Pakka Limited , a key player in the sustainable packaging industry, recently held an investor conference call to discuss its financial performance for the first quarter ended June 30, 2024, and outline its ambitious growth plans.

Q1 FY25 Financial Highlights

Pakka Limited reported a modest increase in revenue for Q1 FY25:

The company's bottom line showed improvement, rising to ₹15.88 crores from ₹15.64 crores in the previous quarter.

Compostables Division Faces Challenges

The compostables division experienced some headwinds:

• Revenue declined to ₹14.51 crores from ₹14.67 crores
• Pricing pressures due to increased competition
• Improved volumes, despite revenue decline

Strategic Expansion: Jagriti Project

Pakka Limited announced significant progress on its Jagriti project:

• Successfully raised ₹244 crores through equity funding
• Issued 54 lakh preference shares and 36 lakh warrants
• Total project cost: ₹700 crores
• Expected commissioning: End of 2025
• Target: Flexible packaging capabilities with 30,000+ tons capacity

International Expansion: Guatemala Project

The company is also working on an international expansion project in Guatemala:

• Total investment required: $340 million
• Equity funding of $140 million being raised from external investors

Future Outlook

Pakka Limited has set ambitious goals for the future:

• Targeting $1 billion revenue by 2030
• Focus on expansion projects and new product innovations
• New product lines include delivery containers, cutlery, and beverage cups

The company's strategic initiatives, including the Jagriti project and the Guatemala expansion, are expected to play crucial roles in achieving its long-term revenue target. As Pakka Limited continues to innovate and expand its product offerings in the sustainable packaging sector, it aims to capitalize on the growing demand for eco-friendly solutions in the global market.

Pakka has demonstrated strong financial performance across multiple reporting periods, showcasing consistent growth and operational improvements.

FY2025 Performance Highlights

Pakka closed FY2025 with impressive results:

• Revenue reached ₹715.26 crores, marking a substantial 24% year-on-year growth
• EBITDA stood at ₹121.59 crores
• PAT (Profit After Tax) was reported at ₹60.80 crores

Q4 FY2025 Results

The company's momentum continued in the fourth quarter of FY2025:

• Revenue: ₹198.03 crores, up 23% year-on-year
• EBITDA: ₹33.68 crores, with a margin of 17%
• PAT: ₹16.86 crores, representing an 8.5% margin

Q1 FY2026 Performance

Pakka started FY2026 on a strong note:

• Revenue surged to ₹209.91 crores, showing a robust 26% year-on-year growth
• PAT reached ₹17.84 crores, demonstrating a 46% year-on-year increase

Operational Improvements

The company has shown significant operational enhancements:

• Capacity utilization improved from 85% to 90% in Q4 FY2025
• Further improvement to 92% capacity utilization in Q1 FY2026
• Expansion of distribution network with 15 new distributors added in Q4 FY2025 and 10 more in Q1 FY2026

Future Outlook

Pakka's management has outlined strategic plans for sustained growth:

• Announcement of a new manufacturing facility, expected to be operational by FY2027
• Confidence in maintaining double-digit growth through capacity expansion and market expansion strategies

Investor Communication

As per the LODR data, Pakka is maintaining transparency with its investors:

• The company held an Investors Call on August 19, 2025, to discuss the financial performance for Q4 FY2025, full-year FY2025, and Q1 FY2026
• A detailed investor presentation was made available on the company's website

Pakka's consistent performance across quarters and its strategic initiatives for future growth indicate a positive trajectory for the company. The management's focus on capacity utilization, distribution network expansion, and new manufacturing facilities aligns with their goal of sustaining double-digit growth in the coming years.