Mold-Tek Packaging Limited , a leading packaging solutions provider, has reported a mixed set of results for the second quarter of fiscal year 2026, showcasing resilience in the face of seasonal challenges and market dynamics.

Key Highlights

• Sales value growth of 9.65% year-over-year
• Volume growth of 7% compared to Q2 FY25
• EBITDA increased by 8.37% despite lower capacity utilization
• Pharma packaging sales surged 45% quarter-on-quarter

Financial Performance

Segment Performance

Pharma Packaging

The company's pharma packaging segment demonstrated robust growth, with sales surging from Rs. 7.42 crores in Q1 to Rs. 10.80 crores in Q2, marking a significant 45% quarter-on-quarter increase.

Paint Segment

The paint segment experienced muted growth of 3.36%, primarily attributed to heavy rainfall affecting demand.

Food and FMCG Segment

This segment showed strong performance with a 19% growth rate.

Operational Updates

• The new Panipat facility commenced operations, with initial sales of Rs. 40 lakhs in October.
• The company maintains guidance of 12% volume growth and expects double-digit growth in Q4.

Management Commentary

J. Lakshmana Rao, Chairman and Managing Director, commented on the results: "Despite capacity utilization dropping from 74% in Q1 to 63% in Q2, we achieved an EBITDA margin of Rs. 40.60 per kg in H1 versus Rs. 36.73 last year, representing 10.5% growth. The GST implementation and extended monsoon impacted Q2 performance, but we are confident of recovery in the second half."

Future Outlook

Mold-Tek Packaging remains optimistic about its growth prospects, particularly in the pharma and food & FMCG segments. The company's strategic expansion in Panipat and its focus on high-margin products are expected to drive growth in the coming quarters.

The management's confidence in achieving double-digit growth in Q4, coupled with the ongoing expansion in the pharma segment, positions Mold-Tek Packaging for potential strong performance in the latter half of FY26.

Investors and stakeholders will be closely watching the company's performance in the coming quarters, especially as it navigates the challenges posed by seasonal factors and evolving market dynamics.

Mold-Tek Packaging Limited , a leader in rigid plastic packaging, has announced strong financial results for the second quarter of fiscal year 2026, demonstrating resilience and growth across multiple segments.

Key Financial Highlights

The company's performance shows a notable improvement across key financial metrics for Q2 FY2026 compared to the same period last year.

Segment-wise Performance

Pharma Packaging: A Key Growth Driver

The pharma packaging segment emerged as a standout performer, with sales growing by 45% in Q2 compared to Q1 FY2026. The company has already achieved over 50% capacity utilization in its first year of operations in this segment. Mold-Tek's reputation in In-Mold Labeling (IML) and its DMF facility with high hygiene standards have helped it gain a strong foothold in the EV tubes and stoppers market for nutraceuticals.

Food & FMCG: Steady Growth Despite Challenges

Despite a shortened season and persistent rainfall, the Food & FMCG segment, including Q-Pack, achieved a 34.89% volume growth. The company's strategic diversification into non-seasonal product categories has helped maintain consistent performance and reduce dependency on seasonal demand cycles.

Paints and Lubricants

The paints packaging segment posted a 12.34% growth, while the lubricants packaging segment experienced a 9.77% decline in volume.

Strategic Developments

1. Capacity Expansion: The company has completed capacity enhancements at Cheyyar and Panipat to meet growing demand from the Aditya Birla Group.

2. New Facility: The new Panipat facility is set to contribute from Q3 onwards, further strengthening capacity and market reach.

3. Printing Capabilities: Mold-Tek is introducing next-generation IML printing technology, which will allow for lower Minimum Order Quantities (MOQs) and reduced production costs.

4. New Customer Acquisitions: The company has secured new orders from reputed companies in both the food and pharma industries, including Veedol Corporation, Devee Agencies, Rallis India Limited, and Pharmaforce.

Management Commentary

J. Lakshmana Rao, Chairman and Managing Director, commented on the results: "Pharma Packaging will be a key driver of Mold-Tek's growth and profitability in the coming years. With multiple opportunities emerging in this space and a strong lineup of innovative products, we are confident of establishing Mold-Tek as a major player in the Pharma Packaging segment."

Future Outlook

The company's focus on innovation, quality, and customer-centric solutions positions it well for continued growth. The recent GST rate reductions on Food and FMCG ready-to-eat products have positively influenced demand across the packaging industry, which Mold-Tek is well-positioned to capitalize on with its expanded capacity and diversified product portfolio.

Mold-Tek Packaging's strong Q2 performance, coupled with its strategic initiatives and expansion plans, indicates a positive outlook for the company in the coming quarters.