Knack Packaging Limited — Investor Meet, 13-08-2026: Analysts/Institutional Investor Meet/Con. Call Updates

Knack Packaging Limited held its Q1 FY27 earnings conference call on August 10, 2026.

**Financial Performance:**

* Revenue grew 40.50% YoY to INR 2,647.71 million.

* EBITDA increased 53.14% YoY to INR 591.73 million, with margins improving to 22.35% from 20.65%.

* PAT rose approximately 47.96% YoY to INR 305.28 million, and PAT margins improved to 11.53%.

* ROCE improved to 54.73% from 46.05%.

**Management Commentary and Outlook:**

* Management highlighted strong volume growth driven by broad-based demand across various sectors.

* Capacity utilization is healthy at ~91%, with plans to expand total installed capacity to ~70,000 MTPA by October 2027.

* Focus remains on innovation, customer retention (90%), and leveraging first-mover advantage in specialized packaging.

* The company emphasizes an integrated manufacturing model for quality control and efficiency.

**Key Discussion Points:**

* Management explained the high asset turnover ratio (4x-5x on net block) due to specialized machinery for advanced products like pinch-bottom bags and integrated operations.

* Raw material price volatility (polypropylene) is managed through strong forecasting, long-term customer contracts with price pass-through mechanisms, and cash buying for discounts.

* A significant portion of revenue (45-50%) comes from customers on a "basic price plus conversion cost" basis, ensuring margin stability.

* Pinch-bottom bags, a high value-added product, are driving margin improvement, with their share in sales growing.

* Exports contribute 55% of sales, with an expanding footprint across 74 countries.

* Foreign currency gains of INR 1.6 crores were recorded in Q1 FY27.

**Investor Angle:**

The company presented strong Q1 FY27 results with robust revenue and profit growth. Management appears confident in maintaining growth momentum through capacity expansion, a focus on value-added products like pinch-bottom bags, and a strong global presence. The integrated business model and customer relationships provide a solid foundation.