Cosmo First reports Rs 53.75 cr profit as debt reduction remains a focus
The company is targeting a return of specialty mix to approximately 70% while limiting future capex to specialty assets.
Filed 06 Aug 2026, 18:04 IST · after market close · COSMOFIRST (COSMOFIRST)
Key takeaways
- Consolidated operating profit of Rs 135.93 cr translated into an 11.66% operating margin in Q1FY27.
- Net profit was Rs 53.75 cr after interest of Rs 38.36 cr and depreciation of Rs 37.88 cr.
- Management targets reducing Net Debt/EBITDA below 2.0x within 12–18 months.
Operating profit supports Q1 earnings
Cosmo First reported consolidated revenue of Rs 1,165.54 cr and operating profit of Rs 135.93 cr in Q1FY27, giving an operating margin of 11.66%. After interest of Rs 38.36 cr and depreciation of Rs 37.88 cr, profit before tax was Rs 70.73 cr. The results were filed after market close.
Interest and depreciation absorb much of operating profit
The gap between operating profit and profit before tax reflects the combined burden of interest and depreciation, while other income of Rs 11.04 cr provided a limited offset. Net profit stood at Rs 53.75 cr, with a tax rate of 24.01%, so reported earnings were not driven mainly by other income or an unusually low tax rate.
Management links future growth to specialty films and deleveraging
Management said it is targeting 10% CAGR growth in specialty films, including new capacity, and is tracking the specialty and semi-specialty mix back toward approximately 70%. The company said future capex over the next couple of years is planned only for specialty assets, with strategic expansion at Bidkin underway. Management also said Cosmo Plastech is targeting FY30 revenue of Rs 350–400 cr and double-digit EBITDA and ROCE.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹1,166 cr |
| Other income | ₹11 cr |
| Expenses | ₹1,030 cr |
| Operating profit | ₹136 cr |
| Operating margin (%) | 11.66% |
| Interest | ₹38 cr |
| Depreciation | ₹38 cr |
| Profit before tax | ₹71 cr |
| Tax | ₹17 cr |
| Net profit | ₹54 cr |
| EPS (₹) | ₹20.71 |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company targets reducing Net Debt/EBITDA below 2.0x within 12–18 months.
- The company targets 10% CAGR growth in specialty films, including new capacity.
- The company is tracking its specialty and semi-specialty mix back to approximately 70%.
- Cosmo Plastech targets FY30 revenue of ₹350–400 crore and double-digit EBITDA and ROCE.
Expansion
- Future capex is planned only for specialty assets over the next couple of years.
- Strategic expansion at Bidkin is underway to drive the next phase of capacity growth and specialty leadership.
Competition
- Cosmo is among the top four global BOPP players.
- Cosmo is the world's second-largest Specialty Labels player.
Problems & risks
- Higher raw-material prices after the West Asia conflict increased working capital by ₹85 crore.
- Specialty margins per kilogram dropped in FY24 because of changes in sales and customer mix.
- Specialty mix declined in FY26 after new BOPP and CPP lines were commissioned.
What to watch
- Whether the specialty and semi-specialty mix moves back toward approximately 70%.
- Whether Net Debt/EBITDA falls below 2.0x within the stated 12–18-month period.
- Whether the operating margin holds above 11.66% as specialty-focused capex progresses.