COSMOFIRST - Cosmo First
📢 Recent Corporate Announcements
Cosmo First Limited has announced the resignation of Mr. Raj Sharma, the Business Head of its Speciality Chemicals division, effective February 28, 2026. Mr. Sharma, classified as Senior Management Personnel, is leaving the company due to retirement and personal reasons. The company has formally accepted the resignation and completed the necessary regulatory filings. This transition marks a change in leadership for a specific business vertical within the organization.
- Mr. Raj Sharma resigns as Business Head of the Speciality Chemicals division.
- The resignation is effective from the close of business hours on February 28, 2026.
- The departure is attributed to retirement and personal reasons.
- The company has accepted the resignation as per SEBI Regulation 30.
Cosmo First Limited has announced the resignation of Mr. Raj Sharma, who held the position of Business Head - Speciality Chemicals. Mr. Sharma, classified as Senior Management Personnel, will be relieved from his duties effective from the close of business hours on February 28, 2026. While the initial letter mentions personal reasons, the formal disclosure table specifically cites retirement as the reason for his departure. This change impacts the leadership of a key specialized business vertical within the company.
- Mr. Raj Sharma, Business Head of Speciality Chemicals, has resigned from his position.
- The resignation is effective from the close of business hours on February 28, 2026.
- The official reason for the change is listed as retirement in the regulatory disclosure.
- The company has formally accepted the resignation and is in the process of transitioning duties.
Cosmo First Limited has responded to a surveillance clarification request from the National Stock Exchange regarding a significant increase in trading volume. The company officially stated that there is no undisclosed price-sensitive information (UPSI) that needs to be reported to the exchanges. Management maintains that the volume spurt is purely market-driven and reflects current market conditions. The company reaffirmed its commitment to complying with SEBI (LODR) Regulations, 2015, for all future material disclosures.
- NSE issued a surveillance inquiry (Ref: NSE/CM/Surveillance/16506) on February 25, 2026.
- Company confirms no pending undisclosed price-sensitive information exists.
- Management attributes the recent volume increase to general market conditions.
- Reaffirmed commitment to SEBI (LODR) Regulations for timely material disclosures.
Cosmo First reported a 28% YoY revenue growth to ₹899 crore for Q3 FY26, driven by a 29% increase in sales volume. EBITDA grew 19% to ₹103 crore, though margins were pressured by US tariffs, inventory losses, and a temporary line shutdown, totaling a ₹19 crore adverse impact. The company has completed its major ₹1,100 crore capex cycle and plans to focus on debt reduction and sweating existing assets over the next 2-3 years. Management expects double-digit revenue growth and improved profitability as US tariff reductions take effect in FY27.
- Consolidated revenue grew 28% YoY to ₹899 crore with volume growth of 29%
- EBITDA stood at ₹103 crore, impacted by ₹19 crore in non-repetitive and adverse factors
- Specialty Chemical subsidiary posted ₹52 crore in sales with a strong 25% EBITDA margin
- Net debt reduced slightly to ₹1,215 crore; management targets significant reduction over 2-3 years
- BOPP margins fell to ₹13/kg from ₹22/kg in Q2, while BOPET margins improved to ₹12/kg
Cosmo First Limited has scheduled an interaction with analysts and institutional investors on Wednesday, February 18, 2026, in Mumbai. The meeting is being conducted in compliance with Regulation 30 of the SEBI (LODR) Regulations, 2015. The company has explicitly stated that no unpublished price sensitive information (UPSI) will be shared during this session. Such meetings are standard practice for listed companies to engage with the investment community regarding business outlook and performance.
- Meeting scheduled for February 18, 2026, in Mumbai.
- Interaction involves both analysts and institutional investors.
- Compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015.
- Company confirmed no unpublished price sensitive information (UPSI) will be disclosed.
Cosmo First Limited has entered into an agreement to acquire up to a 26% equity stake in Hexa Sunshine Private Limited, a Special Purpose Vehicle (SPV). The investment involves a cash consideration of up to ₹7 crore. This strategic move is designed to source hybrid renewable power for the company's manufacturing plants in Gujarat under a group captive consumer model. The initiative aims to optimize energy costs and enhance the company's sustainability profile.
- Acquisition of up to 26% equity stake in Hexa Sunshine Private Limited
- Total investment amount capped at ₹7 crore in cash consideration
- Target is an SPV incorporated in April 2024 for hybrid renewable power generation
- Project aims to supply power to manufacturing plants in Gujarat on a group captive basis
Cosmo First Limited has released the audio recording of its analyst and institutional investor conference call held on February 12, 2026. The call focused on the company's operational and financial performance for the quarter ended December 31, 2025. This disclosure is a routine regulatory requirement under SEBI (LODR) Regulations to ensure transparency. Investors can access the recording via the company's official website to understand management's outlook and strategic direction.
- Audio recording of the Q3 FY26 earnings call is now publicly available.
- The call was conducted on February 12, 2026, following the December 31, 2025, quarter results.
- Discussion covered both operational and financial performance metrics for the quarter.
- The recording link is hosted on the company's investor relations portal for stakeholder access.
Cosmo First reported a robust 28% YoY revenue growth to ₹899 crore for Q3 FY26, primarily driven by a 29% increase in sales volumes. While EBITDA grew 20% to ₹103 crore, PAT remained flat at ₹30 crore due to higher depreciation and interest costs following recent capacity expansions. The company has successfully completed its ₹1,140 crore strategic capex cycle and is now shifting focus toward deleveraging and improving ROCE. Notably, the Rigid Packaging segment turned EBITDA positive in December 2025, and the Petcare business (Zigly) continues to scale with 50% YoY topline growth.
- Revenue grew 28% YoY to ₹899 crore in Q3 FY26, supported by a 29% surge in sales volumes.
- Completed ₹1,140 crore strategic capex; focus shifts to debt reduction and free cash flow generation over the next 24 months.
- Rigid Packaging segment (Cosmo Plastech) achieved EBITDA breakeven in December 2025.
- Specialty Chemicals vertical maintains a 20%+ EBITDA and ROCE profile with ₹200 crore annualized sales.
- Zigly (Petcare) reported 50% YoY topline growth with an annualized GMV run rate of ₹76 crore.
Cosmo First reported a robust 28% YoY revenue growth to ₹899 Cr in Q3 FY26, supported by a 29% surge in sales volume. Despite the topline growth, PAT remained flat at ₹30 Cr due to higher depreciation, interest costs, and a one-time inventory loss of ₹8.4 Cr. The company faced margin compression in its core BOPP/BOPET films and high USA tariffs, though the rigid packaging segment turned EBITDA positive in December. Management expects double-digit growth ahead as new capacities ramp up and USA tariff reductions take effect in FY27.
- Net Revenue rose 28% YoY to ₹899 Cr driven by 29% volume growth.
- EBITDA increased 20% to ₹103 Cr, while PAT stayed flat at ₹30 Cr.
- One-time inventory loss of ₹8.4 Cr recorded due to falling raw material prices.
- Zigly (Petcare) business grew over 50% YoY; Rigid packaging vertical reached EBITDA positive.
- Strategic Joint Venture announced in South Korea with Filmax Corporation.
Cosmo First reported a 21% YoY growth in standalone revenue to ₹820.15 Cr for the quarter ended December 2025, though revenue declined 6% sequentially. Standalone net profit fell to ₹17.19 Cr, down from ₹22.44 Cr in the same quarter last year, impacted by higher finance costs and a one-time employee benefit provision of ₹4 Cr. Finance costs rose significantly to ₹35.83 Cr compared to ₹24.20 Cr YoY. The company also recorded a one-time gain of ₹6.05 Cr from capital reduction in its European subsidiary.
- Standalone Revenue grew 20.8% YoY to ₹820.15 Cr but fell 6.1% sequentially from ₹873.44 Cr.
- Standalone Net Profit dropped 23.4% YoY to ₹17.19 Cr, impacted by a ₹4 Cr one-time labor code provision.
- Finance costs increased by 48% YoY to ₹35.83 Cr, weighing heavily on the bottom line.
- Other income included a one-time gain of ₹6.05 Cr from a subsidiary capital restructuring.
- 9-month standalone profit stands at ₹76.46 Cr, showing a modest 7.5% growth over the previous year's ₹71.13 Cr.
Cosmo First reported a strong 28.3% year-on-year growth in consolidated revenue at ₹898.98 crore for the quarter ended December 31, 2025. However, consolidated net profit saw a sharp decline of 48.6% on a sequential basis, falling to ₹12.57 crore from ₹24.48 crore in Q2 FY26. Profitability was impacted by a one-time employee benefit provision of ₹4 crore related to new labor codes and higher raw material costs. The company also completed a restructuring where its US subsidiary became a direct subsidiary, yielding a one-time gain of ₹6.05 crore.
- Consolidated Revenue from operations increased 28.3% YoY to ₹898.98 crore.
- Consolidated Net Profit fell to ₹12.57 crore, down from ₹16.35 crore in the same quarter last year.
- Standalone EPS dropped significantly to ₹6.64 from ₹11.41 in the previous quarter.
- Recognized a one-time expense of ₹4.00 crore for employee benefit liabilities under New Labour Codes.
- Other income includes a ₹6.05 crore gain from capital reduction in Cosmo First Europe B.V.
Cosmo First Limited has scheduled its earnings conference call for Thursday, February 12, 2026, at 3:30 PM IST. The call will discuss the company's financial and operational performance for the third quarter and nine months ended December 31, 2025. Management will provide insights into business trends and the investor presentation will be available on the company's website. This is a routine but essential event for stakeholders to gauge the company's recovery and growth trajectory.
- Earnings call scheduled for February 12, 2026, at 15:30 hrs IST.
- Focus on Q3 and 9M FY26 performance ending December 31, 2025.
- Diamond Pass registration link provided for direct analyst/investor access.
- Investor presentation to be hosted on the official company website.
- Contact point for IR inquiries is Shivang Goel at +91 9560730343.
Cosmo First Limited has scheduled its earnings conference call to discuss the operational and financial performance for the third quarter and nine months ended December 31, 2025. The call is slated for Thursday, February 12, 2026, at 3:30 PM IST. This meeting provides a platform for management to address investor queries regarding the company's recent performance. The company will also host an investor presentation on its official website prior to the call.
- Earnings call scheduled for February 12, 2026, at 15:30 hrs IST
- Discussion to cover performance for Q3 and 9M ended December 31, 2025
- Investor presentation to be uploaded on the company website (www.cosmofirst.com)
- Diamond Pass registration link provided for direct access to the conference call
Cosmo First Limited has filed a writ petition in the Gujarat High Court against the State of Gujarat's Industries and Mines Department. The company is challenging the payout of lower incentives under the Gujarat Industrial Policy, 2015. It is claiming a refund of balance tax incentives amounting to ₹58.34 Crores for the period ending March 2025. If successful, the company expects an additional incentive accrual of ₹33.53 Crores, which would strengthen its balance sheet.
- Filed a writ petition under Article 226 before the Hon’ble Gujarat High Court against the State of Gujarat.
- Claiming a refund of balance tax incentives totaling ₹58.34 Crores up to March 2025.
- Expected additional financial accrual of ₹33.53 Crores if the litigation is successful.
- The dispute pertains to incentives under the Gujarat Industrial Policy, 2015.
Cosmo First Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The filing confirms that for the quarter ended December 31, 2025, all physical share certificates received for dematerialization were duly processed. The company's registrar, Alankit Assignments Limited, verified that these certificates were mutilated and cancelled, with the depository's name updated in the records. This is a standard administrative procedure ensuring the transition from physical to electronic shareholding is handled correctly.
- Compliance certificate issued for the quarter ended December 31, 2025
- Confirmation provided by Registrar and Share Transfer Agent, Alankit Assignments Limited
- Physical share certificates received for dematerialization were mutilated and cancelled
- Depository name substituted in records as the registered owner for dematerialized shares
Financial Performance
Revenue Growth by Segment
Consolidated sales grew 11.7% YoY to INR 2,895 Cr in FY25 from INR 2,592 Cr in FY24. Specialty film sales grew by 10% YoY, while the Specialty Chemical subsidiary recorded revenue of INR 187 Cr. The Pet Care (Zigly) and Rigid Packaging segments are in early growth phases, with Pet Care contributing less than 10% of total revenue.
Geographic Revenue Split
Exports accounted for 52% of total sales, amounting to INR 1,506 Cr in FY25. The company exports to over 80 countries, providing a hedge against domestic demand fluctuations and allowing for higher realization in specialty segments.
Profitability Margins
Net Profit (PAT) margin improved significantly from 2.39% in FY24 to 4.60% in FY25. Standalone EBITDA rose to INR 301 Cr from INR 213 Cr. The improvement is driven by a 10% growth in high-margin specialty films and cost rationalization efforts.
EBITDA Margin
Consolidated EBITDA margin stood at 10.7% in FY25, up from 9.7% in FY24. EBITDA increased 44% YoY to INR 362 Cr. CRISIL expects margins to expand to 13-14% in FY26 as new capacities ramp up and the product mix shifts further toward value-added films which command 2.5x the margin of commodity films.
Capital Expenditure
The company has invested INR 1,180 Cr over the last three years, including INR 502 Cr in FY25. A balance expansion capex of INR 275 Cr is planned for the BOPP plant across FY25 and FY26, funded through a 60:40 debt-to-equity ratio.
Credit Rating & Borrowing
The company maintains a strong credit profile with a policy of keeping a liquidity cushion of INR 383 Cr, equivalent to 1.5 years of debt obligations. Interest coverage improved to 3.6x in FY25 from 2.49x in FY24, despite increased debt for capex.
Operational Drivers
Raw Materials
Primary raw materials include Polypropylene (PP) and Polyester (PET) resins. While specific cost percentages per material are not disclosed, raw material volatility is a key risk as commodity film prices are highly sensitive to these input costs.
Import Sources
Not specifically disclosed in the provided documents, though the company notes susceptibility to global demand-supply dynamics and import pressures from international markets.
Capacity Expansion
Current capacities include BOPP (196,000 MT), Coated Specialty (36,000 MT), Metalised (40,000 MT), and CPP (30,000 MT). A new 81,200 MT BOPP line commenced in Q1 FY26 and is expected to reach full utilization by Q4 FY26. A 22,000 MT CPP line started in March 2025.
Raw Material Costs
Profitability is vulnerable to raw material price fluctuations. In Q2 FY26, BOPP gross margins dropped to INR 22/kg from INR 25/kg in Q1 FY26, and BOPET margins dropped to INR 6/kg from INR 12/kg due to cheaper imports and raw material shifts.
Manufacturing Efficiency
The new BOPP line is expected to achieve 66% (2/3rd) potential in Q2 FY26 and 100% by Q4 FY26. Manufacturing waste recycling has reached 95%, significantly improving material efficiency.
Logistics & Distribution
Distribution is global, covering 80+ countries. Logistics costs are impacted by USA tariffs, which the company could only partially pass on to customers in the September 2025 quarter.
Strategic Growth
Expected Growth Rate
30-35%
Growth Strategy
Growth will be driven by the ramp-up of the 81,200 MT BOPP line and 22,000 MT CPP line. The company aims for 10% of consolidated revenue from Specialty Chemicals within 3-5 years with a 25% ROCE target. Strategy focuses on 'Specialty and Exports' to counter commodity oversupply, leveraging products that offer 2.5x commodity margins.
Products & Services
BOPP films (packaging, lamination, labeling), BOPET films, CPP films, Coated Specialty films, Metalised films, Specialty Chemicals, Pet care supplies, Rigid Packaging, and Window/PPF (Paint Protection Film).
Brand Portfolio
Cosmo First, Zigly (Pet Care), Cosmo Films.
New Products/Services
New launches include Window films and PPF (Paint Protection Film), which generated INR 4.5 Cr in a single quarter. Continued focus on innovative specialty chemical products to reach 10% revenue share.
Market Expansion
Expansion into the USA market via the material subsidiary Cosmo Films Inc. USA and increasing penetration in 80+ export countries. Target is to sell a majority of BOPP as specialty films (10% CAGR growth).
Market Share & Ranking
Not disclosed as a specific percentage, but the company is a leading manufacturer of BOPP films globally since 1981.
External Factors
Industry Trends
The industry is seeing a shift toward sustainable packaging and ESG compliance. There is a temporary oversupply in commodity BOPP/BOPET due to massive capacity additions in FY22-23, leading to cyclical margin compression.
Competitive Landscape
Highly fragmented industry with players adding large capacities during price upticks, leading to cyclicality. Competitors include domestic and international BOPP/BOPET manufacturers.
Competitive Moat
Moat is built on a high share of specialty films (less cyclical), a strong liquidity policy (1.5 years debt cover), and 95% waste recycling. This sustainability is driven by R&D and a 52% export revenue base which diversifies market risk.
Macro Economic Sensitivity
Sensitive to global economic slowdowns; however, the flexible packaging sector is deemed 'essential,' minimizing impact. Global growth is projected to fall to 2.8% in 2025, which may affect short-term export demand.
Consumer Behavior
Shift toward sustainable and recyclable packaging is driving R&D into greenhouse gas emission reduction and plastic recycling compliance.
Geopolitical Risks
Higher USA tariffs and curtailed imports in India have directly impacted margins. Geopolitical developments causing a global slowdown are identified as strategic risks.
Regulatory & Governance
Industry Regulations
Compliant with safety, health, and environmental regulations regarding greenhouse gas emissions and plastic recycling. Adheres to ICAI criteria for internal financial controls.
Environmental Compliance
Achieved 40% reduction in carbon emissions. 45% of water is treated with a goal of zero liquid discharge. 95% of manufacturing waste is recycled.
Taxation Policy Impact
Not disclosed as a specific percentage, but the company complies with standard corporate tax requirements and monitors tax-related legal contingencies.
Legal Contingencies
The company has a whistleblower policy and a vigil mechanism. No specific pending court case values in INR were disclosed, but the company confirms no loans were given to firms where directors are interested.
Risk Analysis
Key Uncertainties
Cyclicality of the commodity film business and demand-supply gaps are primary risks. A sustained increase in Debt to EBITDA above 3x would trigger a credit rating downgrade.
Geographic Concentration Risk
52% of revenue is from exports (INR 1,506 Cr), reducing dependency on the Indian domestic market but increasing exposure to global trade barriers and tariffs.
Third Party Dependencies
The company acknowledges susceptibility to IT vulnerabilities and advanced threats that could compromise sensitive data or disrupt the supply chain.
Technology Obsolescence Risk
The company mitigates this by staying ahead in new product development (e.g., PPF, specialty chemicals) and leveraging patent/trademark protections.
Credit & Counterparty Risk
Maintains a strong financial position with INR 383 Cr in liquid assets. Receivables turnover ratio showed no significant negative change (>25%) in FY25.