Tarsons Products Limited , a leading plastic labware manufacturer in India, has reported a mixed set of financial results for the second quarter of fiscal year 2026. The company saw revenue growth but experienced a decline in profits due to higher depreciation expenses associated with its ongoing capacity expansion.

Financial Highlights

• Revenue for Q2 FY26 stood at INR 81.00 crores, showing growth from the previous year.
• EBITDA rose by 11% year-on-year to INR 26.00 crores, with the EBITDA margin improving to 32.50% from 29.30% in Q2 FY25.
• Profit After Tax (PAT) declined to INR 6.50 crores from INR 12.90 crores in the same quarter last year.

Key Factors Affecting Performance

The decline in profitability is primarily attributed to higher depreciation expenses of INR 20.00 crores arising from the partial capitalization of the Panchla facility. The company expects PAT margins to normalize once the facility is fully commissioned and begins contributing to revenue.

Capacity Expansion Update

Tarsons is nearing completion of its planned capex at the Panchla and Amta facilities, which are expected to be fully operational by Q4 FY26. The expansion aims to:

• Significantly enhance the company's addressable market
• Enable deeper penetration within existing customer base
• Help acquire new customers across diverse industries

The company anticipates a strong turnaround in both revenue and profitability as utilization levels ramp up through FY27 and FY28.

Product Portfolio and Market Outlook

Tarsons has launched several new products, including:

• Bioprocess-related products like PET and PETG bottles
• Roller bottles
• Upcoming cell culture products

The company remains optimistic about growth opportunities in both domestic and export markets, citing:

• Increasing adoption of high-quality labware consumables
• Growing investments in life science and research

Challenges and Strategies

While facing competitive pressures in the domestic market, Tarsons is focusing on:

1. Launching new products to increase wallet share with existing customers
2. Expanding its presence in export markets
3. Enhancing operational efficiency and automation across manufacturing processes

Management Commentary

Santosh Agarwal, CFO of Tarsons Products Limited, stated, "Our sustained performance in the face of sectoral challenges showcases the resilience of our business model, the superior quality of our products, and the enduring trust that Tarsons as a brand enjoys within the life science industry."

The management expects the new capacity to generate peak revenue potential of INR 350.00-400.00 crores over the next 3-5 years, with about INR 100.00-125.00 crores coming from capacity expansion of existing products and the remainder from new product lines.

Conclusion

While Tarsons Products faces short-term challenges due to increased depreciation and competitive pressures, the company's expansion strategy and focus on new product development position it for potential growth in the coming years. Investors and stakeholders will be watching closely to see how quickly the new capacity translates into revenue and profitability improvements.

Mitsubishi UFJ Financial Group (MUFG) has significantly reduced its indirect stake in Tarsons Products , a leading Indian life sciences company, according to a recent regulatory filing.

Key Details of the Transaction

• MUFG sold its indirect interest in Tarsons Products by divesting First Sentier Investors (UK) IM Limited.
• The transaction resulted in MUFG's shareholding in Tarsons Products decreasing from 7.33% to 5.28%.
• A total of 1,092,519 shares, representing 2.05% of the company's equity, were involved in the sale.
• Following the transaction, MUFG now holds 2,809,737 shares out of Tarsons Products' total 53,206,281 voting rights.

Impact on Shareholding Structure

The stake reduction by MUFG, a major global financial institution, has implications for Tarsons Products' shareholding structure. Here's a breakdown of the changes:

About Tarsons Products Ltd

Tarsons Products is an Indian company specializing in life sciences, particularly in the manufacturing of laboratory equipment and consumables. The company has been gaining attention in the Indian market, especially following its initial public offering (IPO) in recent years.

Regulatory Compliance

The disclosure of this transaction aligns with the regulatory requirements set by the Securities and Exchange Board of India (SEBI). Under Regulation 29(2) of SEBI's Substantial Acquisition of Shares and Takeovers Regulations, 2011, such changes in significant shareholdings must be reported to ensure transparency in the market.

This move by MUFG comes at a time when global financial institutions are reassessing their investment portfolios. The reasons for MUFG's decision to reduce its stake have not been disclosed.