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Polyplex reported Q2 FY26 Net Sales of `1,685 Cr, slightly up QoQ, driven by higher volumes from the new USA line. However, Operational EBITDA fell sharply to `143 Cr (8% margin) from `184 Cr (11% margin) last quarter. Profit Before Tax also dropped to `41 Cr. This decline was due to lower contributions across most businesses and increased fixed costs. Thin PET and BOPP segments saw lower EBITDA from market overcapacity, tariffs, and tepid demand.
The company is actively addressing ramp-up issues at its USA facility and expects fixes in the coming months, aiming for full volume placement. New investments include a laminator (started Oct’25) and an offline coater (Q3 FY26) in India, and a new blown film line in Thailand (Q3 FY26).
A new production line in the USA started operations, boosting sales volume. The market in India saw a temporary margin improvement in Q1 due to a competitor's fire incident, but Q2 normalized with declining margins due to oversupply.
Q2 FY26 Film Sales Volume stood at 94 K MT. Operational EBITDA of `143 Cr (8% margin) is significantly below the budgeted `256 Cr (13% margin) for the quarter.
Management acknowledges competitive market conditions with excess capacity and declining industry value addition, especially in Asia and Europe, which is expected to persist. Full year FY26 Operational EBITDA is now projected at `633 Cr, significantly lower than the budgeted `1,119 Cr, mainly due to underperformance in Thin PET and Thick PET.