds of the facility’s stated annual capacity being used during the year.

Facility II had 2,277,486.33 kg of unused proportionate capacity in FY 2025-26. The facility produced 1,930,847 kg against proportionate capacity of 4,208,333.33 kg, resulting in 45.88% utilisation. Noble separately disclosed full-year installed capacity of 6,500,000 kg for the three lines at Facility II.

The two capacity measures for Facility II should not be treated as equivalent. The prospectus reports 6,500,000 kg as the facility’s installed capacity but uses 4,208,333.33 kg as proportionate capacity for FY 2025-26. It also states that Facility II was purchased on March 31, 2025 and that commercial production on Suba Machine 3 began on February 28, 2026.

Why does Facility II raise the demand absorption requirement?

Facility II raises the demand absorption requirement because its three lines added installed capacity while Facility I reported 65.97% utilisation in FY 2025-26. Jewell Machine 1 produced 1,229,569 kg against 2,500,000 kg of capacity, or 49.18% utilisation. Jewell Machine 2 produced 678,840 kg against 1,500,000 kg of capacity, or 45.26% utilisation.

Suba Machine 3 produced 22,438 kg against proportionate capacity of 208,333.33 kg, resulting in 10.77% utilisation in FY 2025-26. The low reported rate must be read alongside the February 28, 2026 commercial-production date, which left little of the financial year following the line’s start. The three Facility II lines together produced 1,930,847 kg during the period.

Noble states that it intends to use part of the net proceeds for purchase of new machinery. Its disclosure says the success of expansion depends on integrating future projects and capacity with existing operations. It also identifies industry oversupply and inadequate demand as circumstances in which expanded capacity may not be efficiently utilised, potentially leaving additional capital expenditure and costs without full utilisation.

How does Noble piping utilisation compare with other divisions?

Noble’s piping division remained above the disclosed FY 2025-26 total utilisation rates for its other two product divisions, but its earlier gap narrowed. The TIRUPATI solid industrial sheets division reported 60.05% utilisation in FY 2025-26, while the WELLPACK corrugated and flute board sheets division reported 57.66%. Facility I piping utilisation was 65.97% in the same year.

The TIRUPATI division’s total utilisation moved from 70.10% in FY 2022-23 to 47.20% in FY 2023-24, then recovered to 61.37% in FY 2024-25 before easing to 60.05% in FY 2025-26. Its capacity rose from 3,703,000 kg in FY 2022-23 to 4,853,000 kg in FY 2023-24. That comparison shows a capacity increase coinciding with a lower reported rate in FY 2023-24.

WELLPACK reported a narrower range over four years: 52.70% in FY 2022-23, 57.07% in FY 2023-24, 58.76% in FY 2024-25 and 57.66% in FY 2025-26. Its disclosed total capacity was 4,000,000 kg in each of those periods. Piping, by comparison, moved from 76.25% in FY 2022-23 to 86.51% in FY 2023-24 before declining to 67.69% and 65.97% in the following two years.

What must hold for Noble to lift utilisation?

Noble says future utilisation depends on demand for its products, raw-material availability, inventory management and operational efficiency. The company also identifies uninterrupted operations, customer product requirements, customer procurement practices and supporting machinery and equipment as factors affecting capacity use. Water or electricity interruptions, labour unrest, and insufficient raw-material procurement could reduce production at either facility.

Raw-material continuity is relevant because Noble’s top 10 suppliers represented 61.28% of total purchases for the year ended March 31, 2026, compared with 64.73% in FY 2024-25 and 63.72% in FY 2023-24. Noble has no long-term agreements with raw-material suppliers, instead buying through purchase orders. A supply delay, shortage or quality failure could affect production schedules and constrain the output needed to raise utilisation.

Customer demand also has limited contractual visibility. Noble states that it has no long-term agreement with any customer and no marketing tie-up for its products, and that it generally operates through purchase orders. Those orders may be amended or cancelled before finalisation, so sustained utilisation of the 11,147,000 kg Facility I capacity and Facility II’s additional lines depends on recurring orders as well as operational and supply conditions.

Conclusion

Noble’s FY 2025-26 disclosure presents two related capacity issues: Facility I piping utilisation was 20.54 percentage points below its FY 2023-24 level, and Facility II used 45.88% of its proportionate capacity after its March 31, 2025 purchase. The company therefore has unused capacity at the established facility while it integrates a second piping unit.

The next disclosed milestones are the proposed purchase of new machinery from net proceeds and the ramp-up of Suba Machine 3 after commercial production began on February 28, 2026. Whether utilisation increases will depend on product demand and purchase orders, alongside raw-material availability, inventory management and operational efficiency, which Noble identifies as determinants of future capacity use.