Rajshree Polypack’s latest quarter marked its strongest ever, with revenues reaching INR102.91 crore amid a recovery in domestic demand, despite export challenges and raw material cost volatility.
Rajshree Polypack said its latest quarter was the strongest in its history, with revenue climbing to INR102.91 crore and profit after tax rising sharply as domestic demand recovered. The company also reported higher EBITDA margins, helped by better operating leverage and a rebound in its local business after a softer patch in earlier quarters.
The earnings call painted a mixed picture beneath those headline numbers. Management said export revenue stayed largely unchanged because geopolitical tensions disrupted sales, especially in injection moulding, where a sizeable share of output goes overseas. Gross margin also weakened as raw material costs stayed elevated and volatile, although the company expects some relief in the coming months.
Chief executive Ramswaroop Thard said the packaging business is currently delivering stronger margins than injection moulding, and that the weaker revenue contribution from the latter should improve over the next few quarters if export conditions normalise. He also said current capacity can support annual revenue of roughly INR420 crore to INR430 crore, with packaging and extrusion running at about 80% to 85% utilisation and injection moulding at around 55% to 60%.
Rajshree Polypack is meanwhile expanding for the longer term. The company has lifted flaring capacity to 1,675 lakh units a year and injection moulding capacity to 5,800 metric tonnes, while a proposed facility in eastern India remains on hold until existing plants are better used. It also expects a captive wind-solar project to cover nearly 30% of energy needs and save about INR1.75 crore a year once it starts in October 2026. Olive Ecopak, its paper-based packaging joint venture, generated INR17.22 crore in revenue in the quarter and remains on track for profit before tax breakeven this fiscal year.
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