Pyramid Technoplast Limited, a leading manufacturer of rigid industrial packaging products, has announced two key strategic developments aimed at strengthening its manufacturing footprint and improving long-term project economics. The company is progressing with a new manufacturing facility in Kutch, Gujarat, while also securing significant government subsidy benefits for its Wada and Bharuch facilities.

Kutch Facility to Add 10,000 IBCs Per Month

Pyramid Technoplast is establishing a new manufacturing facility in Kutch, Gujarat, strategically positioned to strengthen its presence across Western India. The facility is designed to cater to increasing regional demand, offering customers faster deliveries and improved service levels. The location is also expected to deliver logistical advantages through lower freight costs and shorter delivery timelines.

The key parameters of the Kutch expansion are outlined below:

Government Subsidy Benefits for Wada and Bharuch Facilities

The company has also received government subsidy approvals covering its Wada and Bharuch facilities, which are expected to reduce the effective cost of investment and improve project economics. The subsidy benefits are anticipated to lower effective capital costs, thereby improving ROCE, IRR, and project payback, while providing greater visibility on long-term cash generation.

The subsidy details for each facility are as follows:

Management Commentary

Mr. Bijay Agarwal, Managing Director, Pyramid Technoplast Limited, commented on the developments:

"We are pleased to announce these two important developments as we continue to strengthen the foundation for Pyramid Technoplast's next phase of growth. Our Kutch expansion will add 10,000 IBC units per month of capacity and strengthen our presence in Western India, while also providing meaningful logistical and customer-service advantages.

At the same time, the government subsidy benefits secured for our Wada and Bharuch facilities will reduce the effective cost of our investments and further improve the return profile of these assets. These developments are aligned with our broader strategy of expanding capacity in line with market demand while maintaining disciplined capital allocation.

With our existing manufacturing footprint continuing to ramp up, the Kutch facility adding incremental capacity and efficiency initiatives such as solar and recycling contributing to cost optimisation, we remain focused on converting our expanded manufacturing platform into higher utilisation, stronger profitability and improved returns over the medium term."

Key Highlights

• New Kutch facility targets 10,000 IBC units per month with an investment of ₹20–25 crore, expected to be commissioned by March 2027
• Government subsidy of approximately ₹24.90 crore over 10 years approved for the Wada facility, with sanction expected by March 2027
• Subsidy benefits of approximately ₹10.50 crore approved for Unit 7 at Bharuch, with formal sanction application yet to be filed
• Combined potential subsidy support aggregates to approximately ₹35.40 crore, subject to applicable approval and disbursement processes
• Subsidy benefits expected to improve ROCE, IRR, and project payback across respective facilities

Pyramid Technoplast Limited reported a 32% year-on-year increase in net profit to ₹104.45 lakh for the quarter ended June 30, 2026, driven by a 36% surge in revenue from operations. The Mumbai-based industrial packaging company posted revenue of ₹2,224.90 lakh in Q1FY27, up from ₹1,638.11 lakh in the corresponding period last year. Total income rose to ₹2,235.12 lakh from ₹1,646.62 lakh previously. Adding to the strong headline numbers, EBITDA climbed to ₹202M from ₹133M year-on-year, with EBITDA margin expanding to 9.1% from 8.14%, reflecting improved operational efficiency across the period.

The Board of Directors approved the unaudited financial results and the limited review report of the statutory auditor on August 11, 2026. In a significant governance move, the Board also approved the appointment of M/s Desai Saksena & Associates (Firm Registration No.: 102358W) as the new Statutory Auditors. This appointment follows the completion of the tenure of the existing auditor, M/s Banka and Banka. The new firm will hold office for a term of five years, commencing from the conclusion of the 28th Annual General Meeting until the conclusion of the 33rd Annual General Meeting, subject to shareholder approval.

Financial Performance Highlights

The company's profitability expanded as revenue growth outpaced cost increases. While cost of materials consumed rose to ₹1,718.62 lakh from ₹1,226.50 lakh, other expenses remained relatively contained. Finance costs increased to ₹35.14 lakh from ₹12.60 lakh, reflecting higher borrowing or interest rates, yet the overall impact on bottom-line profits was minimal due to operational efficiency. The following table summarises the key financial metrics for the quarter:

Tax expenses stood at ₹35.13 lakh, comprising current tax of ₹23.61 lakh and deferred tax of ₹11.52 lakh. The effective tax rate remained stable, contributing to consistent growth in net profit. Other income contributed ₹10.22 lakh, a marginal increase from ₹8.50 lakh in the previous year.

EBITDA and Margin Expansion

Beyond net profit growth, the quarter saw a notable improvement in operating performance. EBITDA rose to ₹202M from ₹133M year-on-year, while EBITDA margin expanded to 9.1% from 8.14% over the same period. The following table captures the key operational metrics:

The margin expansion indicates that revenue growth translated into improved profitability at the operating level, with cost management playing a supportive role despite the rise in material costs and finance charges.

What the Numbers Show

The primary driver of the improved financial performance was top-line growth in the industrial packaging segment, which accounts for the company's entire operations under Ind AS 108. Revenue grew by nearly 36%, while net profit grew by 32%, indicating that margin pressure existed but was managed effectively. The rise in finance costs to ₹35.14 lakh from ₹12.60 lakh warrants monitoring, as it suggests an increase in debt servicing obligations or interest rates impacting the cost structure. However, the ability to maintain strong net profit growth alongside EBITDA margin expansion highlights robust operational leverage in the current quarter.

Governance and Compliance

The financial results were prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies Act, 2013. The Audit Committee reviewed the results before they were taken on record by the Board. The company operates in a single segment and has no subsidiaries or associates, thus consolidation under Ind AS 110 is not required. Previous period figures have been regrouped where necessary to ensure comparability. The Board also approved convening the 28th Annual General Meeting via Video Conferencing or Other Audio-Visual Means, and an extract of the financial results will be published in relevant newspapers as per Regulation 47 of SEBI LODR Regulations. The meeting was held on August 11, 2026, commencing at 12:10 PM and concluding at 1:15 PM.