Mold-Tek Packaging Limited has provided additional clarification regarding the Rs. 18.02 lakh tax demand notice from the Income Tax Department for Assessment Year 2021-22, following queries from BSE Limited about disclosure requirements.

Tax Demand Details

The company received a demand notice of Rs. 18,02,450 under Section 156 of the Income Tax Act, 1961. This demand was issued against an order under Section 143(3) of the Income Tax Act for Assessment Year 2021-22.

Disclosure Timeline Clarification

In a follow-up communication dated March 18, 2026, Mold-Tek Packaging clarified the timeline of events surrounding the disclosure. The company received an email notification on March 14, 2026, informing it of the tax demand notice. However, as the second Saturday and Sunday were non-working days, the employees responsible for handling such matters were unavailable.

The notice came to the attention of the Compliance Officer on Monday, March 16, 2026, and was promptly communicated to the stock exchanges on the same day. The company emphasized that there was no intentional delay in submitting the information.

Company's Position and Next Steps

Mold-Tek Packaging has clarified that there are no violations or contraventions of any provisions of the Income Tax Act, 1961. The company stated that the order is open for further submissions to the relevant authorities and is currently in the process of responding within the indicated timeframe.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Following an email from BSE Limited dated March 17, 2026, requiring additional disclosures as per SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, the company provided comprehensive details in the prescribed format.

The announcements were signed by J. Lakshmana Rao, Chairman and Managing Director of Mold-Tek Packaging Limited, and communicated to both BSE and NSE.

Mold-Tek Packaging Limited showcased strong financial performance in its Q3 FY26 earnings conference call held on February 09, 2026, with Chairman and Managing Director J. Lakshmana Rao highlighting significant growth across key metrics despite seasonal challenges.

Financial Performance Overview

The company delivered impressive results for the nine-month period, demonstrating resilience in a challenging operating environment. Key performance indicators showed substantial improvement across multiple parameters.

The management expressed confidence in closing the current year with approximately INR870 crores in revenue, with EBITDA expected to reach around INR170 crores, up from INR144 crores in the previous year.

Operational Efficiency and Consolidation

A significant development during the quarter was the consolidation of manufacturing units in Hyderabad. The company successfully reduced its Hyderabad operations from five units to just two units - Unit 1 and Unit 10. This consolidation includes:

• Integration of the printing unit into one of the blocks at Sultanpur Hyderabad unit
• Relocation of Unit 4 (primarily serving Asian Paints) to Sultanpur B block from March onwards
• Expected improvements in operational efficiencies, cost controls, and reduced movement of goods and personnel

The capacity utilization currently stands at 62.50% in Q3, down from 74% in Q1, with expectations to cross 70% in Q4 and maintain above 70% for the next full year.

Segment Performance and Growth Drivers

Pharma Segment Expansion

The pharmaceutical segment continued its strong trajectory with over 25 clients having audited and cleared the company's premises for production. While less than half have started commercial pickup, the remaining clients are expected to commence operations in coming months.

ABG Paints Strong Performance

Aditya Birla Group (ABG) paints segment showed exceptional growth of 21% in Q3, with the company achieving 4,400 tons in nine months and targeting 6,000 tons for the full year. The total ABG capacity including Mahad stands at 10,000 tons, with current utilization at 60%.

Food and FMCG Developments

The Food and FMCG segment benefited from resolved printing capacity constraints, with the company adding substantial capacity in printing and lamination. The North facility at Panipat is gaining traction with 8-10 clients already operational, expected to grow to 25-30 clients covering:

• Confectionery and yogurts
• Ice creams and protein powder
• Edible oils, cashews, and basmati rice
• Various ghee products

Strategic Partnerships and Innovation

Vibe Generation MOU

The company signed an MOU with Vibe Generation for developing patented closure products in India. The first two component designs have commenced development, with pilot molds expected by end of February and March. These high-value products target:

• Chemicals and lubricants applications
• High-end industrial uses
• Expected EBITDA range of INR80-100 per kg or better
• Commercial production anticipated from Q2 of next year

Swiggy Partnership

Mold-Tek has been selected as a preferred vendor for Swiggy restaurants, enabling the company to reach more restaurants and food delivery partners rapidly. The partnership will generate margins similar to Food and FMCG segment at INR70-80 per kg.

Future Outlook and Targets

Management outlined ambitious growth targets for the coming year:

The company expects to achieve peak revenue potential of INR1,200-1,250 crores with current and planned machinery, with optimal capacity utilization of 75% being considered excellent for injection molding operations.

Challenges and Market Dynamics

The lubricants segment faced headwinds with a 10% volume decline in Q3, primarily due to losing the BPCL tender and reduced participation in low-grade lubricant markets. However, the addition of Veedol as a client and potential new private sector partnerships may help offset these losses.

The company successfully resolved RCP (Recycled Content Plastic) compliance issues with Asian Paints by developing a formula incorporating 40-50% recycled plastic, leading to improved volume pickup from January onwards.