Metrics cut 1
- Capacity expansion: 1,500 MT incremental capacity ordered for Q4 FY27, remaining 4,000 MT deferred (from original 6,000 MT plan)
All Time Plastics Ltd - Q1 FY27 Earnings Call Summary Thursday, August 6, 2026, 12:00 PM IST
Event Participants
Executives
3 Kailesh Shah (Chairman and Managing Director), Manish Gattani (Chief Financial Officer), Nilesh Shah (Whole-Time Director)
Analysts
8 Agam Shah (Individual Investor), Akshay Chheda (Canara Robeco Mutual Funds), Anand Mundra (My Temple Capital), Ananya Nichani (Thinqwise Wealth Managers), Anup Parikh (Anand Rathi), Dev Mehta (Unique PMS), Nirali Gopani (Unique PMS), Rajesh (Raghav Capital)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue from Operations | ₹161 crores | +10.5% QoQ, +2% YoY; growth achieved despite ongoing geopolitical disruption and raw material supply challenges |
| Polymer Volume Processed | 6,323 MT | +25% QoQ from 5,056 MT; -14.5% YoY vs 7,399 MT measured against pre-Khatalwada expansion base |
| Sales Volume | 6,090 MT | vs 5,831 MT QoQ (+4.4%); production varied from sales as Q4 drew from inventory |
| Capacity Utilization | 64.9% | vs 51.9% QoQ; vs 89.7% YoY on smaller installed base; capacity at ~41,000 MT |
| Gross Profit | ₹64 crores | Gross margin 39.5%, -240 bps QoQ from 41.9%; +20 bps YoY from 39.3% |
| EBITDA | ₹23 crores | Margin 14.3% vs 14.8% QoQ and 18.2% YoY; +6.8% QoQ absolute; -20% YoY on raw material inflation and Khatalwada fixed costs |
| PAT | ₹12 crores | Margin 7.5%; +28.8% QoQ from ₹9 crores; -5.5% YoY from ₹13 crores |
| Net Working Capital Cycle | 60 days | vs 57 days at FY26 close; +3 days driven by operating environment |
| Inventory Days | 44 | vs 42; deliberate higher raw material cover amid supply availability challenges |
| Receivable Days | 50 | vs 48; shipment timing dynamics through the quarter |
| Payable Days | 34 | Stable sequentially |
| Debt-to-Equity | 0.14x | Balance sheet remains very robust |
| Asset Turnover | 1.58x | Stable vs 1.59x in Q4 FY26 |
Geographic & Segment Commentary
United States (19% of revenue): Up sharply from ~12% in FY26 as a whole; growing project wins from marquee accounts including inquiries across new product categories, with a further significant opportunity under active discussion that could materially reshape geography mix if converted. Tariff environment has not dampened momentum.
Europe (52% of revenue): Remains the largest market; stable demand architecture supported by long product lifecycles and embedded supply chains with global retail chains.
United Kingdom (11% of revenue): Contributed in line with expectations; no material commentary provided beyond revenue share.
India/Domestic (16% of revenue): Flat YoY and QoQ at ~₹26 crores due to ~8 weeks lost to full price reset with domestic customers, a deliberate step to avoid the transition opportunity seen in exports. Domestic price increase passed 100%; orders now flowing in full. Management targets 30-35% domestic growth, pursuing both All Time brand and domestic OEM business, with product categories designed for Indian consumers.
Company-Specific & Strategic Commentary
Bamboo Vertical (All Time Bamboo Pvt Ltd): New 75,000 sq ft facility at Madanpur, Guwahati with Phase-1 installed capacity of 3,000 cubic meters per annum. Machinery shipped from China (delayed ~20 days on container non-availability), expected to arrive mid-August, installation targeted by end-September. Split processing model: upstream boards at Guwahati, value-added carpentry/finishing at Khatalwada, Gujarat. Commercial contribution expected from Q4 FY27 at ~20% of 75% utilization for the quarter. Capex of ₹15 crores for Phase-1; moU with North Eastern Cane and Bamboo Development Council and empanelment as product/market development partner provides policy support. Bamboo margins are a few hundred bps higher than plastic. No cannibalization expected — different price points and end consumers; customer response to samples encouraging.
Capacity Expansion: Orders placed for 14 new injection molding machines adding ~1,500 MT incremental capacity, expected on stream in Q4 FY27. Remaining ~4,000 MT of the planned 6,000 MT expansion deferred pending optimal equipment selection for specific customer projects; current capacity sufficient to meet sales targets without constraint.
Raw Material Pass-Through: Domestic customers at 100% price pass-through; largest export customer on structured rollover mechanism (8-week time lag) with full benefit visible in Q2 FY27; remaining export customers largely revised, ~10-15% of business at 50% pass-through pending rollover.
Largest Customer Expansion: Publicly announced plans for 20-25 stores in India over next two years, each store contributing ~₹40-50 lakhs per month on a conservative basis; also expected to drive import substitution items into All Time Plastics' range.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Capacity Utilization | ~75% for FY27 at 41,000 MT | Current working assumption; not contingent on geopolitical normalization but subject to supply delays in raw material inflows |
| Volume Growth | 15-20% volume growth for FY27 | Based on strong order book and customer forecasts holding firm; H2 typically stronger than H1 |
| Domestic Business Growth | 30-35% for FY27 | Order books described as full; Q1 impacted by 8-week price reset period |
| EBITDA Margin | Better than last year; 18-19% sustainable at 80% utilization | Q1 margin 14.3%; recovery tied to utilization ramp and geopolitical normalization; one-quarter lag expected post-situation resolution |
| Employee Expense | Q1 run-rate fair for balance of FY27 | Minimal incremental increase expected |
| Q2 Volume/Pricing | Significant improvement expected | ₹5.5 crores of Q1 shipment spillover adding in July; full price pass-through reflecting in Q2 |
Risks & Constraints
| Risk | Context |
|---|---|
| Geopolitical/Supply Chain Disruption | West Asia conflict spiked polymer prices 40-50% above base, with port congestion, extended transit times, and container non-availability disrupting both inbound raw materials and outbound shipments. Management notes volatility persists as long as conflict continues; mitigation through higher inventory cover and rapid price renegotiation. |
| Raw Material Price Pass-Through Lag | Time-lagged pricing mechanisms mean margin compression of 240 bps QoQ in Q1; recovery visible only in Q2 as rollover pricing catches up. ~10-15% of business still at partial (50%) pass-through. |
| Fixed Cost Overhang from Khatalwada | Newly commissioned capacity is weighing on EBITDA margins (14.3% vs 18.2% YoY) until utilization improves; management expects correction as volumes ramp toward 75-80% utilization. |
| Sales Volume Growth Below Production | Q1 sales volume growth (+4.4% QoQ) lagged production growth (+25% QoQ) due to raw material availability and logistics constraints in April-May; ~₹5.5 crores of sales spilled into July. |
| Weather Disruption | July heavy rains caused power disruptions at Khatalwada (1.5 days) and Daman (3 days); no asset or personnel damage reported, but operational downtime risk exists in monsoon months. |
Q&A Highlights
Shipment Delays and Revenue Recognition
- Question: Did shipment challenges result in lost sales or deferred revenue? (Akshay Chheda - Canara Robeco)
- Answer: Not lost — deferred by a week or one vessel cycle. Spillover quantified at ~₹5.5 crores total: ~₹3 crores export and ~₹2.5 crores containers at factory, all to be added in July. (Nilesh Shah)
Capacity Utilization Guidance Basis
- Question: Is the 75% utilization guidance on 39,000 MT or 41,000 MT? (Akshay Chheda - Canara Robeco)
- Answer: 41,000 tons for the remaining nine months of FY27. (Nilesh Shah)
Employee Expense Run-Rate
- Question: Is Q1 employee expense a fair annualization assumption given Khatalwada hiring? (Akshay Chheda - Canara Robeco)
- Answer: Yes, Q1 is a fair assumption with minimal further increase expected. (Nilesh Shah)
Price Pass-Through Timing and Volume Mix
- Question: What was the pricing growth vs volume growth split, and why did sales volume growth lag production growth? (Nirali Gopani - Unique PMS)
- Answer: Raw material content is ~50-53% of product mix; ~40% raw material inflation translates to ~20% product price impact, of which ~15% is the sales-side impact. Production volume (6,323 MT) vs sales volume (6,090 MT vs 5,813 MT in Q4) differs as Q4 drew down inventory. Sales volume growth was ~5% QoQ; demand is not the issue — logistics and raw material availability constrained April-May with June improvement. Full price pass-through benefit will reflect in Q2. (Nilesh Shah, Kailesh Shah)
Incremental Capacity Phasing
- Question: Why is only 1,500 MT of the planned 6,000 MT capacity expansion being ordered now? (Nirali Gopani - Unique PMS)
- Answer: The first 1,500 MT has confirmed demand visibility; remaining 4,000 MT deferred to ensure optimal equipment selection for evolving customer product lines. Not a visibility issue — existing capacity is sufficient to meet sales targets without constraint. (Kailesh Shah)
Domestic Growth Flatness and Confidence in 30-35% Target
- Question: Domestic was flat YoY/QoQ at ~₹26 crores — where does 30-35% growth confidence come from? (Ananya Nichani - Thinqwise Wealth Managers)
- Answer: Domestic price reset took ~8 weeks, halting production during Q1. Price change is now 100% accepted with order books full and flowing — target remains achievable. (Nilesh Shah)
Bamboo Revenue and Cannibalization
- Question: What will Q4 bamboo revenue be, and will bamboo cannibalize plastic revenue? (Rajesh - Raghav Capital)
- Answer: Q4 revenue expected at ~20% of 75% utilization of 3,000 CBM capacity. No cannibalization — different price points, end consumers, and customer segments. Bamboo margins run a few hundred bps higher than plastic, and the product opens doors to new customers. (Kailesh Shah)
Utilization Target and Geopolitical Contingency
- Question: Is 75% utilization contingent on geopolitical normalization? (Anand Mundra - My Temple Capital)
- Answer: Not contingent — supply delays in raw materials are the only challenge; no demand slowdown despite higher prices. Customers have accepted new pricing. (Kailesh Shah)
Anchor Customers for Incremental Capacity
- Question: Will incremental capacity be anchored by the largest customer or US customers? (Anand Mundra - My Temple Capital)
- Answer: US customer concentration will increase more, but the largest customer's announced 20-25 new stores in India over two years (each contributing ~₹40-50 lakhs per month) plus import substitution items will also drive domestic growth. Incremental capacity directed toward US market and new customers. (Kailesh Shah)
EBITDA Margin Recovery Path
- Question: When will EBITDA margins return to 18-19% levels seen in FY24/FY25? (Dev Mehta - Unique PMS)
- Answer: 18-19% sustainable at 80% capacity utilization. FY27 will be better than last year, though exact margin not committed. (Kailesh Shah)
Key Takeaway
All Time Plastics Ltd delivered a resilient Q1 FY27 with revenue of ₹161 crores (+10.5% QoQ, +2% YoY) despite West Asia geopolitical disruptions that spiked polymer prices 40-50% above base levels. Volume processed rose 25% QoQ to 6,323 MT with capacity utilization improving to 64.9%, while gross margin compressed 240 bps sequentially to 39.5% on time-lagged price pass-through; EBITDA margin held at 14.3% with absolute EBITDA up 6.8% QoQ. Strategic focus remains on scaling the domestic business (16% of revenue, 30-35% growth target), US expansion (19% of revenue vs 12% in FY26, with a potentially material new opportunity in discussion), and the bamboo vertical at Guwahati with commercial contribution expected in Q4 FY27. Management guided ~75% capacity utilization at 41,000 MT for FY27 and 15-20% volume growth, with margin recovery dependent on geopolitical normalization and rollover pricing completing in Q2. Key watch points include the ₹5.5 crores shipment spillover, raw material cost volatility, fixed cost absorption at Khatalwada, and the timing of the remaining 4,000 MT capacity expansion decision.