APT Packaging Limited, a manufacturer of co-extruded tubes, has announced its financial results for the quarter ended September 30, 2025, showing improved performance and significant corporate developments.

Financial Highlights

The company reported a total income of Rs 588.54 crore for Q2 FY2026, with a net profit of Rs 48.82 crore. The basic earnings per share (EPS) stood at Rs 0.37 for the quarter.

Here's a breakdown of the key financial metrics:

The company's performance shows a significant improvement compared to both the previous quarter and the same quarter last year.

Corporate Governance Changes

The board of directors approved the resignation of two independent directors:

1. CA Gheverchand M. Bothara (DIN: 01616919) - Tenure ended on October 1, 2025
2. CA Rupali A. Bothara (DIN: 03484957) - Tenure ended on September 21, 2025

Both directors completed two consecutive terms of 5 years each on the board, as prescribed under the Companies Act, 2013.

Utilization of Funds from Preferential Allotment

In May 2025, APT Packaging raised Rs 196.5 crore through a preferential allotment of equity shares. As of September 30, 2025, the company has utilized Rs 181.59 crore of these funds for the following purposes:

1. Repayment of debts: Rs 143.93 crore
2. Expansion and modernization: Rs 21.28 crore
3. Working capital requirements: Rs 10.96 crore
4. General corporate purposes: Rs 5.41 crore

Auditor's Observations

The company's statutory auditors have made several observations in their limited review report:

1. Non-provision of GST liability amounting to Rs 20.70 lakh for FY2019-20
2. Non-provision for doubtful debts of Rs 11.45 lakh
3. Inventory valuation system yet to be fully implemented
4. Non-provision of interest on unsecured loans from related and unrelated parties

The management has stated that they are addressing these issues, including appealing against the GST demand, arranging for debt recovery, implementing a new inventory valuation system, and processing interest waiver confirmations.

Conclusion

APT Packaging Limited has shown a strong financial performance in Q2 FY2026, with significant growth in revenue and profitability. The company is also making progress in utilizing the funds raised through its recent preferential allotment. However, the auditor's observations highlight areas that require management attention to ensure better financial practices and compliance.

APT Packaging , a manufacturer of co-extruded tubes, has announced the appointment of three new independent directors and reported a turnaround in its financial performance for the fiscal year 2024-25.

Board Appointments

The company's Board of Directors has approved the appointment of three new independent directors for five-year terms, subject to shareholder approval:

1. CA Soham Kotak: A chartered accountant practicing since 2018, specializing in taxation, forensic audit, and statutory audits. Kotak will serve as a Woman Director to comply with statutory requirements for gender diversity.

2. Adv. Sidhant Somani: A practicing advocate with expertise in legal drafting, contract vetting, and corporate disputes.

3. Mr. Vikas Tapdiya: Details about Tapdiya's background were not provided in the available information.

These appointments are set to commence from September 30, 2025, and continue until September 29, 2030. The new directors are expected to strengthen the Board's diversity in terms of gender, experience, and legal expertise.

Financial Performance

For the financial year ended March 31, 2025, APT Packaging reported:

All figures in lakhs, except EPS

The company attributed the turnaround to enhanced operational efficiency, improved market sentiment, and effective cost optimization strategies implemented by the management.

Other Developments

• Preferential Allotment: The company completed a preferential allotment of 65.50 lakh shares at a premium of ₹20 each, raising funds for working capital, expansion, and modernization.
• Positive Net Worth: Subsequent to the year-end, on May 8, 2025, the company made a preferential allotment of equity shares for a total consideration of ₹1,965.00 lakhs (including share premium), resulting in a positive net worth.

Outlook

Despite the improved financial performance, APT Packaging faces challenges including limited financial resources for technological upgrades and intense competition. The company remains committed to enhancing profitability through cost reduction and operational efficiency improvements.

The appointment of new independent directors and the recent capital infusion are expected to support the company's growth strategies and strengthen its market position in the co-extruded tubes segment.

Investors and stakeholders will be watching closely to see how these new appointments and financial improvements translate into long-term value creation for the company.