Cosmo First Reports 2% Growth in Q2 Net Profit, Revenue Surges 21%

Cosmo First Limited , a leading player in the packaging films industry, has reported a modest growth in its net profit for the second quarter, accompanied by a significant increase in revenue.

Financial Highlights

Particulars (in ₹ crore)	Q2 FY2025-26	Q2 FY2024-25	YoY Change
Revenue from Operations	919.03	758.92	21.10%
Net Profit	46.69	45.75	2.10%
EBITDA	103.07	87.03	18.40%
EBITDA Margin	11.22%	11.47%	-25 bps

Cosmo First has demonstrated robust top-line growth in the second quarter of FY2025-26. The company's consolidated revenue from operations surged to ₹919.03 crore, marking a substantial 21.10% increase from ₹758.92 crore in the corresponding quarter of the previous fiscal year.

Profit and Profitability

The company's net profit for Q2 FY2025-26 stood at ₹46.69 crore, reflecting a modest 2.10% growth compared to ₹45.75 crore in Q2 FY2024-25. This indicates that while the company has managed to increase its profitability, the growth in net profit has not kept pace with the revenue expansion.

Operational Performance

Cosmo First's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the quarter reached ₹103.07 crore, up by 18.40% from ₹87.03 crore in the same quarter last year. However, the EBITDA margin saw a slight contraction, decreasing by 25 basis points to 11.22% from 11.47% in Q2 FY2024-25.

Segment Performance

The company's financial results reveal strong performance across its business segments:

Packaging Films: This segment remained the primary revenue driver, generating ₹873.83 crore in Q2 FY2025-26.
Specialty Chemicals: Contributed ₹49.00 crore to the quarter's revenue.
Petcare: A growing segment that added ₹12.63 crore to the top line.
Others: This category accounted for ₹25.79 crore of the revenue.

Balance Sheet and Liquidity

As of September 30, 2025, Cosmo First reported:

Total assets of ₹4,515.32 crore
A strong equity base with total equity of ₹1,540.49 crore
Non-current liabilities of ₹1,478.91 crore
Current liabilities of ₹1,495.92 crore

The company's balance sheet structure suggests a balanced approach to financing its operations and growth initiatives.

Conclusion

Cosmo First's performance in Q2 FY2025-26 demonstrates its ability to grow revenue significantly. While the modest growth in net profit indicates some pressure on margins, the company's diverse business segments and strong revenue growth provide a solid foundation for future performance. The company's investments in various segments, particularly the growing petcare division, may be areas of focus for potential future growth and margin expansion.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.82%	-6.60%	-10.17%	+32.33%	+6.36%	+176.94%

Cosmo First Limited , a prominent player in the packaging industry, has announced a significant corporate restructuring move. The company has acquired Films Inc, transforming it into a wholly owned subsidiary. This strategic acquisition marks a notable development in Cosmo First's corporate structure and potentially its market position.

Acquisition Details

According to the company's official communication to the stock exchanges, Cosmo Films Inc, USA, which was previously a step-down subsidiary, has now become a direct wholly owned subsidiary of Cosmo First Limited. This transition was accomplished through a transfer of share capital from Cosmo First Europe BV, another wholly owned subsidiary of Cosmo First Limited, to the parent company.

Financial Implications

It's important to note that this reorganization is primarily structural in nature. The company has explicitly stated that there will be no impact on its consolidated financials as a result of this transaction. This suggests that the move is more about streamlining operations and potentially improving management efficiency rather than immediate financial gains.

Corporate Governance

Cosmo First's prompt disclosure of this development demonstrates its commitment to transparency and compliance with regulatory requirements. The information was shared under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandates the disclosure of material events to the stock exchanges.

Market Implications

While the immediate financial impact may be neutral, this acquisition could have longer-term strategic implications for Cosmo First Limited. By bringing Films Inc under direct ownership, the company may be positioning itself for more integrated operations or preparing for future growth initiatives in the US market.

Investors and market analysts will likely be watching closely to see how this restructuring fits into Cosmo First's broader strategic plans and whether it leads to any operational synergies or market advantages in the coming months.