Knack Packaging Delivers Highest-Ever Quarterly Revenue

Posted by Niilesh waghela 

Mumbai: Knack Packaging Limited, a leading Indian manufacturer of printed and laminated woven polypropylene (PLWPP) packaging solutions with a presence in 75 countries, has reported its highest-ever quarterly revenue for the quarter ended September 30, 2026 (Q2 FY27).

The company announced strong top-line growth driven by robust demand across domestic and international markets.

Q2 FY27 Financial Highlights:

Revenue from Operations: Rs. 2,947.57 Mn (Rs. 294.76 Cr), up 52.52% YoY

PAT: Rs. 250.20 Mn, up 21.24% YoY - absolute profitability expanded strongly

EBITDA Margin: 16.35%

PAT Margin: 8.22%

Why Margins Were Under Pressure:

Despite record revenue, margins saw a slight dip due to two temporary factors:

1. Input Cost Headwinds: Crude oil-driven polymer price inflation and Red Sea crisis-linked freight cost surge impacted the entire packaging industry. As a major exporter, Knack has initiated customer pricing revisions, the benefit of which is expected to reflect from Q3 FY27 onwards.

2. Mexico JV Investment: PAT margin was impacted by a Rs. 60.60 Mn loss from the Mexico JV in H1 FY27. The JV is currently in its peak scale-up and investment phase. This loss flows directly into consolidated PAT with no revenue offset yet. The company expects this drag to reverse as the JV reaches breakeven.

H1 FY27 Performance: For the first half, revenue grew 46.8% YoY and EBITDA grew 41.5% YoY, reflecting the strength of its integrated manufacturing model.

Management Commentary:

Commenting on the results, *Mr. Alpesh Tulsibhai Patel, Chairman and Managing Director, Knack Packaging Limited* said:

“We reported a stable performance for Q2 and H1 FY27. In Q2FY27 we reported our highest ever quarterly revenue. The growth was supported by our business operations across domestic and international markets and strong customer relationships. During the quarter, EBITDA increased in absolute terms, while margin slightly declined due to higher input costs. To mitigate this, we implemented customer price revisions over past few months. 

The benefits are likely to materialise over next few quarters. Going forward, we will continue to focus on strengthening our manufacturing capabilities, expanding customer relationships and increasing our presence across markets.”