Summary
Time Technoplast Limited - Q3 FY26 Earnings Call Summary Friday, February 13, 2026 4:00 PM
Event Participants
Executives 6 Bharat Vageria (MD), Hemant Soni (VP - Legal & Corp Affairs), Himanshu Upadhyay (Sr. Manager - Finance & IR), Raghupathy Thyagarajan (Whole-time Director), Sandip Modi (SVP - Accounts & Corp Planning), Vishal Anil Jain (Non-Executive Director)
Analysts 4 Deepak Poddar, Dhananjai, Jatin, Prakash Kapadia
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue (Q3) | ₹1,567 crores | +13% YoY; lower polymer prices partially offset volume growth. |
| Revenue (9M) | ₹4,433 crores | +11% YoY; volume growth was higher at +15%. |
| EBITDA (Q3) | ₹236 crores | +17% YoY; margin expansion driven by value-added product mix. |
| PAT (Q3) | ₹126 crores | +25% YoY; boosted by lower interest costs and operational efficiency. |
| Volume Growth | 15% | Robust growth across India (+13%) and Overseas (+17%) markets. |
| Gross Debt | ₹266 crores | -₹381 crores YoY reduction; management aims for net debt-free status in 6 months. |
| ROCE | 18.6% | On track to achieve 20% target for FY26 (up from 14% four years ago). |
| Net Cash (9M) | ₹332 crores | Improved operating cash flow through better working capital management. |
Geographic & Segment Commentary
- Value-Added Products: This segment (LPG, CNG, Hydrogen cylinders) grew 17% YoY, now accounting for 30% of total revenue compared to 27% last year. These products command higher EBITDA margins of 17-18% compared to 12-13.5% for standard packaging.
- Industrial Packaging (India & Overseas): Representing 70-75% of business, this segment expects 11-13% growth. Management noted steady demand with an order pipeline exceeding ₹400 crores for the current calendar year.
- Composite Products (CNG/LPG): Volume increased 21% YoY, with CNG cascades growing 23%. A new expansion in Daman is nearing completion (March 2026), expected to generate ₹800 crores incremental revenue over two years.
- PE Pipes: Current capacity utilization is around 70% with revenue potential of ₹450 crores. New expansion in Odisha is underway to capture infrastructure and smart city demand, targeting 20-25% growth.
Company-Specific & Strategic Commentary
- Debt Reduction & QIP: Utilized QIP funds of ₹800 crores to repay debt and fund expansions. ₹340 crores utilized to date, with ₹460 crores in FD for upcoming automation and brownfield projects.
- Automation & Efficiency: Investing ₹75 crores in robotic technology (injection/blow molding) to reduce manpower costs. Payback period is estimated at 25-40 months, expected to add ₹20 crores to annual EBITDA.
- Solar Power Initiative: Transitioning to 75% solar energy where policies permit (Gujarat, Maharashtra, etc.). Savings in Gujarat alone are projected at ₹10 crores annually starting next fiscal year.
- New Product Development: Commercialization of composite fire extinguishers (6kg/9kg) and 250-liter CNG cylinders scheduled for April 2026. Hydrogen cylinders for drones are currently in pilot phase with commercialization expected next year.
- Recycling (Time Ecotech): Commissioning first of three recycling plants in March 2026 to comply with Extended Producer Responsibility (EPR) norms and maintain quality standards for PCR material.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Growth | 15%+ CAGR | Driven by 25-30% growth in composite products and 11-13% in packaging. |
| ROCE | 20% for FY26 | Management targeting 2% annual increases through margin expansion and debt reduction. |
| Finance Cost | ₹25-30 crores/annum | Post-debt repayment, costs will be limited to non-fund based facilities (LCs/BGs). |
| Working Capital | 90 days (Target) | Reduction from 120 days (historic) to 98 days (current) via inventory/receivable optimization. |
Risks & Constraints
| Risk | Context |
|---|---|
| Raw Material Volatility | Polymer price fluctuations impact top-line revenue totals, though the company operates on a cost-plus model for margins. |
| Policy Delays | Implementation of solar benefits in states like Maharashtra was delayed due to government policy timing, impacting projected cost savings. |
| Substitution/Pricing | High-margin composite products must remain price-competitive against traditional metal cylinders to drive mass adoption. |
Q&A Highlights
Operational Efficiency (Jatin, Svan Investments)
- Question: How will consolidation and automation impact the bottom line in FY27?
- Answer: Automation of large machines has a 25-40 month payback. Total QIP-funded automation of ₹75 crores will eventually save ₹20-25 crores in annual manpower and power costs (Bharat Vageria).
Inorganic Growth (Jatin, Svan Investments)
- Question: What is the status of the Flexible IBC acquisition (Ebullient Packaging)?
- Answer: Due diligence is ongoing until March 2026. The target has a ₹250 crore revenue run-rate and fits the packaging focus. Final confirmation depends on the 6-month data review (Bharat Vageria).
New Segments (Dhananjai, Alchemy)
- Question: Have you secured customers for the hydrogen drone cylinders?
- Answer: Currently in pilot phase with a partner (Drone Stark). Commercial supply will begin from April 2026 once the new plant capacity is online, as existing capacity is fully utilized (Bharat Vageria).
Subsidiary Performance (Vishvender Singh, Prudent Equity)
- Question: What are the growth prospects for TPL Plastech?
- Answer: TPL Plastech is growing at 25% with a 22% ROCE. The new Lote-Parshuram plant will add ₹100 crores revenue capacity over three years (Bharat Vageria).
Key Takeaway
Time Technoplast delivered a resilient Q3 FY26, characterized by 15% volume growth and significant balance sheet strengthening. The company successfully reduced gross debt to ₹266 crores using QIP proceeds, with a clear path to becoming net debt-free within six months. Historically a packaging-heavy business, the strategic pivot toward value-added composite products (CNG, LPG, and future Hydrogen) is yielding results, with these segments now contributing 30% of revenue at superior 17-18% margins. Management is aggressively pursuing operational excellence through a ₹75 crore automation plan and a shift toward solar energy, targeting a 20% ROCE for the full year. With new capacity coming online in April 2026 and a tightening working capital cycle, the company is positioned to sustain a 15% revenue CAGR while growing profitability at a faster 25% pace due to reduced interest burdens.
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