RAJSHREE POLYPACK LTD (NSE: RPPL) Q4 2025 Earnings Call dated Jun. 16, 2025
Corporate Participants:
Ramswaroop Radheshyam Thard — Chairman and Managing Director
Mahipal Singh Chouhan — Company Secretary & Compliance Officer
Analysts:
Ajay — Analyst
Raman Bhattacharya — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the H2 FY ’25 Conference Call to discuss operational and financial performance for Rajshree Polypack Limited. [Operator Instructions] Please note that this conference is being recorded. Today we have with us, Mr. Ramswaroop Thard, Chairman & Managing Director; and Mr. Sunil Sharma, the CFO.
I will now hand over the call to the management for their opening remarks, after which we will open the floor for questions. Thank you. And over to you, Ramswaroop, sir.
Ramswaroop Radheshyam Thard — Chairman and Managing Director
Good evening, everyone. Welcome to Rajshree Polypack Limited’s financial year 2024-’25 and Q4 FY ’25 earnings call. Thank you for taking the time to join us today. I trust you’ve had the opportunity to go through the Investor Presentation, which offers a detailed overview of our quarterly and annual performance.
For the financial year ’25, we crossed the INR300 crores milestone in revenue for the first time, reporting INR329.7 crores, an increase of 20.17% over financial year 24’s revenue of INR274.39 crores. EBITDA for the year improved by 26.12% from INR36.71 crores in financial year ’24 to INR46.30 crores in financial year ’25 with EBITDA margins improving to 14.04% as compared to 13.38% for previous year. PAT margins rose from 3.35% in the previous fiscal to 4.38% in FY ’25 with profit after tax amounting to INR14.46 crores for the financial year as compared to INR9.19 crores for previous year.
For the fourth quarter of FY ’25, we recorded operational revenue of INR90.05 crores, reflecting a 29.82% year-on-year growth. On a sequential basis, this represents a 23.87% increase over Q3 FY ’25. EBITDA for Q4 FY ’25 stood at INR12.32 crores, up from INR9.36 crores in Q4 FY ’24, a year-on-year growth of 31.61%. Compared to Q3 FY ’25, EBITDA grew by 36.06%. EBITDA margins remained stable at 13.68% during the quarter. Profit after tax for the quarter saw a substantial increase with a year-on-year growth of 78.8% and a quarter-on-quarter increase of 113%.
Export revenues for Q4 FY ’25 stood at INR19.55 crores, contributing 21.71% of the total quarterly revenue, our highest export contribution till date. Overall export revenue went up by 27.53% to INR53.87 crores for the year as compared to INR42.24 crores for previous year. We anticipate continued momentum in our international presence, supported by participation in key global exhibitions such as NRA-USA, Gulfood Delhi and events in Australia and Russia. These platforms are helping us deepen client engagement and broaden our reach in both domestic and international markets.
In terms of product performance, our injection molding volumes increased significantly from 1,420 metric tons in FY ’24 to 2,654 metric tons in FY ’25, now contributing 12.84% of annual revenue. The significant growth was driven by export demand from institutional customers. We expect the demand of injection molding products to further grow and accordingly adding more capacity on toll manufacturing basis. The revenue from thermoformed packaging products has also seen sustained growth from INR177.24 crores in FY ’24 to INR194.39 crores in FY ’25, thereby growing by almost 9.7% over last year. At the same time, the sheet sales grew by 29.96% from INR65 crores in FY ’24 to INR84.5 crores in FY ’25.
In response to rising demand, we have enhanced our manufacturing capacities of extrusion, thermoforming and injection molding during the year. Despite the capacity expansions, utilization levels have remained strong across all verticals, ranging between 75% to 96%. We expect the growth momentum to continue and using the ongoing financial year as year of consolidation where the focus is on enhancing profitability, while ensuring minimal capital investment and optimum utilisation of available capabilities.
This is an important move considering the fact that we have over last five years have been constantly invested in building capacities which has impacted profitability of the company. At the same time, we shall also be working on reducing borrowings by deploying the surplus cash flows in reduction of working capital limits. This will help us reducing overall interest costs thereby further bolstering the profitability.
Our joint venture, Olive Ecopak, has started picking up pace gradually and is shaping up in steady manner. The company has launched over 150 SKUs in last financial year and has generated revenue of INR16.38 crores in FY ’25, of which INR8.91 crores was generated in quarter four FY ’25. The overall EBIDTA loss of the Olive stood at INR8.37 crores for FY ’25. In case of Q4 FY ’25, the EBIDTA loss was at INR1.14 crores, a significant improvement from EBIDTA loss of INR6.28 crores for quarter three FY ’25.
The company also incurred total loss of INR22.63 crores for financial year ’25, of which INR5.52 crores was incurred during Q4 FY ’25. With constant marketing initiatives including participation in global exhibitions, the products of the company have garnered good response from both general market and institutional customers. The demand momentum is picking up with product trials and institutional customer audits of manufacturing unit and we are working on strong customer pipeline.
Even in export markets, there is a significant momentum for Olive product range with exports starting to Middle East, U.K. and U.S.A. markets. We are further working on adding more customers and getting more orders from the customers to whom we have already made the initial supplies. And we hope that these markets will be giving us a significant demand in coming months.
I’m proud to share that Olive Ecopak is India’s first vertically integrated facility dedicated to the manufacturing of sustainable paper packaging solutions. At Olive, we source base paper and carry out lamination and aqueous coating, followed by conversion into finished packaging products all under one roof. Our facility boasts an installed capacity of 27,000 metric tons per annum for coating and 15,000 metric tons per annum for the production of packaging products, enabling us to maintain end-to-end quality of the product and control — and drive eco-friendly innovation at scale.
The joint venture is a meaningful contribution to our broader sustainable packaging initiatives. The total capital investment in Olive has been INR131.22 crores till 31 March, ’25, which has been funded by term loan of INR84.76 crores and balance of INR46.46 crores through promoter contribution from both joint venture partners. We have invested a sum of INR41.02 crores by mix of equity and loans till 31 March, ’25.
Our current focus is on scaling both the production and sales of our products with no significant capital expenditure planned for Olive in the ongoing financial year. As joint venture partners, we anticipate investing no more than INR5 crores in the company for the financial year FY ’26. This infusion is intended to support Olive’s operations until it generates sufficient internal cash flows to independently meet its liabilities and operating expenses.
This concludes the business update from our side. We now welcome any questions you may have. All those who wish to ask a question may use the option of raise hand. In the reactions tab, you can use the option of raise hand.
Kunal, can you unmute?
Questions and Answers:
Operator
Yes, sir. We will take first question from Mr. Ajay.
Ramswaroop Radheshyam Thard
Yeah. Good afternoon, Ajay.
Ajay
Yeah. Am I audible to you, sir?
Ramswaroop Radheshyam Thard
Yeah, very much. Good afternoon.
Ajay
Sir. Thanks for the opportunity. And congratulations for this good set of numbers. Sir, my question was basically — just I’ll start with the basic things like until last — I mean Q2 — I mean, half year FY ’25, I mean, you guys are regular and doing the concalls and giving investor presentation. But suddenly, Q3, we didn’t get the investor presentation neither there was a concall. And this time also, okay, concall — I mean concall — I mean, investor presentation is uploaded, but concall came very late. I mean, why is that suddenly there is a change? You are very regular earlier, but now that suddenly there is a sort of a delay in doing this?
Ramswaroop Radheshyam Thard
Yeah. In Q3, actually we were — as a management, we were traveling. And then I had some health issues so it got little delayed. So we thought we’ll do it at the end of the Q4, which also completes the financial year. And we were facing some technical issues with the agencies who organize the concall. So finally, we found this solution of doing through this Zoom. And now, since we’ll be doing this on the Zoom, we’ll be like doing it in a timely manner in future.
Ajay
Okay, okay. So please ensure that you’re doing it a little earlier as soon as the results are given.
Ramswaroop Radheshyam Thard
Yes, yes. Of course. Of course.
Ajay
Yeah. So coming to the business, sir, this JV, like what I was like — we know Rajshree Polypack as a company, the clients and all that. Like it’s a — like you’re very marquee clients in your kitty. But what is the JV Partner bringing onto the table? Like Rajesh Gandhi, he seems to be an individual, right? I mean, what kind of contribution is he bringing to the table?
And second, looking at the products which Rajshree Polypack with the JV has been created, I mean, the Olive Ecopak products. But these are — these products, I mean, looks like even a small SME can do it, right? I mean, these are very, very basic paper cups. And also what — technically, how do we differentiate ourselves from other others in the segment?
Ramswaroop Radheshyam Thard
Yeah. So I’ll ask — we’ll come up with the first question of what the other JV partner is contributing. Basically the other JV partner is also into manufacturing of plastic packaging and he also runs and owns a company which has individual turnover of INR200 crores plus. As informed earlier also, they have a distribution in the general market or they have a distribution network across India and they have almost more than 200 distributors. So they are helping in bringing the sale from that segment of the market.
Now in Olive, we — the USP for us is that all the processes are done in house under one roof. What you have mentioned that cups can be manufactured, but it may be only one or two size which an SME can do. But doing end-to-end right from coating and then converting into various products and producing 150 SKUS under one roof. It may look like a normal cup, but if you might have read in news in U.S., Starbucks was sued for $500 million for a leakage in a hot coffee. So if you have to go for export as a segment, you will — like they will not buy cups from any organization which doesn’t have a complete infrastructure to give a dedicated quality and service.
So it looks like a normal cup, but it’s a very critical product and 35% to 40% of our revenue we are looking from exports. And as I mentioned, we have already started exports to U.K., U.S. and Middle East. We recently participated in one of the big exhibition in May in U.S. The response has been very encouraging. And we are hoping that in next one quarter we should have big numbers coming from U.S. markets.
Ajay
Okay. So already, Two and a half months, I mean, it’s almost going to be first quarter, right? So how has the JV performance I mean shaped up? I mean, how much sales so far it has done? Like, can you elaborate?
Ramswaroop Radheshyam Thard
Yeah. We are looking at JV to do between INR13 crores to INR14 crores of sale in this particular quarter.
Ajay
So that will be for the full company or you’ll be getting only 50% share of that, right? That’s what…
Ramswaroop Radheshyam Thard
Yeah, yeah, I’m talking about the company at the moment. If I look at the overall, for the full year, I can give a visibility that we are looking at around INR90 crores to INR95 crores of revenue coming from Olive as an overall. And if we achieve that number, we will be breakeven at this number and we’ll be covering all of our expenses right up to depreciation Level.
Ajay
Okay. And in accounting, are you showing the sales also along with the 50% or you don’t — you’re not doing that?
Ramswaroop Radheshyam Thard
No, no. Only profit and loss is being shown because it’s a JV it’s not a subsidiary.
Ajay
Okay, okay. So this accounting practice will be continuing next year, I mean, FY ’26 also, this year also?
Ramswaroop Radheshyam Thard
Yeah, yeah.
Ajay
Okay. So INR90 crores for full year. So how — for the entire business to get generate meaningful revenue, how long will it take, sir? I mean, another two years is what you’re seeing or…
Ramswaroop Radheshyam Thard
Yeah. For this year, we are talking INR90 crores. And ’26-’27, we are looking at INR150-odd crores. And third year, we look at reaching the full scale, which has been the range of INR210 crores to INR220 crores, which is the full potential of the facility.
Ajay
And the EBITA will be better than the current level or…
Ramswaroop Radheshyam Thard
See, at INR210 crores, INR220 crores level, we’ll definitely be at 16%, 17%.
Ajay
Okay. And, sir — okay. Then regarding borrowings, I mean, what is your plan on the long-term debt? Are you planning to bring it down substantially like I think INR58 crores you’re having long-term debt, right?
Ramswaroop Radheshyam Thard
Yeah. So as mentioned now, like, we for one and half year, two years, we’ll focus on reducing the debts both on the term loan as well as on the CC limits. We want — our idea is to bring down this particular cost at least for two years. We will consolidate the operations of Rajshree as well as Olive. Once we achieve that, then we will think of any further significant expansion. But we will be doing some small expansions and in toll manufacturing mode, which is asset line mode, where we don’t need to invest in machinery, there we will be doing the expansion and we’ll be bringing the growth for the Rajshree at 15%, 20% per annum.
Ajay
Okay. So 15%, 20% for standalone and another maybe INR50 crores from the JV share. That’s what, roughly…
Ramswaroop Radheshyam Thard
Yeah, yeah.
Ajay
But so the growth projections are really good. But my point is like promoter selling — I mean, the shareholding has been continuously coming down for the last many quarters which you see.
Ramswaroop Radheshyam Thard
No, no. In last quarter we have bought shares.
Ajay
It’s slightly gone up. But if you see, I think December or so, I mean last…
Ramswaroop Radheshyam Thard
We bought some shares in last quarter.
Ajay
But there has been a little bit — I mean from 50, it has come down to 40, 45. So I was wondering why, despite — I mean your JV…
Ramswaroop Radheshyam Thard
No, no, it is at 43%, 44%.
Ajay
It was in the 52%, 53% range.
Ramswaroop Radheshyam Thard
No we have not sold, but due to preferential issue, it got diluted.
Ajay
Okay. There’s no share as such selling from promoters?
Ramswaroop Radheshyam Thard
No, no, it was due to preferential issue and warrants which got due it got diluted, We have not sold anything.
Ajay
Okay, sir. And regarding dividends, I mean, this year, you’ve not declared any dividend, right? I mean…
Ramswaroop Radheshyam Thard
Yeah, this year we will hold. Next year, we’ll definitely look at giving some dividends.
Ajay
Cash flows is also decent only, so I was wondering any specific reason why this dividend has been put on hold?
Ramswaroop Radheshyam Thard
Like, only thing is like, since we have been investing and looking to grow the business for the company. So now since we have taken a decision to keep a hold on any further investment, we definitely expect the cash flows to improve further within a year’s time and next year we’ll look at definitely announcing the dividends.
Ajay
And sir, regarding this Odisha expansions, like what is the update? You’re proceeding with that?
Ramswaroop Radheshyam Thard
We are differing it for 12 to 15 months. As I said, we will consolidate first with whatever is in our on our hands.
Ajay
Okay, understood. Sir, regarding one more small thing, like most of the time. You’re seeing even small, small orders getting like published on the exchanges like even up INR50 lakhs, INR25 lakhs. So are they new customers that you are trying to say or is it like normal?
Ramswaroop Radheshyam Thard
As per the exchange norm. They say, any order which is 2% of your profit, you have to declare. There is a legal compliance, something.
Ajay
Even if it’s an existing customer, still you will…
Ramswaroop Radheshyam Thard
Yeah, we have to declare, yeah. If the order value is 1, PO is beyond the 2% of your net profit.
Ajay
Yeah. Okay, sir. Understood. Okay, sir. Thank you so much, sir, for taking all the questions and congratulations for the coming years.
Ramswaroop Radheshyam Thard
Thank you.
Operator
[Operator Instructions]
Mahipal Singh Chouhan
I’d like to remind, anyone who wish to ask a question may use the option of raise hand which is available in the reactions tab or can make a request through a chat with the — operator will unmute.
Operator
Next question is from Mr. Raman Bhattacharya.
Raman Bhattacharya
Hello. Am I audible?
Ramswaroop Radheshyam Thard
Yeah, Raman. Good afternoon, Raman.
Raman Bhattacharya
Good afternoon, sir. So I have two, three questions. So first, I would like to have the FY ’25 revenue contribution from Olive joint venture and the capacity utilization that we ended with the joint venture.
Ramswaroop Radheshyam Thard
So Olive revenue for FY ’25 was INR16.38 crores.
Raman Bhattacharya
Okay.
Ramswaroop Radheshyam Thard
In quarter four it was INR8.91 crores.
Raman Bhattacharya
Okay.
Ramswaroop Radheshyam Thard
And this is — for FY ’24, it is 14% to 15% of the capacity from the conversion divisions.
Raman Bhattacharya
I believe it is FY ’25, sir? Q3 FY ’25.
Ramswaroop Radheshyam Thard
Yeah, FY ’25, quarter four.
Raman Bhattacharya
So total revenue was INR16.8 crores, right?
Ramswaroop Radheshyam Thard
INR16.9 crores, yeah. And in quarter four it was INR8.91 crores.
Raman Bhattacharya
Okay. And how are the management is like expecting for this financial year, current financial year to end the revenue?
Ramswaroop Radheshyam Thard
Yeah. We are expecting around INR90 crores of revenue in this financial year from Olive. And at this particular revenue, we are looking to breakeven with all the expenditures right up to depreciation Level.
Raman Bhattacharya
So like are you expecting any contribution in the profit before tax level in a consol basis?
Ramswaroop Radheshyam Thard
Not for this financial year, next financial year.
Raman Bhattacharya
Okay, noted. And also, I saw the filing that you are expanding the injection molding capacity. So the quantum of the capacity was not given in terms of the monetary investment. So can you give any ballpark number of how many crores will be invested in the injection molding in the Daman facility?
Ramswaroop Radheshyam Thard
Injection molding is through toll manufacturing agreement. So we don’t invest into machines. We only invest into molds where the investment will not be more than INR1 crores to INR1.5 crores in the molds.
Raman Bhattacharya
Okay, noted. Also, I wanted to ask, this is from the Q3 part, third quarter of last financial year. Margins were somewhat depressed and went up to 7% as compared to 12% to 13%. So any major reason for that particular decline in third quarter?
Ramswaroop Radheshyam Thard
Generally, quarter three is weak for us. If you’ve seen the company performance over the years, so generally Q3 is always weak for us, I want to say that. And if there is any particular specific number, I can dig into that and I can revert back to you at a later date.
Raman Bhattacharya
Okay, noted, sir. Last question from my side. Supposing that Olive joint venture breaks even this year and we will be expecting some contribution in next financial year. So do you like have any target for a quantum of contribution to the profit before tax level from that joint venture?
Ramswaroop Radheshyam Thard
We are looking at EBITDA level of 16% at a revenue of INR210 crores when it will be fully operational. So once it reaches that level, we — overall profit what we’ll be looking at INR16 crores to INR18 crores and out of that 50% will be for Rajshree so we can expect around INR8 crores to INR9 crores of profit coming from Olive once it’s fully operational.
Raman Bhattacharya
And you are extrapolating it to be contributing in FY ’27, right?
Ramswaroop Radheshyam Thard
Yeah.
Raman Bhattacharya
Okay, noted. Thank you. That would be all. Thank you.
Ramswaroop Radheshyam Thard
Anyone who wish to ask a question may use the option of raise hand. Kunal, can you unmute Mr. Raman.
Operator
Yes, sir.
Raman Bhattacharya
Hi, sir. Actually, I have a question on the other partner of joint venture. So can you put some light on the contribution that the other joint venture partner gives in the operation?
Ramswaroop Radheshyam Thard
Yeah. I replied to Mr. Augustine previously. See, the other joint partner also is into manufacturing of plastic packaging and he runs a company with a turnover of INR200 crores plus. So their major sales is from distribution network. And for the Olive, they take care of all the sales in the general market distribution and getting customers from that particular segment.
Raman Bhattacharya
Okay. So like, what are the expenses part that Rajshree Polypack gets in the balance sheet or the profit and loss statement? Like the manpower or the — supposing if we are like distribution handling or any employee cost that we will handle?
Ramswaroop Radheshyam Thard
No, no. See, Olive has its own team of sale, distribution and operation. Rajshree has nothing to do. There are employees on Olive payroll. And all the expenditures which are being done for Olive are maintained there. So Rajshree has nothing to do with any expenditures of Olive.
Raman Bhattacharya
Okay, sir, noted. And lastly, sir, if you — I was late to the call, so have you shared any particular set of guidance that you are targeting for this financial year and next financial year in the top line and bottom line?
Ramswaroop Radheshyam Thard
For Rajshree, we are looking at around INR365 crores to INR370 crores of revenue with roughly 15% of EBITDA margin and roughly a PAT we are looking of around INR19 crores to 20 crores.
Raman Bhattacharya
So I am seeing margins have been hovered around 11% to 13%. And you are saying, we are expecting almost 14% to 15% margin. So can you like share where that kick in comes from the improvement in margin side?
Ramswaroop Radheshyam Thard
See EBITDA for this year was also at 14.04%. So with the scale in the operation, we’ll definitely look at improving further 100 basis point in the EBITDA numbers. And with the scale in the operations and with this increased revenue, all other fixed expenses will remain constant. So we’ll definitely look at improving the numbers at the bottom line.
Raman Bhattacharya
Also you suggested that all the fixed cost will remain same. So are you planning to repay the borrowings because it has incrementally gone up in last financial year as compared to previous year?
Ramswaroop Radheshyam Thard
Yeah. I have mentioned before also that for the term loan there is a repayment of around INR6 crores to INR7 crores per annum which goes as per the payment schedule. And since we’ll not be doing any further major investment, so whatever cash flows will be generated will be used in reducing the cash credit limit utilization. And with that, we’ll look in next two years to reducing the debt significantly.
Raman Bhattacharya
Okay, sir, noted. Thank you so much, sir. All the best.
Ramswaroop Radheshyam Thard
Thank you.
Operator
[Operator Instructions] As there are no further questions, Mahipal sir, over to you.
Mahipal Singh Chouhan
Thank you very much. As there are no further questions, I would like to hand the conference over to the management for the closing comments. Thank you. And over to you, sir.
Ramswaroop Radheshyam Thard
Thank you for your thoughtful questions and joining us today. We appreciate your continued interest and support. Wishing you a healthy and a productive year ahead.