COSMO FIRST LIMITED — PPTs, 20-05-2025: Investor Presentation

1. Financial Highlights:

Cosmo First reported net sales of Rs 1,348 Cr and EBITDA of Rs 159 Cr in Q4 FY25, maintaining an 11% margin driven by stronger specialty film sales and improved BOPP/BOPET margins. Specialty sales grew 10% in FY25, supported by Rs 25 Cr in cost savings and Rs 180 Cr revenue from specialty chemicals. Net debt/EBITDA is at 2.7x and net debt/equity at 0.7x. Capex of Rs 1,180 Cr over three years is underway to expand capacity, targeting a revenue and profit ramp-up in 2-3 years. Q4 EPS stood at Rs 17, and a Rs 4 per share dividend is proposed.

2. Strategic Initiatives & Growth Drivers:

Investment focuses on specialty and semi-specialty films, with an 81,000 TPA BOPP line launching by H1 FY26, boosting capacity 40% and positioning for cost leadership. A 22,000 TPA CPP line started in March 2025, alongside new product launches like Sunshield window films. Growth is further supported by specialty chemicals, adhesives, and coatings, backed by a 30+ member R&D team with multiple patents. Renewable energy use hit 60% in FY25, targeting 75% to unlock Rs 20-25 Cr annual cost savings.

3. Business Developments:

The D2C petcare platform Zigly posted Rs 15 Cr quarterly GMV with 60k+ customers and plans a spin-off. Specialty chemicals saw high-teens EBITDA on Rs 180 Cr revenue with new barrier coating products. Rigid packaging (Plastech) expanded into food-grade packaging with FSSC 22000 certification. Cosmo’s Sunshield films and Paint Protection Films are gaining traction across geographies.

4. Market Position & Competitive Advantage:

Cosmo First ranks among the top four global BOPP specialty film producers and is set to become India’s largest BOPP producer post-expansion with cost-advantaged new capacity. It is the largest supplier globally for thermal lamination and industrial application films and second largest in specialty label films. Its diversified portfolio and strong R&D-driven innovation across films, specialty chemicals, packaging, and petcare foster a resilient competitive edge.

5. Investor Implications:

Robust specialty sales growth, upcoming capacity ramp-up, and cost efficiencies offer attractive growth potential. While ongoing capex poses execution risks, the solid balance sheet and margin expansion in specialty areas provide reassurance. Diversification into petcare and specialty chemicals reduces dependency on core segments, and sustainability steps should enhance cost efficiency and ESG appeal—making Cosmo First compelling for investors seeking steady, innovation-led expansion.