Raj Packaging Industries returned to profitability in FY26, reporting a net profit of ₹34.98 lakh compared to a net loss of ₹71.51 lakh in the previous year. The company's revenue from operations grew 7.8% year-on-year to ₹3,278.62 lakh, driven by improved operational efficiency and cost control measures.

The turnaround was supported by a significant reduction in finance costs and disciplined financial management. The Board has not declared any dividend for the financial year ended March 31, 2026.

Financial Performance

Total expenses rose by ₹91.45 lakh to ₹3,235.02 lakh, primarily due to higher cost of materials consumed (₹2,530.36 lakh vs ₹2,342.42 lakh) and other expenses (₹468.96 lakh vs ₹406.94 lakh). However, these were offset by a decrease in employee benefits expense to ₹219.39 lakh from ₹243.07 lakh and lower finance costs at ₹37.77 lakh against ₹46.49 lakh in the prior year.

What the Numbers Show

The shift from loss to profit was largely driven by a reversal in deferred tax positions rather than just operational gains. While the company generated a profit before tax of ₹47.15 lakh, the net profit after tax stood at ₹34.98 lakh. This divergence is explained by a deferred tax expense of ₹12.17 lakh in FY26, compared to a deferred tax credit of ₹23.84 lakh in FY25. In the previous year, the tax credit helped cushion the bottom line despite a significant pre-tax loss; this year, the tax charge reduced the final profit figure relative to the pre-tax result.

Balance Sheet and Cash Flow

The company reduced its total borrowings during the year. Non-current borrowings fell to ₹167.44 lakh from ₹255.30 lakh, while current borrowings decreased to ₹205.23 lakh from ₹243.25 lakh. Net debt declined to ₹372.67 lakh from ₹498.55 lakh, improving the debt-to-equity ratio to 0.29 from 0.39.

Cash generated from operations turned positive at ₹164.11 lakh, reversing a cash outflow of ₹162.07 lakh in FY25. This improvement was driven by better working capital management, including an increase in trade payables by ₹58.20 lakh. However, inventory levels rose by ₹73.08 lakh, indicating continued investment in stock.

Corporate Governance Updates

The company will hold its 39th Annual General Meeting on September 28, 2026, via video conferencing. Key agenda items include:

• Re-appointment of Ms. Neepa Kankaria as Executive Director.
• Regularization of Mr. Chandra Shekhar Agrawal as an Independent Director.
• Revision of remuneration for Ms. Neepa Kankaria from ₹2.10 lakh per month to ₹2.60 lakh per month, effective August 1, 2026.

Mr. Dayaniwas Sharma resigned as an Independent Director on September 1, 2025. Ms. Khushboo Joshi was appointed as Company Secretary and Compliance Officer on August 14, 2026, succeeding Ms. Swarupa Rani K.

Raj Packaging Industries Limited raj packaging industries reported a significant improvement in profitability for the first quarter of FY26, with net profit after tax rising to ₹78.59 lakh compared to ₹11.84 lakh in Q1FY25. Revenue from operations grew by 53% year-on-year to ₹1,384.37 lakh, up from ₹902.29 lakh in the same period last fiscal.

The Hyderabad-based manufacturer of multilayer co-extruded barrier and non-barrier plastic films also saw its earnings per share (EPS) jump to ₹1.72 from ₹0.26 in the previous year’s corresponding quarter. The Board of Directors approved these unaudited financial results during a meeting held on August 14, 2026, following a limited review by statutory auditors NAC and Associates LLP.

Financial Performance

The company’s total income for the quarter stood at ₹1,384.83 lakh, driven primarily by operational revenue rather than other income, which remained negligible at ₹0.46 lakh. Total expenses were recorded at ₹1,279.32 lakh, including cost of materials consumed at ₹1,035.13 lakh and employee benefits expense at ₹55.88 lakh.

For the full year FY25, the company had reported revenue of ₹3,278.62 lakh and a net profit of ₹34.97 lakh. The current quarter’s performance marks a notable acceleration in profitability compared to the prior year’s baseline.

What the Numbers Show

A key observation from the filing is the disproportionate growth in pre-tax profits relative to revenue. While revenue grew by approximately 53%, profit before tax surged by over 560%. This divergence suggests improved operational leverage or margin expansion in the quarter, as fixed costs such as depreciation (₹13.59 lakh) and employee benefits (₹55.88 lakh) remained relatively stable or grew at a slower pace than top-line revenue. Finance costs also decreased slightly to ₹9.69 lakh from ₹11.46 lakh in Q1FY25, contributing to the bottom-line expansion.

Corporate Governance Updates

Alongside the financial results, the Board approved several administrative changes:

• Remuneration Revision: The managerial remuneration of Ms. Neepa Kankaria, Whole-Time Director, was increased from ₹2,10,000 per month to ₹2,60,000 per month, effective August 1, 2026. This revision is subject to shareholder approval at the upcoming Annual General Meeting (AGM).
• New Appointment: Ms. Khushboo Joshi was appointed as the Company Secretary and Compliance Officer with effect from August 14, 2026. She brings over 13 years of corporate experience and holds qualifications including Associate Company Secretary and an MBA in Human Resources.

The company has scheduled its 39th AGM for September 28, 2026, to be conducted through Video Conferencing or Other Audio-Visual Means (OAVM). Detailed notices will be issued in due course.