Q1 2027 Cosmo First Ltd Earnings Call Transcript
Key Points
- Consolidated sales grew 46% YoY to INR1,166 crore, driven by a 9% volume increase and raw material price pass-through.
- EBITDA rose 26% YoY to INR147 crore, supported by higher specialty film volumes (up 12%), improved base film margins, and better performance from the US subsidiary after tariff reductions.
- Gross margin per kg improved across all film categories, with BOPP at INR30/kg (vs INR23/kg YoY) and specialty film margins stable at INR63/kg.
- All B2B businesses are now profitable, with Specialty Chemicals posting 34% revenue growth and 25% EBITDA margin, and Rigid Packaging turning EBITDA positive at 7%.
- Management expects FY27 revenue growth of ~20% overall and ~60% for new businesses, with a clear roadmap to reduce net debt to below 2x EBITDA in 12 months.
- The company has significant headroom to increase specialty film sales to 85-90% of capacity without major CapEx, supported by new product launches and patents.
- EBITDA margin declined to 12.6% from 14.5% YoY, partly due to higher raw material costs and a 13% drop in export volumes from port congestion.
- BOPET film margins fell to INR9/kg from INR18/kg sequentially, reflecting overcapacity in the Indian market.
- Net debt remained flat at INR1,166 crore (2.3x EBITDA), with working capital increasing by INR85 crore due to raw material price hikes.
- Zigly's losses widened in Q1 due to continued investment in new retail centers and private label launches, with breakeven not expected until revenue reaches INR250 crore.
- The company faces raw material availability challenges due to the West Asia conflict, which could impact operations and margins.
- Other income was volatile, impacted by fluctuating foreign currency movements, adding uncertainty to quarterly earnings.
Ladies and gentlemen, good day and welcome to the investor call of Cosmo First Limited to discuss the Q1 FY27 results. Today we have with us from the management, Group CEO, Mr. Pankaj Poddar and Group CFO, Mr. Neeraj Jain, CEO, Zigly and Head Corporate Development, Mr. Saurabh Jain. Starting off with the statutory declaration, certain statements in the conference call may be forward-looking. These statements are based on management's current expectation and are subject to uncertainties and changes in circumstances.
These statements are not guarantees of future results (Operator Instructions)
Please note that this conference is being recorded. Now may I request Mr. Neeraj Jain to take us through his opening remarks, subsequent to which we may open the floor for the Q&A session.
Thank you, and over to you, Neeraj.
Well, thank you very much. Very good afternoon, ladies and gentlemen, and thank you for joining us for Cosmos June 2026 results conference call.
We'll
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