Shish Industries Ltd (540693)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Shish Industries' revenue was ₹35.5 Cr (+7.2% year on year, -7.0% on the previous quarter), and net profit ₹-2.1 Cr (against a profit a year earlier); the operating margin was -0.3%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹35.5 | +7.2% | -7.0% |
| Operating profit | ₹-0.1 | to loss | loss widened |
| Net profit | ₹-2.1 | to loss | to loss |
| EPS (₹) | -0.04 | to loss | to loss |
| Operating margin | -0.3% | — | — |
📢 Recent Corporate Announcements
Shish Industries' board approved a Composite Scheme of Amalgamation to merge two wholly owned subsidiaries, Shish Polylam Private Limited and Shish Global Solutions Private Limited, into the parent company. Both entities contribute minimal revenue, with Shish Polylam posting nil income and Shish Global posting negative income of Rs 0.88 lakhs for the period ending June 30, 2026. Because both are 100% owned, no new shares will be issued, resulting in zero equity dilution. The transaction is aimed at operational streamlining, reducing administrative overheads, and simplifying the corporate structure.
- Merger of two wholly owned subsidiaries into Shish Industries approved on September 23, 2026
- Zero share dilution as 100% of share capital in both subsidiaries will be cancelled upon effectiveness
- Net worth of merging subsidiaries as of June 30, 2026: Shish Polylam at Rs 69.87 lakhs and Shish Global Solutions at negative Rs 329.51 lakhs
- Total income for the period ending June 30, 2026 was nil for Shish Polylam and Rs (0.88) lakhs for Shish Global Solutions
Shish Industries held a board meeting on August 24, 2026, approving several routine administrative and compliance matters. The board approved the draft Directors' Report for FY 2025-26 along with the AGM notice and appointed NSDL and M/s ALAP & Co. LLP for e-voting processes. Additionally, M/s V.M. Patel & Associates was re-appointed as the Cost Auditor for FY 2026-27 for a 1-year term. The board also recommended amending the Articles of Association by inserting Article 209, enabling the company to mark specified securities as non-transferable when mandated by law.
- Re-appointed M/s V.M. Patel & Associates as Cost Auditor for FY 2026-27 for a 1-year term.
- Proposed insertion of Article 209 in Articles of Association regarding marking specified securities as non-transferable.
- Approved draft Directors' Report for FY 2025-26 and draft Annual General Meeting notice.
- Confirmed zero financial or operational impact from the proposed corporate governance and AoA changes.
Shish Industries reported a weak Q1 FY27, swinging to a consolidated net loss of ₹1.54 Cr from a profit of ₹2.78 Cr in the year-ago period. While consolidated revenue grew 7.1% YoY to ₹35.49 Cr, total expenses surged by 19.5% to ₹38.41 Cr, primarily driven by a sharp rise in raw material costs. Standalone results also showed a net loss of ₹0.81 Cr, further weighed down by a ₹3.69 Cr loss in Other Comprehensive Income due to equity investment revaluations. The company's operating margins have been severely compressed by input cost volatility and higher depreciation.
- Consolidated revenue grew 7.1% YoY to ₹35.49 Cr, representing ~26.5% of TTM revenue.
- Consolidated net loss of ₹1.54 Cr vs a profit of ₹2.78 Cr in Q1 FY26.
- Standalone raw material costs increased 40.5% YoY to ₹27.74 Cr from ₹19.74 Cr.
- Standalone depreciation expense doubled to ₹1.36 Cr from ₹0.64 Cr YoY, indicating new capacity coming online.
- Recorded a ₹3.69 Cr loss in Other Comprehensive Income (Standalone) due to fair value adjustments of equity investments.
Shish Industries reported a weak Q1 FY27, swinging to a consolidated net loss of 1.54 Cr from a profit of 2.78 Cr in the same quarter last year. While consolidated revenue grew 7.1% YoY to 35.49 Cr, profitability was severely eroded by a 39% surge in raw material costs. Furthermore, the company recorded a significant loss of 3.69 Cr in Other Comprehensive Income (OCI) due to mark-to-market valuation of equity investments, leading to a total comprehensive loss of 5.21 Cr.
- Consolidated revenue from operations grew 7.1% YoY to 35.49 Cr.
- Consolidated net loss of 1.54 Cr vs a profit of 2.78 Cr in Q1 FY26.
- Standalone cost of materials consumed jumped 40.5% YoY to 27.74 Cr, representing 81.7% of revenue.
- Other Comprehensive Income (OCI) recorded a loss of 3.69 Cr due to fair value changes in quoted equity shares.
- Standalone Finance Costs increased 17% YoY to 0.46 Cr.
Shish Industries has scheduled a board meeting for August 13, 2026, to consider and approve its unaudited standalone and consolidated financial results for the quarter ended June 30, 2026. This follows a weak Q4 FY26 where the company reported a marginal operating loss of ₹0.1 crore on revenue of ₹38.15 crore. Investors will be monitoring for a recovery in operating margins, which averaged 9.2% over the trailing twelve months. The trading window for insiders has been closed since July 1, 2026, in anticipation of these results.
- Board meeting scheduled for August 13, 2026, to review Q1 FY27 performance
- Trading window for insiders closed since July 1, 2026, per SEBI regulations
- Company reported TTM revenue of ₹134 crore and TTM PAT of ₹6 crore
- Promoter holding has decreased from 66.03% in Sep 2025 to 54.81% in Jun 2026
- Capital Work-in-Progress (CWIP) stood at ₹7.07 crore as of March 2025, indicating ongoing expansion
Financial Performance
Revenue Growth by Segment
The company operates in a single reportable segment: Corrugated Plastic Sheets. Standalone revenue from operations grew 37.80% YoY to INR 11,778.82 Lakh from INR 8,547.88 Lakh. Consolidated revenue grew 35.58% YoY to INR 11,625.12 Lakh.
Geographic Revenue Split
Not disclosed in available documents; however, the company notes currency risk associated with imports, indicating international supply chain exposure.
Profitability Margins
Standalone Net Profit Margin was 9.30%, a slight decrease from 9.86% in the previous year. Consolidated Net Profit Margin fell significantly from 9.34% to 5.14% due to a decrease in consolidated net profit alongside increased revenue.
EBITDA Margin
Standalone Operating Profit Margin was 13.74%, down 2.42% from 14.09% YoY. Consolidated Operating Profit Margin was 8.85%, down 37.02% from 14.04% YoY, primarily due to higher operating expenses and revenue growth dynamics.
Capital Expenditure
Standalone purchase of fixed assets amounted to INR 12.65 Cr, with an additional INR 7.07 Cr in Capital Work-in-Progress (CWIP), totaling approximately INR 19.72 Cr in historical and ongoing investment for FY 2024-25.
Credit Rating & Borrowing
Not disclosed in available documents. However, Standalone finance costs increased 111.08% YoY to INR 162.84 Lakh, and the Standalone Interest Coverage Ratio decreased 34.84% to 10.71 times.
Operational Drivers
Raw Materials
Plastic resins (Polypropylene and Polyethylene) are the primary raw materials for corrugated plastic sheets, representing a significant portion of the cost of goods sold.
Import Sources
Not specifically disclosed, but the company identifies currency risk associated with imports as a major concern, suggesting sourcing from international markets.
Capacity Expansion
Current installed capacity is not specified, but the company has INR 7.07 Cr in Capital Work-in-Progress as of March 31, 2025, indicating ongoing expansion of manufacturing facilities.
Raw Material Costs
The company achieved an increase in profit after tax through an 'effective purchase policy' that reduced the cost of raw materials, though specific cost percentages were not provided.
Strategic Growth
Expected Growth Rate
37.8%
Growth Strategy
Growth is driven by capacity expansion (evidenced by INR 7.07 Cr CWIP), cost optimization through effective raw material procurement, and leveraging its three subsidiaries: Shish Global Solutions, Dunnage Bag Pvt Ltd, and Interstar Polyfab.
Products & Services
Corrugated Plastic Sheets, used primarily in packaging and industrial applications.
Brand Portfolio
Shish Industries
Strategic Alliances
The company has significant inter-company transactions with subsidiaries, including unsecured business advances totaling INR 22.47 Cr to Interstar Polyfab and Shish Global Solutions.
External Factors
Industry Trends
The industry is shifting toward lightweight, durable, and recyclable plastic packaging solutions; Shish is positioned as a single-segment player in corrugated plastic sheets to capture this demand.
Competitive Landscape
The company faces 'unfair competition' and demand risks, though specific competitor names are not listed.
Competitive Moat
Moat is built on cost leadership through procurement efficiency and a specialized focus on corrugated plastic sheets. Sustainability depends on maintaining low-cost sourcing and scaling production.
Macro Economic Sensitivity
Sensitive to global plastic resin prices and currency volatility due to import dependencies.
Geopolitical Risks
Trade barriers or supply chain disruptions in regions exporting plastic resins could impact input costs.
Regulatory & Governance
Industry Regulations
Subject to pollution control norms and plastic waste management regulations applicable to plastic sheet manufacturing.
Taxation Policy Impact
Standalone current tax for FY 2024-25 was INR 369.38 Lakh, representing an effective tax rate of approximately 25.1% of PBT.
Legal Contingencies
The company has pending litigations disclosed in Note 35 of the financial statements; specific case values were not provided in the summary snippets.
Risk Analysis
Key Uncertainties
Currency risk on imports, demand volatility due to potential pandemic resurgence, and reconciliation of debtor/creditor balances (emphasized by auditors).
Third Party Dependencies
High dependency on resin suppliers; however, specific vendor names and concentration percentages are not disclosed.
Technology Obsolescence Risk
The company uses an ERM framework to monitor technology and digital transformation status, though specific risks were not detailed.
Credit & Counterparty Risk
Standalone Debtors Turnover Ratio improved 31.96% to 5.62 times, indicating better receivables management despite auditors noting that balances are subject to confirmation.
