Knack Packaging Q1 FY27 Results: Revenue Rises 41% to ₹262.46 Crore, PAT Jumps 48%

What Happened ?

Knack Packaging Limited announced its unaudited financial results for the quarter ended June 30, 2026, marking the company’s first quarterly results following its successful IPO.

Revenue from operations increased to ₹262.46 crore, compared with ₹187.12 crore in Q1 FY26. Total EBITDA increased to ₹59.17 crore, while PAT reached ₹30.53 crore.

The company attributed revenue growth to higher sales volumes and improving capacity utilisation across its owned and rented facilities, supported by healthy demand from the grain and pulses, animal food, fertiliser/agrochemical and consumer end-markets.

The company also highlighted continued monitoring of key raw material prices as an important factor in protecting margins amid a volatile operating environment.

key details

Financial & Operational Highlights:

• Revenue growth was supported by higher sales volumes.
• Capacity utilisation improved across the company’s owned and rented facilities.
• Demand remained healthy across key end-markets.
• EBITDA growth of 53% exceeded revenue growth of 41%, indicating operating leverage.
• PAT increased 48%, also outpacing topline growth.
• EBITDA margin improved to 22.35% from 20.65%.
• PAT margin increased to 11.53% from 11.03%.
• Quarterly ROCE stood at 54.73%.
• Quarterly ROE stood at 37.45%.

Capacity Expansion:

• Knack Packaging’s installed manufacturing capacity increased from 43,300 MT per annum to more than 48,000 MT per annum following the commissioning of new rented facilities.
• The additional capacity has strengthened the company’s manufacturing and supply capabilities and is intended to allow it to respond faster to demand across domestic and international markets.

Business & Market Position:

Knack Packaging manufactures Printed and Laminated Woven Polypropylene (PLWPP) packaging solutions, including:

• Pinch-bottom bags
• Gusseted bags
• Block-bottom bags
• Retail shopping bags

The company serves 28+ industries and exports its products to more than 74 countries.

Its end-market exposure includes animal feeds, food grains, pulses, detergents, fertilisers, building materials, cement and chemicals.

Management Outlook:

Management stated that the company’s strong Q1 FY27 performance, together with the commissioning of new rented facilities, has increased manufacturing capacity and supply capability.

The company is also targeting opportunities to onboard globally renowned brands, leveraging its expertise in customised specialised packaging solutions ranging from 5 KG to 50 KG across more than 28 industries.

Note:

• The source document separately states Q1 FY27 Total Revenue of ₹264.77 crore, compared with Revenue from Operations of ₹262.46 crore reported in the consolidated financial highlights.
• These figures have not been reconciled because the source does not provide the underlying composition of the difference.

Risk Analysis

Summary:

• Knack Packaging’s Q1 FY27 performance was strong, but profitability remains exposed to raw material price volatility and the company will need to effectively utilise its expanded manufacturing capacity to sustain growth.

Key Risks:

• Volatility in key input raw material prices can pressure margins.
• Newly added capacity requires sustained demand and utilisation.
• Future growth depends partly on successfully onboarding new global brands.
• Export exposure across more than 74 countries introduces dependence on international demand and operating conditions.
• The company operates across multiple end-markets, making demand conditions across sectors relevant to future growth.

Worst Case:

• A combination of weaker demand, slower capacity utilisation and higher raw material costs could reduce operating leverage and place pressure on EBITDA and PAT margins.

Risk Level: Medium

Company Commentary

• Management described Q1 FY27 as a strong first quarterly result following the company’s IPO.
• The performance was attributed to a resilient business model and disciplined execution.
• New rented facilities have significantly increased manufacturing capacity and supply capability.
• Installed capacity has increased to 48,000+ MT per annum.
• The company expects its expanded manufacturing base to support faster response to domestic and international demand.
• Management remains positive about onboarding globally renowned brands through its specialised and customised packaging capabilities.