Mold-Tek Packaging Limited (NSE: MOLDTKPAC), India’s pioneer in In-Mold Labeling (IML), announced its Q3 FY26 financial results today. The company reported a mixed set of numbers, characterized by steady year-on-year revenue growth and a breakout performance in its nascent Pharma division, even as sequential profitability faced headwinds due to higher depreciation and finance costs associated with recent capacity expansions.
Financial Snapshot (Q3 FY26)
| Metric | Q3 FY26 (₹ Cr) | Q3 FY25 (₹ Cr) | YoY Change (%) | QoQ Change (%) |
| Revenue | 198.44 | 190.69 | +4.1% | -3.8% |
| EBITDA | 19.09 | 18.18 | +5.0% | -2.7% |
| Net Profit (PAT) | 14.35 | 13.64 | +5.2% | -14.6% |
| EPS | ₹4.11 | ₹4.27 | -3.8% | – |
Segment Performance: The Pharma Catalyst
The highlight of the quarter was undeniably the Pharma Packaging Division, which has transitioned from an investment drag to a growth engine in record time.
Pharma Ramp-up: Revenue from the Pharma segment jumped to ₹2.27 crore in Q3, up from just ₹1 crore in Q2. Management noted that the run-rate accelerated significantly in January 2026 alone, crossing ₹2.1 crore for the month.
Capacity Expansion: The division is currently operating at 40-45% capacity utilization. To meet surging demand, Mold-Tek is importing advanced Italian machinery, scheduled for installation by mid-February, which will further bolster capacity for high-margin, tamper-evident caps and closures.
New Wins: The company secured approvals for new molds and has begun commercial supplies to key clients, including Biocon Pharma.
Strategic Partnerships & Future Roadmap
Vibe Generation (UK) Partnership: Signed a Memorandum of Understanding (MoU) to manufacture precision caps and closures. This deal is estimated to have a revenue potential of $25-30 million (₹210-250 Cr) over the next five years, opening doors to high-value export markets.
Swiggy Alliance: Entered an MoU with Swiggy to provide sustainable packaging solutions for its vast network of restaurant partners, signaling a strong entry into the “Quick Commerce” packaging ecosystem.
Consolidation: The company is consolidating its manufacturing operations in Hyderabad to optimize logistics and overheads, with efficiency benefits expected to kick in from Q1 FY27.
Management Commentary
Mr. J. Lakshmana Rao, CMD, addressed the sequential margin compression, attributing it to the “gestation costs” of their aggressive expansion.
“We are witnessing a structural shift in our revenue mix. The Pharma division has turned profitable in less than 12 months, a testament to our execution capabilities. While interest and depreciation costs are currently weighing on net margins, the volume traction in F&F (Food & FMCG) and the high-value Pharma orders give us confidence for a strong FY27.”
He also clarified that the recent Income Tax demand notice of ₹4.83 crore is being contested and is not expected to have any material financial impact on operations.
Investor Outlook & Conclusion
The stock closed at ₹545.50, reflecting a muted reaction as the market digests the sequential profit decline.
Investors are betting on the “Pharma + Exports” thesis. If the Pharma division achieves its projected ₹50-55 crore revenue target for next fiscal, it could trigger a significant re-rating of the stock.
The “Paints” segment remains vulnerable to raw material volatility and sluggish rural demand.
The near-term weakness is viewed as a consolidation phase. Long-term investors are watching the execution of the Panipat and Cheyyar plants, which are critical for reducing logistics costs and serving major clients like Asian Paints and Castrol more efficiently.