Kanpur Plastipack Ltd

- Kanpur Plastipack Limited is planning a capex of around INR105 crores for capacity expansion and diversification over the next 12-18 months. - The funding for this capex is expected to come broadly through internal accruals. - Additionally, the company plans to raise about INR35 crores through debt. - No mention of any new equity fundraising was made in the document. - The focus remains on using a mix of internal funds and limited debt to finance growth initiatives such as the non-woven greenfield project and capacity expansion in FIBCs.

- Planned capex of INR 105 crores over next 12-18 months for capacity expansion, process modernization, and diversification. - INR 58.04 crores allocated for a greenfield needle-punching non-woven project targeting automotive interiors, shoe insoles, artificial leathers, and carpets. - INR 47 crores to be spent on expanding FIBC capacity at Unit 3, Gajner Road, adding 1,200 metric tons of conversion capacity next year and targeting an incremental 6,000 metric tons over five years. - Joint venture with Essegomma S.p.A. Italy focusing on high-performance Taslan yarn technology in the technical and luxury textile segment. - Trading warehouse construction to start by January with an investment around INR 1 crore. - 90% of FIBC capacity expansion investment expected within the next 12 months. - Revenues from the non-woven plant expected to start flowing from H2 next financial year, with 80%-95% capacity utilization targeted by FY 2027-28.

- FY 2026-2027 sales expected at INR 30 crores from the non-woven project, with full commissioning in H1 and revenue starting H2. - FY 2027-2028 sales to reach approximately INR 92 crores; FY 2028-2029 sales around INR 102 crores. - Expecting 80% capacity utilization in FY 2027 and about 95% in FY 2028 for the non-woven segment. - Overall, non-woven segment to contribute about 20% of total revenue and EBITDA margins in coming years. - Incremental FIBC capacity of 6,000 tons planned over 5 years, adding about 1,200 tons annually. - Export markets, especially Europe, to remain major growth drivers; efforts underway for diversification into Asia (Japan) and Africa. - Robust order book of 2-2.5 months supports sustained sales growth. - Strategic investments, product diversification, and expansion initiatives position the company for profitable, volume-driven growth.

- Kanpur Plastipack Limited expects continued profitable growth with margin expansion supported by operational efficiency and product mix. - For FY 2026 and FY 2027, sales projections for the non-woven segment are INR30 crores (H2 FY 2027), INR85-90 crores (FY 2027), and INR92-102 crores (FY 2028-29). - EBITDA has shown strong growth with H1 FY 2026 EBITDA up 73% YoY to INR31.87 crores; margins improved from 7.4% to 9.8%. - Net profit for H1 FY 2026 was INR14.47 crores, a significant increase from INR0.28 crores in H1 FY 2025. - The growing contribution of higher-margin FIBC products is expected to boost margins; FIBC contribution to increase by 15% in H2 FY 2026 and by 25% next financial year. - The company aims for sustainable or upward trending margins based on stronger product mix and higher export realizations. - EPS stood at INR 6.26 for H1 FY 2026 vs. INR 0.13 in H1 FY 2025, indicating robust earnings growth momentum.

- The current order book is about 2 months to 2.5 months (8 to 9 weeks) of visibility. - This order book reflects steady demand with a robust pipeline. - There is a strong order book supporting revenue and margin sustainability for H2 FY 2026. - The company has mentioned growth momentum driven primarily by exports and strong order intake. - The management expects continued robust order flows, especially from higher-margin FIBC products. - No specific pending orders quantification beyond the stated order book duration was disclosed.