Mold-Tek Packaging Reports Strong Q3 FY26 Performance with 20% EBITDA Growth
Mold-Tek Packaging delivered strong Q3 FY26 results with 20% EBITDA growth and 12% sales growth in nine months, despite Q3 being the traditionally weakest quarter. The company is targeting INR870 crores revenue for current year and over INR1,000 crores for next year, driven by robust pharma segment growth, strong ABG paints performance, and operational efficiency improvements through facility consolidation in Hyderabad.
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Mold-Tek Packaging Limited showcased strong financial performance in its Q3 FY26 earnings conference call held on February 09, 2026, with Chairman and Managing Director J. Lakshmana Rao highlighting significant growth across key metrics despite seasonal challenges.
Financial Performance Overview
The company delivered impressive results for the nine-month period, demonstrating resilience in a challenging operating environment. Key performance indicators showed substantial improvement across multiple parameters.
| Metric | Nine Months Performance | Q3 Performance |
|---|---|---|
| EBITDA Growth | 20% | 14% |
| Sales Growth | 12% (value terms) | 6% (volume) |
| PAT Growth | 18% | - |
| PAT Amount | INR52.25 crores | - |
| Earnings Per Share | INR15.75 | - |
The management expressed confidence in closing the current year with approximately INR870 crores in revenue, with EBITDA expected to reach around INR170 crores, up from INR144 crores in the previous year.
Operational Efficiency and Consolidation
A significant development during the quarter was the consolidation of manufacturing units in Hyderabad. The company successfully reduced its Hyderabad operations from five units to just two units - Unit 1 and Unit 10. This consolidation includes:
- Integration of the printing unit into one of the blocks at Sultanpur Hyderabad unit
- Relocation of Unit 4 (primarily serving Asian Paints) to Sultanpur B block from March onwards
- Expected improvements in operational efficiencies, cost controls, and reduced movement of goods and personnel
The capacity utilization currently stands at 62.50% in Q3, down from 74% in Q1, with expectations to cross 70% in Q4 and maintain above 70% for the next full year.
Segment Performance and Growth Drivers
Pharma Segment Expansion
The pharmaceutical segment continued its strong trajectory with over 25 clients having audited and cleared the company's premises for production. While less than half have started commercial pickup, the remaining clients are expected to commence operations in coming months.
| Parameter | Details |
|---|---|
| Nine Months Revenue | INR25 crores |
| Full Year Target | INR35 crores |
| Next Year Target | INR50-55 crores |
| EBITDA per kg | INR120-140 |
ABG Paints Strong Performance
Aditya Birla Group (ABG) paints segment showed exceptional growth of 21% in Q3, with the company achieving 4,400 tons in nine months and targeting 6,000 tons for the full year. The total ABG capacity including Mahad stands at 10,000 tons, with current utilization at 60%.
Food and FMCG Developments
The Food and FMCG segment benefited from resolved printing capacity constraints, with the company adding substantial capacity in printing and lamination. The North facility at Panipat is gaining traction with 8-10 clients already operational, expected to grow to 25-30 clients covering:
- Confectionery and yogurts
- Ice creams and protein powder
- Edible oils, cashews, and basmati rice
- Various ghee products
Strategic Partnerships and Innovation
Vibe Generation MOU
The company signed an MOU with Vibe Generation for developing patented closure products in India. The first two component designs have commenced development, with pilot molds expected by end of February and March. These high-value products target:
- Chemicals and lubricants applications
- High-end industrial uses
- Expected EBITDA range of INR80-100 per kg or better
- Commercial production anticipated from Q2 of next year
Swiggy Partnership
Mold-Tek has been selected as a preferred vendor for Swiggy restaurants, enabling the company to reach more restaurants and food delivery partners rapidly. The partnership will generate margins similar to Food and FMCG segment at INR70-80 per kg.
Future Outlook and Targets
Management outlined ambitious growth targets for the coming year:
| Parameter | Current Year Target | Next Year Target |
|---|---|---|
| Revenue | INR870 crores | INR1,000+ crores |
| Volume Growth | 11% | 12-15% |
| EBITDA | INR170 crores | INR200-215 crores |
| PAT | INR73-75 crores | 20% growth |
| Capex | INR120 crores | INR80-85 crores |
The company expects to achieve peak revenue potential of INR1,200-1,250 crores with current and planned machinery, with optimal capacity utilization of 75% being considered excellent for injection molding operations.
Challenges and Market Dynamics
The lubricants segment faced headwinds with a 10% volume decline in Q3, primarily due to losing the BPCL tender and reduced participation in low-grade lubricant markets. However, the addition of Veedol as a client and potential new private sector partnerships may help offset these losses.
The company successfully resolved RCP (Recycled Content Plastic) compliance issues with Asian Paints by developing a formula incorporating 40-50% recycled plastic, leading to improved volume pickup from January onwards.
Historical Stock Returns for Mold-Tek Packaging
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.27% | +1.90% | -4.00% | -31.17% | -0.32% | +40.89% |
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