COSMO FIRST LIMITEDChemicalsCOSMOFIRST
Q1 FY27 concall · earnings callCOSMO FIRST LIMITED
The quarter saw strong sales growth driven by raw material price pass-through and volume gains, with profitability improving across all B2B businesses and management now focused on ROCE improvement and debt reduction.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Consolidated Sales | ₹1,166 Cr | 46% | |
| EBITDA | ₹147 Cr | 26% | |
| EBITDA Margin | 12.6% | — | |
| Volume Growth | 9% | — | |
| Net Debt | ₹1,166 Cr | 0% |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹700.65 Cr+12.1% YoY-7.7% QoQ | ₹29.56 Cr+160.2% YoY-35.4% QoQ | ₹11.38+159.8% YoY-35.5% QoQ |
| Q2 FY25 | ₹758.92 Cr+14.4% YoY+10% QoQ | ₹45.75 Cr+112.4% YoY+47.8% QoQ | ₹17.65+112.4% YoY+47.7% QoQ |
| Q1 FY25 | ₹689.67 Cr+4.9% YoY+7.5% QoQ | ₹30.95 Cr+122.7% YoY+101.2% QoQ | ₹11.95+122.5% YoY+101.5% QoQ |
| Q4 FY24 | ₹641.31 Cr-10.3% YoY+2.6% QoQ | ₹15.38 Cr-51.7% YoY+35.4% QoQ | ₹5.93-50.6% YoY+35.4% QoQ |
| Q3 FY24 | ₹624.79 Cr-14.4% YoY-5.8% QoQ | ₹11.36 Cr-75.1% YoY-47.3% QoQ | ₹4.38-74.2% YoY-47.3% QoQ |
TL;DR
- Consolidated sales grew 46% YoY to Rs 1,166 crores, with 9% volume growth and raw material price pass-through.
- EBITDA rose 26% YoY to Rs 147 crores, with per-kilogram contribution improving across all product categories.
- All B2B businesses (films, specialty chemicals, rigid packaging) are now profitable.
- Net debt was flat at Rs 1,166 crores (2.3x EBITDA) despite an Rs 85 crore working capital increase.
- Guidance: Overall FY27 topline growth of ~20%, with new businesses growing ~60%.
- Focus for the year is on improving ROCE to 15-20% and reducing net debt over the next two years.
Said on the call
“The right margin is contribution per kilogram and that improved across every category.”
From the Q&A
| Topic | What management said |
|---|---|
| ROCE Improvement Path | Management targets ROCE of 15-20% over the next 12-24 months, driven by volume growth, capacity utilization, and scaling new businesses. |
| Specialty Film Margins and Mix | Specialty film margins remain stable at Rs 60+ per kg; the mix is currently 61% and targeted to reach 70%, with no capacity constraints for specialty. |
| Margin Dynamics (BOPP/BOPET) | BOPP gross margin was Rs 30/kg (includes one-time stock gain); BOPET margin was Rs 9/kg, down sequentially due to overcapacity, but expected to improve with anti-dumping duty. |
| Rigid Packaging (Plastech) Growth | Business turned EBITDA positive with 7% normalized margin; targeting Rs 150-160 crore revenue this year (from Rs 100 crore last year) and Rs 200+ crore next year, with 50% capacity expansion planned. |
| Zigly and Consumer Business Breakeven | Zigly breakeven expected around Rs 250 crore revenue; Cosmo Consumer can breakeven earlier than Rs 100 crore and was close to breakeven in Q1. |
| Volume Growth vs. Export Issues | 9% overall volume growth was lower than potential due to 13% export volume decline caused by port congestion and line maintenance; expected to recover in Q2. |
| Debt Reduction Plan | Net debt to EBITDA reduced from 2.6x to 2.3x; target is below 2x in 12 months, with plans to reduce debt by Rs 400-500 crores over two years through EBITDA growth and internal accruals. |
Guidance
- Overall topline to grow by about 20% in FY26-27 with commensurate increase in bottom-line.
- Four new businesses (specialty chemicals, Plastech, Cosmo Consumer, Zigly) expected to grow about 60%.
- Net debt to EBITDA to reduce to below 2 times in the next 12 months.
- ROCE intended to reach 15% to 20% over the next 12 to 24 months.
- Specialty chemical business expected to grow around 50% this year.
- Plastech (rigid packaging) revenue expected to reach Rs 150-160 crores this year and Rs 200+ crores next year.
- Specialty film sales mix target is to move from 61% to 70%.
Source
Summary written from the transcript filed by COSMO FIRST LIMITED for the call held on 7 Aug 2026; published 18 Aug 2026, 19:44 IST.
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