Pyramid Technoplast Q2 revenue rises 48% as margins ease

Pyramid Technoplast Limited reported Q2FY27 revenue from operations of Rs 238.0 crore, up 48.0% year on year, and earnings before interest, tax, depreciation and amortisation (EBITDA) of Rs 20.3 crore, up 61.2%, but EBITDA margin fell to 8.5% from 9.5% in Q1FY27 and profit after tax declined 9.1% sequentially to Rs 9.5 crore.

How did Pyramid Technoplast perform in Q2FY27?

Pyramid Technoplast delivered year-on-year growth in Q2FY27 revenue, EBITDA and profit, while its quarterly EBITDA and profit were lower than in Q1FY27. Revenue from operations rose to Rs 238.0 crore from Rs 160.8 crore in Q2FY26 and Rs 222.5 crore in Q1FY27. Total income, which includes other income, was Rs 238.8 crore, up 47.9% year on year and 6.8% sequentially.

EBITDA was Rs 20.3 crore, compared with Rs 12.6 crore a year earlier and Rs 21.3 crore in Q1FY27. EBITDA margin increased from 7.8% in Q2FY26 but decreased from 9.5% in Q1FY27 to 8.5%. Profit after tax (PAT) reached Rs 9.5 crore, up from Rs 6.2 crore a year earlier but down from Rs 10.5 crore in the preceding quarter.

Pyramid Technoplast's first-half result retained the year-on-year expansion seen in the quarter. H1FY27 revenue from operations was Rs 460.5 crore, up 41.9% from Rs 324.6 crore in H1FY26, while EBITDA increased 55.2% to Rs 41.6 crore. H1FY27 EBITDA margin was 9.0%, against 8.2% a year earlier, while PAT rose 41.9% to Rs 20.0 crore.

What drove Pyramid Technoplast's Q2FY27 revenue growth?

Pyramid Technoplast's Q2FY27 revenue increase was driven principally by higher realisations, followed by volume and product-mix growth. The company recorded volume of 14,798 metric tonnes (MT), up 21% year on year, and realisation of Rs 1.61 lakh per tonne, up 22%. Capacity utilisation was 70% in Q2FY27, compared with 62% in Q2FY26.

The revenue bridge assigns Rs 43.6 crore of the year-on-year increase to realisations, Rs 24.9 crore to volume growth and product mix, and Rs 8.7 crore to trading income. These disclosed drivers reconcile the rise in revenue from operations from Rs 160.8 crore in Q2FY26 to Rs 238.0 crore in Q2FY27. Pyramid Technoplast said the volume and mix contribution was led by metal drums and intermediate bulk containers (IBCs).

At the product level, IBC units grew 17% year on year and metal-drum tonnage increased 73% year on year in Q2FY27. Polymer-drum tonnage rose 5% year on year and 16% sequentially. In H1FY27, IBC business revenue was Rs 150 crore on 180,603 units, while polymer-drum revenue was Rs 204 crore and metal-drum revenue was Rs 64 crore.

Why did Pyramid Technoplast's margins and profit decline sequentially?

Pyramid Technoplast's EBITDA margin declined sequentially as operating expenditure grew faster than gross profit in Q2FY27. Gross profit rose 7.5% from Q1FY27 to Rs 55.3 crore, and gross margin improved to 23.2% from 23.0%. Employee cost increased 9.4% to Rs 6.2 crore, however, and other expenses rose 17.6% to Rs 28.8 crore, lifting total expenditure 16.1% to Rs 35.0 crore.

The year-on-year comparison shows a separate pressure from raw-material costs. Raw-material cost rose 55.2% year on year to Rs 183.5 crore, exceeding the 47.9% rise in total income. As a result, gross margin fell to 23.2% from 26.8% in Q2FY26, even as EBITDA margin rose to 8.5% from 7.8%.

Pyramid Technoplast's EBITDA bridge shows that Rs 77.3 crore of higher total income offset Rs 65.3 crore of higher cost of goods sold and Rs 4.4 crore of higher other expenses, producing a Rs 7.7 crore year-on-year EBITDA increase. Below EBITDA, interest expense rose 12.0% sequentially to Rs 3.9 crore and depreciation increased 1.6% to Rs 3.9 crore. Profit before tax consequently declined 10.5% from Q1FY27 to Rs 12.5 crore, while PAT margin fell to 4.0% from 4.7%.

What is Pyramid Technoplast's FY27 operating plan?

Pyramid Technoplast management has guided for about 15% revenue growth and an EBITDA margin of 11% to 12% in FY27. That margin target is above the 9.0% reported in H1FY27 and the 8.6% recorded in FY26. Management identified captive solar power, recycling, Wada operating leverage and product mix as the planned mechanisms for improvement.

The company said 14.25 megawatts (MW) of green-energy capacity is operating, with a remaining 1 MW to be deployed. It estimates that the full 14.25 MW solar capacity can reduce annual power cost by about Rs 15 crore. The presentation also said a 6 MW solar plant commissioned in late October had started yielding benefits.

Pyramid Technoplast said its recycling plant is operating and can process 5,000 tonnes of plastic for in-house use or sale, compared with 30,000 tonnes of high-density polyethylene (HDPE) currently used in production. It plans FY27 capital expenditure of about Rs 20 crore to Rs 25 crore, mainly for Kutch expansion, funded from internal accruals and cash balance. Management noted that captive-solar spending could result in a marginal increase in debt.

How much operating leverage does Pyramid Technoplast identify?

Pyramid Technoplast estimates that each additional 10 percentage points of utilisation across its existing 83,971 MT annual capacity could add about Rs 135 crore of revenue at current realisations. The company labels this as illustrative because realisations move with polymer prices. Its Q2FY27 annualised revenue run-rate was about Rs 952 crore at 70% utilisation, compared with FY26 revenue of Rs 681 crore at 67% utilisation.

The presentation estimates revenue potential of Rs 1,081 crore at 80% utilisation, Rs 1,216 crore at 90%, and Rs 1,351 crore at full utilisation. Wada targets about 80% utilisation in FY27. Pyramid Technoplast also plans for Kutch to add 10,000 IBC units a month from March 2027, on top of the existing-capacity illustration.

Conclusion

Pyramid Technoplast's Q2FY27 result combined a 48.0% year-on-year increase in revenue from operations with a 61.2% rise in EBITDA, supported by higher realisations, volume and mix. The sequential outcome was different: EBITDA fell by Rs 1.0 crore, PAT fell by Rs 1.0 crore, and EBITDA margin declined by 1.0 percentage point as other expenses increased faster than gross profit.

The next disclosed measures to watch are progress toward management's 11% to 12% FY27 EBITDA-margin guidance, Wada's approximately 80% utilisation target and deployment of the remaining 1 MW of green-energy capacity. Kutch's planned addition of 10,000 IBC units a month from March 2027 and FY27 capital expenditure of about Rs 20 crore to Rs 25 crore are further milestones in the stated plan.