Muted quarter as polymer costs squeeze margins; pricing power limited

Revenue +1.4% YoY (near-flat), PAT -14.5% YoY; sequential PAT down 42.4%

General trade segment showed +8% growth per management remarks

E-commerce segment +32% growth confirmed in opening remarks

Corporate segment -14% YoY as stated; attributed to order timing and gifting cycle

EBITDA margin 8.7%, down 89 bps YoY; management blamed polymer price inflation

CFO stated ~50% price increase passed on; not passing entire increase yet

Prior Q4 call: expected progressive easing of headwinds through FY27. This call: deferred all formal guidance citing 'volatile' situation; no numbers committed

Prior: implied confidence in margin recovery. This call: only 50% of cost increase passed to trade; remainder to be decided 'after observing market for another quarter'

West Bengal facility shifted to Q3 (from earlier expectations); acknowledged 'ramp-up taken longer than initially envisaged' but called foundations 'robust'

YoY margin contracted 89 bps to 8.7%; no steady-state margin target provided; management would not commit to recovery pace

No market share change—whole industry facing raw material issues. Passed ~50% of price hike; full pass-through deferred pending RM price trends next quarter. Expect polymer prices to ease; worst believed behind but uncertain.

Situation volatile; will await second quarter for better visibility; hoping to share guidance on next con call if conditions improve.

Management deferred pending better visibility; cites continued geopolitical/input cost volatility as reason for prudence

Management avoided committing to margin recovery pace; said will share guidance on Q2 call if visibility improves

Only capex timing milestone mentioned; no amount disclosed; facility tied to international strategy ramp-up

Polymer prices remain volatile; management only passed 50% of cost increase; further spikes could lock margin compression. Crude oil dependency not hedged.

Export revenue -3% YoY; uncertainty on global trade flows cited. No timeline given for recovery. Extended geopolitical tensions could damp export growth through FY27.

Only ~50% of polymer cost inflation passed to customers; full pass-through deferred pending market observation. Suggests competitive environment limits pricing flexibility. Rest of cost increase absorbed.

West Bengal Morris facility expected Q3 FY27 operational (already delayed from earlier expectations). Kenya subsidiary 'sales momentum improved' but early-stage. cUNI-LINC and Turkey JVs stable but immaterial. Delayed returns on capex reduce RoI visibility.

Corporate sales -14% YoY from 'high base' and timing-dependent gifting. If this segment continues to decline or becomes structurally smaller, could pressure consolidated revenue growth.

No formal FY27 guidance provided; deferred to Q2. Signals management uncertainty on near-term trajectory and confidence in recovery pace. Investors lack visibility on target operating profile.