Knack Packaging Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Knack Packaging Ltd filed with BSE on 13 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Knack Packaging reported consolidated revenue of INR2,647.71 million for Q1 FY27, up 40.50% year-on-year, driven by higher sales volume and capacity utilization. EBITDA grew 53.14% to INR591.73 million with margin improving to 22.35%, while profit after tax rose 47.96% to INR305.28 million. Management discussed the upcoming manufacturing facility targeted for October 2027, current capacity utilization of around 91%, and the growing share of pinch-bottom bags in the product mix.
Numbers mentioned
Revenue: INR2,647.71 million (Q1 FY27)
p. 6
“Our consolidated revenue for quarter one financial year '27 stood at INR2,647.71 million compared to INR1,871.71 million in quarter one financial year '26, registering an year-on-year growth of 40.50%.”
Ajay Dubey, page 6 of the filed PDF · View the filing
Total sales volume: 10,940 metric tons (Q1 FY27)
p. 6
“Our total sales volume for quarter 1 financial year '27 stood at 10,940 metric tons compared to 9,047 metric tons in quarter 1 financial year '26, representing a year-on-year growth of approximately 20.90%.”
Ajay Dubey, page 6 of the filed PDF · View the filing
EBITDA: INR591.73 million (Q1 FY27)
p. 6
“Moving to EBITDA, our consolidated EBITDA for quarter 1 financial year '27 stood INR591.73 million compared to INR386.41 million in quarter 1 financial year '26, representing a year-on-year growth of 53.14%.”
Ajay Dubey, page 6 of the filed PDF · View the filing
EBITDA margin: 22.35% (Q1 FY27)
p. 6
“Our EBITDA margin improved to 22.35% versus 20.65% in quarter 1 financial year '26.”
Ajay Dubey, page 6 of the filed PDF · View the filing
Profit after tax: INR305.28 million (Q1 FY27)
p. 6
“Coming to the bottom line, our consolidated profit after tax for the quarter 1 financial year '27 stood INR305.28 million compared to INR206.33 million in quarter 1 financial year '26, registering a year-on-year growth of approximately 47.96%.”
Ajay Dubey, page 6 of the filed PDF · View the filing
PAT margin: 11.53% (Q1 FY27)
p. 6
“Our PAT margin improved to 11.53% compared to 11.03% in quarter 1 financial year '26.”
Ajay Dubey, page 6 of the filed PDF · View the filing
Return on equity: 37.45% (Q1 FY27)
p. 6
“Return on equity improved from 37.04% to 37.45%.”
Ajay Dubey, page 6 of the filed PDF · View the filing
Installed capacity utilization: approximately 91% (Q1 FY27)
p. 4
“We are currently operating at more than 48,000 metric ton per annum capacity with our including rented facilities and translating into an approximately 91% capacity utilization.”
Alpesh Patel, page 4 of the filed PDF · View the filing
Countries of presence: 74 countries (Q1 FY27)
p. 5
“As of quarter 1 fiscal year 2027, Knack Packaging has established a presence across 74 countries spanning six continents, representing an expansion of our global reach from 71 countries in fiscal year 2026.”
Alpesh Patel, page 5 of the filed PDF · View the filing
Foreign currency gain: INR1.6 crores (Q1 FY27)
p. 12
“In continuation of this your answer, sir, INR1.6 crores foreign currency gain during the first quarter of financial year '27.”
Ajay Dubey, page 12 of the filed PDF · View the filing
Gross block addition: INR30.75 crores (Q1 FY27)
p. 15
“And for quarter one, only the quarter one financial year '27, we had added INR30.75 crores in our gross block.”
Ajay Dubey, page 15 of the filed PDF · View the filing
Total gross block: INR416 crores (as of 30th June 2026)
p. 15
“Today, as of now, 30th June 2026, our total gross block is INR416 crores compared to this previous financial year quarter one financial year '26, that was the INR273 crores.”
Ajay Dubey, page 15 of the filed PDF · View the filing
Pinch-bottom bag share of sales: 22.5% to 23% (Q1 FY27)
p. 10
“And currently, we are working on 22.5% to 23%.”
Alpesh Patel, page 10 of the filed PDF · View the filing
Order book: INR130 crores
p. 11
“Knack Packaging have a very good order on both, like today as well INR130 crores order in our hand.”
Alpesh Patel, page 11 of the filed PDF · View the filing
Market share: 10%
p. 13
“Sir, I am adding on it, like 10% market share as per the Technopack last year one report, we have the industry's report.”
Alpesh Patel, page 13 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
New manufacturing facility commissioning — 70,000 metric ton per annum total installed capacity · October 2027
stated firmly by Alpesh Patel
p. 5
“Once new plant funded by IPO proceeds is commissioned, which remains on track for October 2027, our total installed capacity will reach approximately 70,000 metric ton per annum.”
Alpesh Patel, page 5 of the filed PDF · View the filing
Revenue and volume growth — coming quarters
stated as an aspiration by Alpesh Patel
p. 16
“So, we expect that the sales we got in this quarter will be maintained.”
Alpesh Patel, page 16 of the filed PDF · View the filing
Pinch-bottom bag growth
stated as an aspiration by Alpesh Patel
p. 10
“And the same, we ramp up our sales on pinch-bottom and try to get the more and more use of pinch-bottom bags.”
Alpesh Patel, page 10 of the filed PDF · View the filing
New plant construction
stated firmly by Alpesh Patel
p. 16
“Construction development has started, though main construction will pick up after the rains.”
Alpesh Patel, page 16 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management attributed it to the specialized two-stage machinery investment (tape extrusion/weaving and finishing lines) and IPO proceeds improving net worth.
Answered by Alpesh Patel
Asked by Raman KV: Why is the company's ROCE and asset turnover so much higher than industry peers?
p. 7
“So, we have always two types of machinery setup. Machinery one is like a textile kind of things.”
Alpesh Patel, page 7 of the filed PDF · View the filing
Management said pricing is publicly linked to crude/polymer prices, so cost increases are passed to customers the same day, aided by strong supplier relationships and bulk cash buying.
Answered by Alpesh Patel
Asked by Raman KV: How does the company manage rising polypropylene raw material prices and pass them to customers?
p. 8
“And the same day, we transfer the price to customer because this is a public disclosure price nowadays.”
Alpesh Patel, page 8 of the filed PDF · View the filing
Management explained that about 45-50% of customers are on a conversion-cost-plus-raw-material pricing model, insulating margins, while other small customers are less price-sensitive since packaging is a small share of their costs.
Answered by Alpesh Patel
Asked by Dhananjai Bagrodia: How does the company keep margins steady amid rising input costs and tariffs?
p. 9
“So, almost complete 45% to 50% customer are on the conversion basis customers, like Cargill , Dawat Kohinoor, the big brand, they all are our customer and they have a fix up with the conversion cost.”
Alpesh Patel, page 9 of the filed PDF · View the filing
Management said it varies by situation, sometimes passing on part of the benefit and retaining part.
Answered by Alpesh Patel
Asked by Dhananjai Bagrodia: If input prices fall, would the company pass on the benefit or keep the margin?
p. 9
“Sometimes, depends on the situation and sometimes like we have a 50% pass-on and 60% we will get it as it is, sir.”
Alpesh Patel, page 9 of the filed PDF · View the filing
Management said pinch-bottom bag share rose from 19-20% previously to 22.5-23% currently, aided by two new machines installed last quarter.
Answered by Alpesh Patel
Asked by Nirav Jimudia: What share of volumes are pinch-bottom bags and how has this evolved?
p. 10
“And currently, we are working on 22.5% to 23%.”
Alpesh Patel, page 10 of the filed PDF · View the filing
Management described a multi-year contract system covering raw material plus conversion cost pricing, with the customer buying only finished bags, and noted the business grew from INR6 crores in 2020 to INR140 crores currently.
Answered by Alpesh Patel
Asked by Lakshminarayanan: What is the nature of the relationship and pricing arrangement with the largest US customer, Cargill?
p. 12
“There is a one contract, it is a carry 2 years, one additional year, like the raw material pricing, polymer pricing plus conversion cost.”
Alpesh Patel, page 12 of the filed PDF · View the filing
Management said the company holds about 10% market share per an industry report, is a leader in pinch-bottom bags, and named Thailand, Cambodia and USA-based Polytex as competitors with higher cost structures.
Answered by Alpesh Patel
Asked by Lakshminarayanan: What is the company's market share and competitive position domestically and internationally?
p. 13
“Secondly, yes, we have a competitor in USA, like Polytex is our peer, exactly peer, they are into the USA, the manufacturing bags into the USA, and they are 100%, we can say the competitor and peer.”
Alpesh Patel, page 13 of the filed PDF · View the filing
Management said export margins are typically 5-6% higher in gross profit terms than domestic sales.
Answered by Alpesh Patel
Asked by Nihal Shah: What is the margin difference between export and domestic sales?
p. 14
“Sir, mostly 5% to 6% always -- as per the previous data, always 5% to 6% always difference between the domestic is little low margin and export, we can get the good margin up to 5% to 6% GP.”
Alpesh Patel, page 14 of the filed PDF · View the filing
The CFO detailed the gross block addition figures, and Alpesh Patel said the company would try to maintain or improve turnover from the business and value-added products.
Answered by Ajay Dubey
Asked by Nitin Gandhi: What was the gross block addition this quarter and will the planned INR380 crores expansion maintain the current asset turnover of 2.5x?
p. 15
“So, I'll explain you, sir. Today, as of now, 30th June 2026, our total gross block is INR416 crores compared to this previous financial year quarter one financial year '26, that was the INR273 crores.”
Ajay Dubey, page 15 of the filed PDF · View the filing
Management said the rented plants already running would help maintain sales and utilization until the new plant starts production in October 2027.
Answered by Alpesh Patel
Asked by Ram Singh: Can the company maintain the 40% revenue growth and improved EBITDA margins in coming quarters?
p. 16
“So, we expect that the sales we got in this quarter will be maintained.”
Alpesh Patel, page 16 of the filed PDF · View the filing
Risks flagged
Volatility in polypropylene and crude oil prices
p. 8
“And secondly, about the pricing, polymer and crude price, yes, it is a 100% volatile right now.”
Alpesh Patel, page 8 of the filed PDF · View the filing
Tariff impact from a 50% tariff period affecting export business
p. 12
“The best part, just for the information, at the time of 50% tariff, 8-month tariff, they continued our business.”
Alpesh Patel, page 12 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.