Pakka Ltd reported a stellar Q2 FY27, with revenue growing 63.6% to Rs 124 crore. Profit after tax saw an exponential rise to Rs 2.9 crore, supported by a massive expansion in EBITDA margins. The company is currently stabilizing its 'Project Jagriti' assets, with a critical paper machine expansion scheduled for December.
Pakka Ltd Reports Strong Q2 FY27 Performance
Revenue Rs 124 Crore; PAT Rs 2.9 Crore
Reader Takeaway: Strong operational leverage drives profit growth; monitor Project Jagriti's upcoming commissioning for long-term capacity utilization success.
What just happened
Pakka Ltd has released its financial results for the quarter ending September 2026. The company reported a significant jump in profitability, with PAT soaring to Rs 2.9 crore from Rs 0.3 crore in the year-ago period. Revenue from operations also saw a robust climb to Rs 124 crore, up from Rs 75.8 crore previously. EBITDA margins expanded impressively to 14.2% from 6.1% last year.
Why this matters
The financial results demonstrate significant operational leverage and efficiency improvements. The company successfully grew its top line while simultaneously managing costs, which translated into a substantial margin expansion. The results incorporate a one-time loss of Rs 4.7 crore related to the disposal of certain plant and equipment assets.
Project Jagriti Update
A key focus for shareholders is 'Project Jagriti'. Management reported that the recovery boiler, power boiler, and turbine began operations in October 2026 and are currently undergoing the stabilization phase. The critical next step is the start-up of paper machine 4, which is slated for December 2026.
Business Segment Highlights
- Wrap & Carry: The segment benefited from a new interleaving paper deal with Reliance's solar glass facility.
- Food Service: This division recorded revenue of Rs 18.77 crore, a 19% growth, while expanding its footprint into 35 new cities.
- flexC Base: Following successful pilot trials in Europe, the product is seeing consistent demand of 500 tonnes per month.
Risks to watch
Investors must monitor the execution of the final phase of Project Jagriti. The stabilization of new machinery and the timely commissioning of the fourth paper machine are essential for scaling production to meet growing demand. Operational delays or technical hurdles during this transition phase could impact short-term performance.
What to track next
The market will be watching the December 2026 milestone for paper machine 4. Success here will be central to the company’s capacity expansion strategy and its ability to maintain current growth momentum into the second half of the fiscal year.