HCP Plastene Bulkpack Ltd (526717)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, HCP Plastene's revenue was ₹174 Cr (+38.5% year on year, +22.0% on the previous quarter), and net profit ₹18.3 Cr (+157.0% year on year); the operating margin was 18.9%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹174 | +38.5% | +22.0% |
| Operating profit | ₹32.9 | +259.1% | +98.1% |
| Net profit | ₹18.3 | +157.0% | +120.5% |
| EPS (₹) | 17.19 | +357.2% | +123.5% |
| Operating margin | 18.9% | — | — |
📢 Recent Corporate Announcements
HCP Plastene Bulkpack Limited announced the appointment of Mr. Prakash Hiralal Parekh as Chief Financial Officer (CFO), effective October 12, 2026. Mr. Parekh is also the Managing Director and Promoter of the company with over 23 years of experience in the plastics industry. Concurrently, the Board approved the appointment of Ahmedabad-based M/s. Nirav Patel & Associates, Chartered Accountants, as the Internal Auditor for FY2026-27. The 15-minute Board meeting was held on October 12, 2026.
- Appointment of Mr. Prakash Hiralal Parekh as CFO effective October 12, 2026
- Mr. Parekh brings 23+ years of experience in the plastic industry and serves as Managing Director/Promoter
- Appointment of M/s. Nirav Patel & Associates as Internal Auditor for FY 2026-27
- Board meeting commenced at 3:15 PM and concluded at 3:30 PM on October 12, 2026
HCP Plastene Bulkpack Limited announced the appointment of Mr. Prakash Hiralal Parekh as Chief Financial Officer (CFO), effective October 12, 2026. Mr. Parekh is also the Managing Director and Promoter of the company with over 23 years of experience in the plastics industry. Concurrently, the Board approved the appointment of Ahmedabad-based M/s. Nirav Patel & Associates, Chartered Accountants, as the Internal Auditor for FY2026-27. The 15-minute Board meeting was held on October 12, 2026.
- Appointment of Mr. Prakash Hiralal Parekh as CFO effective October 12, 2026
- Mr. Parekh brings 23+ years of experience in the plastic industry and serves as Managing Director/Promoter
- Appointment of M/s. Nirav Patel & Associates as Internal Auditor for FY 2026-27
- Board meeting commenced at 3:15 PM and concluded at 3:30 PM on October 12, 2026
Mr. Dhrumil PranavKumar Shah has resigned as the Chief Financial Officer (CFO) of HCP Plastene Bulkpack Ltd, effective August 12, 2026. The resignation is cited as being for "further career opportunities," with the outgoing CFO confirming no other material reasons exist. The company currently operates with a high Debt-to-Equity ratio of 3.0 and reported a TTM revenue of Rs 588 Cr. Investors should monitor the appointment of a successor to ensure continuity in financial management and debt servicing.
- CFO Mr. Dhrumil PranavKumar Shah resigned effective August 12, 2026.
- Company manages a significant debt of Rs 246 Cr relative to a net worth of Rs 82 Cr.
- TTM Revenue stands at Rs 588 Cr with an Operating Profit Margin of 9.5% for FY26.
- Promoter holding remains stable at 75.0% as of June 2026.
The Board of Directors of HCP Plastene Bulkpack Ltd approved the adoption of a new set of Articles of Association (AoA) during their meeting on August 12, 2026. This update is intended to align the company's internal regulations with the Companies Act, 2013, and other current SEBI regulatory requirements. The change is procedural and requires final approval from shareholders at the upcoming Annual General Meeting. This administrative update does not impact the company's current financial standing, including its TTM revenue of ‡588 Cr.
- Board approval granted on August 12, 2026, for a new set of Articles of Association.
- The amendment is specifically designed to align with the Companies Act, 2013.
- Final implementation is subject to shareholder approval at the ensuing Annual General Meeting.
- The company maintains a high Debt-to-Equity ratio of 3.00 as per recent financial context.
HCP Plastene Bulkpack Ltd has allotted 16,780 equity shares to employees following the exercise of options under its 2022 ESOP scheme. The shares were issued at an exercise price of Rs 10 each, raising a nominal amount of Rs 1.67 lakh for the company. This results in a negligible equity dilution of approximately 0.16% based on the pre-allotment share capital. The total paid-up share capital now stands at 1,06,91,617 shares.
- Allotment of 16,780 equity shares of face value Rs 10 each to eligible employees.
- Exercise price set at Rs 10 per option, representing a significant discount to the current market price of Rs 184.6.
- Total capital raised through this exercise is Rs 1,67,800.
- Equity dilution is minimal at approximately 0.16% of the total share capital.
- A total of 29,450 options lapsed during the period, reducing the outstanding option pool.
HCP Plastene Bulkpack approved its Q1 FY27 results and announced the resignation of CFO Dhrumil Shah, effective August 12, 2026. The company also confirmed the dissolution of its Malaysian subsidiary, HCP Plastene Bulkpack PLT, which was previously a key part of its international expansion strategy. To maintain management continuity, the board re-appointed Managing Director Prakash Parekh for a three-year term. Additionally, 16,780 shares were allotted under the 2022 ESOP scheme, resulting in a marginal 0.15% increase in paid-up equity capital.
- CFO Dhrumil Shah resigned effective August 12, 2026, to pursue other career opportunities.
- Dissolution of Malaysian subsidiary HCP Plastene Bulkpack PLT, impacting international exposure plans.
- Allotment of 16,780 equity shares at an exercise price of ₹10 per share under the ESOP 2022 scheme.
- Managing Director Prakash Parekh re-appointed for a 3-year term starting November 1, 2026.
- Paid-up equity share capital increased to ₹10.69 crore from ₹10.67 crore following the ESOP exercise.
HCP Plastene Bulkpack's board met on August 12, 2026, to approve Q1 FY27 results and several significant corporate changes. Key developments include the resignation of CFO Dhrumil Shah and the dissolution of the company's Malaysian subsidiary, HCP Plastene Bulkpack PLT. The board also approved the re-appointment of Managing Director Prakash Hiralal Parekh for a three-year term and allotted 16,780 shares under its ESOP scheme. These changes occur against a backdrop of high leverage, with a Debt/Equity ratio of 3.0.
- CFO Dhrumil Shah resigned effective August 12, 2026, to pursue other career opportunities.
- Dissolution of Malaysian subsidiary HCP Plastene Bulkpack PLT, which was previously a key part of the international growth strategy.
- Re-appointment of Mr. Prakash Hiralal Parekh as Managing Director for a 3-year term starting November 1, 2026.
- Allotment of 16,780 equity shares under ESOP Scheme 2022 at an exercise price of ₹10 per share.
- Paid-up equity share capital increased to ₹10.69 crore (1,06,91,617 shares) following the ESOP allotment.
HCP Plastene Bulkpack Ltd has scheduled a board meeting on August 12, 2026, to approve its unaudited financial results for the quarter ended June 30, 2026. The board will also finalize the notice and schedule for the 42nd Annual General Meeting (AGM) and consider the re-appointment of Director Prakash Hiralal Parekh. Additionally, the meeting will address potential equity share allotments under the company's ESOP scheme. This follows a strong FY26 performance where revenue grew to ₹588 Cr from ₹463 Cr in FY25.
- Board meeting scheduled for August 12, 2026, to approve Q1 FY27 financial results
- Agenda includes finalizing the 42nd Annual General Meeting (AGM) calendar and book closure dates
- Trading window remains closed from July 01, 2026, until 48 hours after the results are declared
- Board to consider the re-appointment of Mr. Prakash Hiralal Parekh (DIN: 00158264) as a Director
- Potential allotment of equity shares pursuant to Employee Stock Options (ESOP) to be discussed
HCP Plastene Bulkpack Ltd has announced that M/s S.A. Gadhia & Company, who were appointed as Internal Auditors on May 28, 2026, have withdrawn their consent for the FY 2026-27 assignment. The auditor cited pre-existing professional commitments and other unavoidable circumstances for the withdrawal on July 17, 2026. The company is now in the process of identifying a replacement to ensure compliance with internal control frameworks. This is a procedural governance update and does not impact the company's financial results or operations.
- Board of Directors had originally appointed the auditor on May 28, 2026
- Withdrawal of consent communicated by the auditor on July 17, 2026
- The appointment was intended for the Financial Year 2026-27
- Auditor cited 'professional reasons' and 'pre-existing commitments' for the decision
- Company is currently identifying a new eligible Internal Auditor for the board's approval
Financial Performance
Revenue Growth by Segment
Consolidated revenue declined by 17.55% in FY2024 to INR 288.97 Cr from INR 350.50 Cr in FY2023. However, 9M FY2025 showed a significant recovery with revenue reaching INR 343.95 Cr, a 57% YoY increase. Standalone operations for FY2025 reported revenue of INR 118.08 Cr compared to INR 45.55 Cr in FY2024, representing a 159% growth.
Geographic Revenue Split
Exports account for approximately 65% of total revenue, primarily targeting the European Union and United States markets. Domestic sales contribute the remaining 35%. The company is expanding its international footprint with a new subsidiary in Malaysia.
Profitability Margins
Net profit margin (PAT) was 0.10% in FY2024 (INR 0.30 Cr) compared to 0.22% in FY2023 (INR 0.77 Cr). For 9M FY2025, PAT margins improved significantly by 229 bps to 1.88% due to better realizations and demand recovery.
EBITDA Margin
EBITDA margin stood at 3.83% in FY2024 (INR 11.08 Cr), down from 4.68% in FY2023. In 9M FY2025, EBITDA margins improved to 7.29%, a 1.58% absolute increase YoY, with EBITDA doubling to INR 25.09 Cr.
Capital Expenditure
The company maintains a gross block of INR 107.49 Cr as of FY2025. While specific future capex figures are not disclosed, the company has invested in state-of-the-art infrastructure at Santej and Sanand to support its wide product portfolio.
Credit Rating & Borrowing
Assigned a credit rating of IVR BBB-/ Negative in March 2025 for INR 50.00 Cr long-term bank facilities. Interest coverage ratio was 0.94x in FY2024, expected to improve to ~3.00x over FY2025-FY2028. Total debt stood at INR 99.98 Cr as of March 31, 2024.
Operational Drivers
Raw Materials
Key raw materials include Polypropylene (PP) and HDPE, which are derivatives of crude oil. These materials constitute the bulk of the manufacturing cost for woven sacks and FIBC bags.
Import Sources
Raw materials are primarily sourced domestically from Gujarat, specifically from proximity to major refineries.
Key Suppliers
Reliance Industries Limited (RIL) is a primary supplier, with the company's plants located near RIL's refinery for efficient sourcing.
Capacity Expansion
Current manufacturing units are located in Santej, Sanand, Gandhidam, Ahmedabad, Rajpur, Kalol, and Kutch. Specific MTPA capacity is not disclosed, but the company is expanding its international exposure through a new Malaysian subsidiary.
Raw Material Costs
Raw material costs are highly susceptible to crude oil price fluctuations. In FY2024, total expenses (excluding finance/depreciation) were INR 104.54 Cr against revenue of INR 118.08 Cr in standalone operations, indicating high material intensity.
Manufacturing Efficiency
Efficiency is driven by locational advantages near Kandla and Mundra ports, which significantly reduces freight costs for the 65% export-oriented business.
Logistics & Distribution
Distribution is focused on export markets (EU/US) via Gujarat-based ports. Logistics costs are mitigated by the strategic location of plants near major maritime hubs.
Strategic Growth
Expected Growth Rate
55%
Growth Strategy
Growth is targeted through a projected revenue of ~INR 450 Cr in FY2025, driven by new client additions, a new subsidiary in Malaysia to strengthen international exposure, and expansion into Japan and South Korean markets. The company is leveraging its 75% Indian market share in European FIBC imports.
Products & Services
FIBC Bags (Jumbo bags), small PP Woven Bags, AD Star Bags, PP fabric, film laminates, liners, BOPP laminated woven sacks, and multifilament yarns.
Brand Portfolio
HCP Plastene Bulkpack (formerly Gopala Polyplast), part of the Plastene Group/Champalal Group.
New Products/Services
Expansion into specialized AD Star bags and high-specification FIBC types (Type A, B, C, D) for flammable solvent and combustible substance handling.
Market Expansion
Targeting Japan and South Korea markets to drive growth beyond the traditional US and European strongholds.
Market Share & Ranking
India holds a 75% share in European FIBC imports and a 72% share in the US import market; HPBL is a major contributor to this national share.
Strategic Alliances
The company is a subsidiary of Plastene India Limited (Champalal Group), which acquired the business via an NCLT-approved resolution plan in 2019.
External Factors
Industry Trends
The global polypropylene woven sacks market is growing at 4.2% CAGR, expected to reach $6.1 billion by 2034. There is a shift toward PP woven sacks as an eco-friendly alternative to PE.
Competitive Landscape
Competes with other Indian and global FIBC manufacturers. Market dynamics are currently recovering from a sluggish FY2024.
Competitive Moat
Moat is built on a 40-year track record, state-of-the-art manufacturing in Gujarat, and a dominant 70%+ market share for Indian FIBCs in key Western markets. Sustainability is supported by the Plastene Group's common dealership and supplier network.
Macro Economic Sensitivity
Highly sensitive to global trade volumes and GDP growth in the US and EU. The global FIBC market is expected to grow at a CAGR of 5.4% to reach $12.6 billion by 2033.
Consumer Behavior
Increasing demand for bulk packaging (FIBC) due to cost-effectiveness, re-usability, and eco-friendly properties compared to traditional packaging.
Geopolitical Risks
Trade barriers or economic slowdowns in the EU and US pose significant risks given the 65% export concentration.
Regulatory & Governance
Industry Regulations
Operations are subject to stringent quality requirements of the EU and US markets. The company must adhere to manufacturing standards for food-grade and pharmaceutical-grade packaging.
Environmental Compliance
The company focuses on Polypropylene as a sustainable alternative to PE and produces eco-friendly FIBC bags to meet EU/US environmental standards.
Taxation Policy Impact
Total tax expenses for standalone operations in FY2025 were INR 1.87 Cr on a pre-tax profit of INR 7.62 Cr, implying an effective tax rate of ~24.6%.
Legal Contingencies
The company emerged from CIRP (Corporate Insolvency Resolution Process) in 2019 after a default by erstwhile promoters; the resolution plan was approved by NCLT Ahmedabad.
Risk Analysis
Key Uncertainties
Unhedged forex exposure of INR 28.57 Cr poses a significant risk to the financial profile if the Rupee fluctuates against the USD/EUR. Crude oil price volatility remains a primary input cost risk.
Geographic Concentration Risk
65% of revenue is concentrated in export markets, specifically the US and EU, making the company vulnerable to regional economic shifts.
Third Party Dependencies
Significant dependency on Reliance Industries Limited for raw material procurement (Polypropylene).
Technology Obsolescence Risk
The company mitigates this by investing in modern machinery and R&D for specialized bags like AD Star and Type D FIBCs.
Credit & Counterparty Risk
Increased outstanding receivables as of March 2024 led to a Negative outlook, indicating potential pressure on liquidity if collections are delayed.
