Pakka (516030) Q3 25/26 earnings summary

Executive summary

• Profitability and revenue rebounded sequentially in Q3, recovering from earlier challenges and plant shutdowns, with Paper & Pulp as the main profit driver and Moulded Products incurring losses.

• Project Jagriti in India is prioritized for long-term growth, with expansion in Guatemala and the US paused to concentrate resources.

• Leadership development is prioritized internally, with no immediate plans to hire an external CEO.

• Strategic initiatives included new product launches, flexC optimization, funding momentum, and leadership strengthening.

• Revised governance policies and merger plans for Pakka Impact Limited were approved.

Financial highlights

• Q3 FY26 revenue was ₹99.64 Cr, down 11% YoY but up 27% sequentially; standalone Q3 revenue was ₹9,619.18 lakhs, up from Q2 but down YoY.

• PBT rebounded to ₹12.75 Cr, a 32x increase from Q2 FY26, though down 27% YoY; standalone Q3 net profit was ₹914.36 lakhs, up from Q2.

• Wrap & Carry segment revenue was ₹82.80 Cr, down 13% YoY, up 32% sequentially; Food Services revenue was ₹16.84 Cr, flat YoY, up 7% sequentially.

• B2C revenue grew 80% YoY for the first nine months, improving gross margins.

• Gross margin and total income improved sequentially; consolidated Q3 net profit was ₹707.57 lakhs, up from a loss in Q2.

Outlook and guidance

• Further productivity and profitability improvements are expected as expansions and technology stabilize.

• Delivery range product launch is imminent, with additional retail channels and strategic partnerships planned.

• Revenue is projected to increase to INR 300 crore per quarter post-expansion, with 8,000–9,000 tons monthly output targeted by year-end.

• The Board will reassess US growth plans after Jagriti milestones are achieved.