Pakka (516030) Q2 26/27 earnings summary

Executive summary

• Q2 consolidated revenue was ₹12,404.39 lakh, up 64% YoY; EBITDA margin reached 14.2%. H1 revenue was ₹24,123.07 lakh, up 52.6%, with a 13.7% EBITDA margin.

• H1 consolidated net profit was ₹856.32 lakh, versus a net loss of ₹363.83 lakh a year earlier; Q2 net profit was ₹267.21 lakh.

• Priorities include stabilising Project Jagriti, commercialising flexC base and pursuing asset-light growth while maintaining capital discipline.

Financial highlights

• Q2 consolidated PBT before exceptional items was ₹870.06 lakh; a ₹466.30 lakh disposal loss reduced PBT after exceptional items to ₹403.76 lakh.

• H1 consolidated PBT before exceptional items was ₹1,709.92 lakh, versus a loss of ₹186.02 lakh YoY; consolidated net profit was ₹856.32 lakh.

• Standalone Q2 EBITDA was ₹17.6 Cr versus ₹4.7 Cr YoY; reported PBT was ₹4.2 Cr and adjusted PBT before the ₹4.7 Cr disposal loss was ₹8.9 Cr.

• Standalone H1 EBITDA was ₹33.0 Cr versus ₹16.2 Cr; reported PBT was ₹13.0 Cr, adjusted PBT was ₹17.7 Cr, and PAT was ₹9.1 Cr.

• H1 consolidated operating cash flow was ₹4,692.67 lakh; investing activities used ₹19,095.01 lakh and financing activities generated ₹12,733.98 lakh.

Outlook and guidance

• PM4 startup is planned for December 2026, with commercial production targeted for January; average Q4 utilisation target is 45%-50%, rising toward 75% in 2027/28.

• Q3 priorities include commissioning PM4, launching flexC base to partners and distributors, advancing non-metallised flexC development and moving Food Service toward profitability.

• Refinancing targets include INR100cr-INR110cr existing-plant EBITDA by December 2027; INR130cr-INR150cr EBITDA is described as a strong basis for refinancing roughly INR500cr of debt.

• Food Service plans to grow revenue and profit through outsourcing; CHUK targets 550 tons of capacity by calendar year-end. International expansion remains exploratory while Jagriti stabilises.