Pyramid Technoplast Limited (NSE: PYRAMID, BSE: 543969) reported moderate revenue growth in the December quarter, supported by strong volume expansion across product lines, while profitability remained under pressure due to initial fixed costs from newly commissioned capacities, according to the company’s Q3 & 9M FY26 investor presentation.
Q3 FY26 performance
Revenue for the quarter rose to ₹162 crore, up from ₹153 crore a year earlier. Overall volumes grew 22% year on year, led by IBC volumes up 37%, HDPE drums up 16% and MS drums up 1%. The commissioning of the new Wada plant lifted overall capacity utilisation to 67% in Q3 FY26, with utilisation expected to improve further as the facility ramps up.
Gross profit increased 22% year on year, and gross margin expanded by about 400 basis points to 27%, reflecting operating leverage from higher volumes and a richer mix toward IBCs, which contributed 38% of revenue in the quarter. However, EBITDA (including other income) declined about 2% year on year, with margin around 7%, as operating expenses rose due to commissioning of new plants and a one-time employee bonus impact.
Profit after tax declined 29.3% year on year to about ₹4.8 crore, with PAT margin at 3%, as higher fixed costs were incurred ahead of full utilisation of new capacities.
Nine-month FY26 snapshot
For the nine months ended Dec. 31, 2025, revenue increased to ₹486 crore from ₹420 crore in the year-ago period. EBITDA margin moderated to about 7.9% from 8.2% in 9M FY25. PAT for 9M FY26 was about ₹19 crore, compared with ₹20 crore a year earlier, reflecting the near-term impact of capacity additions on margins.
Capacity additions and product mix
The company commissioned new capacities at its Wada (Maharashtra) unit, including IBC, HDPE drum and MS drum lines. Production at HDPE and IBC lines is in full swing, while MS drum capacity commenced operations in January 2026. Management expects utilisation at the Wada facility to reach around 80% by FY27.
The product mix continues to shift toward higher-margin segments. IBCs accounted for 38% of Q3 FY26 revenue, compared with 31% a year earlier. The company said this mix shift, along with higher volumes, is expected to support margin expansion as utilisation improves.
Cost efficiency and sustainability initiatives
Pyramid commissioned a 5,000-tonne-per-annum recycling plant in October 2025, which is expected to cater to 10%–12% of raw material needs and reduce polymer costs by 10%–12% annually once stabilised. The company also commissioned 6 MW of captive solar capacity in October 2025, with additional capacity taking total commissioned solar to over 13 MW by February 2026. Management expects these initiatives to lower annual power costs by about ₹15 crore, improving operating leverage in coming quarters.
Balance sheet and capex
Capex has largely been completed for the current expansion cycle. The company plans ₹10–20 crore of capex in FY27, mainly toward incremental capacity and operational efficiency. Net debt-to-equity stood at about 0.5x as of September 2025, reflecting a moderate leverage profile. Management said future capex will be funded primarily through internal accruals and cash balances.
Summary
Pyramid Technoplast delivered volume-led growth in Q3 FY26, supported by new capacity additions and a favorable product mix toward IBCs. While margins were pressured in the near term due to commissioning-related fixed costs, recycling and solar power initiatives are expected to support cost savings and margin expansion as utilisation ramps up over FY27.