Mold-TekPackagingsharessurge17% as Q2FY27profitjumps35% YoY to Rs21crore
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AgenciesMold-Tek shares jump 17% as profit and revenue surge in Q2.
The stock pared some of its initial gains but continued to trade firmly in positive territory. At around 2:10 PM, shares were trading at Rs 299 apiece, up 9.58% from the previous close of Rs 272.85 on the NSE.
Mold-Tek Q2 FY27 results
Mold-Tek Packaging reported a 35.5% year-on-year (YoY) increase in profit after tax (PAT) to Rs 21 crore in Q2 FY27, compared with Rs 15.5 crore in the corresponding quarter of the previous fiscal year (Q2 FY26).
The company's revenue from operations rose 30.5% YoY to Rs 274 crore, against Rs 210 crore in the year-ago quarter.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 27.7% to Rs 50.3 crore from Rs 39.4 crore a year earlier. However, the EBITDA margin stood at 18.3%, compared with 18.8% in Q2 FY26.
Segment-wise performance
Mold-Tek Packaging's Pharma Packaging business continued its growth momentum, recording year-on-year volume growth of 26.30% during Q2 FY27.
According to the company, the performance reflects increasing customer acceptance, a stronger presence in the pharmaceutical packaging segment and rising demand from both existing and new customers.
The company said it remains focused on expanding its pharma packaging business through investments in advanced manufacturing capabilities, specialised packaging solutions and capacity enhancement. Recent investments in pharma packaging infrastructure are expected to support its growth plans and increase the segment's contribution to overall revenue and profitability.
With increasing customer engagement, a strong business pipeline and enhanced manufacturing capabilities, the company expects the segment to play an important role in its growth in the coming years.
Food & FMCG Packaging
The Food & FMCG Packaging segment, including Q-Pack, registered year-on-year volume growth of 23.70% during the quarter.
The company attributed the performance to market opportunities, advanced manufacturing capabilities and an expanding customer base. It also highlighted the contribution of its Panipat facility (Unit-14), which is generating sales in the North Indian market.
Mold-Tek expects growth in the segment to sustain or improve in the coming quarters.
Focus on printing capabilities and operational efficiencies
The company continues to focus on optimising its printing capabilities, improving capacity utilisation and enhancing operational efficiencies.
The integration of printing facilities under one roof at Sultanpur, Telangana, is expected to streamline workflows, reduce operating costs, improve turnaround times and ensure better resource utilisation.
According to the company, these initiatives are expected to generate cost efficiencies, strengthen margins and support future business growth.
New product launches and future growth plans
Mold-Tek Packaging outlined several product development and expansion initiatives in its future growth pipeline.
The company plans to commence commercial production of IODEX containers from Q3 FY27. It is also developing new packaging products for three additional multinational companies, with these products expected to contribute to revenue from Q4 FY27.
The moulds for eye-dropper packaging are expected to be ready by Q4 FY27, with commercial production scheduled to begin in Q1 FY28.
The company's newly developed innovative dual packs have received market adoption and are expected to be launched in Q4 FY27.
In addition, Mold-Tek is actively exploring opportunities to enter the trays, dosing pens and semiconductor packaging segments as part of its efforts to sustain growth over the next few years.
Company secures orders from new customers
During the quarter, Mold-Tek Packaging secured new orders from several companies across its Food and Pharma businesses.
New customers in the food industry include Kannan Fiber Industries, Mittal Polymers Private Limited and Avakaaya Foods, among others.
In the pharmaceutical segment, the company secured orders from Pharmaforce and Lifewise Pharmaceuticals, among others.
Management commentary
Commenting on the quarterly performance, Chairman and Managing Director J. Lakshmana Rao said the company delivered a strong performance in its pharmaceutical business despite challenging operating conditions.
He noted that the quarter was marked by sharp increases in raw material prices and constraints in material availability due to geopolitical disruptions.
However, the company passed on the increase in raw material costs to customers in line with its pre-agreed pricing arrangements, thereby protecting its operating margins. Rao also highlighted that despite the seasonal weakness in demand typically associated with the second quarter.
He attributed the performance to the company's ability to manage input cost volatility, improve operational efficiencies and benefit from expanding demand across its product range.
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