Rishiroop Limited , a company specializing in polymer blends, has announced a significant expansion of its business operations. The Board of Directors has approved the adoption of a new line of business in the plastics and plastics compounding sector, along with a capacity expansion plan.

New Business Vertical

The company plans to invest approximately Rs 17 crore in this new business vertical, targeting the high-growth plastics sector. This strategic move is expected to diversify Rishiroop's product portfolio and potentially open up new market opportunities.

Capacity Expansion

In addition to entering the plastics sector, Rishiroop Limited has approved a capacity expansion plan. The key details of this expansion are:

The capacity expansion represents a significant increase of about 67% over the current production capacity. This expansion aims to modernize operations, increase production capabilities, and replace aging machines.

Financial Implications

The total investment for both the new business line and capacity expansion is estimated at Rs 35.00 crore. The company plans to finance this expansion through internal accruals, indicating a strong financial position.

Market Impact

This move by Rishiroop Limited comes at a time when the plastics sector is experiencing high growth. The expansion into plastics compounding, coupled with increased production capacity, positions the company to potentially capture a larger market share in the polymer and plastics industry.

For the quarter ended September 30, Rishiroop Limited reported a total income of Rs 1,697.12 lakhs, with a net profit of Rs 21.85 lakhs. The company's strategic expansion could potentially impact these figures in future quarters as the new capacity comes online and the plastics business begins operations.

As Rishiroop Limited embarks on this significant expansion, investors and industry observers will be keenly watching how this move impacts the company's market position and financial performance in the coming years.

Rishiroop , a polymers and compounds company, has reported mixed financial results for the first quarter, with a decline in operational revenue offset by significant investment gains.

Revenue and Income

The company's revenue from operations declined to ₹1,436.11 lakhs, down from ₹1,874.84 lakhs in the same quarter last year. However, total income increased to ₹2,666.07 lakhs from ₹2,128.65 lakhs, primarily driven by substantial gains on fair valuation of investments.

Profitability

Despite the decline in operational revenue, Rishiroop reported a net profit of ₹867.11 lakhs for the quarter, up from ₹817.28 lakhs in the corresponding period. This improvement in profitability can be attributed to the significant gains on fair valuation of investments, which amounted to ₹1,001.76 lakhs compared to ₹192.07 lakhs in the previous year.

Key Financial Highlights

Other Developments

The company has renewed its office lease agreement with promoter group entity Rishiroop Polymers Private Limited. The agreement, for 1,000 sq. ft. of office space in Mumbai, has been extended for 11 months until August 8, 2026, with the rent maintained at ₹250,000 per month.

While Rishiroop faces challenges in its operational revenue, the company's ability to generate significant investment gains has helped maintain overall profitability. The management's focus on cost control and strategic investments will be crucial for navigating the current market conditions in the Polymers & Compound sector.