Perfectpac Q1FY26 net profit falls 58% to ₹50.89 lakh on revenue dip

Perfectpac Limited reported a sharp contraction in profitability for the first quarter of FY26, with net profit plunging 58.1% year-on-year to ₹50.89 lakh. The packaging solutions provider saw its revenue from operations decline by 3.8% to ₹2,854.37 lakh, down from ₹2,967.74 lakh in the corresponding period of FY25. This downturn marks a challenging start to the fiscal year, primarily driven by tighter margins and an inability to scale down fixed costs proportionately with the drop in sales volume.

The Board of Directors approved the unaudited financial results at its meeting held on August 07, 2026. In compliance with Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company published newspaper advertisements in "Financial Express" (English) and "Jansatta" (Hindi) on August 07, 2026. The results were subjected to a limited review by V S S A & Associates, the statutory auditors, pursuant to Regulation 33 of the SEBI LODR Regulations, 2015.

Financial Performance Overview

Total income for the quarter stood at ₹2,854.37 lakh, reflecting the operational revenue as other income remained negligible. While total expenses decreased slightly to ₹2,788.81 lakh from ₹2,809.59 lakh in Q1FY25, this reduction was insufficient to offset the revenue decline. Consequently, profit before tax compressed significantly to ₹67.08 lakh from ₹161.63 lakh. Tax expenses for the quarter amounted to ₹16.19 lakh, comprising ₹19.36 lakh in current tax and a deferred tax benefit of ₹3.17 lakh.

Metric	Q1FY26 (₹ in lakhs)	Q1FY25 (₹ in lakhs)	Change
Revenue from Operations	2,854.37	2,967.74	-3.8%
Total Expenses	2,788.81	2,809.59	-0.7%
Profit Before Tax	67.08	161.63	-58.5%
Net Profit After Tax	50.89	121.45	-58.1%
Earnings Per Share (₹)	0.76	1.82	-58.2%

Earnings per share dropped to ₹0.76 from ₹1.82 in the same quarter last year. The paid-up equity share capital remained unchanged at ₹133.26 lakh. There were no exceptional items reported in the current quarter, unlike the prior year which included exceptional items of ₹12.00 lakh.

What the Numbers Show

A critical analytical observation from the filing is the divergence between revenue decline and expense management. While revenue fell by approximately 3.8%, total expenses decreased by only 0.7%. This indicates that fixed costs did not scale down proportionately with the drop in sales. Employee benefits expense actually rose to ₹321.28 lakh from ₹294.23 lakh, suggesting potential inefficiencies or delayed cost adjustments in response to lower operational throughput. This rigidity in the cost structure significantly amplified the impact of the modest revenue dip on the bottom line.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE759I01024/6c46c6a1-3410-4143-bfb4-466025369428.pdf

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-5.09%	+7.30%	+9.64%	-11.30%	-25.08%	+152.70%

The Board of Directors of perfectpac has approved the re-appointment of Sanjay Rajgarhia as Managing Director for a further period of three years. The new tenure will commence on July 01, 2027, and conclude on June 30, 2030. This leadership continuity ensures stability for the packaging firm, with Rajgarhia retaining control over strategic direction during his extended term. The appointment remains subject to formal approval by the company's shareholders at an upcoming general meeting.

Board Approval and Regulatory Compliance

The Board meeting was held on August 07, 2026, starting at 12:00 noon and concluding at 01:20 p.m. During this session, the directors considered and approved the re-appointment based on the joint recommendations of the Nomination & Remuneration Committee and the Audit Committee.

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company issued an intimation to BSE Limited regarding the decision. The filing confirms that Rajgarhia will not be liable to retire by rotation during this specific three-year term.

Profile and Shareholding

Sanjay Rajgarhia brings approximately 37 years of experience in the paper and packaging industry to the role. He holds a Bachelor of Commerce (Honours) degree and possesses expertise in financial management, investments, taxation, SEBI corporate laws, and risk management. Having been associated with Perfectpac Limited for the past 37 years, he is credited with providing effective leadership that strengthened the company’s operational and financial performance.

Rajgarhia maintains a significant stake in the company, holding 34,38,100 equity shares as of the date of the announcement. This shareholding constitutes 51.63% of the company's paid-up equity share capital. He is related to Ajay Rajgarhia, who serves as a Non-Executive Director, being his brother. Rajgarhia is not related to any other director or Key Managerial Personnel (KMP) of the company.

Key Details of Re-appointment

Particulars	Details
Designation	Managing Director
Term Duration	3 years
Tenure Period	July 01, 2027 to June 30, 2030
Rotation Liability	Not liable to retire by rotation
Shareholding	34,38,100 equity shares (51.63%)
Regulatory Status	Not debarred by SEBI or any regulatory authority

Governance and Relationships

The disclosure highlights Rajgarhia’s relationship with Ajay Rajgarhia, the Non-Executive Director, confirming they are brothers. Apart from this familial link, no other relationships with existing directors or KMPs were disclosed. The filing also states that Rajgarhia is not debarred from holding the office of Director by virtue of any order from SEBI or any other regulatory authority, satisfying the requirements under circular No. LIST/COMP/14/2018-19 and NSE/CML/2018/24 dated June 20, 2018.