Prima Plastics completes demerger after FY26 reported loss

Prima Plastics Limited completed the demerger of its rotational-moulding business to Prima Innovation Limited effective March 31, 2026, after the business recorded FY26 revenue of Rs 50.97 crore and a loss after tax of Rs 2.03 crore. Prima Plastics now reports the transferred unit as discontinued operations and has re-presented earlier periods for comparison.

What did Prima Plastics demerge and when?

Prima Plastics demerged its rotational-moulding business into Prima Innovation Limited, its wholly owned subsidiary, effective March 31, 2026. The scheme's appointed date was July 1, 2024, while the National Company Law Tribunal, Ahmedabad Bench sanctioned the arrangement on March 16, 2026. Prima Plastics' board approved the scheme on November 12, 2024, following recommendations from its Audit Committee and Committee of Independent Directors.

Under the scheme, Prima Plastics transferred the rotational-moulding business's assets and liabilities to Prima Innovation as of the July 1, 2024 appointed date and derecognised their carrying amounts from its accounts. The filing says the separation was implemented after necessary statutory approvals under Sections 230 to 232 of the Companies Act, 2013. Prima Innovation was incorporated on June 20, 2024, before Prima Plastics' board approved the transaction in November 2024.

How did Prima Plastics' rotational-moulding business perform before the demerger?

Prima Plastics' rotational-moulding business reported FY26 revenue from operations of Rs 50.97 crore and a loss after tax of Rs 2.03 crore. Its FY26 total income was Rs 51.02 crore, including Rs 4.66 lakh of other income, while total expenses were Rs 53.72 crore. The business therefore recorded a pre-tax loss of Rs 2.70 crore and tax expense of Rs 67.24 lakh.

The loss was also present in the comparative interim periods that Prima Plastics has re-presented. For the quarter ended September 30, 2025, revenue was Rs 14.65 crore and loss after tax was Rs 92.41 lakh; for the half year ended September 30, 2025, revenue was Rs 26.97 crore and loss after tax was Rs 1.56 crore. FY26 therefore extended the half-year loss rather than representing a profitable business transferred on the March 31, 2026 effective date.

Prima Plastics classified the unit's results up to the effective demerger date as discontinued operations under Indian Accounting Standard 105, or Ind AS 105. This treatment changes the comparison basis because current continuing-operations figures exclude the rotational-moulding business and earlier figures have been re-presented on the same basis. Prima Plastics' standalone FY26 accounts show a Rs 2.03 crore discontinued-operations loss after tax alongside Rs 8.44 crore continuing-operations profit after tax.

How did Prima Plastics' continuing operations compare after separation?

Prima Plastics reported continuing-operations revenue of Rs 22.88 crore for the quarter ended September 30, 2026, compared with Rs 19.65 crore for the quarter ended September 30, 2025. Quarterly continuing-operations profit after tax rose to Rs 4.02 crore from Rs 20.44 lakh a year earlier. The September 2026 quarter also included Rs 5.07 crore of other income, taking total income to Rs 27.95 crore.

For the six months ended September 30, 2026, Prima Plastics' continuing-operations revenue was Rs 39.72 crore, compared with Rs 36.74 crore in the corresponding 2025 period. Continuing-operations profit after tax was Rs 17.11 crore, versus Rs 6.56 crore in the prior half year, while other income rose to Rs 22.49 crore from Rs 8.44 crore. The standalone cash-flow statement records Rs 21.94 crore of dividend income during the six months, a material component of the interim other-income figure.

Prima Plastics' standalone balance sheet also changed after the March 31, 2026 effective date. Total assets were Rs 69.38 crore at September 30, 2026, down from Rs 86.96 crore at March 31, 2026, while current borrowings fell to Rs 8.49 crore from Rs 22.95 crore. Cash and cash equivalents were Rs 3.05 lakh at September 30, 2026, compared with Rs 7.77 crore at March 31, 2026; the six-month cash-flow statement recorded a net cash outflow of Rs 7.74 crore.

What other board changes did Prima Plastics disclose with the September 2026 results?

Prima Plastics appointed Hitendra Bhupatrai Bhalaria as an additional non-executive independent director with effect from November 6, 2026. Subject to shareholder approval, his term is for five consecutive years from November 6, 2026 until Prima Plastics' 37th annual general meeting. Prima Plastics stated that Bhalaria is not related to any existing director.

On November 6, 2026, Prima Plastics also appointed Shriya Vedant Chaudhary as an additional whole-time director, subject to shareholder approval for a five-year term until the 37th annual general meeting. Prima Plastics said Chaudhary had served as business development manager since 2019 and is the daughter of Chairman and Managing Director Dilip Manharlal Parekh. Bhaskar Manharlal Parekh ceased as chairman and whole-time director on November 6, 2026, citing personal reasons.

Conclusion

Prima Plastics has legally and accounting-wise separated a business that generated Rs 50.97 crore in FY26 revenue but incurred a Rs 2.03 crore loss after tax. Its continuing operations must consequently be assessed separately from the re-presented rotational-moulding results: six-month continuing-operations revenue increased to Rs 39.72 crore, while Rs 22.49 crore of other income contributed to the Rs 17.11 crore profit after tax.

The next disclosed matter to watch is shareholder approval for the November 6, 2026 appointments of Bhalaria and Chaudhary, both proposed to continue until the 37th annual general meeting. Prima Plastics disclosed no further demerger milestone or target in this filing, so subsequent results will provide the next reported comparison for continuing operations after the March 31, 2026 separation.