Kanpur Plastipack Limited (KPL), a leading manufacturer of Flexible Intermediate Bulk Containers (FIBCs), has reported robust financial results for the second quarter of fiscal year 2026, demonstrating significant growth and strategic expansion plans.

Financial Highlights

For Q2 FY26, Kanpur Plastipack delivered impressive financial performance:

All financial figures in INR crores

The company's net profit surged by 425% year-over-year, while total income grew by 8%. The EBITDA margin also saw a significant improvement, expanding by 240 basis points to reach 9.8%.

Strategic Initiatives and Expansion Plans

Kanpur Plastipack has announced several strategic moves to fuel its growth:

1. Capex Program: The company has unveiled a INR 105 crore capex program for capacity expansion and diversification. This includes:

   • INR 58.04 crores investment in a greenfield needle-punching non-woven project
   • INR 47 crores for FIBC Division expansion at Unit 3, Gajner Road

2. FIBC Capacity Expansion: Plans to add 1,200 metric tons of conversion capacity next year, with a target of 6,000 metric tons over the next five years.

3. Valex Ventures Acquisition: Completed the acquisition of a 76.19% stake in Valex Ventures Limited, providing direct access to high-value customers in the UK and EU markets.

4. Joint Venture with Essegomma S.p.A.: Approved a 50-50 joint venture with the Italian company to introduce high-performance Taslan yarn technology in India, marking KPL's entry into the high-margin technical and luxury textile segment.

Operational Performance

• Export business continues to be the key driver, contributing 74% of the revenue.
• Europe remains the largest market with a 51% share, followed by South America (27%) and North America (17%).
• The company is focusing on efficiency enhancement, automation, and debottlenecking across manufacturing facilities.

Management Commentary

Shri Shashank Agarwal, Deputy Managing Director, stated, "Q2 and H1 FY'26 have further strengthened our growth trajectory both in financial and operational terms. The momentum has carried on, reflecting the continued benefits of our strategic transformation, focus on efficiency, and disciplined execution across all business segments."

Future Outlook

With the ongoing strategic investments, product diversifications, and a robust order book, Kanpur Plastipack is well-positioned to sustain its growth momentum in the second half of the year. The company's focus on margin expansion, cost optimization, and process automation is expected to drive consistent, profitable, and sustainable growth.

Kanpur Plastipack's strong performance and strategic initiatives demonstrate its commitment to enhancing shareholder value and solidifying its position as a preferred global partner in industrial packaging and technical textiles.

Kanpur Plastipack Limited has formally submitted the minutes of its postal ballot proceedings to BSE and NSE on December 30, 2025, completing the regulatory compliance process following the successful approval of its Employee Stock Option Scheme 2025 and independent director appointment. The company announced the voting results on December 22, 2025, with both proposed resolutions receiving overwhelming shareholder approval.

Postal Ballot Results and Compliance

The postal ballot process concluded on December 19, 2025, with Shri Adesh Tandon of M/s Adesh Tandon & Associates serving as the appointed scrutinizer. The scrutinizer submitted his final consolidated report on December 22, 2025, confirming the approval of both special resolutions with requisite majority.

Employee Stock Option Scheme 2025 Approval

Shareholders approved the company's maiden Employee Stock Option Scheme-2025 (ESOS-2025) through the postal ballot process. The scheme received overwhelming support with 99.99% of valid votes cast in favor, demonstrating strong shareholder confidence in the company's employee engagement strategy.

Independent Director Appointment Confirmed

The appointment confirmation of Shri Basant Seth (DIN: 02798529) as Independent Director received strong shareholder support with 99.99% of valid votes in favor. His appointment strengthens the company's board governance structure.

Stock Exchange Submission Details

Company Secretary Ankur Srivastava formally submitted the postal ballot minutes to both BSE and NSE on December 30, 2025, pursuant to Section 110 of the Companies Act, 2013, and SEBI LODR Regulations, 2015. The submission included complete proceedings and scrutinizer reports for regulatory record.

The successful completion of the postal ballot process and subsequent regulatory filings demonstrate the company's commitment to corporate governance and transparency, with both resolutions receiving near-unanimous shareholder support for strategic growth initiatives.