Pakka Limited Releases Q3 FY26 Investor Presentation with Strategic Updates
Pakka Limited released its Q3 FY26 investor presentation highlighting key strategic developments including profitability rebound, Project Jagriti progress, and temporary pause of US subsidiary expansion. The company reported mixed financial results with revenue decline but maintained profitability, while focusing on product innovation and market expansion in India operations.
*this image is generated using AI for illustrative purposes only.
Pakka Limited announced its unaudited financial results for the third quarter and nine months ended 31st December, 2025, alongside a strategic decision regarding its US operations. The Board of Directors approved these results at a meeting held on 30th January, 2026. The company has now released its investor presentation for Q3 FY26, highlighting key developments and strategic initiatives.
Financial Performance Overview
The company's standalone financial performance showed mixed results for the quarter ended 31st December, 2025. Revenue from operations declined year-over-year, while the company maintained profitability across both quarterly and nine-month periods.
| Metric: | Q3 FY26 | Q3 FY25 | Change (%) |
|---|---|---|---|
| Revenue from Operations: | ₹9,619.18 lakhs | ₹10,600.52 lakhs | -9.26% |
| Total Income: | ₹9,963.90 lakhs | ₹11,143.53 lakhs | -10.59% |
| Net Profit: | ₹914.36 lakhs | ₹1,275.08 lakhs | -28.28% |
| Basic EPS: | ₹0.20 | ₹3.12 | -93.59% |
Nine Months Performance
For the nine months ended 31st December, 2025, the company reported revenue from operations of ₹25,425.48 lakhs compared to ₹31,388.38 lakhs in the corresponding period of the previous year. Net profit for the nine-month period stood at ₹1,430.41 lakhs against ₹4,412.58 lakhs in the previous year.
| Parameter: | 9M FY26 | 9M FY25 | Change (%) |
|---|---|---|---|
| Revenue from Operations: | ₹25,425.48 lakhs | ₹31,388.38 lakhs | -19.00% |
| Total Income: | ₹26,229.03 lakhs | ₹32,700.08 lakhs | -19.79% |
| Net Profit: | ₹1,430.41 lakhs | ₹4,412.58 lakhs | -67.58% |
| Basic EPS: | ₹3.18 | ₹10.79 | -70.53% |
Key Strategic Developments
The investor presentation highlighted seven key developments centered around profitability rebound. These include flexC optimization, PM3 stabilization, Project Jagriti solidity, leadership strengthening, funding momentum, and strategic international pause. The company emphasized its focus on sustainable value creation and execution excellence.
Segment Performance Analysis
The company operates through two main business segments: Paper & Pulp (Wrap & Carry) and Moulded Products (Food Services). The Paper & Pulp segment generated revenue of ₹8,279.71 lakhs in Q3 FY26 compared to ₹9,468.85 lakhs in Q3 FY25. The Moulded Products segment reported revenue of ₹1,684.19 lakhs versus ₹1,674.68 lakhs in the corresponding quarter.
| Segment Performance: | Q3 FY26 Revenue | Q3 FY25 Revenue | Change |
|---|---|---|---|
| Wrap & Carry: | ₹82.80 Cr | ₹94.69 Cr | -13% |
| Food Services: | ₹16.84 Cr | ₹16.75 Cr | +0.5% |
Strategic Decision on US Operations
The Board approved a measured strategic decision to temporarily moderate the pace of scaling operations at Pakka Inc., the company's wholly owned US subsidiary, and its step-down subsidiary Pakka Guatemala. This decision aims to sharpen management focus and optimally deploy capital and organizational resources towards the timely execution of the Jagriti Project.
| Strategic Details: | Information |
|---|---|
| Affected Entities: | Pakka Inc. (US) and Pakka Guatemala |
| Nature of Decision: | Temporary pause of expansion activities |
| Ownership Impact: | No change - 100% equity ownership retained |
| Long-term Prospects: | No divestment, closure, or restructuring proposed |
Product Innovation and Market Expansion
The company announced significant progress in product development and market expansion. New product launches have contributed to sales and gross margin improvement in Q3. B2C revenue increased 80% year-over-year for the first three quarters, improving gross margins. The company added 2 online retail and 3 offline retail channels in Q3, with plans to add another 5 online and offline big box retail channels in Q4.
Q4 FY26 Commitments
The company outlined specific commitments for Q4 FY26, including delivery range launch as per timeline, further efficient PM3 operations, innovations direction progress, metalised cost optimization and NM structure finalization, and energizing Project Jagriti. The company is building towards offering a complete compostable packaging portfolio with new products including leak-proof delivery range containers, sipper lids, dip cups, and ancillaries like straws and cutlery.
Corporate Governance Actions
The Board approved revised policies including the Nomination & Remuneration Policy, Familiarization Program for Independent Directors, and Policy on Related Party Transaction. Additionally, the company extended the validity period of outstanding warrants from 12 months to 18 months and extended the TSOP-21 end date from 31st December, 2026 to 31st December, 2031.
Historical Stock Returns for Pakka
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.87% | -1.00% | -18.83% | -54.90% | -64.05% | -29.28% |
