Shakti Polytarp Limited triples revenue as debt-equity hits 2.60

Shakti Polytarp Limited increased revenue from operations from Rs 62.01 crore in FY2024 to Rs 215.65 crore in FY2026, a rise of about 248%. Shakti Polytarp also reported debt-equity of 2.60 times and a current ratio of 0.99 times in FY2026, following higher borrowings and a decline in liquidity from FY2025.

What drove Shakti Polytarp's revenue expansion?

Shakti Polytarp's revenue expansion was accompanied by faster growth in operating profit. Revenue from operations increased by Rs 153.64 crore between FY2024 and FY2026, moving from Rs 62.01 crore to Rs 215.65 crore. Earnings before interest, taxes, depreciation and amortisation, or EBITDA, rose from Rs 3.87 crore to Rs 19.29 crore, while EBITDA margin increased from 6.23% to 8.94%.

The largest annual increase occurred in FY2025. Revenue from operations rose to Rs 166.24 crore in FY2025 from Rs 62.01 crore in FY2024, then increased by Rs 49.41 crore in FY2026. Total income followed the same pattern, rising from Rs 62.23 crore in FY2024 to Rs 166.50 crore in FY2025 and Rs 216.10 crore in FY2026.

Shakti Polytarp operates an integrated facility at Nimrani, Madhya Pradesh, that produces tarpaulins, shade nets, high-density polyethylene, or HDPE, and polypropylene, or PP, tapes, woven fabrics and reprocessed granules. Its stated production chain includes extrusion, weaving, lamination, fabrication, finishing and packaging. The industry discussion identifies HDPE and low-density polyethylene, or LDPE, price volatility as a factor for manufacturers, while Shakti Polytarp says its integrated platform reduces dependence on external vendors.

How did Shakti Polytarp's margins and profit change?

Shakti Polytarp's net profit increased faster than total income over FY2024 to FY2026. Profit after tax, or PAT, rose from Rs 87.32 lakh in FY2024 to Rs 4.97 crore in FY2025 and Rs 10.06 crore in FY2026. PAT margin increased from 1.40% in FY2024 to 2.98% in FY2025 and 4.65% in FY2026; the source defines PAT margin as PAT divided by total income.

The reported operating-margin improvement was 2.71 percentage points over the two years, from 6.23% in FY2024 to 8.94% in FY2026. EBITDA is defined in the source as total operating income less operating expenses excluding depreciation and amortisation, interest and taxes. The reported margin expansion therefore reflects EBITDA increasing from Rs 3.87 crore to Rs 19.29 crore as total income grew from Rs 62.23 crore to Rs 216.10 crore.

Shakti Polytarp's key-indicators table reports return on capital employed, or ROCE, of 8.87% in FY2024, 14.87% in FY2025 and 17.87% in FY2026. ROCE is defined as earnings before interest and taxes divided by average capital employed, with capital employed comprising fixed assets, intangible assets and net working capital. However, the accompanying narrative gives a separate ROCE series of 9.39%, 18.54% and 20.62%, respectively, without explaining the difference.

Why did Shakti Polytarp's debt-equity reach 2.60 times?

Shakti Polytarp's debt-equity reached 2.60 times because total debt grew more quickly than net worth between FY2024 and FY2026. Total debt increased by Rs 48.85 crore, from Rs 23.66 crore to Rs 72.51 crore, while net worth rose by Rs 17.00 crore, from Rs 10.86 crore to Rs 27.86 crore. Debt-equity consequently moved from 0.80 times in FY2024 to 1.41 times in FY2025 and 2.60 times in FY2026.

The company describes borrowings as rising alongside business expansion. The financial-performance table records FY2026 total debt of Rs 72.51 crore, while the narrative below it states Rs 72.53 crore. The Rs 0.02 crore difference is not reconciled in the supplied material, and the table amount is used in the comparisons because it forms part of the key indicators based on audited financials.

The industry material identifies working capital for polymer procurement, storage and finished-goods inventory as an entry requirement, alongside investment in weaving looms, lamination lines, extrusion systems and quality-control equipment. For Shakti Polytarp's debt-equity ratio to stop increasing from the FY2026 level of 2.60 times, growth in net worth would need to match or exceed growth in borrowings, all else equal.

What does Shakti Polytarp's 0.99 current ratio indicate?

Shakti Polytarp's FY2026 current ratio of 0.99 times indicates that reported current assets were slightly below current liabilities at that reporting date. The source defines the current ratio as current assets divided by current liabilities. The ratio had risen from 1.07 times in FY2024 to 1.44 times in FY2025 before declining by 0.45 times in FY2026.

The liquidity change occurred during a year in which revenue from operations rose by Rs 49.41 crore, from Rs 166.24 crore in FY2025 to Rs 215.65 crore in FY2026. Shakti Polytarp attributes the decline from 1.44 times to 0.99 times to changes in its working-capital position. The supplied material does not provide a breakdown of inventory, trade receivables, cash, current borrowings or trade payables.

Shakti Polytarp reported the lowest current ratio among the five entities in the FY2025-26 peer table. Time Technoplast reported 3.63 times, Shree Tirupati Balajee Agro reported 2.00 times, Commercial Syn Bags reported 1.27 times and TPL Plastech reported 2.08 times, compared with Shakti Polytarp's 0.99 times. These are reported balance-sheet ratios and do not, on their own, establish future cash generation or funding availability.

How does Shakti Polytarp's FY2025-26 scale compare with peers?

Shakti Polytarp was the smallest business by revenue from operations in the supplied FY2025-26 peer table. Its revenue was Rs 215.65 crore, compared with Rs 387.00 crore for Commercial Syn Bags, Rs 422.55 crore for TPL Plastech, Rs 573.73 crore for Shree Tirupati Balajee Agro and Rs 6,105.20 crore for Time Technoplast. The peer table states that financials are consolidated unless otherwise stated.

Shakti Polytarp's EBITDA margin of 8.94% exceeded Shree Tirupati Balajee Agro's 6.62%, but was below Commercial Syn Bags' 12.40%, TPL Plastech's 11.42% and Time Technoplast's 14.61%. Its PAT margin of 4.65% was above Shree Tirupati Balajee Agro's 2.12%, while Commercial Syn Bags, TPL Plastech and Time Technoplast reported 6.76%, 6.88% and 7.79%, respectively.

The peer table also shows a smaller reported tangible net-worth base for Shakti Polytarp. Shakti Polytarp reported Rs 27.86 crore, against Rs 168.90 crore for TPL Plastech, Rs 175.46 crore for Commercial Syn Bags, Rs 304.12 crore for Shree Tirupati Balajee Agro and Rs 4,088.12 crore for Time Technoplast. Shakti Polytarp states that it is expanding from Madhya Pradesh into Maharashtra, Gujarat, Rajasthan, Karnataka and Tamil Nadu.

Conclusion

Shakti Polytarp's FY2024-to-FY2026 figures combine a 248% increase in revenue from operations with higher margins and PAT. Revenue reached Rs 215.65 crore, EBITDA margin reached 8.94% and PAT margin reached 4.65%. At the same time, total debt rose to Rs 72.51 crore, debt-equity reached 2.60 times and the current ratio fell to 0.99 times.

The next financial update should show whether Shakti Polytarp's working-capital position changes from the FY2026 level and whether borrowings continue to rise alongside revenue. It should also clarify the source's two FY2024-to-FY2026 ROCE series and reconcile the difference between the Rs 72.51 crore table value and Rs 72.53 crore narrative value for FY2026 total debt.