Rajshree Polypack Q1 FY27: Record revenue, improving profitability, and a sharper focus on capacity

Rajshree Polypack Limited reported its highest-ever quarterly revenue in Q1 FY27, with revenue from operations of INR 102.91 crore, up 24.71% year on year. Profitability improved faster than revenue. EBITDA rose to INR 16.52 crore from INR 12.08 crore in Q1 FY26, and PAT increased to INR 7.25 crore from INR 4.10 crore. Management attributed the stronger quarter to sustained demand, a better product mix, and operational efficiencies.

The quarter also highlighted the practical reality of running an integrated packaging platform. Several processes are operating at high utilisation, while injection moulding has significant headroom. At the same time, raw material volatility remained the key variable influencing margins, and exports were described as stable but disrupted by geopolitical factors.

What moved the numbers in Q1 FY27

The company’s revenue mix in Q1 FY27 was led by Packaging Product Sales. As per the presentation, Packaging Product Sales formed 70.29% of quarterly revenue, while Sheet Sales were 15.38%. Injection moulding accounted for 2.02% in the mix shown, and the balance sat under Others (RM, SCRP, Development).

Geographically, domestic demand was the bigger swing factor. Domestic revenue increased from INR 69.12 crore in Q1 FY26 to INR 91.19 crore in Q1 FY27. Export revenue stood at INR 11.72 crore in Q1 FY27 versus INR 13.40 crore in Q1 FY26. Management said exports remained stable despite geopolitical uncertainties, and explained that injection moulding was more impacted because roughly 60% of injection moulding sales are export-linked.

During the concall, management also provided directional segment margin indicators. It stated that injection moulding delivered EBITDA margins of around 13% to 14% in Q1, while packaging business margins were around 16% to 17%. Management indicated that at a consolidated level, as utilisation improves, it sees EBITDA margins in the 15% to 16% range.

Capacity, utilisation, and where the bottlenecks are

Rajshree Polypack’s investment case is built around an integrated manufacturing setup across extrusion, thermoforming, printing, sleeving, and injection moulding. The Q1 FY27 capacity snapshot shows strong utilisation in several lines:

Extrusion capacity increased to 25,600 MT, with utilisation at 88.43% by end of Q1 FY27. Thermoforming capacity stood at 12,120 MT with utilisation at 81.64%. Printing and sleeving stood out for operating beyond rated annualised capacity in the presentation, with printing utilisation at 106% and sleeving at 130.27%.

The company also highlighted an expansion in sleeving capacity. In the concall, management stated it expanded sleeving capacity from 1,275 lakh units per annum to 1,675 lakh units per annum during the quarter, aimed at strengthening integrated packaging capabilities.

Injection moulding, in contrast, remains the swing capacity lever. Injection moulding capacity reached 5,800 MT in Q1 FY27, following an addition of 1,000 MT. Utilisation was shown at 53.47% in the presentation, and management described it as roughly 55% to 60%. This headroom is central to management’s confidence that incremental growth can be supported without immediate greenfield capex.

A relevant disclosure from the concall was on job work expenses. Management clarified that injection moulding is operated via a toll manufacturing agreement, and job work charges largely relate to this arrangement. It also stated the partner unit works 100% for Rajshree under the agreement.

Margins, raw materials, and the October 2026 energy lever

The quarter’s profitability improvement came alongside a discussion on raw material volatility. Management stated that polypropylene prices had dropped by about 10% a month earlier, but then rose again as tensions resurfaced. It said it does not foresee prices rising further from current levels, but expects it may take another month or two for prices to start trending down, subject to no further escalation.

When asked about the quarter-on-quarter drop in gross margin, management attributed it entirely to raw material escalation, noting that polypropylene is the base material for both packaging products and injection moulding.

A separate and quantifiable margin lever is energy. Rajshree Polypack said it has entered a group captive wind-solar arrangement of about 1.9 MW. The project is expected to be commissioned by October 2026. Management expects it to meet nearly 30% of the company’s energy requirements through renewable sources and generate annual savings of around INR 1.5 to 1.75 crore.

Olive Ecopak: growth with EBITDA, but PAT still negative

The presentation and concall discussed Olive Ecopak as a second growth platform in paper-based food packaging. The company clarified that Olive Ecopak is a joint venture and its numbers are not consolidated.

Olive Ecopak reported Q1 FY27 revenue of INR 17.22 crore versus INR 7.81 crore in Q1 FY26. EBITDA was INR 4.61 crore in Q1 FY27. However, PAT remained negative at INR 1.74 crore for the quarter, and the presentation shows FY26 PAT at INR 18.89 crore negative despite FY26 EBITDA of INR 2.20 crore.

Management provided explicit guidance for Olive Ecopak. It guided FY27 revenue at about INR 90 crore plus or minus INR 5 crore, with a target of at least PBT breakeven in FY27. For FY28, it stated a revenue target of INR 140 to 150 crore.

Expansion and capital allocation signals from management

On medium-term growth, management reiterated that the current setup can reach around INR 420 to 430 crore of revenue, including injection moulding. It also indicated land has been procured in Eastern India for a future facility. Capex is not planned for the current year, but management said it may consider investing next year as utilisation rises.

For the potential Eastern India facility, management shared early ballpark numbers. It said Phase 1 could involve capex of INR 25 to 30 crore and could generate about INR 80 to 100 crore of revenue. It added that a full-scale installation could potentially reach INR 250 to 300 crore of revenue. Management also stated that the plan is not yet on the table and would be done in phases.

On leverage, management stated it aims to reduce debt by about 15% to 20% over at least one year. In response to a follow-up, it indicated that a reduction of around INR 10 to 15 crore in FY27 is fair to assume.

Takeaways

Rajshree Polypack’s Q1 FY27 performance combined strong growth with sharper profitability, led by packaging product sales and a domestic demand recovery. Operationally, printing and sleeving are running at very high utilisation, while injection moulding has capacity headroom that can support incremental growth.

The two variables to track from management’s own commentary are raw material volatility in polypropylene and the pace of export recovery in injection moulding. A clear positive is the quantified renewable energy initiative expected to go live in October 2026. Alongside this, the company is keeping a potential Eastern India expansion in view, while signalling an intention to reduce debt in the near term.