StockWatch
·

All Time Plastics Ltd Q1 FY27 Results

ALLTIMEQ1 FY27 Results
Filing
Result:Weak· Market: FlatMargin squeeze

Outlook: Cautiously Optimistic · Guidance: Maintained

MetricValueQ4 FY26Q1 FY26
Revenue161.69 Cr10.9%2.4%
Total Income165.18 Cr12.3%4.2%
Expenditure148.94 Cr10.8%5.3%
PBT16.24 Cr27.8%5.7%
Net Profit11.96 Cr28.2%6.6%
OPM14.50%0.26pp3.70pp
NPM7.24%0.90pp0.84pp
EPS1.8328.0%25.0%
View full financials

Revenue grew a tepid 2.3% while EBITDA margin compressed sharply (18.2%→14.5%) and adjusted PAT fell 6.6% YoY, a below-par quarter for the consumer/retail sector on both growth and margin quality.

ALLTIME · Q1 FY27 · THE VERDICT

Volume Surges, Profit Sinks — Khatalwada's Cost Burden Delays Margin Recovery

Production volumes jumped 25% despite supply chaos, but at ₹12 crore profit — down 7% year-on-year — the real story is fixed-cost absorption lag from the new facility. Pricing is locked in; payoff is pending.

17 Aug 2026 · 6 min read
Revenue

₹161.7 Cr

+2.3% YoY | +10.9% QoQ

PAT

₹12.0 Cr

−6.6% YoY | +28.2% QoQ

EBITDA

₹23.0 Cr

−20% YoY | neutral QoQ

Gross margin

39.5%

−240 bps QoQ | flat YoY

Volume (MT)

6,323

+25.1% QoQ | −14.5% YoY

Utilization

64.9%

+13 pts QoQ | −25 pts YoY

The volume story and the profit story are two different conversations. All Time pushed production volumes to 6,323 MT in Q1 — a robust 25% quarter-over-quarter jump that signals demand resilience despite container shortages and port congestion. But at the bottom line, the company delivered ₹12 crore in PAT, down 7% year-over-year. EBITDA was ₹23 crore, down a full 20% year-on-year. That's the tension that defines Q1: operational recovery running into fixed-cost absorption lag from the new Khatalwada facility.

The volume-margin paradox: why production up 25% but profit down 7%

Khatalwada, the company's new expanded facility, is live and operational. It has pushed installed capacity to 41,000 MT — but at 64.9% utilization (up from 51.9% in Q4), the higher fixed cost base is not yet fully absorbed. Gross margin compressed 240 bps quarter-over-quarter to 39.5%, held broadly flat versus Q1 FY26 at 39.3% — a testament to pricing power that offset 40–50% raw material inflation. But the pricing benefit is lagged: management negotiated pass-through with 100% of domestic customers (₹26 crore segment) and 50% of the export book (10–15% of business), but the largest customer operates on an 8-week rollover mechanism, pushing benefit fully into Q2 FY27. Meanwhile, the production ramp demands immediate cost absorption. Sales volume grew only 4.7% quarter-over-quarter (6,090 tons) against production growth of 25%, with ₹5.5 crore deferred to July by logistics congestion, adding to near-term pressure. The result: volume recovery masked by structural margin headwinds.

What management claimed on the call, and what holds up

Claim-by-claim breakdown: where the narrative and the numbers align

25% volume growth QoQ despite supply disruptions

Production: 6,323 MT vs 5,056 MT Q4 = 25.1%. But sales volume: 6,090 tons vs 5,813 = 4.7% only. Inventory absorbed the gap.

Overstated

Gross margin held despite 40–50% raw material inflation

39.5% Q1 FY27 vs 39.3% Q1 FY26 (flat YoY). Pricing power proved genuine.

Supported

EBITDA margin held broadly flat sequentially

14.3% Q1 FY27 vs 14.8% Q4 FY26 (50 bps compression). Down from 18.2% Q1 FY26 (380 bps YoY).

Contradicted

Pricing agreed with substantial majority of customers

100% of domestic (₹26 Cr), 50% of export (10–15% business). Largest customer on 8-week rollover; benefit flows Q2.

Supported

Domestic 30–35% growth target remains on track

Domestic flat at ₹26 Cr YoY and QoQ. Delayed deliberately for 8-week pricing negotiation and Khatalwada ramp; reset complete.

Overstated (forward-looking only)

What changed on this call

US revenue upgraded: The US book jumped to 19% of Q1 revenue (~₹31 Cr) from 12% in FY26, growing with marquee accounts and new product inquiries. Management cites a 'significant opportunity' in discussions; this is genuine momentum, not guidance puffery. Domestic stalled, one quarter: ₹26 crore domestic revenue is flat YoY and QoQ. Management attributes this to a deliberate pause: 8 weeks to negotiate full pricing acceptance and to stage the Khatalwada ramp. The reset is now complete; orders are 'flowing in full flow.' The 30–35% growth target is forward-looking from Q2 onward, not a near-term miss. Margin recovery timeline extended: EBITDA did not recover; the company now guides only that FY27 will be 'better than FY26' and sustainable 18–19% margins will require 80% utilization — a year-end or into FY28 milestone. No specific FY27 margin target was given. Capacity utilization explicit: FY27 target is 75% utilization on a 41,000 MT base (9 months remaining). This is hedged as a 'current working assumption' given geopolitical risk (polymer prices can swing 40–50% on West Asia volatility). Bamboo Phase 1 on track: ₹15 crore capex for 3,000 cubic meter capacity; machinery shipped, installation September 2026, commercial production Q4 FY27. Customer samples have been 'genuinely encouraging.'

The bull-bear ledger
  • Volume resilience: +25% QoQ production amid supply disruptions; demand better than expected

  • Pricing power confirmed: 100% of domestic ₹26 Cr, 50% of export (10–15% business)

  • US upgrade: revenue share 19% vs 12% FY26; marquee accounts and new inquiries

  • Profit down 7% YoY; EBITDA down 20% YoY despite volume gains — fixed cost absorption lag

  • Domestic flat vs 30–35% growth target; reset underway but unproven

  • Margin recovery delayed into FY28 at 80% utilization; FY27 'better than FY26' only

  • Largest customer on 8-week rollover; single-account dependency implicit

  • Geopolitical hedge explicit: 40–50% polymer volatility, supply disruptions

  • Bamboo Q4 with ₹15 Cr capex, ₹60 Cr revenue at full utilization; customer samples positive

  • Khatalwada utilization 65%; must hit 75%+ to absorb fixed costs

Risks, ranked by how much they should concern a holder

Geopolitical volatility: polymer price swings 40–50%, supply disruptions, container shortages

High

Directly caps FY27 utilization guidance (hedged as 'current working assumption'). West Asia volatility is explicit limiter on growth. Raw material inflation forces repeated pricing negotiations.

Fixed-cost absorption: Khatalwada at 65% utilization, margin recovery requires 75–80%

High

EBITDA down 20% YoY despite 25% volume growth. Current trajectory (+13 pts QoQ utilization) gets to 75% by Q3–Q4, but breakeven is tight. Any demand slip pushes recovery into FY28.

Customer concentration: Largest customer on 8-week rollover mechanism; public store expansion plans

High

Pricing benefits are lagged (Q2 rollover for Q1 agreement). Single-account revenue dependency implicit; if customer plan slips, domestic growth target missed again.

Domestic execution: Growth target deferred one quarter; reset underway but unproven

Medium

Flat YoY/QoQ is a miss vs 30–35% guidance. 8-week deliberate pause ended; orders now flowing, but Q2 delivery unproven. If execution slips again, credibility takes a hit.

Bamboo market acceptance: New product line, commercial Q4 FY27; samples positive but unproven

Medium

₹60 Cr upside at full utilization is real upside, but launch risk is real. No cannibalization claimed, but dual-line execution adds complexity.

Capacity expansion timing: 4,000 MT additional capacity decision deferred pending customer project clarity

Low

Prudent caution in volatile environment, but signals execution complexity and customer dependency. Doesn't change FY27 utilization path.

How the street is reading this

All Time opened the result announcement at ₹221.6 on August 5. The stock fell 1.62% on day 1, then stabilized; by day 5 it was down only 1.35% from the pre-result close, suggesting intra-week stabilization. However, by August 14, the stock had resumed its decline and settled at ₹215.54, a net loss of 2.7% from the announcement. The stock now trades 31.5% below its all-time high of ₹314.7, well below its 20-day (₹223.67), 50-day (₹232.94), and 200-day (₹244.04) moving averages. RSI at 30.6 sits in oversold territory but is holding (not panic-level). The market's verdict is clear: the earnings miss on profit (−7% YoY) and EBITDA (−20% YoY) outweighs the volume story. Institutional flows, however, are flat to marginally positive — FII ownership unchanged at 2.98% (up 5 bps QoQ), DII at 10.35% (up 6 bps), promoters at 70.15% (unchanged). The drawdown is systematic de-rating, not a specific seller-of-record or insider exodus. In context: All Time reached ₹314.7 on FY26 upside and FY27 growth expectations. A 31% drawdown to ₹215 reflects a reset of that growth thesis. The market is skeptical that margin recovery and domestic growth will flow as guided. The 8-week domestic delay is read as a miss, not a reset. Until Q2 delivers pricing rollover and domestic orders materialize, the stock is priced for skepticism.

What to watch next
  • 1 · Q2 pricing rollover benefit and utilization trajectory

    The 8-week lag on largest customer pricing and the domestic reset order flow both materialize in Q2. If gross margin expands and EBITDA reverts to double digits (or better), pricing power is real. Utilization move (from 65% to 70%+ QoQ) signals Khatalwada demand recovery. This is the turn in the tape.

  • 2 · Domestic revenue acceleration — actual 30–35% growth or slip again

    ₹26 crore is the baseline. Management claims orders are flowing post-pricing reset. If Q2 domestic jumps to ₹32–35 crore (23–35% growth), the reset narrative holds. If flat or low single-digit, there's an execution problem.

  • 3 · Bamboo Phase 1 machinery arrival and pre-launch ramp (September 2026)

    Installation timeline is September, commercial Q4. Any slip in delivery or assembly is a soft flag for execution on this new business. Customer samples are positive; installation and ramp are the next proof point.

  • 4 · Geopolitical stability: polymer price normalization and supply chain recovery

    The 40–50% raw material swings are the biggest upstream headwind. Any reset in West Asia hostilities or energy prices eases the margin squeeze. Container availability recovery pushes logistics costs down.

  • 5 · Largest customer store expansion: 20–25 store rollout in India

    This is a 2–3 year plan at ₹40–50 lakh per store per month. Public announcement suggests real commitment. Execution updates in earnings calls will confirm import substitution opportunity size and runway.

All Time navigated Q1 supply chaos with solid volume recovery and genuine pricing agreement, but the quarter is defined by fixed-cost absorption lag from Khatalwada, not by operational failure. The company hit its revenue and volume targets; it missed the margin recovery narrative because costs stepped up faster than utilization could absorb. That's mid-cycle pain, not a red flag.

The long-term thesis (US growth upgraded to 19%, bamboo Q4, largest customer 20–25 store expansion, ₹60 crore bamboo upside) is credible and has realistic catalysts. But execution is unproven: domestic reset is one quarter old, bamboo is unproven commercial product, and utilization is still 10 pts below the 75% breakeven.

The number to track from here is utilization. At the current +13 pts QoQ ramp, reaching 75% by Q3–Q4 is realistic, unlocking the margin recovery story. Geopolitical stability and customer order flow are the inputs. If both hold, Q2 and Q4 are the resets. For now, the stock is fairly valued for skepticism — watch the execution.

Informational and educational content only. Not investment advice.

All Time Plastics Ltd (ALLTIME) Q1 FY27 Results, Transcript & Analysis — StockWatch