Plastiblends India Q2 profit rises 43 per cent as realisations lift margins, despite cost pressures

Plastiblends India Ltd reported a 43.28 per cent year-on-year rise in profit after Tax to Rs 10.65 crore for the quarter ended September 30, 2026, aided by higher sales realisations and an improving export mix despite elevated raw material, freight and energy costs.

Revenue from operations increased 18.81 per cent to Rs 228.84 crore from Rs 192.61 crore a year earlier. EBITDA rose 30.29 per cent to Rs 18.72 crore, while the EBITDA margin expanded by 72 basis points to 8.18 per cent. Profit before tax climbed 45.18 per cent to Rs 14.53 crore and PAT margin improved to 4.66 per cent from 3.86 per cent in the corresponding quarter last year.

The year-on-year margin improvement is notable because the masterbatch manufacturer said the industry has faced disruption from the US-Iran war that began on February 28, 2026. The company said higher raw material prices, freight expenses and power costs continued to weigh on operating conditions, but improved price realisations supported revenue growth.

The quarterly performance, however, showed a softer sequential margin trend. Revenue grew 3.26 per cent from Rs 221.61 crore in the June quarter, but EBITDA declined 23.10 per cent, while PAT fell 28.74 per cent. EBITDA margin narrowed by 280 basis points sequentially to 8.18 per cent, reflecting the pressure from higher operating costs.

Power expenses emerged as a particular concern in Gujarat, where fuel surcharge rates were significantly increased during the second quarter. Plastiblends said it absorbed a part of the cost increase to protect customer relationships and market share, while expecting to pass on these costs in coming quarters. The ability to implement such pass-throughs will be important for sustaining margins after the sharp sequential decline.

The company has commissioned a 5.2 MW Solar open-access power project in Gujarat in September 2026. While Plastiblends has not quantified the expected savings, the project is intended to partly offset the higher fuel surcharges and could strengthen cost control at its Gujarat operations over time.

For the six months ended September 30, 2026, revenue from operations rose 14.84 per cent to Rs 450.45 crore. EBITDA increased 41.82 per cent to Rs 43.06 crore and PAT grew 56.51 per cent to Rs 25.60 crore. The half-year EBITDA margin expanded to 9.56 per cent from 7.74 per cent, while PAT margin improved to 5.68 per cent from 4.17 per cent.

Exports and engineering plastics were among the key operational supports during the period. The company said export business benefited from entry into new markets and a better product mix. The rupee's depreciation to around Rs 96 against the US dollar from about Rs 88 a year earlier improved export competitiveness, although it also raises the cost of imported inputs. Plastiblends has exposure to both exports and imports of raw materials and spare parts, making currency movements a mixed factor for profitability.

Chairman and Managing Director S. N. Kabra said the period had tested the industry because raw material, freight and energy costs remained high alongside rupee weakness. He added that the company remains focused on cost optimisation and operational efficiency, supported by its customer base and growing export presence.

Plastiblends operates masterbatch manufacturing facilities at Daman, Palsana near Surat and Roorkee. In FY2025-26, it reported revenue from operations of Rs 788.66 crore and PAT of Rs 36.69 crore, meaning the first-half profit of Rs 25.60 crore has already reached nearly 70 per cent of the previous full-year profit.

As of 10.21 am on October 13, 2026, Plastiblends India shares were trading at Rs 190.45, down 7.32 per cent from the previous close of Rs 205.50. The stock was about 7.3 per cent below its 52-week high of Rs 205.50, while its one-year gain of 7.85 per cent was ahead of the BSE 500's 6.29 per cent decline over the comparable period.

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