Q1 2027 Pakka Limited Earnings Call Transcript
Key Points
- Highest ever quarterly revenue, up 42% year-over-year and 14% quarter-over-quarter, with EBITDA up 31% YoY and 36% QoQ.
- Project Jagriti is back on track with funding completed; PM4 machine is 85% erected and expected to start trials by end of October, with commercial production targeted for early next year.
- Food Services division achieved a 34% YoY revenue growth, driven by a 46% increase in B2B sales, and expanded its B2C presence from 3 to 12 platforms.
- The company has built a strong outsourcing model with 5-6 partners, which is expected to improve profitability and support asset-light growth in the Food Services segment.
- New product developments, including the delivery containers and flexC base paper, are progressing with pilot trials underway and soft launches planned, targeting higher-margin specialized applications.
- High cost of finance for Project Jagriti, with interest rates around 17% versus the previous 11%, due to the Neo Asset Management deal, which will pressure profitability until refinancing.
- The Middle East crisis is negatively impacting exports, causing some dent in revenue and contributing to stretched net sales realizations (NSR) in the paper segment.
- Food Services division reported a PBT loss of INR1.6 crores in Q1, slightly higher than last year due to structural manufacturing changes, though the company aims to reach breakeven.
- The company faces execution risks with PM4 startup, including potential delays in stabilization and product adaptability in the market, with a typical ramp-up to only 40-50% in the first few months.
- Top management churn, including the resignation of the CFO, raises concerns about leadership stability, though the company is working on succession planning.
Good evening, ladies and gentlemen. A very warm welcome to the shareholders, investors, analysts and other participants joining us today for Pakka Limited's investor call to discuss the financial and operational performance of first quarter ended June 30, 2026.
(multiple speakers)
Good afternoon, everyone. Sachin, if you can just keep muting everyone so that.
Yeah, understand. (multiple speakers)
Yeah, sorry. Yeah, so my request to everyone would be to be on mute and you will be requested to unmute when we get to the question and answer session. So first of all, on the behalf of the entire team, I'd like to extend a very warm welcome to all our shareholders and stakeholders to the quarter 1 investor call.
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