Knack Packaging wins Rs 150 crore order from US animal nutrition leader
- Knack Packaging secured a Rs 150 crore confirmed work order from a US-based animal nutrition leader for packaging supplies until Dec 2028.
- The order value represents ~67% of the company's average quarterly revenue of Rs 223.47 crore.
- Quarterly execution shows improving margins, with Q1FY27 OPM at 20.35% and net profit at Rs 30.50 crore.
- Annual revenue grew by 10.2% YoY in FY26, supported by positive operating cash flows of Rs 93.20 crore in FY25.
- Promoter stake decreased significantly from 89.60% to 70.59% in Q2FY27, while valuation remains at 23.7x P/E against a high ROCE of 41.38%.
*this image is generated using AI for illustrative purposes only.
Knack Packaging has received a confirmed work order valued at Rs 150 crore from a major US-based private corporation, a leader in animal nutrition and feed. The contract covers the supply of PLWPP Bags and Pinch Bottom Bags and is valid until December 2028.
ORDER IN FINANCIAL CONTEXT
The Rs 150 crore order value equates to approximately 66.5% of the company's average quarterly revenue of Rs 225.47 crore. Given that no other orders were disclosed in the last three fiscal quarters, the total disclosed order book stands at Rs 150 crore (sum of the 1 orders disclosed across the last 3 fiscal quarters shown in the table below). Consequently, the book-to-bill ratio is low relative to typical infrastructure peers, reflecting the nature of fast-moving consumer goods packaging where inventory turnover is high and long-term backlog is not the primary metric. The order book coverage is reported as 0.00 quarters of average quarterly revenue, indicating that this specific disclosure does not constitute a multi-year backlog accumulation in the traditional sense but rather a significant annualized or multi-year supply commitment.
COMPANY ORDER TRACK RECORD
No previous order disclosures were found for Knack Packaging in the last three fiscal quarters. The current Rs 150 crore order represents a singular large-scale engagement compared to the absence of recent disclosed inflows.
EXECUTION AND REVENUE QUALITY
Recent quarterly performance indicates improving margins and steady top-line growth. Q1FY27 revenue stood at Rs 264.80 crore with an Operating Profit Margin (OPM) of 20.35%, up from 16.04% in Q4FY26. The net profit for Q1FY27 was Rs 30.50 crore, showing strong conversion of revenue to bottom line.
| Quarter | Revenue (Rs Cr) | Net Profit (Rs Cr) | OPM (%) |
|---|---|---|---|
| Q1FY27 | 264.80 | 30.50 | 20.35% |
| Q4FY26 | 224.50 | 24.40 | 16.04% |
| Q1FY26 | 187.10 | 20.60 | 20.18% |
REVENUE GROWTH - ORDER WINS TRANSLATING TO REVENUE
As Knack Packaging has sustained order wins, its annual revenue has grown from Rs 659.00 crore in FY24 to Rs 823.43 crore in FY26, representing a YoY growth of +10.2% based on the latest annual data. Net profit has also expanded significantly, rising from Rs 46.00 crore in FY24 to Rs 95.75 crore in FY26, indicating improved operational efficiency alongside volume growth.
WORKING CAPITAL AND EXECUTION CAPACITY
The company maintains a Current Ratio of 1.30x, suggesting adequate liquidity to manage short-term obligations. Total Liabilities/Equity stands at 0.93x, indicating a conservative balance sheet structure without excessive leverage. Operating Cashflow was positive at Rs 93.20 crore in FY25, demonstrating that earnings are converting into cash efficiently, which supports the working capital needs of executing new supply contracts.
WHAT TO WATCH
- Execution Rate: Monitor quarterly revenue run-rate against the Rs 150 crore contract value to assess if the supply schedule aligns with the December 2028 timeline.
- Margin Quality: Track OPM trends as new volumes come online; historical OPM has hovered between 16% and 20%, and sustaining these levels on international contracts will be key.
- Client Concentration: This single client accounts for 100% of the recently disclosed order book, highlighting potential concentration risk if the relationship changes.
- Cash Conversion: Watch for any divergence between net profit and operating cash flow as working capital cycles adjust to larger export-oriented supply chains.
KEY OBSERVATIONS
- Valuation check (as of 02 Oct 2026): P/E of 23.7x against ROCE of 41.38%. At the time of this article, valuation was pricing in execution improvement not yet visible in return ratios.
- Backlog signal: Book-to-bill of 0.00x. At this level, execution capacity becomes the binding constraint rather than demand visibility.
- Promoter holding: Moved from 89.60% to 70.59% in Q2FY27, a 19.01 pp change.
Historical Stock Returns for Knack Packaging
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.12% | +2.44% | +15.97% | +21.82% | +21.82% | +21.82% |
16
Create Custom Screeners 
Access 200+ Pre-built Filters 
Use 50+ Readymade Screener 
