Summary
Mold-Tek Packaging Limited - Q3 FY26 Earnings Call Summary Monday, February 09, 2026, 4:00 PM IST
Event Participants
Executives 1 J. Lakshmana Rao (Chairman and Managing Director)
Analysts 5 Abhishek Navalgund, Amit Khetan, Chirag, Dipak, Shankar
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue (9M FY26) | ₹650-660 crores (est) | +12% YoY; value growth driven by food and paint segments. |
| Sales Volume (Q3) | 8,800 tons (est) | +6% YoY; weaker due to extended monsoon and Q3 seasonality. |
| EBITDA (9M FY26) | ₹125 crores | +20% YoY; margin expansion via operational efficiency. |
| EBITDA (Q3) | ~₹41 crores | +14% YoY; improved product mix toward higher-margin Pharma. |
| PAT (9M FY26) | ₹52.25 crores | +18% YoY; EPS increased from ₹13.3 to ₹15.75. |
| EBITDA per kg | ₹40.24 | +₹2.6 over FY25; driven by higher Pharma and F&F contributions. |
| Capacity Utilization | 62.5% | -11.5% from Q1; expected to cross 70% in Q4 with busy season. |
Geographic & Segment Commentary
- Paint: The segment saw 10.3% volume growth, significantly aided by Aditya Birla Group (ABG) growing at 21% (1,480 tons in Q3). Asian Paints volume showed recovery in January (+10%) following the successful development of pails using 40-50% Recycled Plastic (RCP) to meet statutory norms.
- Food & FMCG (F&F): Recorded 11-12% volume growth in Q3; Q-Pack sub-segment outperformed with 34% YoY growth. Management expects a sharp ramp-up in Q4/Q1 due to summer demand for ice creams and yogurts, supported by 24 new molds being deployed in the North (Panipat) plant.
- Pharma: Nine-month revenue reached ₹25 crores with a full-year target of ₹35 crores; 25+ clients have audited and cleared facilities. Strategic focus remains on high-margin (₹120-140/kg EBITDA) products like eye droppers and nasal sprays, targeting ₹50-55 crores revenue next year.
- Lubricants: Volumes declined by 10% in Q3, impacted by the loss of the BPCL government tender and a shift away from low-margin urea-based lubricants. Management remains neutral on this segment, focusing only on private sector clients like Castrol and Veedol to maintain profitability.
Company-Specific & Strategic Commentary
- Facility Consolidation: Reduced Hyderabad operations from five units to two (Units 1 and 10) to improve operational efficiency and reduce inter-unit movement costs.
- Vibe Generation MOU: Signed a global agreement to develop and manufacture patented high-value closures and spouts; pilot molds for the first two chemical/lube products are expected by end-FY26.
- IP Protection: Secured a High Court order against three competitors for infringing on Q-Pack patented designs, strengthening Mold-Tek’s competitive moat in the F&F segment.
- Digital/Sustainability: Implementing solar power across most units by June-July 2026 to reduce power costs; successfully cracked the 40% RCP recipe for paint pails.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue | >₹1,000 crores (FY27) | Driven by 13-14% volume growth and ramp-up of Pharma/Panipat units. |
| EBITDA | ₹200-215 crores (FY27) | Operating leverage from greenfield completion and high-margin product mix. |
| PAT | ₹73-75 crores (FY26) | Target of 20% growth; expect PAT growth to outpace EBITDA as depreciation stabilizes. |
| Capex | ₹80-85 crores (FY27) | Significant reduction from ₹120cr in FY26 as greenfield projects conclude. |
| Pharma Growth | 30-35% (Long-term) | Target to become a major player in ophthalmic and nasal delivery systems. |
Risks & Constraints
| Risk | Context |
|---|---|
| Competitive Intensity | Increasing activity in IML segment from players with limited robot capacity; Mold-Tek mitigates this through its 120-robot scale and multi-location supply chain. |
| Raw Material Volatility | Sale prices dropped by ~₹9/kg while RM dropped by ~₹8/kg; however, the company maintains EBITDA per kg through premium segment mix. |
| Public Sector Loss | Loss of BPCL and other PSU tenders due to aggressive low-price bidding; company policy is to prioritize margins over low-margin government volume. |
Q&A Highlights
Lube Segment Decline
- Question: What explains the 10% dip in lubricant volumes? (Amit Khetan)
- Answer: Primarily due to the loss of the BPCL tender and a strategic exit from low-margin “DEF” urea-based lubes. Private sector growth (Veedol/Castrol) is healthy, but PSU business is currently zero (J. Lakshmana Rao).
Asian Paints & RCP
- Question: How does the new 40% recycled plastic (RCP) norm impact margins? (Chirag)
- Answer: RCP is 10-15% cheaper than virgin plastic. The cost benefit is passed to the client, so EBITDA per kg remains unaffected while maintaining statutory compliance (J. Lakshmana Rao).
Vibe Generation Opportunity
- Question: When will revenue from the Vibe MOU materialize? (Deepak)
- Answer: Developmental time is long. Pilot molds will be ready by March 2026, with commercial volumes starting in Q2 FY27. EBITDA for these patented caps/spouts is expected at ₹80-100/kg (J. Lakshmana Rao).
Pharma Expansion
- Question: What is the capex and product plan for Pharma? (Shankar)
- Answer: ₹25-30 crores of the FY27 budget is for Pharma. Launching eye droppers (H2 FY27) and investigating nasal sprays based on market research (J. Lakshmana Rao).
Key Takeaway
Mold-Tek Packaging delivered a resilient nine-month performance with EBITDA growing 20% to ₹125 crores, despite Q3 being seasonally weak and impacted by extended monsoons. The company successfully executed a major consolidation of its Hyderabad units and completed large-scale greenfield expansions, leading to a planned reduction in future capex to ₹80-85 crores. Strategic growth is now pivoting toward high-margin niches, with Pharma revenue targeting ₹50-55 crores in FY27 and the Vibe MOU opening doors to patented high-value closures. While the loss of PSU lubricant tenders moderated volume growth to 11% for the year, the successful resolution of RCP compliance for Asian Paints and the ramp-up of ABG volumes (6,000 tons target) provide strong visibility. Management expects to cross the ₹1,000 crore revenue milestone in FY27, backed by 13-14% volume growth and increasing operating leverage as depreciation peaks.
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