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PAKKA - Pakka

📊 NSE: PAKKA 🏢 Paper 📅 Last Updated: 12/14/2025 10:50

📢 Recent Corporate Announcements

Pakka Limited Credit Rating Downgraded to CARE BBB-; Negative Outlook on Project Delays

🔴 NEGATIVE ⭐ 8/10

REGULATORY 📅 06 Mar 2026, 02:28 PM

CARE Ratings has downgraded Pakka Limited's long-term rating to 'CARE BBB-' with a 'Negative' outlook, citing significant time and cost overruns in its ₹676.26 crore 'Project Jagriti' expansion. The project has faced a cost escalation of ₹67.74 crore, and the company is seeking a 4-9 month extension for its commercial operation date (COD). Additionally, operational performance moderated in 9MFY26 due to a planned shutdown, and there are concerns regarding the funding tie-up for the increased project costs. The negative outlook reflects uncertainty around the timely commissioning and stabilization of the new paper machinery.

Long-term rating downgraded to CARE BBB- (Negative) from CARE BBB (Stable) for ₹618.42 crore facilities.
Project Jagriti faces a cost escalation of ₹67.74 crore on its original ₹676.26 crore capex plan.
Commercial Operation Date (COD) for the expansion has been delayed from April 2026 to at least August 2026.
Overall gearing remains comfortable at 0.42x as of March 2025, but TD/GCA moderated to 2.95x.
Company is seeking additional term loans and lender approval for the extension of the project timeline.

💡 Investors should exercise caution as the rating downgrade and project delays indicate increased execution risk and potential liquidity pressure. Monitor the company's ability to secure additional funding and the successful commissioning of Project Jagriti by the revised timelines.

Pakka Ltd Q3 FY26: Profitability Rebounds as Project Jagriti Nears Commissioning

🔵 WATCH ⭐ 7/10

EARNINGS 📅 09 Feb 2026, 10:03 PM

Pakka Limited reported a recovery in profitability during Q3 FY26 following operational challenges related to capacity expansion in previous quarters. The company's major expansion, Project Jagriti, is on track with the new power plant expected by April 2026 and the paper machine nearing commissioning in Q1 FY27. While the food services segment saw an 80% YoY growth in B2C revenue, overall losses in that segment widened due to inventory liquidation and equipment upgrades. Management has strategically decided to pause international expansion in the US and Guatemala for six months to focus on stabilizing domestic operations.

Project Jagriti's new power plant and recovery section expected to start by end of March or early April 2026.
B2C revenue in the food services segment grew by 80% year-on-year with improved gross margins.
Reported a revenue gap of ₹12 crores YoY, partly due to a 4% drop in prices and ₹2 crore lower interest income.
Stabilization of PM3 completed with significant productivity and quality gains expected in coming quarters.
Strategic pause on US and Guatemala operations for 6 months to prioritize India business stabilization.

💡 Investors should monitor the timely commissioning of Project Jagriti in Q1 FY27, which is critical for the next phase of growth. Watch for margin improvements in the food services segment now that inventory liquidation is largely complete.

Pakka Limited Releases Investor Call Recording for Q3 and 9M FY26 Results

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 02 Feb 2026, 09:58 PM

Pakka Limited has released the audio and video recording of its investor conference call held on February 2, 2026. The call was conducted to discuss the company's financial performance for the third quarter and the nine-month period ending December 31, 2025. The recording is publicly available on YouTube, providing transparency into management's discussion regarding operational highlights and financial metrics. This disclosure follows the requirements of Regulation 30 of the SEBI LODR Regulations.

Investor conference call held on February 2, 2026, for a duration of 56 minutes.
Discussion focused on financial results for Q3 and the nine months ended December 31, 2025.
Audio/Video recording link provided via YouTube for shareholder access.
Disclosure made in compliance with SEBI Listing Obligations and Disclosure Requirements.

💡 Investors should listen to the recording to understand management's perspective on the company's recent financial performance and future outlook. No immediate trading action is required based on this procedural disclosure.

Pakka Ltd Q3 FY26: PBT Rebounds 32x QoQ to ₹12.75 Cr; B2C Revenue Surges 80% YoY

🟢 POSITIVE ⭐ 7/10

EARNINGS 📅 01 Feb 2026, 11:31 PM

Pakka Limited reported a strong sequential recovery in Q3 FY26, with PBT jumping to ₹12.75 crore from just ₹0.40 crore in Q2, marking a 32x increase. While total revenue of ₹99.64 crore is down 11% YoY, it represents a 27% growth over the previous quarter, indicating operational stabilization. The Wrap & Carry segment remains the core profit driver with a PBT of ₹15.02 crore, while the Food Services segment continues to report losses. A key highlight is the 80% YoY growth in B2C revenue for the first nine months, supported by aggressive retail channel expansion.

PBT recovered significantly to ₹12.75 crore in Q3 FY26, up from ₹0.40 crore in Q2 FY26.
B2C revenue increased by 80% YoY for the first three quarters, improving overall gross margins.
Wrap & Carry segment revenue grew 32% QoQ to ₹82.80 crore, though still down 13% YoY.
Food Services segment reported a PBT loss of ₹2.26 crore despite a marginal 0.5% YoY revenue growth.
Company plans to double its product portfolio in H2 FY26 with new launches like leak-proof delivery ranges.

💡 Investors should focus on the company's ability to sustain this sequential margin recovery and the successful rollout of the high-margin delivery range in Q4. The strong B2C growth is a positive structural shift, but the loss-making Food Services segment requires monitoring.

Pakka Ltd Q3 Standalone PAT Drops 28% YoY to ₹9.14 Cr; US Expansion Paused for Project Jagriti

🔵 WATCH ⭐ 8/10

EARNINGS 📅 30 Jan 2026, 01:39 PM

Pakka Limited reported a standalone revenue of ₹96.19 crore for Q3 FY26, a 9.2% decline from ₹106.01 crore in Q3 FY25. Net profit for the quarter fell 28% YoY to ₹9.14 crore, though it recovered significantly from the previous quarter's ₹0.30 crore. The company has strategically paused its US-based expansion (Pakka Inc.) to focus capital and management on the domestic 'Project Jagriti'. The Moulded Products segment remains a drag on performance, posting a loss of ₹2.26 crore for the quarter.

Standalone Revenue for Q3 FY26 at ₹96.19 crore vs ₹106.01 crore YoY.
Standalone Net Profit for Q3 FY26 at ₹9.14 crore vs ₹12.75 crore YoY.
Nine-month PAT dropped sharply to ₹14.30 crore from ₹44.13 crore in the previous year.
Strategic pause on US subsidiary Pakka Inc. to prioritize the 'Project Jagriti' expansion in India.
Moulded Products segment reported a loss of ₹2.26 crore, while Paper & Pulp segment profit stood at ₹15.51 crore.

💡 Investors should monitor the execution of 'Project Jagriti' as the company has reallocated resources from international expansion to this core project. While sequential profit recovery is encouraging, the significant YoY decline in nine-month earnings and losses in the moulded products division require a cautious approach.

Pakka Limited Announces Second Revised Schedule for Q3 FY26 Investor Call on Feb 2

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 28 Jan 2026, 02:46 PM

Pakka Limited has announced a second revision to its Analyst/Investor Video Conference Call schedule due to unavoidable circumstances. The call is now set for February 2, 2026, at 09:30 AM IST to discuss the company's financial performance for the third quarter and nine months ended December 31, 2025. Key management personnel, including the Finance Head and Business Heads for Food Services and International markets, will be present. This update follows previous scheduling communications sent on December 30, 2025, and January 19, 2026.

Revised call date: Monday, February 2, 2026, at 09:30 AM IST.
Purpose: Discussion of Q3 FY26 and 9M FY26 financial results ending December 31, 2025.
This is the second revision of the investor call schedule originally planned in late 2025.
Management representation includes Business Heads for Americas, US, and Food Services divisions.

💡 Investors should update their schedules for the new call time to hear management's commentary on quarterly performance. No fundamental change in company operations is indicated by this administrative rescheduling.

Pakka Limited Reschedules Q3 FY26 Earnings Investor Call to February 2, 2026

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 19 Jan 2026, 11:19 PM

Pakka Limited has announced a revised schedule for its Analyst/Investor Video Conference Call to discuss financial results for the quarter and nine months ending December 31, 2025. The meeting is now set for Monday, February 2, 2026, at 4:00 PM IST, moving from its previously planned date. Key leadership, including the Finance Head and Business Heads for the US and Americas divisions, will be in attendance to discuss performance. This call is a standard procedure following the conclusion of the third quarter of the 2025-26 fiscal year.

Earnings call rescheduled to February 2, 2026, at 4:00 PM IST.
The call will cover financial performance for Q3 and the nine-month period ending December 31, 2025.
Senior management from Food Services, US, and Americas business units will participate.
The meeting will be conducted via Microsoft Teams video conference.

💡 Investors interested in the company's quarterly performance and international expansion updates should attend the rescheduled call on February 2. No immediate action is required as this is a routine scheduling update.

Pakka Limited Submits SEBI Compliance Certificate for Q3 FY2025-26

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 04 Jan 2026, 06:51 PM

Pakka Limited has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. This filing covers the third quarter ended December 31, 2025, and confirms that share certificates received for dematerialization were processed correctly. The certificate was issued by the company's Registrar and Share Transfer Agent, Skyline Financial Services Private Limited. This is a standard procedural disclosure required for all listed entities in India to maintain transparency in shareholding records.

Compliance certificate submitted for the quarter ended December 31, 2025
Filing adheres to Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018
Skyline Financial Services Private Limited confirmed as the Registrar and Share Transfer Agent
Confirms the substitution of depository names in the register of members for dematerialized shares

💡 No action is required as this is a routine regulatory filing. Investors should monitor the company's upcoming quarterly financial results for fundamental performance updates.

Pakka Limited Schedules Q3 FY26 Earnings Conference Call for January 31, 2026

🟡 NEUTRAL ⭐ 4/10

EARNINGS 📅 30 Dec 2025, 02:07 PM

Pakka Limited has announced a video conference call for analysts and investors scheduled for Saturday, January 31, 2026, at 4:00 PM IST. The call is intended to discuss the company's financial performance for the third quarter and nine-month period ending December 31, 2025. The meeting will feature a broad range of leadership, including heads of the US and Americas business units and the Finance Head. This interaction provides a platform for investors to understand the company's growth trajectory in the sustainable packaging sector.

Conference call scheduled for January 31, 2026, at 04:00 PM IST to discuss Q3 FY26 results.
Management representation includes Business Heads from Food Services, US, and Americas divisions.
The call will cover financial performance for the nine-month period ending December 31, 2025.
Public access provided via Microsoft Teams with Meeting ID 463 637 928 880 6.
The event follows the conclusion of the December quarter, allowing for timely performance review.

💡 Investors should attend the call to gain insights into the company's international expansion strategy and the performance of its food services segment. Pay close attention to management commentary regarding margin trends and raw material costs.

Pakka Limited Announces Trading Window Closure from January 1, 2026 for Q3 FY26 Results

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 29 Dec 2025, 11:20 AM

Pakka Limited has informed the stock exchanges that its trading window will be closed starting January 1, 2026, in compliance with SEBI Prohibition of Insider Trading Regulations. This closure is in anticipation of the announcement of the company's unaudited financial results for the third quarter ending December 31, 2025. The window will remain closed for all designated persons and their immediate relatives until 48 hours after the results are declared. The specific date for the board meeting to approve these results will be communicated at a later date.

Trading window closure effective from January 1, 2026, for Q3 FY 2025-26 results.
Closure applies to all Designated Persons and their immediate relatives per SEBI norms.
Window to reopen 48 hours after the public dissemination of the unaudited financial results.
The board meeting date for result approval is yet to be announced separately.

💡 This is a standard regulatory procedure and does not impact the company's fundamentals. Investors should monitor for the upcoming announcement of the Q3 result date to evaluate financial performance.

Pakka Limited Clarifies Technical Error in Q1 FY26 XBRL Financial Result Filing

🟡 NEUTRAL ⭐ 3/10

REGULATORY 📅 17 Dec 2025, 11:35 AM

Pakka Limited has responded to a clarification sought by the National Stock Exchange (NSE) regarding discrepancies in its XBRL financial results for the quarter ended June 30, 2025. The company explained that the discrepancy was due to a technical error encountered during the filing process on the NSE portal. They highlighted that the PDF version of the results was successfully uploaded to NSE on August 13, 2025, and the XBRL version was filed on the BSE portal on August 14, 2025. This response serves to resolve procedural compliance issues and does not impact the reported financial figures.

Responded to NSE query dated September 9, 2025, regarding Regulation 33 compliance.
Attributed XBRL filing discrepancies for Q1 FY26 to a technical error on the NSE portal.
Confirmed PDF results were submitted to NSE on August 13, 2025, under application number 2025/Aug/170765/14068.
Verified that XBRL filings were successfully completed on the BSE portal on August 14, 2025.
Provided specific BSE acknowledgement numbers (1408202502381327) as proof of compliance.

💡 Investors should treat this as a routine administrative clarification with no impact on the company's financial health or business operations. No specific action is required other than monitoring the actual Q1 financial performance.

PAKKA: NCLT Approves First Motion for Merger of Pakka Impact

🟡 NEUTRAL ⭐ 7/10

M&A 📅 11 Dec 2025, 11:00 PM

The National Company Law Tribunal (NCLT), Allahabad, has approved the first motion petition for the merger of Pakka Impact Limited, a wholly-owned subsidiary, with Pakka Limited. The judgement was pronounced on December 9, 2025, after being reserved on November 6, 2025. This merger aims to create synergies and eliminate inter-corporate dependencies, potentially leading to improved operational efficiency and shareholder value. The appointed date for the scheme is April 1, 2025.

NCLT approved first motion for merger on December 9, 2025
Pakka Impact Limited is a wholly-owned subsidiary of Pakka Limited
Authorised share capital of Transferor Company is ₹5,00,00,000
Issued, subscribed and paid-up share capital of Transferor Company is ₹2,00,00,000
Authorised share capital of Transferee Company is ₹60,05,00,000

💡 Investors should monitor further announcements regarding the final approval of the scheme from the NCLT. This merger could streamline operations and potentially enhance the company's competitive position.

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💰 Financial Performance

Revenue Growth by Segment

Total Operating Income (TOI) was INR 408.24 Cr in FY24, representing a slight moderation of 2% from INR 415.85 Cr in FY23. The American business segment reported revenue of INR 15.74 Cr in Q2 FY26, a 14% increase compared to INR 13.81 Cr in Q2 FY25.

Geographic Revenue Split

The primary operations are based in India (Uttar Pradesh), with expanding international presence through Pakka Inc. (USA), Pakka Pte Ltd. (Singapore), and Pakka Guatemala. The American business contributed INR 15.74 Cr in Q2 FY26 revenue.

Profitability Margins

PBILDT margins remained healthy at 22.82% in FY24 and improved to 23.71% in 9MFY25. PAT margin was 12.38% in FY23. Net Profit before tax for the consolidated group was INR 47.97 Cr in FY25, down 25.9% from INR 64.77 Cr in FY24.

EBITDA Margin

PBILDT margin stood at 22.82% in FY24, a slight increase from 22.37% in FY23 (up 45 bps). This was driven by cost-effective production and integrated operations despite a dip in sales realizations.

Capital Expenditure

The company is executing a large-scale capex titled 'Project Jagriti' totaling INR 676.26 Cr. This is funded via INR 450.00 Cr in debt and INR 226.26 Cr in equity/internal accruals. Additionally, a USD 55M investment is planned for molded products in the American business by 2028.

Credit Rating & Borrowing

The company holds a 'CARE BBB; Stable' rating for long-term bank facilities and 'CARE A3+' for short-term facilities. Interest coverage was robust at 10.39x in FY24 and 9.75x in 9MFY25.

⚙️ Operational Drivers

Raw Materials

Primary raw materials include agro-based bagasse (fiber) and rice husk (fuel for power generation). Rice husk costs accounted for 16.27% of TOI in FY23, up from 11.35% in FY22.

Import Sources

Bagasse is sourced locally within a 100-km radius of the plant in Uttar Pradesh, India, which is a major sugarcane hub.

Key Suppliers

The company maintains long-term relationships (over 15 years) with its top 10 suppliers to ensure a consistent supply of bagasse.

Capacity Expansion

Project Jagriti involves commissioning a new manufacturing line for greaseproof paper. The American business (Kawok stage) is targeting a 40 TPD (Tons Per Day) molded product capacity by 2028.

Raw Material Costs

Raw material costs are vulnerable to price fluctuations in bagasse and rice husk. In FY23, a spike in rice husk prices led to a 219 bps dip in PBILDT margins as power and fuel expenses rose to 16.27% of TOI.

Manufacturing Efficiency

Efficiency is driven by a cost-effective production setup and integrated operations. Average working capital limit utilization was ~49.7% for the nine months ending February 2025.

Logistics & Distribution

Distribution costs are optimized through the plant's proximity to raw material sources (sugarcane hub) and established customer relationships over four decades.

📈 Strategic Growth

Expected Growth Rate

15-20%

Growth Strategy

Growth is targeted through 'Project Jagriti' (greaseproof paper for flexible packaging), a USD 55M investment in American molded products to reach USD 36M turnover by 2028, and the launch of new delivery containers and leak-proof products in Q3/Q4 FY26.

Products & Services

Kraft paper, bagasse-based tableware, clamshells, delivery containers, meal trays, and greaseproof paper for flexible packaging.

Brand Portfolio

PAKKA (formerly Yash Pakka and Yash Papers).

New Products/Services

Successful launch of clamshells (INR 20L+ sales in month 1). Upcoming launches include a range of delivery containers, meal trays, and leak-proof delivery containers in Q4 FY26.

Market Expansion

Expansion into the USA and Guatemala for molded products. The company is also merging Pakka Impact Limited into the parent entity to streamline Indian operations.

Strategic Alliances

A Memorandum of Understanding (MOU) is in place for the 40 TPD molded product project in the American business.

🌍 External Factors

Industry Trends

The industry is shifting toward sustainable, compostable packaging. Pakka is positioning itself as a leader in bagasse-based alternatives to plastic and styrofoam, targeting a scale of >INR 600 Cr.

Competitive Landscape

Operates in a highly competitive and cyclical paper industry, competing with both traditional paper mills and emerging sustainable packaging firms.

Competitive Moat

Moat is built on integrated operations (pulp + power + paper), a 40-year track record, and a strategic location in the sugarcane hub of India, providing a sustainable cost advantage in raw material procurement.

Macro Economic Sensitivity

Sensitive to agro-commodity prices (bagasse) and fuel prices (rice husk/coal), which directly impact the cost of production and margins.

Consumer Behavior

Increasing consumer demand for eco-friendly and compostable delivery packaging is driving the launch of new product lines like leak-proof containers.

Geopolitical Risks

Expansion into Guatemala and the USA introduces exposure to regional regulatory environments and trade policies.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013 and SEBI Listing Regulations. The company is currently undergoing a merger process for its subsidiary Pakka Impact Limited.

Environmental Compliance

The company is subject to strict pollution control norms inherent to the paper industry; compliance is managed through its integrated, agro-based production model.

Taxation Policy Impact

Income tax paid (net) was INR 17.30 Cr in FY25 compared to INR 19.16 Cr in FY24.

Legal Contingencies

The auditors noted a need for strengthening the process of financial closure at period ends, but reported no qualifications or adverse remarks in the CARO report for the Indian subsidiary.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the timely completion and stabilization of the INR 676.26 Cr 'Project Jagriti' capex. Failure to achieve projected scales could impact the BBB rating.