Cosmo First Limited has published the full transcript of its analyst and investor earnings call on its corporate website, providing detailed insights into its financial performance for the quarter ended June 30, 2026 (Q1FY27). The session, originally scheduled for August 07, 2026, featured Group Chief Executive Officer Pankaj Poddar, Group Chief Financial Officer Neeraj Jain, and Saurabh Jain, CEO of Zigly and Head of Corporate Development. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015.

Financial Performance Overview

Consolidated sales for the June 2026 quarter reached ₹1,166 crore, marking a 46% increase from the same period in FY25. This top-line growth was primarily driven by a 9% rise in volumes and higher raw material prices passed through to customers. Despite the significant revenue jump, EBITDA grew at a more moderate pace of 26%, rising to ₹147 crore from ₹116 crore in June 2025. Management attributed this divergence to the pass-through nature of raw material costs, which inflated the revenue denominator without proportionally increasing operating profits.

EBITDA margin contracted to 12.6% from 14.5% in the prior year quarter. However, management emphasized that contribution per kilogram improved by approximately 15%, indicating genuine operational efficiency gains despite the margin compression in percentage terms. Export volumes were suppressed by 13% due to port congestion, though the US film business saw enhanced performance following tariff reductions.

Segmental Insights and Margins

The company’s core flexible packaging business showed resilience, with gross margins improving across base, semi-specialty, and specialty categories. BOPP gross margins stood at ₹30 per kg in June 2026, compared to ₹23 per kg in June 2025 and ₹20 per kg in March 2026. This improvement included non-repetitive stock gains. BOPET margins were ₹9 per kg, down from ₹18 per kg in March 2026 but stable relative to long-term trends. Specialty film margins remained robust at ₹63 per kg, reinforcing the company’s strategic focus on high-value products.

Newer business verticals contributed significantly to the quarter’s results:

• Specialty Chemicals: Posted 34% YoY topline growth with a 25% EBITDA margin.
• Rigid Packaging (Cosmo Plastech): Achieved over 58% YoY topline growth and turned EBITDA positive with a 7% margin.
• Zigly (Petcare): Maintained strong momentum with ~70% YoY growth, although losses widened slightly due to ahead-of-revenue investments in retail expansion and private label launches.

Balance Sheet and Outlook

Net debt remained flat at ₹1,166 crore (2.3x EBITDA) as of June 2026, despite an ₹85 crore increase in net working capital driven by higher raw material costs. Management indicated a clear roadmap to reduce net debt to below 2x EBITDA within the next 12 months through internal accruals and contained capex. The company expects overall revenue to grow by approximately 20% in FY27, with new businesses growing at around 60%. ROCE is targeted to improve to between 15% and 20% over the next 12 to 24 months as new capacities are leveraged.

What the Numbers Show

The divergence between the 46% revenue growth and 26% EBITDA growth highlights the impact of raw material price inflation in a pass-through business model. While percentage margins compressed, the absolute EBITDA per kilogram rose by ~15%, signaling that operational efficiencies and product mix shifts toward specialty films are successfully offsetting cost pressures. The profitability of all B2B units, including previously loss-making rigid packaging, marks a structural shift in the company’s earnings profile.

Cosmo First Limited reported a 25% year-on-year increase in consolidated net profit after tax (PAT) to ₹53.75 crore for the quarter ended June 30, 2026, driven by a 9% surge in sales volumes and improved margins in its core BOPP and BOPET films business. Consolidated revenue from operations rose 46% to ₹1,166 crore, while EBITDA came in at ₹135 crore against ₹92.20 crore in the year-ago period. The strong performance underscores the company’s transition from an investment phase to value creation, with management targeting superior Return on Capital Employed (ROCE) and business scale-up.

The Board of Directors approved the unaudited results on August 06, 2026, following review by statutory auditors S N Dhawan & CO LLP. In compliance with Regulation 47 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company published these results in Business Standard (English & Hindi) on August 07, 2026. Group CEO Pankaj Poddar attributed the performance to enhanced profitability across all B2B businesses, citing better pricing realization and the positive impact of reduced USA tariffs on its film business operations.

Financial Performance Highlights

The following table outlines the key consolidated financial metrics for Cosmo First for Q1FY27:

Consolidated earnings per share stood at ₹20.70, up from ₹16.60 in the corresponding quarter of the previous year. Total comprehensive income rose to ₹58.12 crore from ₹30.72 crore, supported by favorable movements in hedging instruments and foreign currency translation reserves.

Segment-Wise Analysis

Cosmo Films, the group's largest business, continued to be the primary profit driver. Revenue from this segment surged 44% to ₹1,089.07 crore, contributing ₹122.78 crore towards profit before tax and interest. The specialty chemicals subsidiary also performed strongly, achieving 25% EBITDA margins alongside its 34% revenue growth.

Cosmo Plastech, the rigid packaging vertical, posted over 58% topline growth and turned EBITDA positive in Q1FY27. Management indicated that capacity utilization improvements and an upcoming 50% capacity expansion over the next two quarters will further drive efficiencies. Meanwhile, Zigly Petcare grew 70% year-on-year, and Cosmo Consumer, in its first year of operation, saw multi-fold growth.

Balance Sheet and Outlook

Net debt remained flat at ₹1,166 crore as of June 2026, equivalent to 2.3 times EBITDA, despite an ₹85 crore increase in net working capital due to rising raw material prices. The company expects significant debt reduction over the next two years. Management projects overall revenue growth of 20% for FY27, with newer businesses expected to grow at 60%. The focus for FY27 will be on improving Return on Capital Employed (ROCE) through specialty films sales and asset optimization.