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Kanpur Plastipack Q4 FY26: Margin-led year, plus a clear push into technical textiles

Kanpur Plastipack Limited closed FY26 with higher profitability and a clearer strategic roadmap. On a consolidated basis, total income for FY26 was INR731.32 crore, up 26.98% year-on-year. EBITDA rose to INR77.70 crore, up 42.11%, with the EBITDA margin improving to 10.62% from 9.49%. Net profit increased to INR40.80 crore, up 76.39%, and net profit margin expanded to 5.58%.

In Q4 FY26, consolidated total income was INR185.05 crore, up 7.26% year-on-year. EBITDA was INR25.56 crore with a 13.81% margin, and net profit stood at INR14.92 crore with an 8.06% margin. The quarter also showed sequential improvement in profitability versus Q3 FY26 margins in the presentation.

What changed in the mix and why it mattered

The investor presentation frames Kanpur Plastipack as an integrated industrial packaging company with a core focus on FIBCs and technical textiles. The company highlights its backward integration across FIBC, fabrics, multifilament yarn, and UV masterbatch. It also stresses an export-led model, with around 70% exports and long-standing relationships that drive repeat orders.

FY26 product revenue mix in the presentation shows FIBC as the largest contributor at INR314.59 crore, followed by fabrics at INR143.25 crore and MFY at INR59.76 crore. Trading revenue rose sharply to INR136.38 crore, while small bags were INR18.58 crore and others INR54.10 crore. The presentation notes that FY26 numbers do not include the CPP division.

Q4 FY26 mix shows relatively steady FIBC revenue at INR75.64 crore, lower fabric revenue at INR25.44 crore, higher small bags at INR13.48 crore, and trading at INR38.32 crore.

Note: Figures are presented in the investor presentation in INR lakhs and converted here to INR crore.

Exports remain the backbone, Europe is still the center

Exports remain central to the company’s scale and customer quality. In the presentation, Europe accounted for 56.5% of FY26 exports, followed by South America at 21.8% and North America at 16.9%. In Q4 FY26, Europe’s share was higher at 68.1%. Management addressed concerns around concentration by stating that the customer base in Europe is diversified across countries, distributors and industries.

The concall also notes that North America’s share reduced from 21% in the prior year to 16% in FY26, partly due to tariff-related uncertainty, but management expects improvement as conditions normalize.

Strategic agenda: more FIBC conversion and a new technical textiles leg

The company’s strategic initiatives are anchored around capacity, infrastructure and diversification.

First, FIBC capacity expansion at Unit 3 is positioned as a margin-positive move. The investor presentation notes construction expected to complete by May 2026 and references adding 6,000 MT per annum over the next five years. In the concall, management quantified the ramp-up and indicated that FY27 should see about 1,800 tons from the new capacity and an exit run-rate of 2,400 tons. Management also stated that 6,000 tons could translate to about INR130 crore of revenue at peak, but incremental revenue could be about INR40 crore because it is a conversion of fabric capacity into higher value-added FIBC conversion.

Second, the company is entering non-woven technical textiles via a greenfield needle-punch facility. The investor presentation describes this as a diversification move into adjacent applications such as automotive, geotextiles, artificial leather, exhibition carpets and shoe insoles. Management guided that commercial production is expected in September 2026, with partial revenue contribution of INR20 to INR25 crore in FY27 due to commissioning timing. For FY28, management guided revenue potential of INR100 to INR120 crore with EBITDA margins of 15% to 16%.

Third, the company highlighted global collaboration through a UK acquisition and an Italian JV. The presentation mentions acquisition of Valex Ventures Ltd (UK) and a 50:50 JV with Essegomma S.p.A. (Italy). In the concall, management explained ESSEKAN as a marketing JV with an expected revenue of about INR23 to INR25 crore, with Kanpur Plastipack manufacturing for it.

Volatility in polypropylene and DFIA reversal: what management said

The concall spent meaningful time on raw material volatility. Management cited polypropylene price rising from about USD1,000 per ton to about USD1,700 per ton due to geopolitical developments, affecting availability and pricing. Management said it does not expect USD1,000 per ton to return in the current year and suggested a medium-term new normal range of about USD1,200 to USD1,350 per ton.

To manage volatility, management described a model of procuring raw material largely against confirmed orders and prioritising margin-attractive segments during volatile periods.

In Q4, management also pointed to a DFIA income reversal. They stated that Q4 FY26 was impacted by reversal of DFIA income amounting to INR3.65 crore, linked to the government’s suspension of import duty on key petrochemical products for a period. This led to negative other operating income for the quarter, as described in the concall.

Debt was also disclosed. Management stated net debt as of 31 March 2026 was INR112 crore, including INR78 crore in short-term borrowing, INR23.8 crore of GECL loans and INR9.01 crore of long-term loans.

Takeaways

FY26 was presented by management as a year of transition and consolidation, with an emphasis on building a future-ready business rather than chasing short-term outcomes. The numbers show margin expansion and strong profit growth, while the strategy sections highlight two clear levers: higher FIBC conversion through Unit 3 expansion and a second growth leg in non-woven technical textiles.

For FY27, management indicated that margins should sustain at similar levels and suggested steady growth of around 10% to 15%, while acknowledging near-term order-cycle moderation due to inventory correction and raw material volatility. */