Quality Foils (India) Limited (QFIL)
Latest quarterly results (H2 FY26)
In its latest reported quarter, H2 FY26, Quality Foils' revenue was ₹90.0 Cr (+21.6% year on year, -4.3% on the previous half-year), and net profit ₹1.0 Cr (+0.0% year on year); the operating margin was 4.4%.
| H2 FY26 (₹ Cr) | Value | YoY vs H2 FY25 | vs prev. half |
|---|---|---|---|
| Revenue | ₹90.0 | +21.6% | -4.3% |
| Operating profit | ₹4.0 | +33.3% | +0.0% |
| Net profit | ₹1.0 | +0.0% | +0.0% |
| EPS (₹) | 2.28 | +8.6% | -21.6% |
| Operating margin | 4.4% | — | — |
📢 Recent Corporate Announcements
Quality Foils (India) Limited's board has approved the sale of its Flexible Hose & Hose Pipe manufacturing and assembly line to Ratnamani Metals & Tubes Limited for a total consideration of ₹5.40 crore. The agreement was entered into on September 23, 2026, with an expected completion date of March 31, 2027. The division contributed ₹5.79 crore (3.15%) to total revenue as of March 31, 2026, and nil toward net worth. The transaction represents ~24.5% of QFIL's current market capitalization of ₹22 crore and ~16.9% of its net worth.
- Sale consideration agreed at ₹5.40 crore with Ratnamani Metals & Tubes Limited
- Divested unit contributed ₹579.43 Lakhs (3.15%) in revenue as of March 31, 2026
- Net worth contributed by the unit stands at Nil
- Expected transaction completion date is March 31, 2027
Quality Foils (India) Limited announced the voting results and scrutinizer report for its 36th Annual General Meeting held on September 11, 2026. A total of 17,69,300 votes were polled across remote e-voting and ballot paper, with 100% cast in favor of all three agenda items. The approved resolutions include the adoption of FY26 audited financial statements, reappointment of Mr. Mohan Lal as Director, and ratification of cost auditor remuneration. Only 12 shareholders were present at the meeting out of 239 total shareholders as of the record date.
- All 3 resolutions passed unanimously with 100% of the 17,69,300 polled votes in favour
- Total of 12 shareholders attended the AGM (6 promoter group, 6 public) out of 239 shareholders on record date
- Promoter group polled 13,50,550 votes while public non-institutions polled 4,18,750 votes
- Zero votes were cast against any of the resolutions and zero votes were declared invalid
Quality Foils (India) Limited conducted its 36th Annual General Meeting on September 11, 2026. During the proceedings, the Managing Director highlighted that the company's total revenue stood at ₹184.77 crore for the year ended March 31, 2026. The shareholders transacted 3 ordinary resolutions, including the adoption of FY26 financial statements and director reappointment. Remote e-voting was held from September 8 to September 10, 2026, and final voting results will be disclosed separately.
- 36th AGM successfully held on September 11, 2026, at Hisar, Haryana
- Managing Director noted FY26 total revenue stood at ₹184.77 crore as of March 31, 2026
- Remote e-voting was conducted between September 08, 2026 (9:00 AM) and September 10, 2026 (5:00 PM)
- Statutory and Secretarial Auditors provided unqualified opinions on FY26 financial statements
- Transacted 3 ordinary resolutions covering financial statements, director rotation, and cost auditor remuneration
Quality Foils (India) Limited has scheduled its 36th Annual General Meeting (AGM) for Friday, September 11, 2026, at 10:30 AM at its registered office in Hisar, Haryana. The company has fixed September 04, 2026, as the record date and cut-off date for e-voting eligibility. The share transfer books will remain closed from September 05 to September 11, 2026. Remote e-voting commences on September 08, 2026, at 9:00 AM and ends on September 10, 2026, at 5:00 PM.
- Record date and cut-off date for e-voting fixed as September 04, 2026
- 36th Annual General Meeting scheduled for September 11, 2026, at 10:30 AM
- Book closure period set from September 05, 2026, to September 11, 2026 (both days inclusive)
- Remote e-voting window opens September 08, 2026 (09:00 AM) and closes September 10, 2026 (05:00 PM)
Quality Foils (India) Limited has scheduled its 36th Annual General Meeting (AGM) for September 11, 2026, to adopt the FY 2025-26 audited financial statements. Key agenda items include the re-appointment of Director Mohan Lal and the ratification of Rs. 38,500 as remuneration for the Cost Auditor for FY 2026-27. With a small market cap of Rs 25 Cr and a high debt-to-equity ratio of 2.06, the meeting serves as a standard compliance event for shareholders to review the company's thin 3.6% operating margins and high leverage.
- 36th Annual General Meeting scheduled for September 11, 2026, at 10:30 A.M. in Hisar, Haryana
- Proposed ratification of Cost Auditor remuneration at Rs. 38,500 plus taxes for FY 2026-27
- Adoption of Audited Financial Statements for the fiscal year ended March 31, 2026
- Re-appointment of Mr. Mohan Lal (DIN: 10252864) as a Director liable to retire by rotation
Financial Performance
Revenue Growth by Segment
The company operates in a single reportable segment as per AS 17. Total revenue for FY 2024-25 was INR 15,280.19 Lakhs, representing a 1.66% decrease from INR 15,538.30 Lakhs in FY 2023-24. However, the half-year ended September 30, 2025, showed revenue of INR 9,431.45 Lakhs, a 19.95% increase compared to INR 7,862.84 Lakhs in the same period of the previous year.
Geographic Revenue Split
Not disclosed in available documents. The company mentions dependency on imported raw materials, suggesting international supply chain exposure, but specific regional revenue splits are not provided.
Profitability Margins
Net Profit Margin improved slightly from 0.86% in FY 2023-24 to 0.93% in FY 2024-25. Profit After Tax (PAT) for FY 2024-25 was INR 141.85 Lakhs, a 6.19% increase from INR 133.58 Lakhs in the previous year. For the half-year ended September 30, 2025, PAT stood at INR 81.75 Lakhs.
EBITDA Margin
Operating Profit before working capital changes for FY 2024-25 was INR 457.67 Lakhs, representing an EBITDA-proxy margin of approximately 2.99% of total revenue. For the half-year ended September 30, 2025, this figure was INR 431.21 Lakhs, indicating a significant margin expansion to 4.57% due to better operational efficiency.
Capital Expenditure
The company undertook significant capital expenditure in FY 2024-25, with a net cash outflow for investing activities of INR 1,961.98 Lakhs, primarily driven by the purchase of capital goods/fixed assets amounting to INR 2,528.22 Lakhs. As of September 30, 2025, Capital Work in Progress (CWIP) stood at INR 295.47 Lakhs, up 262% from INR 81.60 Lakhs in March 2025.
Credit Rating & Borrowing
Total borrowings as of September 30, 2025, reached INR 6,841.05 Lakhs (Long-term: INR 2,509.39 Lakhs; Short-term: INR 4,331.66 Lakhs). Finance costs for FY 2024-25 were INR 231.46 Lakhs, implying an average borrowing cost of approximately 3.9% based on year-end debt levels, though specific credit ratings are not disclosed.
Operational Drivers
Raw Materials
Stainless steel and aluminum foils are the primary raw materials, with 'Cost of Material Consumed' totaling INR 12,949.74 Lakhs in FY 2024-25, representing 84.7% of total revenue.
Import Sources
Not disclosed in available documents, though the company explicitly identifies dependency on imported raw materials as a primary supply chain risk.
Capacity Expansion
Current property, plant, and equipment (PPE) is valued at INR 4,584.95 Lakhs as of September 30, 2025. The company is actively expanding, evidenced by the INR 295.47 Lakhs currently in Capital Work in Progress (CWIP), which will likely increase production capacity for foil products upon completion.
Raw Material Costs
Raw material costs decreased by 3.32% YoY from INR 13,394.12 Lakhs in FY 2023-24 to INR 12,949.74 Lakhs in FY 2024-25. The company utilizes sourcing and R&D strategies to maintain competitive cost structures against fluctuating global commodity prices.
Manufacturing Efficiency
Return on Capital Employed (ROCE) was 8.81% in FY 2024-25, a decrease from 10.32% in FY 2023-24, suggesting that recent heavy capital investments have not yet fully translated into proportional earnings growth.
Strategic Growth
Growth Strategy
The company plans to achieve growth through an emphasis on R&D and strategic sourcing to maintain a competitive cost structure. By investing in fixed assets (INR 2,528.22 Lakhs in FY25), the company is positioning itself to increase output and capture higher market share in the stainless steel foil and flexible packaging sectors.
Products & Services
Stainless steel foils and flexible packaging materials used across various industrial applications.
Brand Portfolio
Quality Foils (India) Limited.
External Factors
Industry Trends
The industry is shifting toward stricter quality standards (BIS norms) and environmental compliance. QFIL is positioning itself by upgrading its internal controls and ERP systems to ensure data integrity and regulatory adherence in a growing but increasingly regulated market.
Competitive Landscape
The company faces competition from both domestic and international foil manufacturers, particularly those with more integrated supply chains that are less dependent on imports.
Competitive Moat
The company's moat is based on its established manufacturing infrastructure (INR 4,584.95 Lakhs in PPE) and its integrated ERP-driven internal control systems. This provides a cost-leadership advantage in the foils market, though it is vulnerable to raw material price volatility.
Macro Economic Sensitivity
The company is sensitive to global commodity prices and import-export duties. A slowdown in industrial manufacturing would reduce demand for packaging foils, directly impacting the 84.7% of revenue derived from material-intensive production.
Geopolitical Risks
Trade barriers or changes in import-export duties are cited as significant risks that could disrupt the supply of raw materials or increase the cost of production for the company's foil products.
Regulatory & Governance
Industry Regulations
Operations are governed by BIS norms and import-export duties. The company must also comply with the Companies Act, 2013, and SEBI (LODR) Regulations, 2015, specifically regarding internal financial controls and Structured Digital Database (SDD) for insider trading.
Environmental Compliance
The company identifies environmental regulations as a regulatory risk that may impact operations, though specific compliance costs are not disclosed.
Taxation Policy Impact
The effective tax rate for FY 2024-25 was approximately 41.7% (Tax expense of INR 101.53 Lakhs on Profit Before Tax of INR 243.38 Lakhs).
Legal Contingencies
The company reported no pending litigations regarding benami property. Other specific legal case values are not disclosed in the provided documents.
Risk Analysis
Key Uncertainties
The primary uncertainty is the volatility of imported raw material prices and potential changes in import duties, which could impact the cost of material consumed (currently 84.7% of revenue).
Third Party Dependencies
High dependency on banks for working capital, with short-term borrowings of INR 4,331.66 Lakhs as of September 2025, representing 40.5% of total equity and liabilities.
Technology Obsolescence Risk
The company mitigates technology risk by using ERP systems for finance, inventory, and production tracking to ensure data integrity and operational efficiency.
Credit & Counterparty Risk
Trade receivables stood at INR 3,492.02 Lakhs as of September 30, 2025, an increase of 42.2% from March 2025 (INR 2,454.79 Lakhs), indicating a potential increase in credit risk or a shift in payment terms with customers.
