SBI Mutual Fund reduced its stake in Pakka Ltd by selling 71,698 equity shares on August 19, 2026. The open market transaction lowered the fund’s total holding to 6.4523% of the company’s paid-up share capital.

The disposal represents a decrease of 0.1595% from the fund’s previous reported holding of 6.6118%. Prior to this sale, SBI Mutual Fund held 29,71,881 shares across its various schemes.

Transaction Details

The sale was executed through an open market mechanism. Following the transaction, the fund’s total holding stands at 29,00,183 shares. There were no changes in warrants, convertible securities, or voting rights otherwise than by shares.

Regulatory Disclosure

SBI Funds Management Limited filed the disclosure under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The filing notes that the change in shareholding decreased by 2% from the previous disclosure made under Regulation 29(1) on October 16, 2024, when the reported holding was 8.4867%.

Pakka Ltd’s total equity share capital remains unchanged at ₹449,481,000, consisting of 4,49,48,100 equity shares of ₹10 each.

Pakka Limited delivered its highest-ever quarterly revenue in the first quarter of FY27, signaling strong momentum across its core packaging segments. The company reported total revenue of ₹119.60 crore, a significant jump from ₹84.26 crore in Q1FY26 and ₹104.49 crore in Q4FY26. This performance reflects robust demand in its Wrap & Carry business and steady progress in its Food Services division.

Financial Performance

The top-line growth translated into improved profitability metrics for the quarter. EBITDA stood at ₹17.85 crore, up 31% year-on-year and 36% quarter-on-quarter from ₹13.11 crore. Profit before tax (PBT) reached ₹8.77 crore, representing a 34% increase compared to ₹6.54 crore in Q1FY26 and a substantial 59% rise from ₹5.52 crore in the preceding quarter.

Segment Breakdown

The Wrap & Carry segment remained the primary growth engine, contributing ₹101.14 crore to revenue, a 43% increase from ₹70.49 crore in Q1FY26. However, profitability in this segment showed mixed trends; while PBT grew 45% year-on-year to ₹10.39 crore, it contracted 16% quarter-on-quarter from ₹12.42 crore in Q4FY26.

In contrast, the Food Services segment continued its turnaround trajectory. Revenue grew 34% YoY to ₹18.45 crore from ₹13.77 crore. More notably, the segment narrowed its loss significantly, reporting a PBT loss of ₹-1.62 crore compared to a loss of ₹-6.91 crore in Q4FY26 and ₹-0.61 crore in Q1FY26. Management indicated that this segment is on track to break even in FY27 after nearly a decade of losses.

What the Numbers Show

A key divergence in the results is the operational leverage emerging in the Food Services segment despite overall revenue growth. While the Wrap & Carry segment’s PBT dipped sequentially, the Food Services unit reduced its quarterly loss by over 76% compared to Q4FY26. This suggests that fixed cost absorption is improving as volume scales, particularly with B2B revenue growing 46% YoY to ₹16.5 crore within this division. The expansion of retail chains from three to twelve live partners further indicates a successful shift towards scalable distribution models.

Operational Updates and Outlook

Pakka highlighted several strategic developments during the investor call held on August 18, 2026. Project Jagriti remains on track with funding complete, and major equipment work is 85% finished. The new power boiler and recovery boiler are scheduled for startup in September 2026. Additionally, pilot trials for flexC base material have been finalized, with distributor launches planned for October 2026.

The company also introduced a new delivery container range, with initial facility setup underway. Challenges cited include market adoptability, crises in the Middle East, and high finance costs. Looking ahead, Pakka plans to explore alternative markets in Australia and focus on optimizing COGS through an asset-light capacity model to ensure gross margins on incremental sales flow directly to the bottom line.