Kanpur Plastipack Limited demonstrated robust financial performance in Q3FY26, reporting significant growth across key metrics while advancing strategic initiatives to strengthen its position in the global industrial packaging and technical textiles market. The company held its earnings conference call on February 20, 2026, outlining both financial achievements and strategic progress during the quarter ended December 31, 2025.

Strong Financial Performance in Q3FY26

The company delivered impressive financial results for the third quarter, with total income reaching INR195.2 crores, representing a year-on-year growth of approximately 19%. Net profit increased substantially by 23% to INR9.2 crores, while earnings per share stood at 3.9. EBITDA for the quarter was INR17.8 crores with margins maintained at 9.1%.

Revenue excluding trading activities remained stable at approximately INR147.8 crores, indicating sustained core manufacturing performance. The strong results reflect a balanced product mix, steady export demand, and continued cost discipline across operations.

Nine-Month Performance Shows Consistent Growth

For the nine-month period ended December 31, 2025, the company reported total income of INR543.6 crores, marking growth of nearly 20% year-on-year. EBITDA increased to INR49.7 crores with improved margins of 9.1%, while net profit rose sharply to INR23.7 crores, reflecting enhanced operating leverage and tighter cost control.

Export Leadership and Geographic Diversification

Exports continue to anchor the company's performance, with Q3FY26 export volumes reaching 5,900 tons and nine-month volumes totaling 18,895 metric tons. The geographic mix demonstrates strong diversification, with Europe accounting for 62% of Q3 exports, followed by South America at 17% and North America at 15%. The remaining exports were distributed across Asia, Australia, and Africa.

Importantly, 80% to 85% of the business comes from repeat end users, reflecting long-standing relationships, product reliability, and compliance with global standards. This repeat-led model provides strong revenue visibility and reduced volatility. The company's revenue streams are well-diversified across industries, with agro and food industry contributing 44%, industrial packaging 23%, construction 12%, agriculture 8%, automotive 7%, and mining and minerals 6%.

Strategic Capacity Expansion and Technology Initiatives

The company announced a comprehensive INR99 crores capex program with multiple strategic components. The FIBC capacity expansion will add 6,000 tons over the next five years through a new building at unit 3, requiring an investment of INR20 crores. This phased approach includes approximately 1,200 tons addition annually, supporting the company's goal to increase FIBC contribution from current 54% to 70-75% of manufacturing revenue.

The technical textiles non-woven needle punch facility, requiring INR55 crores investment, will target automotive interiors, artificial leather, footwear, geotextiles, and filtration fabrics. Additionally, a modern roll management system will enhance yield control, reduce wastage, and improve inventory management, with completion targeted for July 2026.

Joint Ventures and Technology Partnerships

The company strengthened its technology capabilities through the incorporation of ESSEKAN Private Limited, a 50-50 joint venture with Essegomma S.p.A. of Italy. This partnership enhances access to advanced high-performance yarn technology for premium textile applications. The joint venture operates as an asset-light model with INR20 lakhs investment from each partner, focusing on recyclable, sustainable, dope-dyed luxury polypropylene yarn for outdoor furniture applications.

Expected revenue from this initiative is projected at INR20-25 crores in the next financial year, targeting a premium segment currently not produced in India. The company also completed the acquisition of Valex Ventures in the UK, strengthening its presence in regulated European markets and providing closer market access over time.

Operational Excellence and Market Positioning

FIBC remains the core growth engine, contributing 54% of manufacturing revenue with EBITDA margins of 12.5% to 13.5%, significantly higher than fabric (7%) and multifilament yarn (7%) segments. The company targets increasing FIBC contribution to 70-75% while reducing fabric contribution from 28% to approximately 10%. Export EBITDA margins stand at 11.5% to 12%, compared to domestic margins of 6.5%.

The new IOCL trading division warehouse at Gajner Road has been completed, improving logistics efficiency and reducing dependency on rented facilities. Nearly half of the company's energy requirements are now met through renewable sources, supporting sustainability initiatives that are increasingly important for global customers.

Kanpur Plastipack Limited has successfully conducted its quarterly earnings conference call for Q3FY26 results and made the audio recording available on its official website. The company informed stock exchanges about the completion of this regulatory requirement under Regulation 30 of SEBI listing obligations.

Conference Call Completion

The earnings conference call was held as rescheduled on February 20, 2026, following the company's earlier announcement to move the date from February 17 due to unavoidable business commitments. The call proceeded as planned with management discussing the quarter ended December 31, 2025 financial results.

Audio Recording Access

The company has fulfilled its regulatory obligation by making the complete audio recording accessible to investors and stakeholders. The recording can be accessed through the company's official website at the provided link.

Recording Details:

• Direct Link: Available on www.kanplas.com
• File Format: MP3 audio recording
• Accessibility: Public access through company website
• Regulatory Compliance: Submitted as per SEBI Regulation 30

Management Participation

The conference call featured key leadership members who discussed the company's quarterly performance:

• Mr. Manoj Agarwal - Chairman cum Managing Director
• Mr. Shashank Agarwal - Deputy Managing Director

Regulatory Compliance

Company Secretary Ankur Srivastava formally communicated the availability of the audio recording to both BSE Limited and National Stock Exchange of India Limited. The submission was digitally signed and filed in compliance with SEBI listing requirements, ensuring transparency in investor communications.

This completion of the earnings call process demonstrates the company's commitment to maintaining regular investor engagement and regulatory compliance while discussing Q3FY26 financial performance and business developments.