Mold-Tek Packaging FY26: Profitability Picks Up as Pharma Scales and Plants Consolidate

Mold-Tek Packaging ended FY26 with a stronger profitability profile, helped by higher volumes, better utilization at newer facilities, and internal efficiency moves. Revenue for the year rose to INR 886.60 crore, up 13.48% year on year. EBITDA increased faster at INR 173.66 crore, up 20.72%, while PAT grew 20.35% to INR 72.87 crore. With sales volume at 42,628 metric tons, up 11.41%, the year also showed improving value capture per kg, reflected in EBITDA per kg of INR 40.74 versus INR 37.60 in FY25.

The same trend was visible in Q4FY26. Revenue rose 17% year on year to INR 237.86 crore, EBITDA grew 23% to INR 48.10 crore, and PAT increased 27% to INR 20.64 crore. The quarterly EBITDA margin expanded to 20.22%, with management indicating that most of the raw material price increases in March were passed through, but only partially reflected in Q4 because the price hikes came mainly in the last two weeks of the month.

What drove the margin improvement

Management highlighted a set of operational actions that are now showing up in reported margins. One key change was the consolidation of label-making under one roof, with technology additions such as offset printing and an AI-based inspection system. The company said this increased label capacity by 50% and improved throughput, with 20% more labels and 37% more SKUs produced during FY26. The management also linked EBITDA improvement to tighter cost control and a reduction in process wastage.

Another structural move was capacity optimization through consolidation. The company stated it consolidated five plants into two locations in Hyderabad. Management said the consolidation was completed by January and that FY27 should reflect the full benefit through overhead reduction, better efficiency, and lower movement of goods.

Financial summary

Segment notes: paints strength, lube weakness, pharma momentum

In paints, management spoke of a recovery in Asian Paints volumes and strong expansion in supplies to ABG. They stated Asian Paints delivered more than 17% growth in Q4 versus the prior year quarter, and ABG volumes for Mold-Tek were growing sharply from a small base, with ABG now among the company’s top 10 customers. The company also said some paint customers increased call-ups in March as supply concerns rose.

Lubricants remained a weak spot. Management attributed the decline to the loss of BPCL business due to the PSU tender system, saying BPCL contributed about INR 14 to 15 crore in the previous year and was lost because Mold-Tek did not match L1 pricing. They also said the lubricant market is broadly stagnating and they do not expect a major rebound over the next couple of years.

Pharma was the standout growth vertical for FY26. Management said pharma revenue rose to about INR 34.3 to 34.4 crore for the year, representing a 200% plus increase from the previous year’s base. The company added new product lines such as squeeze lock CRC and vial holders and indicated a steady cadence of new product development, typically 5 to 10 products under development per quarter.

FY27 focus: efficiency harvest, panipat ramp, disciplined capex

Management guided for FY27 value growth of 13% to 15% and volume growth of 10% to 13%, noting that pharma growth is high in value but adds limited tonnage. The company also provided an explicit target for pharma revenue in FY27 of about INR 50 to 55 crore.

On profitability, management guided that EBITDA per kg could improve to about INR 42 to 43 in FY27, helped by the carryover benefits of Hyderabad consolidation, higher in-house label making, automation in quality and handling processes, and improving utilization at facilities linked to ABG demand.

The company also outlined a lower capex intensity year ahead. Management said FY27 capex could be around INR 80 to 85 crore, lower than prior years, with a shift toward brownfield expansion. It indicated cash generation should be sufficient to fund capex and that overall debt is not expected to increase, though temporary borrowings could occur.

Panipat, especially for food and FMCG, is expected to be a ramp-up driver. Management said thin wall utilization at Panipat was around 20% to 25% and expected to improve to 40% to 50% next year on a larger capacity base. It also said four additional machines were planned for July, taking Panipat’s food and FMCG capacity to about 2,000 tons.

Takeaways

FY26 delivered faster profit growth than revenue growth, supported by better utilization and internal efficiency moves. The key monitorables for FY27, based on management commentary, are the pace of pharma scaling toward the INR 50 to 55 crore target, the ramp-up of Panipat food and FMCG capacity, and whether consolidation benefits lift EBITDA per kg toward the guided INR 42 to 43 range. At the same time, the lubricant segment is likely to remain a drag, given management’s view that the market is stagnating and PSU tender dynamics have already removed a meaningful customer.