Cosmo First Limited reported a 37% increase in consolidated sales to ₹1,021 crore for the quarter ended March 31, 2026, driven primarily by a 41% volume growth. The company's EBITDA surged 53% to ₹130 crore, supported by higher sales volume, increased specialty sales, and enhanced performance from its specialty chemical subsidiary. The Board of Directors has recommended a dividend of ₹4 per equity share for FY25-26, subject to shareholder approval.

Financial Performance

The company managed uncertainties from geopolitical factors to post strong operational metrics. The incremental EBITDA was driven by new capacities and a 10% CAGR growth in specialty sales volume. The specialty chemical subsidiary contributed an additional ₹7 crore to EBITDA. However, PAT growth was moderate due to increased depreciation and interest costs associated with new capacities, alongside a one-time reversal of deferred tax assets of ₹5.3 crore related to the reorganization of a subsidiary in South Korea. There was also a one-time exceptional item of ₹7.2 crore related to a provision made by the company's subsidiary in Netherlands.

For the full year FY26, revenue increased by 26% to ₹3,855 crore and EBITDA rose 32% to ₹479 crore, backed by a 27% volume increase post the commissioning of BOPP and CPP lines. The specialty chemical business reported an EBITDA of ₹53 crore compared to ₹33 crore in the previous year.

Business Verticals and Outlook

The company expects double-digit topline growth in the coming year, driven by enhanced utilization of newly added BOPP and CPP capacities. A recent reduction in USA tariffs is expected to improve profitability from US operations. New business verticals showed significant traction: Cosmo Plastech posted over 70% topline growth and reached EBITDA breakeven, while the Specialty Chemicals subsidiary recorded sales of ₹54 crore with over 25% EBITDA in Q4FY26.

Consumer businesses, including Zigly and Cosmo Consumer, continue to scale up. Zigly posted 54% topline growth in Q4FY26. Cosmo Consumer, which includes Window films and Paint Protection Films, is gaining traction with gross margins expected between 35%-40%. The company is expanding its distributor network in domestic and export markets, targeting a 50% CAGR for this segment.

Financial Resilience and Strategy

Cosmo First's CAPEX cycle is largely complete, with a focus now on sweating the strategic ₹1,200 crore invested over the last three years. The company has a clear roadmap to reduce net debt over the next two years, having already reduced it by ₹75 crore in the last six months to ₹1,159 crore, which is 2.4 times its EBITDA. Management expects to bring the debt-to-EBITDA ratio below 2x within the next 12 to 18 months. The ROCE for FY26 was 11%, with expectations to rise to 14%-15% in the coming years as capacity utilization ramps up.

Cosmo First Limited has incorporated a Joint Venture Company named Filmax Cosmo Korea Limited alongside its partner, Filmax Corporation Korea. This strategic move follows an earlier intimation dated November 12, 2025, regarding the execution of an agreement between the two entities to form a Joint Venture in Korea.

The newly incorporated entity, Filmax Cosmo Korea Limited, is established to undertake the distribution, sale, and marketing of flexible packaging and other products manufactured by both Cosmo First and Filmax Corporation. This partnership aims to leverage the combined manufacturing capabilities of both companies to enhance their market presence in the region.

Capital Structure

The initial equity participation in the Joint Venture Company has been finalized between the two partners. Both Cosmo First and Filmax Corporation have subscribed to the initial paid-up capital in equal proportion.

The disclosure regarding this incorporation was made to the stock exchanges on May 22, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.