Mold Tek Packaging Ltd Management's Take

• 📊 Revenue rose 12% in 9M to Rs.648.75 crore and 4% in Q3 to Rs.198.44 crore, supporting solid growth trajectory.
• 💹 EBITDA increased 20% in 9M to Rs.125.55 crore and 14% in Q3 to Rs.38.67 crore; PAT also grew by 18% (9M) and 5% (Q3).
• ⚙️ Volume improved 9% in 9M and 6% in Q3; EBITDA/kg up 7.4% YoY indicating improved profitability.
• 🏭 Manufacturing consolidated in Hyderabad for cost efficiencies; capex to reduce to Rs.80-85 crore focused on pharma expansion.
• 💊 Pharma segment exhibits strong growth with 190% volume increase in Q3 and projected 40-45% revenue growth in FY27.
• 🔧 New strategic MoU with UK partner aiming for pilot mold production by March and commercial launch by Q2 FY27 for closure solutions.
• ⚠️ Challenges include lubricant volume decline by 20% due to tender loss, seasonality impact on Q3 demand, and capacity utilization at 62.5%, aiming to exceed 70% next year.

📈 Financial Highlights

Mold-Tek Packaging reported nine-month FY26 revenue of Rs.648.75 crore, up 12% from previous year. EBITDA rose 20% to Rs.125.55 crore, with PAT increasing 18% to Rs.52.23 crore. Q3 revenue grew 4% to Rs.198.44 crore, EBITDA up 14% at Rs.38.67 crore, and PAT rose 5% to Rs.14.35 crore. EBITDA/kg increased 7.4% to Rs.39.43 signaling improved operational efficiency.

🏭 Operational Performance and Segment Analysis

• Pharma: Q3 volumes surged 190% YoY; over 25 clients have cleared audits; commercial orders started from multinational corporations.
• Paints: Volume up 7.8%; introduction of 40% recycled plastic pail aligns with major clients like Asian Paints; 21% growth from Aditya Birla Group.
• Food & FMCG: 34% YoY volume growth; Panipat plant services 8–10 clients, targeting 25–30 clients.
• Lubricants: Volume declined 20% due to losing BPCL tender and exiting low-margin Diesel Exhaust Fluid packaging.

🔧 Manufacturing and Strategic Initiatives

Consolidated Hyderabad operations from five units to two, with cost savings expected next quarter. Strategic MoU with Vibe Generation Holdings (UK) for development of high-precision caps and closures; pilot molds anticipated by March end with commercial production targeted Q2 FY27.

🔮 Future Outlook

• Target FY27 revenue exceeding Rs.1,000 crore with 12–15% volume growth supported by strong order book.
• Pharma segment revenue expected to grow 40–45% from Rs.35 crore to Rs.50–55 crore, supported by new products like eye drops and nasal sprays.
• Capex projected to decline to Rs.80–85 crore focusing primarily on pharma vertical expansion.
• Capacity utilization currently 62.5%, aiming to exceed 70% in next fiscal despite challenges in mold/machine standardization.

⚠️ Challenges and Risks

• Intense price competition in lubricant segment after losing key government tenders.
• Seasonality impacting Q3 demand for paints and ice cream packaging.
• Capacity limitations due to non-standardized molds and machines.

💡 Additional Points

• Dividend payout ratio reduced to prioritize debt repayment and maintain ROE.
• High Court order provides legal protection for patented in-mold labeling designs, strengthening market position.
• Plans underway to transition production units to solar power aiming for full solar operations by June/July 2025 to reduce energy costs.