/** Title: Pyramid Technoplast FY26: Expansion Benefits Start Showing Up in Q4 */

Pyramid Technoplast FY26: Expansion Benefits Start Showing Up in Q4

Pyramid Technoplast ended FY26 with a clear message: the heavy capex phase is largely complete and the next leg should come from higher utilization and cost efficiency. In Q4 FY26, revenue from operations rose to INR 195 crore from INR 171 crore in Q4 FY25, while EBITDA (including other income) jumped to INR 20 crore from INR 12 crore. PAT for the quarter increased to INR 10 crore from INR 7 crore.

For the full year, revenue from operations rose 15% to INR 681 crore. EBITDA improved to INR 59 crore from INR 47 crore, with margin moving up to 8.6% from 7.9% (as per the company’s note that margins include other income). PAT for FY26 was INR 29 crore, compared to INR 27 crore in FY25.

The company manufactures industrial packaging products across polymer drums, IBCs and mild steel drums, primarily used by chemical, agrochemical, specialty chemical and pharmaceutical companies. FY26 was also positioned as a year where the company completed a major capacity expansion, with installed production capacity stated at 76,931 MTPA.

What drove Q4 and FY26 performance

The company attributed Q4’s stronger profitability to higher volumes, improved product mix, and operating leverage as recently commissioned capacities started contributing more meaningfully. It also highlighted that overall utilization improved to around 69% and expects it to trend toward 80% in FY27.

From a segment lens (as disclosed in the operational performance table), FY26 revenue from polymer drums was INR 289 crore, mild steel drums INR 70 crore, and IBC business INR 246 crore. The company also reported other operating income of INR 76 crore (sale of raw material, scrap and accessories connected to products). Total revenue including that operating income, but excluding other income, was shown at INR 681 crore.

The company’s volume trajectory also showed a ramp through FY26. Quarterly capacity increased to 20,644 MTPA in Q4 FY26 from 14,005 MTPA in Q4 FY24, while quarterly volumes rose to 14,209 MT from 10,200 MT over the same period.

Capacity is in place: Wada becomes the key ramp-up lever

A core part of the FY26 narrative was the Wada, Maharashtra facility (Unit 8), which runs HDPE drums, IBC and MS drum lines. Management said on the call that Wada contributed around INR 65 crore of revenue in FY26 and is now fully operational across all three categories.

In Q4 FY26, management reported utilization at Wada of 72% for HDPE, 68% for IBC, and 51% for MS drums. The company’s presentation frames Wada’s Phase 1 revenue potential at around INR 200 crore, with infrastructure built for a further phase where only machines would be added. The illustration in the presentation indicated a revenue potential of INR 400 crore over 3 to 4 years.

This matters because the company’s broader utilization is still below its stated target. FY26 capacity utilization was shown at 68.7%. If the ramp-up plays out as management expects, higher throughput could bring fixed-cost absorption benefits.

Cost efficiency projects: recycling and solar move from capex to impact

Alongside volume-led operating leverage, the company is also relying on two cost initiatives to support profitability.

Recycling plant

The plastic recycling plant (Unit 9) was commissioned on October 3, 2025 with stated investment of INR 8 to 10 crore and an indicated payback of about 2 to 3 years. The company said the facility has 5,000 MT annual capacity and can cater to 10% to 12% of Pyramid’s raw material needs.

In Q4 FY26, the plant processed 200 MT and reported an EBITDA loss of INR 8 lakhs. Management described this as largely a testing cycle and noted that the company is awaiting final license approval from the Pollution Control Board to handle unwashed containers, expected around June or July 2026. The presentation estimates EBITDA contribution of around INR 2 crore in FY27.

During Q&A, management also stated that at full run-rate, the recycling plant could save at least INR 5 crore annually. Another operational detail shared was that margins should improve once the company can procure feedstock directly, without intermediaries.

Solar power

The captive solar initiative is a larger capex project and is tied directly to power cost savings. The company commissioned 6 MW in October 2025, and added 5 MW in Bharuch and 2.25 MW in Maharashtra on February 2, 2026. The remaining 1 MW is to be added in the next phase at Bharuch.

The presentation states that once the entire capacity is commissioned, the company expects to save over INR 15 crore annually in power cost, with total investment of over INR 60 crore and payback of nearly four years. Q4 FY26 savings were stated at INR 1.5 crore, while estimated savings in FY27 were indicated at about INR 15 crore. Management also said on the call that the benefit should start reflecting more clearly from April.

Balance sheet and capital allocation: capex eases, leverage needs monitoring

The company’s capex trend slide shows a sharp increase through FY25 and FY26E (INR 70 crore and INR 90 crore) followed by a step down to FY27E INR 20 crore. Management reiterated on the call that the major capex cycle is largely behind the business, and FY27 spending should be limited to maintenance and demand-led machine additions.

That said, the balance sheet shows leverage increasing as projects were commissioned. Net debt to equity rose to 0.6x in FY26 from 0.2x in FY25. Interest coverage fell to 6.2x in FY26 from 14.4x in FY25. Interest cost increased to INR 8 crore in FY26 from INR 3 crore in FY25.

Working capital indicators also showed deterioration in FY26. Inventory days increased to 78 and debtor days to 77, while creditor days declined to 31. On the call, management said inventory levels were reduced to around 25 to 30 days, and also referenced a shift toward local sourcing as imports were disrupted.

What management is guiding for FY27

The FY27 roadmap slide provided clear targets: revenue growth of around 15% and EBITDA margin of around 11% to 12%. Management also stated in Q&A that FY27 revenue target is around INR 800 crore.

Other operating targets include moving overall utilization toward 80% in FY27, completing the final 1 MW of the solar project, and scaling the recycling plant once licensing is received.

Takeaways

FY26 looks like a transition year for Pyramid Technoplast. The company completed a major expansion cycle, and Q4 FY26 showed the operating leverage that management had been pointing to. The next year is positioned around three levers: ramping utilization (especially at Wada), lowering cost through captive solar power, and improving raw material economics via recycling.

At the same time, investors will likely track whether the margin improvement sustains as working capital remains elevated and interest costs rise from higher borrowings. The company’s FY27 guidance of mid-teens revenue growth and double-digit EBITDA margin sets a measurable benchmark for execution.