Cosmo First Ltd (NSE: COSMOFIRST) Q4 2025 Earnings Call dated May. 21, 2025
Corporate Participants:
Neeraj Jain — Chief Financial Officer
Pankaj Poddar — Chief Executive Officer
Analysts:
Unidentified Participant
Saransh Gupta — Analyst
Amit Aggarwal — Analyst
Arun Malhotra — Analyst
Madhur Rathi — Analyst
Saket Kapoor — Analyst
Vipulkumar Shah — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the Investor Call of Cosmo First Limited to discuss the Q4 and FY ’25 results. Today we have with us from the management, Group CEO, Mr Pankaj Podar; and Group CFO, Mr Niraj Jain.
Starting off with the statutory declaration, certain statements in the conference call may contain forward-looking. These statements are based on the management’s current expectation and are subject to certain uncertainties and changes in circumstances. These statements are not guarantees of future results. As a reminder, all participant lines will be in a listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star and zero on your touchstone phone. Please note that this conference is being recorded. Now may I request Mr Niraj to take us through his opening remarks, subsequent to which we can open the floor for the Q&A. Thank you, and over to you, sir.
Neeraj Jain — Chief Financial Officer
Thank you well, thank you. Very good afternoon, ladies and gentlemen. I’m Niraj Jain, Group CFO at Cosmo First, along with my colleague, Mr Pankash, Group CEO at Cosmo First. Before I go to the financial results, I would like to mention that our financial results for the March ’25 quarter and investors presentations are available on the company’s website.
We’ll first discuss a brief on the performance of the company for the March ’25 quarter and year ending March ’25, which may be followed by the questions. Consolidated sales for March ’25 quarter is INR746 crores, which is higher by 16% from March ’24 quarter, primarily on the backing of higher specialty sales, higher BOPP margins and we witnessed higher sales in USA and Netherland operations. The EBITDA for the quarter has increased to INR85 crores compared to INR67 crores during the March ’24 quarter. The improvement in EBITDA is backed by higher specialty sales, better BOPP and fund margins and enhanced cost rationalization by about INR9 crores. In fact, the EBITDA would have been even better, but for two more tracking items.
First, cost of INR4.3 crores on shifting the thermal line from Korea to India, which should provide an even benefit of close to INR10 crore, but we incurred this shifting cost during the quarter, which was one one-time. Number two, 10% lower-volume on the BOPET firm line, which was a planned maintenance shutdown. Moving to full-year FY ’25 EBITDA at INR362 crores is higher by INR11 crore, which is 44% increase compared to last year, primarily due to higher specialty sales, which has grown by 10% compared to last year. Number two, cost rationalization of about INR25 crore; number three, better BOPP and margin and in the last improved performance of the specialty chemicals subsidiary.
The consolidated PAT at INR133 crore rupee for FY ’25 is higher by 115% from last year the company is growing its specialty film sales by close to 10% CAGR growth over the last six years. In-line with this, FY ’25 specialty growth has also been close to 10%. The BOPP film margin has been running at INR21 per kg in March ’25 quarter as against INR21 rupee per kg in December ’24 quarter and INR14 per kg in March ’24 quarter, hence broadly at par with the previous quarter, but better on a Y-o-Y basis. I’ll move to outlook.
The company has already invested close to INR1,180 crore in last three years as capex in multiple growth projects, including line, CPC line, polyster line, and coating line, sunshield and paint protection film and digit packaging. These will yield a significant ramp-up in revenue as well as profitability in next two to three years. Further expanding on the growth, the cast polypropylene dine, which we call CPP line with an annual capacity of 22,000 metric tons has started operations in March ’25. Film has also started commercial production from May 2025.
The company has successfully done pilot runs for with 50 plus distributors who are going to distribute both film and paint production firms. The BOPP line has annual capacity of close to 81,000 metric ton is also expected to start operation in-quarter one of FY ’26. While for film business, the company’s focus will be taking full of the new investments, growth specialty, expand in international geographies and further push down the cost which we expect to be another INR25 crore annualized impact. The new fund life are the most cost-efficient and should make Cosmo more competitive in the market.
Moving to specialty chemicals subsidiary, the specialty chemicals subsidiary has achieved high-teens EBITDA with a top-line of INR180 crore FY ’25. This business vertical should continue to grow backed by new innovative products and specialty sales. Moving to pet care verticals. In, we have launched multiple private labels and enhanced our webcare services. Our business model is moving more towards services and private level, which is a high-margin business. Well, the Board of Directors of the company had recommended dividend of INR4 equity share for the financial year ’24-’25, which will be subject to approval of shareholders in upcoming Annual General Meeting. The debt position of the company, the company’s net-debt is at INR967 crores, which is 2.7 times to EBITDA And 0.7 times to equity. The financials remain strong. At March ’25, most part of the debt-related to growth is already built-in the balance sheet, but returns are yet to kick-in out-of-the majority of the capex. With this, we would like to take a pause and would like to open the call for the questions, please.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. All participants are requested to use handset while asking your question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Nirav from Annual Wealth. Please go-ahead.
Unidentified Participant
Yeah, good afternoon, sir. I have a few questions to ask. So sir, in your opening remarks, you said that we have been growing our specialty BOPP volumes by close to 10% CAGR over last few years. So how do you see FY ’26 panning out for us in terms of specialty volumes?
Neeraj Jain
When we say 10% growth is co is specialty sales actually specialty from sales and there are several products and in pipeline besides we already have in the good range of the specialty films. So we are quite optimistic that growth rate should be better-off only in FY ’26. And you are talking this about the volumes, right? We are referring the volume for the specialty.
Unidentified Participant
Correct. Sir, in terms of our total breakup of specialty versus commodity, we have already reached 71%. And at some point of time, if we are able to grow our specialty volumes by another, let’s say, 10% or similar run-rate for FY ’26. Would there be any need for further investments in the specialty BOPP because now our commodity line is also going online from Q — Q1 of FY ’26. So would there be a need to put up the additional capacities for specialty BOPP?
Neeraj Jain
Actually, yes, because you know what is going to happen is we are putting the new BOPP 9. Initially the ratio is skewed on the new capacity towards the commodity. But slowly it will move to the specialty in-line with the — what a broad strategy company has been following. So in-line with that, we are growing the capacity of the specialty films like the coating film and all. So which should help in the medium-term to move towards more towards the specialty films.
Unidentified Participant
Got it. And sir, when we see our commodity BOPP margins vis-a-vis that of semi-specialty and the specialty BOPP. Let’s presume that if the commodity BOPT margins comes down. Would the delta between the specialty, semi-specialty and commodity BOPP is the right indicator to track or let’s say, a fall of INR5 margin in the commodity BOPP also translate into the similar fall of INR5 in the specialty or semi-specialty. So how that metric works?
Neeraj Jain
Well, frankly, in our past experience, the specialty film margins only remain the same, except there may be some minor changes due to change in the mix. Semi-specialty runs with a additional delta over the commodity. But the relationship is not linear. So let us say if commodity margins move by INR10 or so.
Unidentified Participant
Yeah.
Neeraj Jain
It’s not necessarily semi-specialty margin will also change by time. It may change by INR4, INR5 or INR6 depending on the profitability of the fund. Okay. To answer your question, the special fund largely the margins are protected. Semi-specialty changes with the change in the commodity, but margins be — I mean the delta range of Delta is lower compared to the change in the commodity part.
Unidentified Participant
Got it. And sir, this 71% specialty films, how would the breakup look like in terms of semi-specialty and specialty?
Neeraj Jain
Will it keep changing from quarter-to-quarter, but broadly you can say 50-50.
Unidentified Participant
Got it, got it. Sir, second question is on the Sun Control films. I think you mentioned that we already started the commercial production. So how can the ramp-up of revenue we can see in FY ’26 and FY ’27.
Pankaj Poddar
Yeah. So as far as domestic market is concerned, we have got very positive response and we do expect that in a year we should be doing between window film and PPF easily 15 to 20 per next year itself.
Unidentified Participant
Okay.
Pankaj Poddar
As far as exports is concerned, we still need to do more work-in terms of approaching distributors and getting files done. So there, we see that majority of the growth will actually happen in FY ’27,
Unidentified Participant
Okay.
Pankaj Poddar
So we expect next year should be closing anywhere between INR25 crores INR30 crores and a year thereafter, we should exceed INR50 crores.
Unidentified Participant
Got it, got it. And sir, in terms of the starting point in terms of this uncontrolled films.
Pankaj Poddar
But another thing is that we are also planning to launch some more products. I cannot share more details.
Unidentified Participant
Yeah.
Pankaj Poddar
But this is becoming like a complete consumer vertical in itself where there’s lot of focus in you know bringing products which are right now either not made in India or made by only one or two players. And so we will be launching more products and create a very serious brand within the country. You can actually go to cosmoconsumer.com and see more details about it. So over the years, we will create — so there’ll be two businesses in consumer segment, one is Delhi and second is Cosmo consumer. And we do expect that this vertical will be profitable much earlier than even Widdly because here the gross margins are quite good and has a lot of cost on the retail side where here in one-side, we continue to do cost-reduction but at the same time the gross margins are good.
Unidentified Participant
So what could be considered as a breakeven sales for the Sun Control films?
Pankaj Poddar
It should the purely depends on how much marketing cost we do. But right now we feel INR35 crores should be the breakeven, but I mean, I don’t know if you get a chance to see some of the videos that we launched this year. We’ve already released two videos of and sheet because there’s lot of awareness that we need to create in the market. Obviously, we are doing a very low-cost marketing, largely digital marketing to begin with. But we will scale-up the marketing as we move along and ensure that customers are aware of such a beautiful product where you know, the paybacks are so good, the customer comfort is involved, the green building is involved.
So it’s an awesome product. It is just that we need to-market it really well. And domestic markets have got a very good traction. We have created a very strong sales team, more than 60 people trying to go to every corner of the country. So yeah, so domestic, I feel we’ll be able to crack the code faster. Export, we still need to learn more and do much more work.
Unidentified Participant
So just a last bit, like since you mentioned that our focus initiative would be on the domestic market, what could be the size of Indian market so-far as this controlled is concerned. Any ballpark idea if you can share?
Pankaj Poddar
Yeah, see the window film itself is INR400 crore market, but a lot of imports is happening from China,
Unidentified Participant
Okay.
Pankaj Poddar
So you may be aware, there’s only one local competition who is representing just 10% market and rest of it is coming not just from China actually, it is coming from a lot of this is coming from even America and Europe. So it is America, Europe, Japan, China and Korea, five countries where it is coming from. And as far as buildings is concerned, right now it is happening more mostly in the commercial complexes where it is a some kind of a technical selling. But consumers at large are not aware about these window films, which is what we intend to do. Automobile itself is a good segment. And see, we are not saying that domestic is the only focus area. Export is also equally a very critical area for us. It is just that we started doing the trials in the domestic market and we have already created a good understanding with many distributors. We are working very aggressively even on the export market and export is a much, much larger $2 billion market where we need to create another.
Unidentified Participant
Got it, sir
Unidentified Participant
. Thank you so much and wish you all the best.
Operator
Thank you. The next question is from the line of Sharansh Gupta from Swan Investments. Please go-ahead.
Saransh Gupta
Morning. Thank you for the opportunity.
Operator
Sorry to interrupt, sir. Your voice is coming very low. Could you please
Saransh Gupta
My voice audible now?
Operator
Yes, sir.
Saransh Gupta
Yeah, good. Thank you for the opportunity. Sir, just wanted to understand in your opening remarks, you alluded that you have invested about INR1,000 crores of the capex and all the facilities now largely onstream other than the BOPP line, which is coming up with of INR81,000. So just wanted to understand two things here. Earlier, there we were starting with a capex of 67,000 tonnes of the BOPP line now which we have operated to 81,000. So is there any change in the technology or the upgradation of the machinery on that part? And post the announcement of our capex and the capacity coming under stream, how do you see the spreads moving on the commodity for the rest of the year?
Pankaj Poddar
Yes. See, yes, during the tenure of the contract, we did change and we move to the latest technology which the supplier announced. So yes, it is there. And to answer the point number two, commodity margins are very difficult to project. They keep moving up-and-down all-the-time. So we can’t really comment. As Cosmo, our focus remains going-in international markets and scaling up our specialty sales. So we’ll continue working that path. In the short-term, yes, we’ll have to sell more commodity firms because of the new line, but — but the focus is to just be there on the specialty purpose.
Neeraj Jain
And just to add to it, I mean, this new line is one of the lowest of production line available in the world. So that in any case should happen.
Saransh Gupta
Sure, sir. That’s very helpful. So definitely the new line once it comes office in second-half, we could have a little bit better margin as compared to the existing product-line.
Pankaj Poddar
Yeah. It is not going to come in second-half. It is going to come in the quarter one itself. Most likely you know, it should be up and running by end of this month.
Saransh Gupta
Sure, sir. And secondly, now with our majority of the capex is over with INR900 crores of the net-debt that we are on the book. So how do we see a debt movement going ahead from here? Or is there any other capex or strategic initiatives which is there on the pipeline?
Pankaj Poddar
, this year also as you know the first question came, we are going to spend some more capex this year to add to a specialty capacity. So on the specialty side, one is we are going to sweat out our existing assets and we feel there is a potential there. At the same time, we are adding a couple of more value addition lines in this year. And so there is additional around INR200 plus crore capex this year, which will be largely done through internal accruals.
A year thereafter, we are not going to have that kind of capex. So we will see major capex — major debt reduction from the next year. This year, most of the internal accruals will be used for the capex and the working capital increase because of the growth in sales. Sales and next year, you would start seeing a reduction?
Saransh Gupta
So sir, on the facility now since you are going to add-up another INR200 crores the capex, so the existing capacity where we have done INR180 crores in financial year ’25, what will be the peak revenue that one can get from the existing and what is the asset turnover one can expect from the new INR200 crores of the block?
Pankaj Poddar
So with all the assets with Zigli, with coming to full potential with BOPP, CPP line to full potential, we should be — we can potentially touch INR5,000 crores, but this year, we are expecting anywhere between INR3,500 crores to INR4,000 crores sales and a year thereafter another 10% to 15% jump. But the peaking will happen because we keep peaking every year you know, and similarly with Zigli, it will keep growing and same with chemical where we do not invest, need to invest much capex, we can still touch INR300 crore INR50 crores in the current assets. So film assets will speed out completely in next 12 months. But as far as our other businesses are concerned, you know where the full speating will take more time. Time. I feel plastic and film will be fully set within this year.
Saransh Gupta
So thanks for the detailed answer. Sir, one more question on the questions when you indicated on the SCF that probably we’ll be doing a INR20 crores of revenue this year and INR50 to INR75 next year with a breakeven of 35. So is it fair to assume that this year-on the sun control only, there will be a net-net loss of INR10 crores?
Pankaj Poddar
Well, not really INR10 crores. If you are behind us let’s say we are behind by INR10 crore INR15 crores from breakeven sale, so there’ll be INR78 crores, INR10 crores at best loss from this year. And see it also boils down to how much marketing cost we incur. We are going to increase our marketing cost in a sales manner and not a blast immediately. So the losses would not be beyond INR8 crores in any case, overall losses. And yeah.
Saransh Gupta
Sir, last question from my side. Can — it’s a bookkeeping question. So can you help us in understanding the EBITDA contribution from the resist packaging and for the full-year FY ’25
Pankaj Poddar
This is available on our investors presentation in much more detail.
Saransh Gupta
So that’s all from my side. Thank you.
Operator
Thank you. The next question is from the line of Amit Agarwal from Leeway Investments. Please go-ahead.
Amit Aggarwal
Good afternoon. It sounds that the company is growing at such a faster pace and still it’s very shocking that the promoters have sold 4% stake in the company. Any particular reason because that has been a big on the same market and is there any financial transition between the promoter and the company this year?
Pankaj Poddar
Yeah, see, that was personal need, you know. And if you had seen earlier when he had funds, we actually bought shares. But last year he had purchased some personal assets and he needed to fund that and therefore, we had to sell some shares. So promoters can also have personnel needs to manage their cash flows. What is the second question?
Amit Aggarwal
Is there any financial transition between the company and the promoter the shares like some kind of loan to the company from the promoters of September 15.
Pankaj Poddar
Not really, not really. There was — it was in-between a very — for a few days there was a transaction. There was a very small loan, not small, but there was a loan which was given and that was immediately repaid, you know something of that sort. It was nothing material, you know. Yeah.
Amit Aggarwal
Okay. And my second question is regarding. Can you think? Do you think Ziggly is facing heat from the quick up business because they are delivering within five or 10 minutes all their products. So are you any up with any business like Blinket or or Zepto.
Pankaj Poddar
Yeah, yeah, we have tied-up with them, but see these players do not have more than 1.5% market-share. See, and you know in our pet care the customer needs are too varied and commerce is largely able to service very few products. So that is not a challenge. You know, we are also giving omnichannel delivery to our customer. The bigger issue right now in-product side is that the margins are not good enough.
The suppliers are not offering good margins to any of the players. And therefore, some of our competitors and including Zigli, we are trying to move-in the direction of private-label so as to move the margins and also provide better-quality products to the customer
Amit Aggarwal
And how many stores have you right now and can you throw some light-to-Y sales growth in the store which are quite told now?
Pankaj Poddar
Yeah. So as far as retail is concerned or say centers are concerned, in last 12 months, we have grown double and we have right now 32 stores. On the online sales, we have significantly reduced sales because we were realizing that they were unnecessarily happening at too much losses without any building up of brand equity. So we kind of reduced our sales on marketplaces quite a bit. Our focus is growing more on our own websites and that too delivery through various stores which are there pan-India. So that is the strategy we are adopting. As far as services are concerned, they should be profitable sooner than later. Our products, we need to do more work because we need to introduce a lot of private labels. We Already introduced multiple private labels in a few categories. And within this year, we’ll be launching many more to ensure that at least we have some products in every category of pet care. So that is the direction we are taking. And so once we are trying to get faster delivery and reduce cost to the customers by delivering from their nearest location. And at the same time, we are also trying to improve our margins so that product at large can also become profitable in the times to come.
Amit Aggarwal
Out of 32 stores, how many are breakeven they have reached breakeven, cash breakeven and what is the sales growth for each store, which are quite old.
Pankaj Poddar
So some of the old stores have started to turn breakeven and be profitable. What we are realizing is, as I said earlier, services like rooming at a pan-India level is profitable for us. Wet care, given that we have invested quite a bit in wet care in the last eight, nine months, our wet care is still not profitable, but many of the centers in wet care are profitable already. What is really hurting us is the product side where margins are not coming either on online — on offline and that is purely because the supplier partners are not offering enough margins.
Food is the main thing and most of the food suppliers they are playing really monopolistic and not giving more than, 30% 35% margin. So we are pushing them really hard on one-side, educating them that this way industry can’t survive. But at the same time, we are looking-forward to launch our own private-label so that at least we can shift some of the demand from these old brands to newly-created brands by companies
Amit Aggarwal
Like used for like store-to-store like these store.
Pankaj Poddar
Yeah, yeah. As I said, overall at a retail level, we are growing 5% to 10% month-on-month. Some months, these are 4%, 5%, but we are growing 10%, 12% also. And in last 12 months, our run-rate has doubled.
Amit Aggarwal
Okay. Thank you.
Operator
Thank you. Thank you. The next question is from the line of Arun Malothra from Capgro Capital. Please go-ahead.
Arun Malhotra
Good afternoon, sir. Can you throw some light on the outlook for both BOPP and BOPT?
Pankaj Poddar
And what outlook, sorry? I mean globally we are growing both nicely even in India, we are growing nicely.
Arun Malhotra
So any expectations of price margins going-forward? What is the supply-side scenario? Is it going to be as super profitable as we were in 2022, ’23 or is still going to be muted as it has been there in the last two, few quarters?
Pankaj Poddar
If polyester can have better margins for the simple fact that polyester last two years, not much capacity has come worldwide or even in India. BOPP is concerned, this year in India, there are four-five lines coming up. So there may be a temporary. But as I said earlier that our focus is largely specialty sales and specialty our margins are quite stable. Whatever commodity sales we do, that definitely gets impacted by the local market.
Arun Malhotra
Sure, sure. And there is one more problem which I think we have personally have been grappling with is that the capex has doubled in the last two years, if you see, our margins for specialty have increased and even for base films, the mix has also moved in favor of the specialty, but the revenues are almost same for last two, three years. The profitability is still the same, the EBITDA and net profit actually is much lower than FY ’22 ’23. And our growth and ROE are below our cost-of-capital. So which reflects a poor allocation of capital and we are still talking of more capex. So what is the management outlook on all these fronts.
Pankaj Poddar
See two things. First is COVID were exceptional years because globally supply chains were impacted. But having said so, we have clearly stated in a media release that in last three years, we have done almost INR1,200 crore of capex. And last year itself, we have done INR500 plus crore of capex. You know, there is no magic that the moment you spend capex next day returns start coming. It does take some time and as polyester got installed in the FY ’23 and this year it has started contributing reasonably to the EBITDA numbers.
Even in polyester, we are moving in the direction of selling more-and-more specialty. We have got close to 35% to 40% semi-specialty sales on polyester. We have worked on some high-end specialty films also when it comes to polyester films. So these are the capex which is done recently, which are yet to start maturing. Once they start maturing, our revenue and profitability numbers will grow quite a bit.
Neeraj Jain
And just to add to it, I mean, Rosie is appearing subdued today because the most part of the debt-related to the new growth is already in the balance sheet, but we do not have commensurate last 12 months earning out of it. So once we have all the new growth commercialized, so that would help and post that only, probably you may like to in the year.
Arun Malhotra
Sure. And so do you think ’26 or FY ’27 would be the year when all this doubling of the capex, we move towards specialty and move introduction of new products will start getting reflected or ’26 or ’27. We are almost done with ’26. So ’27, ’26 also
Pankaj Poddar
Will see a good growth and ’27 also will see a good growth. Obviously, the full utilization of our assets basically for non-film business will continue to happen year-after year. But FY ’27, the film assets will be fully utilized and they will be greatly utilized within FX because
Arun Malhotra
Any thoughts on the demerger of the pet care business, are you looking at a critical size before you take that decision or more allocation, more requirement of capital and you bring in a private-equity partner or an IPO, what is the thought process behind it?
Pankaj Poddar
We will separate it out at the right time. As we said, we had indicated that you know and in next three years to four years, we’ll do it. So as of now, those projections are not changing. We will be doing it at the right time once we see that overall, obviously, as you rightly pointed out that we need to decent scale. And at the same time, you know our losses on that business have come down significantly.
Arun Malhotra
Sure. All right. Thank you.
Operator
Thank you. The next question is from the line of Madhur Rathi from CounterCyclical Investments. Please go-ahead.
Madhur Rathi
Sir, thank you for the opportunity. Sir, I wanted to understand regarding our margins or margins for PG that you we can expect in FY ’26, considering that this BOPC line that we are coming we manufacturing commodity in the prior-period and then move to specialty. So what kind of margin that we expect
Neeraj Jain
If I got your question right, you are asking FY ’26 projected margins, right?
Madhur Rathi
Yes, sir.
Neeraj Jain
So as we said, I mean on the commodity part of the business, it’s very, very difficult to project the margin. For the specialty, we said should be largely in the similar range as last year. Semi-specialty, as we said, it moves with the change in the commodity, but not in a linear relationship. If we look at holistically, since there is no much capacity expected on the BOPET side. So we expect margins should improve on the corporate side logically.
On BOPT side, there may be few quarters when there will be excess capacity because four, five lines are expected in the coming — in current financial year. That may temporarily have some kind of impact on the commodity part of the business. But then see if the domestic demand is growing 10%, 12% year-on-year, that should be the gap.
Madhur Rathi
If I understand our new BOP loan that will come, so just like what would be — if you would say like the breakeven that be manufacturing commodity so that we. So can we expect it to at least breakeven in FY ’26 and like post some margins or because of the commodity environment, margins would be much lower than what we can expect from this additional capacity.
Neeraj Jain
Well, I will give you a little perspective on this. So new VOPP 9 would generate a little close to 90% utilization, it will be close to 5,000 metric ton monthly sales. Even if we take these very subdued kind of the margins, INR15 Or so, it should generate INR7,50 that gross margin on a monthly basis and fixed overhead on this line, we do not expect more than INR8 crore INR9 crore on annual basis. So just wanted to give slight perspective that with that kind of the capacity coming at that to at a lower-cost of production, it should add to the bottom-line significantly once it’s operational full.
Madhur Rathi
Okay, that’s a problem. So minimum 70, is there a side we can expect to add-in next year. Sir, I wanted to understand which question regarding like, so just a clarification, sir, in PPS, we expect a INR15 crores to INR20 crore revenue in FY ’26. Is that right?
Neeraj Jain
So what under control freement taken together, close to we are looking at close to 25 in FY ’26.
Madhur Rathi
Got it. That is a combined number and 50 to 75 for FY ’21, that is the combined number as well.
Neeraj Jain
Yeah.
Madhur Rathi
Okay, sir, that was it from my side, sir. Thank you so much and all the best.
Operator
Thank you. Thank you. The next question is from the line of Saket Kapoor from Kapoor &o. Please go-ahead.
Saket Kapoor
And thank you for the opportunity. Sir, just correct me, you mentioned that at the expanded capacity and at optimal utilization, we will be clocking a revenue to the tune of INR35 to INR3,700 for FY ’25, ’26 and that is including the that will get commissioned and stabilized by the first-quarter — or first-quarter onwards.
Neeraj Jain
That’s right. So we said, I mean, between INR3,500 crores to INR4,000 crores, that kind of revenue we should be able to generate in FY ’26.
Saket Kapoor
And sir, in your presentation, you have mentioned about — you have given the EBITDA numbers business vertical wise for FY ’25. So — and it is mentioned here the reported EBITDA at 12.5% and then you have given the segregation for specialty, pet care, rigid and packaging. So post the contribution margins improving from the rigid packaging and also from the specialty and also with the addition of the new lines in the BOPP segment, how should this margin trajectory on a blended basis or segment-wise basis should look like for the current financial year? What kind of trajectory should we expect?
Neeraj Jain
So there is going to be a significant ramp-up in fund because we are adding significant capacity in FY ’26. The other verticals would also grow like the specialty chemicals with me and plastic and of course, we some control from now. But the ratio, if you look at this on a comparative basis seems numbers are much larger than, so it may little bit skewed towards this one in FY ’26. But over a period of time, as Ankar said, we are looking at, I mean, once it has close to reasonable kind of the size in the new business vertical, out of — we are looking at close to INR5,000 crores of the top-line with a, a, 18% 20% revenue coming from the new business verticals.
Saket Kapoor
So last-time can you come against that INR5,000 crore after five minutes, there was a drop-in line
Neeraj Jain
With the expected revenue with 18% to 20% from the new business verticals other than that.
Saket Kapoor
So the blended EBITDA margin which we posted, I think of 12.5% for this financial year, this should go — this should trend in what trajectory, sir, for this current financial year. A ballpark
Neeraj Jain
Is very for us to project that at this moment. But I mean, we can discuss not an issue. We’d like to write it to us at the add-in our investor presentation.
Saket Kapoor
Okay. So we are also going to do further capex of 200 for this financial year. So that will also add to any sales capacity or where will this capex will be attributed to.
Neeraj Jain
So as we said, we are adding capacity only to specialty side, specialty fundic side. So these will be value-add kind of being specialty over the BOPP or the.
Saket Kapoor
And last — and yeah. And lastly, sir, this 584 closing what is the balance will get capitalized with the commission of our BOPP line by the end-of-the first-quarter itself or if you could just give the timeline of when are we going to capitalize this amount
Neeraj Jain
So we expect within this current quarter only,
Saket Kapoor
The entire five closing balance of INR584 will get capitalized. That is totally attributed to the running.
Neeraj Jain
Sorry, what is INR584 you are asking to?
Saket Kapoor
So INR584 crores will be closing balance as on 31st March in the capital work-in progress. So with the capitalization of the BOCP lines, how much — what amount will get capitalized?
Neeraj Jain
So out of that larger part is BOP, which we are going to commission in the current quarter one only. And second part is the Sun Control film, which in any case we have already started the commercial production starting from the May.
Saket Kapoor
And sorry, can you hear. Okay, I’ll join the queue, sir. Okay, not. Yeah, I joined the queue.
Operator
Thank you so much. Yeah. The next question is from the line of Ripul Kumar Shah from Investment. Please go-ahead.
Vipulkumar Shah
Hi, sir. Thanks for the opportunity. So what was the GMV of Pet Care business for the whole of the year? And at what revenue rate that business will breakeven?
Neeraj Jain
So on the first part, currently, we have only INR5 crore of the monthly GMV, operations. It’s very difficult to project at this point of time whether breakeven will be at X amount or y amount. It will depend on a lot of factors, how much we are spending on the marketing, on the branding, whether the large part of sales is coming on retail, private-label services. So little difficult at this point of time. What we are looking at now is focus more on the growth, more particularly the private-label sales, which has high margins and services revenue, which again got very-high margins.So focus is first at this moment, grow these verticals much more, which in any case will translate to profitability in years to come.
Vipulkumar Shah
So can you split sales between products and services? So what was the — because services carry, you said little higher margins as compared to products. So if it is possible, please split reduced sales into production services. 60-40. 60 in favor of products.
Neeraj Jain
Service 60, 40 products.
Vipulkumar Shah
So it will be 60 and 40 products.
Neeraj Jain
That’s right.
Vipulkumar Shah
Okay. And sir, this BOPET line, it is entirely for specialty or in also, we manufacture commodity frames also.
Pankaj Poddar
Right now we do a mix of semi-specialty and commodity and in the times to come, our focus is to move more-and-more so close to, 35%, 40% is somewhere between semi-specialty, specialty products.
Vipulkumar Shah
So 60% book is commodity, right?
Pankaj Poddar
Yeah, yeah.
Vipulkumar Shah
And out of our total specialty and specialty volume, what should be the split of exports versus domestic?
Pankaj Poddar
Specialty is mostly to domestic also and some specialty market.
Vipulkumar Shah
So that is my question, sir. So if you take specialty sorry,
Pankaj Poddar
Right now we do close to 55% to 60% exports and most of it is specialty.
Vipulkumar Shah
Okay. And sir, my last question is, you mentioned about — you are starting a new vertical Kosmok consumer. So can you share more details what type of products are there, what type of investment it will be required in this business?
Pankaj Poddar
One is window film and second is paint protection. Window film investment will be paint protection, I mean, window film complete investment has been done. Paint protection Protection, we may have to do some small incremental investment, but that’s not large. We are launching some more products, which does not entail too much of investment again. So investment would not be so much of a concern, it is basically building a brand. It is more about marketing cost in capturing market.
Vipulkumar Shah
Oh, so you have renamed the Sunfield and paint production film in as a consumer business, right?
Pankaj Poddar
Yeah, yeah. I mean the brand-name for remains Cosmo and similarly for PPF remains Cosmo BPS, but we have created an entity above that, which is Cosmo Consumer, which will represent more-and-more consumer products
Vipulkumar Shah
And in your presentation, the market for this paint production film for car paint production film is just INR10,000 crores, 10,000 cars also so am I missing something? It’s a very small number. So why we have started on our business
Pankaj Poddar
Is much bigger than every car, the value of the paint protection film is lakh or above. So market is quite big. I mean it’s not a small market.
Vipulkumar Shah
Okay, okay, so content is very-high per car. Thank you, sir and all the best
Operator
Thank you. Thank you. Ladies and gentlemen, that was the last question for today’s conference call. I now hand the conference over to the management for closing comments.
Neeraj Jain
I while to summarize, company’s specialty sales has increased by close to 10% in FY ’25 and we expect similar trend to continue in FY ’26, which will strengthen the business model. For film business, company’s focus will be on taking full leverage of the new capacity, grow the specialty film sales, expand international geographies more and further push down to cost. Among new business verticals, specialty chemicals is already making high-teens EBITDA. The other verticals should also follow the profitability. While may take some time to become profitable or should be a significant value creator. So in the last, I would repeat the declaration. Certain statements in this con-call may be forward-looking statements. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. These statements are not guarantees of future results. Thank you. Thank you to all of you,.
Operator
Thank you. On behalf of Cosmo First Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you