Mamata Machinery reported a net loss of ₹347 million for the first quarter of FY27, reversing from a net loss of ₹35 million in the corresponding period last year. The decline in profitability was accompanied by a contraction in top-line growth, with revenue falling to ₹3,628 million (₹3,628 lakhs) from ₹3,860 million year-on-year. This represents a 6% decline in revenue.

The company’s operating performance weakened significantly during the period. EBITDA turned negative, recording a loss of ₹470 million compared to a gain of ₹31 million in the prior year. This swing indicates a sharp deterioration in operational margins alongside the revenue decline.

Financial Performance

Operational Headwinds

Apurva Kane, Chief Executive Officer, attributed the slower execution to customers deferring machine deliveries. This delay reflects the continued effects of polymer price escalation triggered by the West Asia crisis. While order intake and business visibility remained healthy, the sudden rise in polymer prices increased working capital requirements for customers, particularly converters. These customers diverted capital from CAPEX projects toward immediate working capital needs, requesting pushbacks on deliveries.

On the profitability front, gross margins remained healthy, registering an increase on both a year-on-year and quarter-on-quarter basis. However, other expenses were higher due to exhibitions and trade shows, including presence at Interpack 2026 in Düsseldorf. Employee benefit expenses also increased. These costs weighed on EBITDA during the quarter but are expected to normalize as exhibition expenses stabilize as a percentage of the top line.

What the Numbers Show

The divergence between revenue and EBITDA highlights significant margin pressure. While revenue declined by approximately 6%, the EBITDA position worsened disproportionately, swinging from a positive ₹31 million to a negative ₹470 million. This suggests that cost structures did not adjust in line with the revenue contraction, leading to an amplified impact on the bottom line. Additionally, the net loss widened nearly tenfold from the prior year’s ₹35 million to ₹347 million, underscoring the severity of the operational drag despite healthy gross margins.

Strategic Developments

A key recent development was the company’s recyclable film technology, RecTech™, receiving 100% Recyclability Certification in the European Union in August. The company is now awaiting certification from the Association of Plastic Recyclers (APR) in the USA. Management expects execution to pick up in the latter part of the year as some of these pressures subside.

Mamata Machinery Limited announced on August 4, 2026, that its recyclable packaging film technology, RecTech™, has received 100% Recyclability Certification in the European Union. The certification was granted by Institut cyclos-HTP GmbH, a Germany-based institute for recyclability assessment. This development validates the international commercial viability of the company’s mono-material film solution for brand owners and converters seeking recyclable packaging at scale.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The press release was signed by Madhuri Sharma, Company Secretary & Compliance Officer, and submitted to BSE Limited and The National Stock Exchange of India Limited.

RecTech™ was originally launched at Plastindia 2026 in February 2026. It is an advanced, fully recyclable mono-material film engineered to deliver superior barrier protection and mechanical performance compared to conventional non-recyclable composite film structures. Since its launch, the film has undergone various tests in India and globally to validate its functionality and recyclability.

Certification Timeline

The European certification complements earlier validations obtained in India. The following table outlines the certification status of RecTech™:

The film’s recyclability was first certified in India by CIPET, Bengaluru, vide certification dated May 22, 2026. Its functionality regarding oxygen and water vapour barrier performance was certified by the Indian Institute of Packaging (IIP), Kolkata. The European certification from cyclos-HTP adds international validation to these credentials.

Market Implications

Certification from the Association of Plastic Recyclers (APR) in the USA is currently awaited. Once received, it will further establish the commercial viability of the film. Together, these validations make a strong case for the adoption of the RecTech™ solution by brand owners and converters seeking recyclable packaging at scale and competitive prices.

What the Numbers Show

The progression of certifications demonstrates a structured global validation strategy for RecTech™. By securing Indian certifications (CIPET and IIP) prior to the EU certification, Mamata Machinery established a baseline of functional and recyclability performance before seeking broader international recognition. The pending APR certification represents the final key market validation needed to position RecTech™ as a globally compliant recyclable packaging solution. This sequential approach reduces technical risk for early adopters in regulated markets like Europe while building a comprehensive case for US market entry upon APR approval.