FIIs & DIIs Increase Stake: This Low PE Packaging Company Reported 41% Profit Growth and Rs 1,000 Crore CAPEX Plan

AGI Greenpac Limited reported its Q1 FY26 Quarterly Results with significant growth in profit and revenue. The company posted a 41 per cent year-on-year rise in net profit to Rs 89 crore, compared to Rs 63 crore in Q1 FY25. Total income increased by 25 per cent to Rs 721 crore, while EBITDA grew 20 per cent to Rs 176 crore. The growth was supported by improved operational efficiencies, disciplined execution and a stronger product mix, including premium segments such as cosmetics, perfumery and alcohol.

The company’s board approved a major expansion plan into the aluminium cans segment. AGI Greenpac will invest approximately Rs 1,000 crore in two phases to set up a new plant in Uttar Pradesh. This facility is expected to commence operations by Q3 FY28 with an annual capacity of 950 million cans, eventually scaling up to 1.6 billion by FY 2030. The investment complements the existing packaging solutions and is part of a broader strategy that also includes a Rs 700 crore greenfield glass manufacturing plant in Madhya Pradesh. This new plant, expected to start by March 2027, will increase the company’s daily capacity from 2,100 tonnes to 2,600 tonnes.

Following the announcement of its Q1 FY26 results and expansion plans, AGI Greenpac shares surged over 11 per cent on Tuesday, July 22, reaching an intraday high of Rs 943.90. As of 11:53 AM IST, the stock traded at Rs 931.15, up 9.97 per cent. Despite a 17.44 per cent year-to-date decline, the stock has gained 20.64 per cent in the last 12 months and delivered multibagger returns of 1,648 per cent over five years.

The company’s continued capacity expansion and entry into the aluminium cans market are expected to strengthen its presence in the packaging industry and support long-term growth.

Incorporated in 1960, AGI Greenpac Ltd manufactures and sells Container Glass bottles, PET bottles and Security Caps and Closures under Packaging Products segment. AGIGL produces various packaging products, including glass containers, speciality glass, PET bottles, and security caps & closures. It holds a 17%-20% market share, making it the second-largest player in the Indian organised glass packaging industry by installed capacity. Currently, the stock is trading with a low Price to Earnings ratio of 17.4x and FIIs, DIIs have increased their stake in Q1FY26. 

AGI Greenpac has witnessed an increase in both foreign institutional investors (FIIs) and domestic institutional investors (DIIs) holdings between March 2025 and June 2025. FII stake rose from 7.54 per cent in March 2025 to 7.61 per cent in June 2025, while DII stake increased from 1.06 per cent to 1.51 per cent during the same period, indicating growing institutional interest in the company.

Disclaimer: The article is for informational purposes only and not investment advice.