/** blogpostTitle: Time Technoplast FY26: Record Revenue, Higher Value-Added Mix, and a Deleveraging Push blogpostSlug: time-fy26 blogpostCoverImageUrl: null blogpostCoverImageDescription: Ultra-realistic corporate finance scene showing a clean boardroom table with a laptop displaying three line charts trending upward for revenue, EBITDA and PAT across FY25 to FY26, alongside a donut chart splitting revenue into Polymer Products 63 percent and Composite Products 37 percent. Include a separate bar showing value-added products rising from 27 percent to 29 percent. Add subtle industrial elements in the background like stacked plastic drums and an IBC cage silhouette, with soft neutral lighting and no text labels. blogpostShortTitle: Time Technoplast FY26 record growth story */

Time Technoplast FY26: Record Revenue, Higher Value-Added Mix, and a Deleveraging Push

Time Technoplast ended FY26 with its highest consolidated performance so far. Total income rose to Rs 6,114 crore, up 11.9 percent year-on-year. EBITDA increased 14.1 percent to Rs 901 crore, and the EBITDA margin stayed broadly stable at 14.7 percent. Profit after tax came in at Rs 469 crore, up 20.8 percent.

Q4FY26 also marked a new quarterly peak. Total income was Rs 1,682 crore, EBITDA was Rs 246 crore, and PAT was Rs 132 crore. Even with sharp polymer price volatility during the quarter, management reiterated that its largely institutional B2B book allows price pass-through through monthly or quarterly mechanisms. The stated objective is to protect absolute EBITDA even if percentage margins fluctuate with raw material prices.

A steady base and a rising value-added layer

The company reports its performance through two lenses: regulatory segments (Polymer Products and Composite Products) and business categorization (Established Products and Value-Added Products). Both views point to the same direction in FY26: faster growth in the higher value-added portfolio.

On the business categorization basis, Established Products grew 10 percent to Rs 4,373 crore, while Value-Added Products grew 18 percent to Rs 1,741 crore. Value-added share in revenue increased to 29 percent from 27 percent in FY25. Management repeatedly pointed to this shift as central to long-term margin and return improvement, even though it asked investors to focus more on absolute EBITDA than reported margin percentage.

Regulatory segment reporting also reflected faster expansion in composites. Polymer Products revenue grew to Rs 3,819 crore, while Composite Products increased to Rs 2,286 crore. The FY26 segment mix was 63 percent Polymer Products and 37 percent Composite Products.

What drove performance in FY26

The management commentary highlighted three recurring drivers.

First, volume growth remained strong. For FY26, the company reported consolidated volume growth of 13.5 percent, with India at 13.1 percent and overseas at 14.9 percent. Revenue contribution stood at 65 percent from India and 35 percent from overseas.

Second, composites continued to gain momentum. The company highlighted 22 percent growth in composite cylinders for CNG cascades and cited an order book for composite cylinders of about Rs 195 crore. In the presentation, composite products within value-added were shown at Rs 762 crore, while IBC revenue stood at Rs 808 crore.

Third, operating discipline and lower finance cost helped PAT expand faster than EBITDA. Consolidated finance cost (net) reduced to Rs 79.8 crore in FY26 from Rs 91.5 crore in FY25.

Still, FY26 carried a clear working capital cost. The consolidated cash flow statement showed net cash from operating activities of Rs 233 crore, down from Rs 431 crore in FY25. The key driver was working capital changes of minus Rs 536 crore. During the concall, management attributed this to inventory and cycle-time increases amid sharp polymer price movements and the need to maintain customer service levels, especially for imported composite inputs.

Capex execution, capacity build-out, and the efficiency agenda

FY26 capex stood at Rs 370 crore. The company described a broad agenda that combines capacity additions with consolidation and automation.

A major milestone was the greenfield composite project at Morai near Vapi, Gujarat. The company commissioned a fully automated CNG plant with capacity of 1,080 cascades, roughly 65,000 cylinders. This site consolidates capacity previously housed at Daman and is positioned as a cost and manpower efficiency move, while also freeing up space for potential future LPG expansion.

Another completed project was the greenfield recycling plant at Bhilad, Gujarat, under Time Ecotech. It has a stated annual capacity of 12,000 metric tonnes for captive consumption, positioned as the first step toward building recycling capacity across India for PCR compliance.

In industrial packaging, Time Technoplast completed Phase I of a brownfield automated IBC facility at Silvassa with 150,000 IBCs per year capacity. Phase II is underway and targeted to complete by end of FY27, taking capacity to 300,000 IBCs per year.

The company also commissioned a brownfield expansion for PE pipes at Gummidipoondi near Chennai, separating packaging and pipe operations into distinct sheds for better throughput and scalability.

Balance sheet moves, deleveraging, and non-core asset monetisation

The company highlighted a reduction in debt net of cash by Rs 408.7 crore during FY26. Management also said it targets becoming debt free in 12 to 18 months.

A parallel lever is a planned sale of non-core assets. The board identified non-core assets worth about Rs 134 crore, with a targeted realization over 18 to 24 months. Management linked this to the consolidation and automation push and stated that proceeds would help redeploy capital toward value-added products while improving EBITDA margins and ROCE.

ROCE in FY26 was 18.9 percent versus a stated 20 percent target. Management described this as a short-term impact from QIP-led automation investments and targeted 1.5 to 2 percent annual improvement driven by automation, re-engineering, and working capital optimisation.

Outlook and guidance: volume-led growth with composites as a lever

For FY27, the presentation laid out segment-level volume growth drivers: Packaging products at 11 to 13 percent, Composites at 25 to 30 percent, PE pipes at 20 to 25 percent, and Other businesses at 10 to 12 percent. Consolidated volume growth target remains 15 percent.

In the concall, management went a step further on profit trajectory. It stated that if volume grows 15 percent, EBITDA growth could be about 17 percent and PAT growth minimum about 21 percent, supported by lower interest costs. Management also reiterated that guidance would not be changed despite geopolitical uncertainty.

One important qualifier remains raw material prices. Management noted that revenue growth can diverge from volume growth because polymer prices are derivatives of oil and gas. It also acknowledged lag effects in passing on sharp price increases, especially when price spikes occur within a single month.

Takeaways for investors

FY26 reinforced Time Technoplast’s core positioning as a scaled industrial packaging and composites player with a growing value-added portfolio. The year delivered record revenue and profits, steady operating margins, and a visible execution record on announced projects.

The next phase will likely be judged on two measurable outcomes: whether value-added share continues to rise while returns improve, and whether working capital normalizes enough to translate operating profit into stronger operating cash flows. Management has put numbers on both ambitions, through a 15 percent volume growth target and a stated ROCE improvement path. The delivery on those will define FY27.