Prima Plastics completes demerger after FY26 loss

Prima Plastics Limited completed the demerger of its rotational moulding business into Prima Innovation Limited effective March 31, 2026, after the discontinued undertaking reported a Rs 202.78 lakh loss after tax for FY26. Prima Plastics has consequently separated the transferred business from continuing operations and re-presented comparative results.

When did Prima Plastics complete the rotational moulding demerger?

Prima Plastics completed the rotational moulding demerger effective March 31, 2026, while the Scheme specified July 1, 2024 as its appointed date. The board approved the arrangement on November 12, 2024 following recommendations from its Audit Committee and Committee of Independent Directors. The arrangement involved Prima Plastics, Prima Innovation and their respective shareholders and creditors.

Prima Innovation was incorporated on June 20, 2024 as a wholly owned subsidiary of Prima Plastics. The National Company Law Tribunal, Ahmedabad Bench, sanctioned the Scheme on March 16, 2026. After receiving statutory approvals, Prima Plastics transferred the rotational moulding business to Prima Innovation and derecognised the carrying value of the undertaking’s related assets and liabilities.

The filing distinguishes between the appointed date of July 1, 2024 and the effective date of March 31, 2026. That distinction is relevant to the accounting presentation because Prima Plastics says the assets and liabilities of the rotational moulding undertaking were transferred and derecognised in line with the Scheme. The disclosure does not provide a separate transfer value, consideration amount, or a detailed schedule of the assets and liabilities moved to Prima Innovation.

How did the demerged rotational moulding business perform in FY26?

The rotational moulding business recorded a Rs 202.78 lakh loss after tax in the year ended March 31, 2026, on revenue from operations of Rs 50.97 crore. Its loss before tax was Rs 2.70 crore and tax expense was Rs 67.24 lakh. Total expenses of Rs 53.72 crore exceeded total income of Rs 51.02 crore during FY26.

Other income was Rs 4.66 lakh in FY26, compared with revenue from operations of Rs 50.97 crore. In the quarter ended September 30, 2025, the business had revenue of Rs 14.65 crore and a Rs 92.41 lakh loss after tax. For the six months ended September 30, 2025, revenue was Rs 26.97 crore and the loss after tax was Rs 1.56 crore.

The available comparative figures show losses in both disclosed FY25 periods before the Scheme became effective. The September 2025 quarter had a loss before tax of Rs 92.41 lakh, while the first six months had a loss before tax of Rs 1.56 crore. FY26 expenses exceeded total income by Rs 2.70 crore, producing the full-year pre-tax loss reported for the discontinued undertaking.

How will Prima Plastics report results after the demerger?

Prima Plastics will report rotational moulding as a discontinued operation and its remaining activities as continuing operations under Indian Accounting Standard 105, or Ind AS 105. The company said the results of the transferred business up to the March 31, 2026 effective date were disclosed separately, and prior-period figures were re-presented on that basis.

For the six months ended September 30, 2026, continuing-operation revenue from operations rose to Rs 39.72 crore from Rs 36.74 crore in the six months ended September 30, 2025. Net profit after tax from continuing operations increased to Rs 17.11 crore from Rs 6.56 crore. The current-period profit included Rs 22.49 crore of other income, compared with Rs 8.44 crore in the comparative period.

The increase in continuing-operation profit was larger than the increase in revenue because other income rose by Rs 14.05 crore year on year. The comparison is not equivalent to the former combined-company presentation because rotational moulding is excluded from continuing operations. In the six months ended September 30, 2025, total profit after tax including discontinued operations was Rs 5.00 crore, versus Rs 6.56 crore from continuing operations alone after including the discontinued-operation loss of Rs 1.56 crore.

What remains in Prima Plastics after the transfer?

Prima Plastics says it is exclusively engaged in plastic articles and related products, with no reportable operating segments applicable under Indian Accounting Standard 108, or Ind AS 108. It instead disclosed continuing-operation revenue by the location of operations. For the six months ended September 30, 2026, India represented Rs 36.94 crore of external-customer revenue and other locations represented Rs 40.72 crore.

The geographic disclosure reports total external-customer revenue of Rs 77.66 crore for the six months ended September 30, 2026. At September 30, 2026, non-current assets were Rs 21.76 crore in India and Rs 4.54 crore in other locations, totalling Rs 26.31 crore. At March 31, 2026, the corresponding non-current assets were Rs 22.10 crore in India and Rs 5.77 crore in other locations.

Standalone total assets stood at Rs 69.38 crore on September 30, 2026, compared with Rs 86.96 crore on March 31, 2026. Cash and cash equivalents declined to Rs 3.05 lakh from Rs 7.77 crore, while current borrowings fell to Rs 8.49 crore from Rs 22.95 crore. In the six months ended September 30, 2026, standalone operating cash flow was an outflow of Rs 5.94 crore and investing cash flow was an inflow of Rs 16.34 crore, including Rs 16.33 crore of dividend income.

The September 2026 results were reviewed by statutory auditors, who issued an unmodified report, and were approved by the board on November 6, 2026. The same filing disclosed the appointment of Shriya Vedant Chaudhary as an additional whole-time director from November 6, 2026, subject to shareholder approval for a five-year term until the 37th annual general meeting.

Conclusion

The completed demerger removes a rotational moulding undertaking that generated Rs 50.97 crore of FY26 revenue but made a Rs 202.78 lakh loss after tax from Prima Plastics’ continuing-operation presentation. Comparisons of earnings now need to separate the re-presented continuing business from the discontinued undertaking, particularly for the six months ended September 30, 2025.

The next filings will show whether continuing-operation revenue and profit remain separate under Ind AS 105 after the March 31, 2026 demerger. The filing does not disclose a financial forecast, operating target or separate capital plan for Prima Innovation, while the disclosed director appointments remain subject to shareholder approval.