Equity L/S Analyst | Forensic Accounting | India, Yellowstone Equity

Ankit Agrawal, CFA

Equity L/S Analyst | Forensic Accounting | India

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Note that Ankit Agrawal (Proprietor of Yellowstone Equity) is a SEBI registered Research Analyst (Registration No.: INH000007216). Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

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Equity Bottom-Up

<ul>
<li>RPPL reported its highest ever quarterly revenue in Q1FY27 at INR 103cr, a growth of 25% YoY. PAT increased 77% YoY to INR 7cr+.</li>
<li>RPPL added another 1000 MT capacity in injection molding during Q1FY27 to reach 5800 MT, after 1500 MT addition during FY26. About 60% of injection molding revenues come from exports.</li>
<li>Strong earnings in Q1 was led by domestic demand while exports declined due to macroeconomic headwinds. EBITDA margin improved to 16.05% vs 14.64% YoY.</li>
</ul>


RPPL reported its highest ever quarterly revenue in Q1FY27 at INR 103cr, a growth of 25% YoY. PAT increased 77% YoY to INR 7cr+.
RPPL added another 1000 MT capacity in injection molding during Q1FY27 to reach 5800 MT, after 1500 MT addition during FY26. About 60% of injection molding revenues come from exports.
Strong earnings in Q1 was led by domestic demand while exports declined due to macroeconomic headwinds. EBITDA margin improved to 16.05% vs 14.64% YoY.


<ul>
<li>Q4FY26 YoY revenue growth was flattish, however, profitability improved significantly led by better product mix and operating efficiencies as Rajshree Polypack ("RPPL") rationalized low-margin products and low-value clients.</li>
<li>During FY26, exports led by injection molding, a relatively new segment for RPPL, drove the growth. Even domestic growth has been strong for Olive Ecopak (disposable tableware) and injection molding.</li>
<li>Weak demand from a key customer has dampened growth in thermoforming products. No major capacity expansion is planned in thermoforming as focus is on improving utilization and profitability.</li>
</ul>


Q4FY26 YoY revenue growth was flattish, however, profitability improved significantly led by better product mix and operating efficiencies as Rajshree Polypack ("RPPL") rationalized low-margin products and low-value clients.
During FY26, exports led by injection molding, a relatively new segment for RPPL, drove the growth. Even domestic growth has been strong for Olive Ecopak (disposable tableware) and injection molding.
Weak demand from a key customer has dampened growth in thermoforming products. No major capacity expansion is planned in thermoforming as focus is on improving utilization and profitability.


RPPL: Decent Performance Despite Macro Challenges

<ul>
<li>RPPL reported a mixed Q3, as exports grew strong at 40%+ YoY while the domestic segment saw -12% YoY de-growth led by raw material price volatility and seasonality impact.</li>
<li>As the trade deal with the US is in motion now, RPPL expects exports to improve further. The strong rise in exports has been driven by the injection molding segment.</li>
<li>The Olive Ecopak JV is now scaling up well and has now turned materially profitable at the EBITDA level. FY27 is expected to be a strong year for it.</li>
</ul>


RPPL reported a mixed Q3, as exports grew strong at 40%+ YoY while the domestic segment saw -12% YoY de-growth led by raw material price volatility and seasonality impact.
As the trade deal with the US is in motion now, RPPL expects exports to improve further. The strong rise in exports has been driven by the injection molding segment.
The Olive Ecopak JV is now scaling up well and has now turned materially profitable at the EBITDA level. FY27 is expected to be a strong year for it.


Rajshree Polypack (RPPL): All Set for a Strong FY27

<ul>
<li>RPPL has had a volatile earnings over the past one year due to losses in its new Olive Ecopak venture. However, Olive Ecopak is on track to breakeven by Q4.</li>
<li>The core earnings grew lower than expected due to 1) decline in raw material prices, 2) unseasonal monsoon and 3) drop in orders from a key beverage client.</li>
<li>On the other hand, injection molding and exports revenue grew rapidly. Even the barrier packaging segment grew well. Despite challenges in Q2FY26, RPPL's aggregate volume grew 7% YoY.</li>
</ul>


RPPL has had a volatile earnings over the past one year due to losses in its new Olive Ecopak venture. However, Olive Ecopak is on track to breakeven by Q4.
The core earnings grew lower than expected due to 1) decline in raw material prices, 2) unseasonal monsoon and 3) drop in orders from a key beverage client.
On the other hand, injection molding and exports revenue grew rapidly. Even the barrier packaging segment grew well. Despite challenges in Q2FY26, RPPL's aggregate volume grew 7% YoY.


Rajshree Polypack (RPPL): Robust Fundamentals Ahead

<ul>
<li>Despite early monsoon resulting in weak demand, RPPL posted a decent revenue growth of 4.9% YoY in Q1FY26. This was led by 45% YoY growth in exports.</li>
<li>RPPL's injection molding segment has been doing exceptionally well with revenue doubling in Q1FY26. RPPL's Olive Ecopak JV has started slow but holds significant potential.</li>
<li>At current valuation, RPPL's stock offers an attractive entry point with potential to more than triple over a holding period of three years. </li>
</ul>


Despite early monsoon resulting in weak demand, RPPL posted a decent revenue growth of 4.9% YoY in Q1FY26. This was led by 45% YoY growth in exports.
RPPL's injection molding segment has been doing exceptionally well with revenue doubling in Q1FY26. RPPL's Olive Ecopak JV has started slow but holds significant potential.
At current valuation, RPPL's stock offers an attractive entry point with potential to more than triple over a holding period of three years. 


Rajshree Polypack (RPPL): Decent Q1FY26, Considering Weak Demand Environment

India

Rajshree Polypack is an Indian manufacturer of rigid plastic packaging products and plastic sheets, specializing in customized thermoformed packaging solutions for the dairy, food processing, and beverage sectors. Their product range includes cups, containers, and trays for various food items and beverages, as well as rigid plastic sheets. The company is headquartered in Thane, Maharashtra, India, and was founded on October 15, 2011.

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Rajshree Polypack (RAJPPL IN)

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RPPL: Decent Performance Despite Macro Challenges

RPPL has seen strong recovery in Q4 led by enhanced profitability. As Olive Ecopak and Injection Molding scales up, FY27 looks promising. At...

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Rajshree Polypack (RPPL): All Set for a Strong FY27

RPPL had a mixed Q3 which was expected due to weak seasonality, however FY27 is on track to be a strong year with normalization in the core...

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Rajshree Polypack (RPPL): Robust Fundamentals Ahead

RPPL faced a few temporary issues that weakened its recent earnings. However, FY27 is on track to report strong earnings. At current valuation, an...

Ankit Agrawal, CFA

Rajshree Polypack (RPPL): Decent Q1FY26, Considering Weak Demand Environment

RPPL reported a decent Q1FY26 despite weak demand environment, led by strong exports and exceptionally strong growth in the injection molding...

Ankit Agrawal, CFA

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