Knack Packaging Q2 FY27 results: net profit ₹25.02 crore

How did Knack Packaging perform in Q2 FY27?

On the consolidated basis, Knack Packaging reported revenue of ₹294.76 crore in Q2 FY27, compared with ₹262.46 crore in Q1 FY27, a rise of 12.3%. EBITDA was ₹40.06 crore, down 29.5% from ₹56.86 crore, and the EBITDA margin fell to 13.6% from 21.7%. Total income was ₹304.46 crore, up 15.0% from ₹264.77 crore.

Profit before tax was ₹35.67 crore, down 21.2% from ₹45.29 crore, while net profit was ₹25.02 crore, down 18.0% from ₹30.53 crore. Basic EPS fell to ₹2.07 from ₹3.05. Total expenses rose 22.5% to ₹268.79 crore, including cost of materials of ₹191.24 crore and other expenses of ₹46.51 crore; there was no exceptional item.

The standalone results showed revenue of ₹289.75 crore and net profit of ₹25.84 crore. The earnings presentation reported Q2 revenue growth of 53%, while the earnings call said consolidated revenue from operations rose 52.5% year on year, EBITDA rose 29.9% and PAT rose 21.2%. The results in this article use the consolidated figures of ₹294.76 crore revenue, ₹40.06 crore EBITDA and ₹25.02 crore net profit.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹1,027.00 crore and total equity was ₹722.32 crore. Borrowings stood at ₹191.05 crore and cash was ₹68.05 crore. Inventories were ₹146.25 crore, trade receivables were ₹178.78 crore and trade payables were ₹56.69 crore. A comparable previous balance-sheet date and year-earlier cash-flow figures were not provided.

For H1 FY27, operating cash flow was ₹22.06 crore, investing cash flow was negative ₹305.13 crore and financing cash flow was ₹344.99 crore. Capital expenditure was ₹27.50 crore. The company’s earnings presentation reported H1 FY27 revenue from operations of ₹5,572.16 million, up 46.8% year on year, with an EBITDA margin of 19.14% and PAT margin of 9.76%.

What else did the company announce?

The board approved the standalone and consolidated unaudited financial results for the second quarter and half year ended 30 September 2026 on 27 October 2026. The same-day filing also stated that the audit committee and board reviewed the utilisation of IPO proceeds and confirmed there was no deviation or variation from the objects stated in the prospectus.

The company filed an earnings presentation for Q2 and H1 FY27 alongside the results. Its headline referred to a three-year order and renewal worth about ₹1,500 million annually from an international customer, while the earnings call described the contract as worth about INR150 crores per year. No dividend, further fund raise or board appointment was disclosed in the same-day filings.

What did Knack Packaging's management say?

Management said customer pricing adjustments should flow through from Q3 FY27 and support EBITDA-margin recovery, subject to market conditions stabilising. It said Q3 production and sales should exceed Q2 as 5,040 MT of new capacity ramps, with about 2,500 MT expected utilisation, and that higher production, sales and pinch-bottom utilisation were expected, particularly with the rice-industry season.

Management said the Mexico JV was expected to approach breakeven in Q3 FY27, with Q4 FY27 targeted as the first full breakeven period. It targeted installed capacity of 69,000-72,000 MTPA by October 2027 versus 42,000 MTPA currently, and said the expanded base could include up to 32,000 MTPA of pinch-bottom capacity. No formal full-year revenue, EBITDA or PAT range was provided.

Management identified West Asia disruption and higher polypropylene prices, Red Sea disruption and higher freight costs, lagged and incomplete customer price pass-through, the loss-making Mexico JV, and high utilisation of existing plants as risks. The chairman and managing director said, “We will remain, cautious on the cost and capital deployment.” He also said, “In our 30 years, this is the highest price of the polymer price.”

How did Knack Packaging shares react?

The results were released after market hours, with a pre-results close of ₹208.60 and a base price of ₹200.96. The stock fell 6.4% after 5 minutes, 5.8% after 15 minutes and 6.9% after 30 minutes. It closed 4.1% lower on the reaction day from the previous close.

By the next day's close, the stock was down 8.2% from its pre-results close. Over the same period, the Nifty Microcap 250 rose 0.7%, while no industry-median comparison was available. On the earlier results day of 9 August 2026, the stock rose 3.7% from its previous close.