CosmoFirst Q2 FY26: Revenue Surges 21% to Rs 919 Crores Amid Margin Pressures

Cosmo First Limited, a leading manufacturer of specialty films, reported a robust 21% year-over-year increase in consolidated sales for Q2 FY26, reaching Rs 919 crores. The company's EBITDA also saw a significant rise of 19%, climbing to Rs 128 crores from Rs 107 crores in the same quarter last year. This growth was primarily driven by higher volumes from new capacity additions.

Financial Highlights

Metric	Q2 FY26	Q2 FY25	YoY Change
Consolidated Sales	919.00	760.00*	21% ↑
EBITDA	128.00	107.00	19% ↑
BOPP Gross Margin	22.00	25.00**	12% ↓
BOPET Gross Margin	6.00	12.00**	50% ↓

*Calculated based on 21% YoY growth **Compared to Q1 FY26 (June'25 quarter)

Key Factors Influencing Performance

The company's performance was influenced by both favorable and unfavorable factors:

Favorable Factors:

Higher sales volume (25% increase)
Improved specialty margins
Enhanced performance of the Specialty Chemical Subsidiary

Unfavorable Factors:

Margin decline in BOPP and BOPET commodity films due to imports
Increased US tariffs (from 5% to 55%)
Stabilization costs related to new line commissioning

Segment Performance

The Specialty Chemical Subsidiary showed strong growth, posting a record EBITDA of Rs 13 crores on a top line of Rs 49 crores in Q2 FY26. The subsidiary also developed three new coating products, which are expected to be commercialized over the next two quarters.

Future Outlook

Cosmo First Limited provided guidance for FY26:

Expected revenue: Rs 3,500-3,800 crores
Specialty portfolio contribution: Rs 2,200-2,500 crores

The company is focusing on leveraging new investments, growing specialty films, and further reducing costs. A cost rationalization impact of approximately Rs 25 crores is expected on an annualized basis in the next 12 to 15 months.

Challenges and Strategies

The company faces challenges from increased US tariffs and import competition. To address these issues, Cosmo First is:

Considering further price increases for US customers if tariffs don't decrease by December
Expanding into new markets, with growth seen in Americas, Europe, Middle East, and Africa
Focusing on specialty and semi-specialty films to improve margins

Debt and Capital Expenditure

The company's net debt position as of September 2025 is approximately Rs 1,230 crores, which is 2.97x EBITDA and 0.8x GDP. While this represents a peak debt level, Cosmo First expects debt reduction in the coming years as most of the growth-related debt is already on the balance sheet.

For FY26, the company has planned a capex of Rs 250 crores, with no significant capex planned for the following year, allowing for potential debt reduction.

Cosmo First Limited continues to navigate challenges in the global market while focusing on growth in specialty films and new business verticals. The company's strategic investments and focus on cost optimization are expected to drive long-term value creation for stakeholders.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.10%	-4.44%	-11.80%	+11.89%	+3.28%	+155.85%

Cosmo First Limited, a prominent player in the Indian corporate landscape, has recently announced significant changes in its Information Technology (IT) department leadership. The company has appointed a new Vice President of IT while bidding farewell to its General Manager-IT.

New Appointment

Anurag Chaube has been appointed as the new Vice President-Information Technology at Cosmo First Limited, effective November 17, 2025. Chaube brings with him a wealth of experience in the IT sector, which is expected to contribute to the company's technological initiatives.

Anurag Chaube's Profile

Aspect	Details
Position	Vice President-Information Technology
Appointment Date	November 17, 2025
Experience	Over 25 years in IT
Expertise	Developing/implementing Enterprise Business applications, Cloud Solutions, and IT service operations
Education	- MCA from Vinayaka University, India

PGDCA from IIHT Raipur
PGD (Business Management-IT) from IMT Ghaziabad
BCS from Allahabad University |

Departure

Simultaneously, the company announced the resignation of Sriram Arthanari, who has been serving as the General Manager-IT. Arthanari's decision to leave the company is attributed to personal reasons and his plans to relocate to his hometown.

Sriram Arthanari's Departure Details

Aspect	Details
Position	General Manager-Information Technology
Last Working Day	November 28, 2025 (Close of business hours)
Reason for Departure	Personal reasons and relocation to hometown

This transition in the IT leadership comes at a time when technology plays an increasingly crucial role in corporate strategy and operations. Chaube's extensive experience in enterprise business applications and cloud solutions aligns with the growing emphasis on digital transformation across industries.

Cosmo First Limited's approach in managing this transition, as evidenced by the appointment of a new VP-IT, demonstrates the company's commitment to maintaining leadership in its technology department. As organizations continue to rely heavily on IT infrastructure for their operations and growth, such strategic appointments can be significant in driving innovation and efficiency.

The company has not disclosed any immediate changes to its IT strategy or ongoing projects in light of this leadership transition.