Plastiblends India Q3 Results: EBITDA Drops 14.9% Despite Revenue Growth

Plastiblends India has announced its third quarter standalone financial results, showing mixed performance with revenue growth offset by declining profitability metrics. The chemicals sector company reported deteriorating operational efficiency with both net profit and EBITDA experiencing year-on-year declines despite marginal revenue improvement.

Q3 Financial Performance Overview

The company's standalone financial results for the third quarter present contrasting operational trends. While the top-line showed modest growth, key profitability indicators including net profit and EBITDA registered declines when compared to the same period in the previous fiscal year.

Financial Metric:	Q3 Current Year	Q3 Previous Year	Change (%)
Revenue:	₹185.00 crores	₹184.00 crores	+0.54%
Standalone Net Profit:	₹6.50 crores	₹6.70 crores	-2.99%
EBITDA:	₹97.00 crores	₹114.00 crores	-14.91%
EBITDA Margin:	5.20%	6.20%	-100 bps

Profitability and Margin Analysis

The financial results highlight significant pressure on the company's operational profitability. Plastiblends India achieved revenue growth of 0.54% year-on-year, reaching ₹185 crores from ₹184 crores in the previous year's third quarter. However, this revenue increase failed to translate into improved operational performance.

The EBITDA performance showed a notable decline of 14.91%, falling to ₹97 crores from ₹114 crores in the corresponding quarter of the previous year. More concerning is the compression in EBITDA margin, which contracted by 100 basis points to 5.20% from 6.20% year-on-year, indicating deteriorating operational efficiency.

Operational Efficiency Concerns

The divergent trend between revenue growth and profitability metrics suggests operational challenges for the company. The simultaneous decline in both net profit and EBITDA, coupled with margin compression, points to increased cost pressures or operational inefficiencies that the company faced during the quarter.

Performance Indicator:	Details
Revenue Growth Trend:	Positive (+0.54%)
Profitability Trend:	Negative (Net Profit -2.99%, EBITDA -14.91%)
Margin Efficiency:	Declining (EBITDA margin compressed by 100 bps)
Sector Classification:	Chemicals

Plastiblends India operates in the chemicals sector and is classified as a small-cap company. The latest quarterly results reflect current market conditions and operational challenges affecting the company's business performance during this period.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.75%	-4.16%	-2.63%	-23.68%	-29.87%	-39.58%

Plastiblends India Limited , a leading masterbatch manufacturing company, has announced its financial results for the second quarter of fiscal year 2526, ending September 30, 2025. The company reported a year-on-year growth in revenue and profitability, despite facing challenges in various sectors.

Financial Highlights

Particulars (Rs. in Lakhs)	Q2 FY2526	Q2 FY2425	Y-o-Y Change
Revenue from Operations	19,260.69	18,534.56	3.92%
EBITDA	1,437.00	1,240.00	15.85%
EBITDA Margin	7.46%	6.69%	77 bps
Profit Before Tax (PBT)	1,000.73	828.59	20.77%
Net Profit	743.58	630.87	17.87%

Plastiblends India reported a revenue of Rs. 19,260.69 lakhs in Q2 FY2526, marking a 3.92% increase from Rs. 18,534.56 lakhs in the same quarter last year. The company's EBITDA saw a significant improvement, rising by 15.85% year-on-year to Rs. 1,437.00 lakhs, with the EBITDA margin expanding by 77 basis points to 7.46%.

Net profit for the quarter stood at Rs. 743.58 lakhs, representing a 17.87% increase compared to Rs. 630.87 lakhs in Q2 FY2425. The company's profit before tax (PBT) also showed strong growth, rising by 20.77% year-on-year to Rs. 1,000.73 lakhs.

Half-Yearly Performance

For the first half of FY2526, Plastiblends India reported:

Revenue from operations of Rs. 39,223.53 lakhs, a slight decrease of 1.18% compared to H1 FY2425
EBITDA of Rs. 3,037.00 lakhs, down 2.43% year-on-year
Net profit of Rs. 1,635.92 lakhs, a 4.65% decrease from the previous year

Operational Challenges

The company faced several challenges during the quarter:

Slowdown in packaging, consumer goods, piping, and irrigation industries
Softened demand in various sectors ahead of new GST tax rates
Inventory carrying losses due to volatility in raw material prices
Increased energy, wage, and other costs
Competitive pricing pressure, limiting the ability to pass on cost increases

Management Commentary

S.N. Kabra, Chairman & Managing Director of Plastiblends India, commented on the results: "Company continues to enjoy Market & Brand leadership. Strategic initiatives undertaken in terms of concentrating on better product mix will improve margin significantly going forward. We expect revenue growth to revive in the ensuing quarter."

Kabra added, "Our prudent financial management ensures we remain well-positioned to achieve our goals and deliver value to our stakeholders. Looking ahead, Company remains optimistic about future growth opportunities and is committed to further enhancing its operational efficiency and expanding its market presence."

Future Outlook

Despite the current challenges, Plastiblends India remains confident in its ability to navigate external challenges while driving sustainable growth. The company is focusing on:

Improving product mix to enhance margins
Enhancing operational efficiency
Expanding market presence
Creating long-term value for stakeholders

The management expects revenue growth to revive in the coming quarter, potentially boosted by recent GST rate cuts in various industries.

Plastiblends India Limited continues to be the largest player in the masterbatch segment, maintaining its market and brand leader status since inception. With manufacturing facilities in Daman, Roorkee, and Palsana, the company is well-positioned to capitalize on future growth opportunities in the masterbatch market.