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.

Pakka Limited , a paper and paper products manufacturer, has reported significant progress in utilizing funds raised through its preferential issue of equity shares and fully convertible warrants. According to the company's monitoring agency report for the quarter ended June 30, Pakka Limited has utilized Rs 46.01 crore during the period, bringing the total utilization to Rs 168.60 crore out of the Rs 171.36 crore raised.

Fund Allocation Details

The company's fund utilization during the quarter was primarily directed towards two key areas:

1. Investment in Plant and Machinery: Rs 29.01 crore was invested in plant and machinery for the Jagriti Project. This investment was made towards the procurement of machinery and spare parts/accessories.

2. Investment in Subsidiary: Rs 17.00 crore was invested in Pakka INC, USA, the company's wholly-owned subsidiary. This investment was made for land acquisition and other expenses related to setting up a unit in the United States.

Preferential Issue Overview

Pakka Limited had raised funds through a preferential issue comprising:

• 54 lakh equity shares, aggregating to Rs 146.88 crore
• 36 lakh fully convertible warrants, potentially raising an additional Rs 97.92 crore

The total amount to be raised through this preferential issue is Rs 244.80 crore.

Current Status of Fund Utilization

As of June 30, the status of fund utilization is as follows:

Monitoring Agency Observations

Care Ratings Limited, serving as the monitoring agency, made several key observations in their report:

1. Warrant Conversion Risk: The company's share price is currently trading below the warrant exercise price. This situation may result in subscribers allowing the warrants to lapse, potentially impacting the viability of the project objectives.

2. Delayed Financial Reporting: While Pakka Limited has published its standalone financials, the consolidated financials for the same period have been delayed.

3. Subsidiary Investment: The monitoring agency noted that while the investment in the U.S. subsidiary was made in accordance with the stated objectives, they were unable to comment on the valuation of the overseas land acquisition cost.

4. Regulatory Compliance: The report confirms that all proceeds from the preferential issue have been utilized as per the objectives mentioned in the shareholder resolution.

Looking Ahead

With Rs 168.60 crore utilized out of the Rs 171.36 crore raised, Pakka Limited has demonstrated significant progress in implementing its expansion plans. However, the company faces challenges related to the potential lapse of warrants and delayed financial reporting, which investors should monitor closely.

The company's investments in both domestic operations through the Jagriti Project and international expansion via its U.S. subsidiary indicate a strategic focus on growth and market expansion. As Pakka Limited continues to deploy the remaining funds, stakeholders will be keen to see the impact of these investments on the company's operational and financial performance in the coming quarters.