Shares of Mold-Tek Packaging rallied sharply on the NSE after the company reported its results for the second quarter of FY27. The stock touched an intraday high of Rs 318.80, a gain of as much as 16.84%.
The stock gave up part of that early rise but stayed firmly in the green. At around 2:10 PM it was trading at Rs 299, up 9.58% from its previous close of Rs 272.85.
Profit and revenue
Net profit (profit after tax) came in at Rs 21 crore, up 35.5% from Rs 15.5 crore in the same quarter last year.
Revenue from operations rose 30.5% year-on-year to Rs 274 crore, compared with Rs 210 crore a year earlier.
Operating profit (EBITDA) grew 27.7% to Rs 50.3 crore from Rs 39.4 crore. Margins slipped slightly, however. The EBITDA margin was 18.3%, against 18.8% in the second quarter of FY26.
Pharma packaging
The pharma packaging business kept up its growth, with volumes rising 26.30% from a year earlier. The company said this reflected greater acceptance among customers, a stronger position in the segment and rising demand from both old and new clients.
Mold-Tek said it will keep investing in advanced manufacturing, specialised packaging and added capacity for this business. It expects recent investments in pharma infrastructure to lift the segment’s share of overall revenue and profit. With a strong pipeline of business, it sees pharma playing an important role in its growth over the coming years.
Food and FMCG packaging
Volumes in the food and FMCG segment, which includes Q-Pack, grew 23.70% year-on-year. The company credited market opportunities, advanced manufacturing and a widening customer base. It also pointed to its Panipat plant (Unit-14), which is selling into the North Indian market.
Mold-Tek expects growth in this segment to hold steady or improve in the coming quarters.
Efficiency push
The company is working to make better use of its printing capabilities and capacity and to improve operating efficiency. It is bringing its printing facilities together under one roof at Sultanpur, Telangana. This is expected to smooth workflows, cut operating costs, shorten turnaround times and make better use of resources. Mold-Tek expects these steps to bring cost savings and stronger margins.
New products in the pipeline
Mold-Tek plans to begin commercial production of IODEX containers from the third quarter of FY27. It is also developing packaging products for three more multinational companies, which should add to revenue from Q4 FY27.
Moulds for eye-dropper packaging should be ready by Q4 FY27, with commercial production due to start in Q1 FY28. Its new dual packs have found acceptance in the market and are set to be launched in Q4 FY27.
The company is also looking at entering trays, dosing pens and semiconductor packaging to sustain growth over the next few years.
New customers
During the quarter the company won fresh orders across its food and pharma businesses. New food customers include Kannan Fiber Industries, Mittal Polymers Private Limited and Avakaaya Foods. In pharma, it received orders from Pharmaforce and Lifewise Pharmaceuticals, among others.
Management comment
Chairman and Managing Director J. Lakshmana Rao said the pharma business performed strongly despite difficult operating conditions. He said the quarter saw sharp increases in raw material prices and tight material supply because of geopolitical disruptions.
According to Rao, the company passed the higher raw material costs on to customers under pre-agreed pricing arrangements, which protected its operating margins. He also noted that the results came despite the weaker demand that usually marks the second quarter.
Rao attributed the performance to the company’s handling of input cost swings, better operational efficiency and growing demand across its product range.
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