Prima Plastics September revenue rises as profit declines

Prima Plastics Limited reported consolidated revenue from operations of Rs 37.56 crore for the quarter ended September 30, 2026, up 8.0% from a year earlier, while profit for the period declined 5.7% to Rs 3.12 crore as cost of materials consumed rose 26.2% to Rs 23.98 crore.

What did Prima Plastics report for the September 2026 quarter?

Prima Plastics reported revenue from operations of Rs 37.56 crore for the three months ended September 30, 2026, compared with Rs 34.77 crore in the September 2025 quarter. Total income rose to Rs 37.88 crore from Rs 34.90 crore, including other income of Rs 32.08 lakh, compared with Rs 12.67 lakh a year earlier. Revenue was below Rs 40.11 crore in the preceding June 2026 quarter.

Profit for the period was Rs 3.12 crore, down from Rs 3.31 crore a year earlier and Rs 3.45 crore in the June 2026 quarter. Profit attributable to owners of the parent was Rs 2.98 crore, against Rs 3.05 crore in September 2025 and Rs 2.92 crore in June 2026. Basic and diluted earnings per share from continuing and discontinued operations were Rs 2.70, compared with Rs 2.77 in the year-earlier quarter.

For the six months ended September 30, 2026, revenue from operations increased to Rs 77.66 crore from Rs 69.59 crore in the corresponding prior-year period. Profit for the six-month period was Rs 6.57 crore, compared with Rs 6.79 crore a year earlier. The comparison includes a Rs 1.56 crore loss from discontinued operations in the September 2025 half year, while no discontinued-operation result was recorded in the 2026 half year.

Why did Prima Plastics’ quarterly profit decline despite revenue growth?

Prima Plastics’ profit before joint-venture share and tax declined because reported expenditure grew faster than revenue. Cost of materials consumed increased by Rs 4.98 crore year on year to Rs 23.98 crore, exceeding the Rs 2.78 crore increase in revenue from operations. Based on the reported figures, material consumption was 63.8% of quarterly revenue, compared with 54.6% in the September 2025 quarter.

Total expenses rose to Rs 35.41 crore from Rs 31.66 crore in the year-earlier quarter. Purchases of stock in trade increased to Rs 1.31 crore from Rs 21.78 lakh, employee-benefit expense rose to Rs 4.77 crore from Rs 4.23 crore, and depreciation and amortisation increased to Rs 1.47 crore from Rs 1.32 crore. Other expenses were Rs 7.65 crore, compared with Rs 7.28 crore a year earlier.

Changes in inventories reduced expenditure by Rs 4.00 crore in the September 2026 quarter, compared with a Rs 93.85 lakh reduction in the prior-year quarter. That movement partly offset higher material consumption and other operating costs, but profit before exceptional items, joint-venture share and tax still fell to Rs 2.47 crore from Rs 3.24 crore. Prima Plastics reported no exceptional item for either quarter.

Finance costs fell to Rs 23.03 lakh from Rs 55.45 lakh, partly moderating the rise in operating expenses. Tax expense, however, increased to Rs 1.72 crore from Rs 44.46 lakh, and Prima Plastics recorded a Rs 4.84 lakh tax adjustment for earlier years. Profit after tax from continuing operations was Rs 3.12 crore, down from Rs 4.24 crore in the September 2025 quarter.

How did the joint venture and demerger affect Prima Plastics’ results?

Prima Plastics recorded a Rs 2.43 crore share of profit from its joint venture, net of tax, for the September 2026 quarter, compared with Rs 1.44 crore a year earlier. The contribution was also higher than Rs 2.23 crore in the June 2026 quarter. It lifted profit before tax from continuing operations to Rs 4.89 crore from Rs 4.68 crore despite the decline in pre-joint-venture operating profit.

Prima Plastics demerged its Rotational Moulding business into Prima Innovation Limited, a wholly owned subsidiary, with effect from March 31, 2026. The scheme had an appointed date of July 1, 2024 and was sanctioned by the National Company Law Tribunal, Ahmedabad Bench, on March 16, 2026. Under Indian Accounting Standard 105, or Ind AS 105, prior-period rotational-moulding results were re-presented as discontinued operations.

The discontinued business reported revenue from operations of Rs 14.65 crore and a loss before tax of Rs 92.41 lakh for the quarter ended September 30, 2025. No discontinued-operation profit or loss was reported for the September 2026 quarter. Consequently, total profit declined by less than continuing-operations profit in the year-on-year comparison, because the earlier period included the discontinued-business loss.

Prima Plastics said it is exclusively engaged in plastic articles and related products and has no reportable operating segments under Indian Accounting Standard 108. Its statutory auditors issued an unmodified limited-review report on the September 2026 consolidated results dated November 6, 2026. The group includes direct subsidiary Prima Union Plasticos, S.A. and joint venture Prima Dee-Lite Plastics SARL.

What happened to Prima Plastics’ cash, working capital and borrowings?

Prima Plastics had consolidated cash and cash equivalents of Rs 7.37 crore at September 30, 2026, compared with Rs 30.57 crore at March 31, 2026. For the six months ended September 30, 2026, operating activities used Rs 2.91 crore and financing activities used Rs 37.30 crore. Investing activities generated Rs 16.16 crore, resulting in a net reduction of Rs 24.06 crore in cash and cash equivalents.

Working-capital movements absorbed cash during the six-month period. Inventories increased by Rs 9.90 crore, trade receivables increased by Rs 2.17 crore and other assets increased by Rs 1.53 crore. Trade payables rose by Rs 2.60 crore, partly offsetting those movements, while cash generated from operations was Rs 2.57 crore before net income taxes paid of Rs 5.48 crore.

Financing outflows included Rs 14.46 crore of repayment of short-term borrowings, Rs 21.36 crore of dividends paid and Rs 61.23 lakh of interest paid in the six months ended September 30, 2026. Current borrowings declined to Rs 8.49 crore from Rs 22.95 crore at March 31, 2026. Consolidated inventories nevertheless increased to Rs 39.53 crore, leaving the conversion of inventory into sales and operating cash an unresolved issue in the reported figures.

Conclusion

Prima Plastics increased September-quarter revenue to Rs 37.56 crore, but the 26.2% rise in material consumption to Rs 23.98 crore outpaced the 8.0% revenue increase. This reduced profit before joint-venture share and tax to Rs 2.47 crore, while a Rs 2.43 crore joint-venture contribution helped contain the decline in reported profit for the period to Rs 3.12 crore.

The next reported period will show whether the Rs 39.53 crore inventory balance converts into sales and whether operating cash flow improves after the Rs 2.91 crore six-month outflow. Readers can also monitor results excluding discontinued operations following the March 31, 2026 effective date of the rotational-moulding demerger.