Cosmo First has reported higher EBITDA for the second quarter of FY27, the quarter ended September 2026. The company attributed the improvement to 15% higher sales volume, 20% higher specialty sales, better base BOPP film margins, better performance of its USA film business after a reduction in USA tariffs, and better results from its specialty chemical and rigid packaging businesses.
Q2 FY27 EBITDA was also affected by two non-repetitive items, according to the company. A write-back of additional customs duties by the USA subsidiary, after it received a duty refund, had a favorable impact of Rs 24.8 crore. This was offset by a stock loss of Rs 7 crore caused by a drop in raw material prices.
The company has opted for the concessional tax regime under Section 200 of the Income Tax Act, 2025, with effect from Tax Year 2026-27. The tax provision for the quarter includes the benefit of this changeover.
To strengthen its specialty films business, Cosmo First is investing in a high-end chemical-coated film expansion. The facility will use a coating line the company describes as one of the most advanced in the world, and will add 16k MT of annual capacity in H2 FY27.
The specialty chemical subsidiary reported topline growth of over 80% year-on-year and an EBITDA margin of 23% in Q2 FY27. The company said this was driven by three niche verticals: coating chemicals, masterbatches and adhesives.
Cosmo Plastech, the rigid packaging vertical, posted topline growth of over 90% year-on-year with an EBITDA margin of 8%. The vertical plans an expansion in H2 FY27 with a nine-layer barrier sheet line of 10k MT annual capacity, which the company said will enable higher-value specialty products with minimal capex. Its FY27 focus is on higher profitability through greater capacity utilization and improved efficiency.
Among the consumer businesses, Zigly (petcare) and Cosmo Consumer (window films, paint protection films and ceramic coatings) recorded year-on-year topline growth of 47% and 70%, respectively, in Q2 FY27. Cosmo Consumer began brand building with TV advertisements in July 2026 and expanded into the automotive segment with the launch of its first 4C Cosmo Car Care Centre in Pune.
Net debt as of September 2026 stood at Rs 1,057 crore (1.9 times EBITDA), down from Rs 1,159 crore as of March 2026. This came despite a Rs 148 crore increase in net working capital, which the company attributed to higher raw material prices following the West Asia war. The company noted that most of the debt related to the two growth capex projects mentioned above is already included in the September 2026 balance sheet. It said it will continue to focus on reducing net debt substantially over the next two years.
Pankaj Poddar, group chief executive officer of Cosmo First, said, “All our B2B businesses are profitable. The FY27 focus will be on higher ROCE through specialty films sales and improved capacity utilization, and on substantially growing new B2B and B2C businesses.”
