Mold-tek Packaging Ltd (BOM:533080) Q1 2027 Earnings Call Highlights: Record Turnover and
GuruFocus News
Tue, July 28, 2026 at 12:30 AM GMT+5:30
3 min read
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This article first appeared on GuruFocus
Turnover: INR 300 crores, aided by increased raw material costs
EBITA per kg: Increased to 46.7 per kg from a historical range of 40-42
Unit Consolidation: Reduced from 5 units to 2 units in Hyderabad
High-Value Product Sales: Increased sales in pharma, food, and FMCG sectors
Profit Margins: Improved due to passing on raw material price hikes and internal efficiencies
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For the complete transcript of the earnings call, please refer to the full earnings call transcript
Positive Points
Mold-tek Packaging Ltd (BOM:533080) achieved a historical turnover of INR 300 crores, driven by increased sales in high-value segments like pharma, food, and FMCG
The company’s per kg EBITDA increased to INR 46.7, a significant improvement from the historical range of INR 40-42, due to consolidation efforts and improved sales of high-margin products
The company successfully passed on raw material price hikes to clients, maintaining and enhancing profit margins despite global economic challenges
Mold-tek Packaging Ltd (BOM:533080) added over 1,020 new clients in the food and pharma sectors, indicating strong market expansion
The company is optimistic about sustaining momentum in EBITDA growth through consolidation, improved efficiencies, and automation initiatives
Negative Points
Volume growth was impacted by a 17% drop in the lube segment due to supply chain disruptions caused by geopolitical tensions
Finance costs increased by 20% quarter-on-quarter, primarily due to higher raw material costs and increased working capital requirements
The QPAC segment experienced disappointing growth due to price sensitivity and market hesitance amid rising raw material costs
The company’s gross margin decreased from 46.60% to 41.31%, attributed to inflationary trends in raw material prices
Despite strong growth in certain segments, overall volume growth was limited to 6%, reflecting challenges in achieving higher sales volumes
Q & A Highlights
Q: Over the last few years, the company has expanded beyond decorative products. What is the ideal limit for this expansion? A: Currently, the value is 4% to 6%, but the volume is around 50%. We are growing in food, which now contributes to almost 28% to 29% of sales. Pharma is at 2% by volume but 3.5% of overall sales. These numbers are expected to grow rapidly, with food and defenses projected to grow at 18% to 20% and paint at 8% to 10%
