Xpro India reported a sharp turnaround in profitability for the quarter ended June 30, 2026, with net profit after tax (PAT) rising 127.9% year-on-year to ₹9.8 crore from ₹4.3 crore in Q1FY26. The strong bottom-line performance was driven by a 9% increase in sales volumes, which outpaced the industry’s refrigerator production growth of 4%, alongside higher average selling prices (ASPs) supported by raw material pass-throughs and a favorable product mix. This performance underscores the company’s ability to gain market share despite global geo-political uncertainties and rising polymer costs.

Financial Performance

Revenue from operations grew 20.4% to ₹174.4 crore in Q1FY27, up from ₹144.9 crore in the corresponding period of FY26. While top-line growth was robust, EBITDA expanded at a slower pace, rising 7.0% to ₹15.3 crore from ₹14.3 crore. Consequently, EBITDA margins compressed to 8.8% from 9.9% in Q1FY26, reflecting increased organization and other costs that built up ahead of upcoming capacity expansions. Profit before tax (PBT) surged 128.3% to ₹13.7 crore, benefiting from operational efficiencies and scale.

Operational Highlights

The dielectric films business maintained its strong market position, with continued onboarding of new customers and qualification for new applications supporting the ramp-up of recently expanded capacity. In contrast, the COEX Cast Films segment recorded lower volumes due to prevailing market conditions, though management remains focused on product mix optimization and de-bottlenecking production capacity. The conflict in West Asia contributed to higher polymer prices across the value chain, impacting input costs but also enabling ASP increases.

Expansion Updates

A new dielectric film line commissioned at Barjora on March 27, 2026, has doubled India’s nameplate capacity from 4,000 to 8,000 MT annually. Initial supplies to domestic and international customers have received encouraging feedback, with full product range development underway. Meanwhile, the UAE project (Xpro Dielectric Films FZ-LLC) faces minor delays due to shipping disruptions caused by the Middle East conflict, affecting the arrival of utility equipment and raw materials. Mechanical installation of key production equipment is nearly complete, and the company continues to monitor developments closely.

What the Numbers Show

The divergence between revenue growth (20.4%) and EBITDA growth (7.0%) highlights the pressure on margins from rising input costs and pre-expansion overheads. However, the significant surge in PAT (127.9%) suggests effective cost control in non-operating areas or favorable tax treatments, allowing profitability to rebound sharply despite margin compression. The 9% volume growth against a 4% industry backdrop signals genuine market share gains, positioning Xpro India for stronger leverage as new capacities come online.

Xpro India Limited declared a dividend of ₹2 per ordinary share for the financial year ended March 31, 2026, during its 29th Annual General Meeting held on July 20, 2026. The company also approved the appointment of Girish Behal as Managing Director for a three-year term starting January 1, 2027. These decisions were taken alongside strategic updates regarding capacity expansion in the dielectric films segment, which is being prioritized as a key growth driver.

The meeting, chaired by Sri Sidharth Birla, was conducted via Video Conferencing. Shareholders approved seven items, including the adoption of financial statements and the re-appointment of directors. The remote e-voting process was facilitated by MUFG Intime India Private Limited from July 17 to July 19, 2026.

Strategic Expansion and Capacity

The Chairman highlighted that dielectric films are a strategic priority. The company commissioned a second line in March, doubling capacity to 8,000 MT. Xpro Dielectric Films, the UAE subsidiary, is commissioning a third line this year, which will increase total capacity to 13,000 MT. A leading UAE investor acquired a 15% equity stake in the subsidiary at a premium, validating the venture's prospects.

Management indicated that more than 20 new dielectric film lines are needed globally by 2030. The company plans to build a fourth line in the UAE and a fifth in India, contingent on economic conditions.

Leadership Changes and Governance

Sri C. Bhaskar will step down as Managing Director on December 31, 2026, after 26 years on the Board and 44 years with the company. Sri H. Bakshi, with 32 years of service, will also conclude his executive responsibilities. Both will transition to the Chairman's Office as mentors. Girish Behal, currently President and CEO, is proposed to take over as Managing Director from January 1, 2027.

Resolutions Passed

The Chairman confirmed there were no qualifications or adverse remarks in the Auditors' Report or the Secretarial Audit Report. Sri Girish Bhatia was appointed as the Scrutiniser for the e-voting process.