Mitsu Chem Plast Q3 Profit Soars 217% on Strong Margins

Introduction

Mitsu Chem Plast Limited has reported a strong financial performance for the third quarter of fiscal year 2026, highlighted by a significant surge in profitability. The company's net profit grew by over 200%, driven by improved operational efficiencies and a better product mix. These results underscore the company's disciplined execution and strategic initiatives aimed at strengthening its market position.

Q3 Financial Performance

In Q3 FY26, Mitsu Chem Plast's total income increased by 6.92% year-on-year to ₹86.09 crore. The standout metric was the company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), which rose by an impressive 73.35% to ₹9.54 crore from ₹5.51 crore in the same period last year. This substantial growth led to a significant expansion in the EBITDA margin, which improved by 426 basis points to 11.10%. The company's net profit soared by 217.03% to ₹4.71 crore, compared to ₹1.48 crore in Q3 FY25. Consequently, the net profit margin expanded to 5.47%, and the Earnings Per Share (EPS) for the quarter stood at ₹3.47, a 218.35% increase year-on-year.

Nine-Month Financials

The positive momentum continued through the first nine months of FY26. Total income for the period reached ₹264.05 crore, an increase of 8.94% over the previous year. EBITDA for the nine-month period grew by 35.71% to ₹20.44 crore, with the margin improving to 7.75%. Net profit for the period more than doubled, rising 113.03% to ₹7.90 crore.

Strategic Capacity Expansion

A key driver supporting the company's growth is its focus on expanding manufacturing capabilities. During the quarter, Mitsu Chem Plast completed a capacity expansion of 655 metric tons (MT) per annum, bringing its total installed capacity to over 29,000 MT per annum. This expansion, which was commissioned in November 2025, was funded entirely through internal accruals. This move demonstrates the company's strong cash flow generation and its strategic preparation to meet rising demand from its key customer segments.

Management's Perspective

Jagdish Dedhia, Chairman of Mitsu Chem Plast Limited, stated that the company remains focused on strengthening its operational foundation for the next phase of growth. He emphasized that the planned capacity expansions and infrastructure initiatives are aligned with the strategy of building scalable manufacturing capabilities. Management believes that the company's diversified product portfolio, strong relationships with original equipment manufacturers (OEMs), and a consistent emphasis on innovation position it well for sustainable growth and long-term value creation for stakeholders.

Business Operations and Market Reach

Mitsu Chem Plast is a manufacturer of polymer-based blow-molded and injection-molded products. The company operates three manufacturing facilities in Maharashtra and serves a diverse range of industries, including pharmaceuticals, agrochemicals, FMCG, healthcare, and chemicals. Its product portfolio includes industrial packaging solutions like drums and jerry cans, as well as specialized components for medical testing and hospital furniture under its "Furnastra" brand. The company serves over 900 customers and exports its products to 17 countries.

Future Outlook and Growth Targets

The company's management has set an ambitious target to achieve an annual revenue of ₹1,000 crore by the fiscal year 2028. This goal is supported by a strategy of pursuing 15-20% volume growth in the current year. The recent capacity expansion is a critical step towards achieving this long-term objective. The strong performance in Q3, particularly the margin improvement, suggests that the company's focus on operational efficiency is yielding positive results, which will be crucial for sustaining profitable growth. The company has scheduled an earnings conference call for February 2, 2026, to discuss its financial performance in greater detail with investors and analysts.