Captain Polyplast reported a 32.89% YoY rise in revenue to INR 106.43 crore for Q2 FY27. While net profit grew by 5.55% to INR 4.48 crore, EBITDA margins tightened due to higher raw material costs. The company bolstered its outlook by securing record-breaking solar EPC orders worth INR 70.6 crore under the PM-KUSUM scheme, aiming to improve working capital cycles as it shifts focus toward solar project revenue.
Captain Polyplast Q2 Results: Revenue Hits INR 106.43 Cr
Total income rose 32.89% to INR 106.43 crore; Net profit increased 5.55% to INR 4.48 crore.
Reader Takeaway: Strong top-line growth from solar wins faces margin pressure; working capital improvement remains a key monitoring point.
What just happened
Captain Polyplast posted a robust performance in Q2 FY27, with total income reaching INR 106.43 crore. While the company achieved double-digit revenue and EBITDA growth, net profit saw a more modest increase of 5.55% as EBITDA margins compressed to 9.66% from 10.29% a year ago. The company attributed this pressure to elevated costs of raw materials like HDPE and LLDPE.
Why this matters
The highlight of the quarter was the company's expansion into the solar EPC sector. Captain Polyplast secured two repeat orders under the PM-KUSUM scheme from MSEDCL, totaling INR 70.6 crore for 3,000 pumps. These represent the largest single solar EPC wins in the company's history and are expected to be recognized as revenue by the end of Q3 FY27.
Operational Performance
The company is currently managing a working capital cycle of approximately 8 months, largely due to its reliance on subsidy-driven micro-irrigation sales. Management stated that they expect this cycle to shorten to 5-6 months by the end of the year, driven by a change in business mix toward faster-turnover solar projects. Debt remains largely linked to revolving working capital, with annual repayment obligations below INR 10 crore.
What changes now
Management has outlined a strategy to improve EBITDA margins by roughly 1.5% in the second half of the year. This involves capitalizing on an expected revision in government micro-irrigation benchmark costs and improving operational efficiencies at their Ahmedabad manufacturing facility. Furthermore, the firm is aggressively diversifying its revenue base, seeking to increase non-subsidy business, including exports, which currently contribute 10% of the micro-irrigation segment.
Risks to watch
Investors should remain cautious regarding raw material price volatility, which continues to impact profitability. Additionally, because 90% of the micro-irrigation industry depends on government subsidies, cash flow remains tethered to state funding cycles, keeping the receivable position elevated.