Any current/future new fundraising through debt or equity?

The company does not plan any major new film line orders or expansions for the next couple of years, implying limited large-scale CAPEX. They anticipate CAPEX of about Rs. 150-200 crore in FY’26 focused on value-added assets. Some increase in working capital will be required for BOPP and new businesses. Debt is expected to peak in the current year and start reducing from FY’27, possibly falling significantly due to no major CAPEX. Net debt reduction of Rs. 50-100 crore is expected in FY’26. No explicit mention of new equity fundraising during the call. Overall, short-term increases in debt for

Any current/future capex/capital investment/strategic investment?

The company is planning a capex of Rs. 300 to 350 crore in FY '25 primarily for the new BOPP line and specialty sales enhancement projects. CPP line is expected to start commercial production by Q3 or Q4 of FY '25. BOPP line commercial production is targeted for the first half of FY '26; it will be one of the world's largest capacity lines, increasing production capacity by ~50%. Additional injection moulding is planned for the rigid packaging (Plastech) vertical. Plastech is expected to reach 90%+ utilization and profitability from FY '26. Sun Control films commercialization and capacity expa

Future growth expectations in sales/revenue/volumes?

Specialty sales are growing steadily, with a 13% increase on a YTD basis compared to last year and currently comprising 70% of total volumes in Q2 FY'25, targeting 80% by FY'26. New CPP and BOPP lines (world's largest production capacity) are expected to start commercial production between Q3 FY'25 and H1 FY'26, increasing production capacity by ~50%. Specialty chemical division has a current run rate of Rs. 200 crores and capacity to reach Rs. 300-350 crores at full utilization; growing well with high-teens EBITDA expected in FY'25. Rigid packaging vertical (Plastech) targets Rs. 125-15

Current/ Expected Orderbook/ Pending Orders?

The order book for Specialty products is running at one of its highest levels ever as per Neeraj Jain (Page 8). The company is experiencing strong demand growth in specialty films, which is contributing to positive order inflow. New capacities, including planned BOPP and CPP lines, will help scale specialty volumes faster (Page 6). Increased distributor network and market education efforts are ongoing for sun control films to grow their market share. The company expects ramp-up in new product adoption within 1-2 years post introduction (Page 4). Overall, a strong pipeline supports anticipated

Cosmo First LtdQ3 FY25

Cosmo First Ltd Q3 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹913P/E: 14.9Market Cap: ₹2.4K Cr

Management growth scorecard

Revenue

Category 3

Margin

Category 1

Fundraise

Yes

Order

Yes

Capex

Yes

4 of 5 growth signals are positive — a strong management growth story.

Full analysis

Revenue guidance

Category 3

→Specialty sales are growing steadily, with a 13% increase on a YTD basis compared to last year and currently comprising 70% of total volumes in Q2 FY'25, targeting 80% by FY'26.
→New CPP and BOPP lines (world's largest production capacity) are expected to start commercial production between Q3 FY'25 and H1 FY'26, increasing production capacity by ~50%.
→Specialty chemical division has a current run rate of Rs. 200 crores and capacity to reach Rs. 300-350 crores at full utilization; growing well with high-teens EBITDA expected in FY'25.
→Rigid packaging vertical (Plastech) targets Rs. 125-150 crores revenue and 8-10% EBITDA in FY'26, expected to break even and achieve 90%+ utilization.
→Sun control films and paint protection films are poised for commercialization and valued addition to revenue streams, with significant market potential.
→Zigly pet care business is expected to break even and contribute positively within 2-3 years.
→US and Japan market sales are expanding, with US revenue expected to reach $40 million this year, scaling to $55-60 million.

Margin guidance

Category 1

- Specialty sales expected to grow further with FY’25 already showing 13-14% higher specialty sales year-to-date. - Specialty chemical vertical targeting high-teens EBITDA and 30%+ return on capital employed in FY’25. - Rigid packaging (Plastech) expected to achieve profitability and 90%+ capacity utilization from FY’26 onwards. - CPP line commercial production expected from Q3/Q4 FY’25; BOPP line from H1 FY’26, increasing production capacity by ~50%. - Sun control film and paint protection film businesses anticipated to be value drivers; sun control expected to commercialize by end FY’25. - Zigly (petcare) projected to break even within 2-3 years, becoming a significant value creator. - Overall margin expansion expected structurally with increased specialty share; 16-17% EBITDA margins targeted in 2-3 years. - Debt reduction anticipated post-FY’26, after peak CAPEX in FY’25-26. - Incremental growth in US, Japan, and Korea markets expected to boost revenues. Overall, strong earnings growth and margin expansion are anticipated over the next 2-3 years.

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Fundraise plans

Yes

→The company does not plan any major new film line orders or expansions for the next couple of years, implying limited large-scale CAPEX.
→They anticipate CAPEX of about Rs. 150-200 crore in FY’26 focused on value-added assets.
→Some increase in working capital will be required for BOPP and new businesses.
→Debt is expected to peak in the current year and start reducing from FY’27, possibly falling significantly due to no major CAPEX.
→Net debt reduction of Rs. 50-100 crore is expected in FY’26.
→No explicit mention of new equity fundraising during the call.
→Overall, short-term increases in debt for CAPEX are planned, but medium-term outlook is for declining debt levels with no announced equity raises.

Order book

Yes

→The order book for Specialty products is running at one of its highest levels ever as per Neeraj Jain (Page 8).
→The company is experiencing strong demand growth in specialty films, which is contributing to positive order inflow.
→New capacities, including planned BOPP and CPP lines, will help scale specialty volumes faster (Page 6).
→Increased distributor network and market education efforts are ongoing for sun control films to grow their market share.
→The company expects ramp-up in new product adoption within 1-2 years post introduction (Page 4).
→Overall, a strong pipeline supports anticipated specialty sales growth of 13% YTD and expected 80% specialty volume by FY'26 (Page 2 and 6).

Capex plans

Yes

→The company is planning a capex of Rs. 300 to 350 crore in FY '25 primarily for the new BOPP line and specialty sales enhancement projects.
→CPP line is expected to start commercial production by Q3 or Q4 of FY '25.
→BOPP line commercial production is targeted for the first half of FY '26; it will be one of the world's largest capacity lines, increasing production capacity by ~50%.
→Additional injection moulding is planned for the rigid packaging (Plastech) vertical.
→Plastech is expected to reach 90%+ utilization and profitability from FY '26.
→Sun Control films commercialization and capacity expansion, including 80-100 product launches and network expansion, planned within the year.
→Zigly pet care business may require ongoing investment; management expects break-even in 2-3 years.
→Capex of 150-200 crore on value-added assets planned for the next year.
→No major film line capex planned after FY '25, likely reducing debt by FY '27.

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