Pakka Limited’s shares surged 8.03% to $96.09 on Tuesday after the company reported record quarterly revenue for the three months ended June 30, 2026, alongside updates on key expansion initiatives.
The company posted revenue of INR 120 crore, a 42% increase from the same period last year and 14% higher than the prior quarter. EBITDA rose 31% year-over-year to INR 17.4 crore, though the margin slipped to 14.5%, below the company’s historical range of 23% to 25%. Profit before tax climbed 34% YoY and 59% quarter-over-quarter. Exports contributed 27% of total sales, while one-off financing charges of INR 1.53 crore to INR 1.8 crore were tied to refinancing and accounting adjustments, with structured financing carrying a 17% interest rate.
Revenue growth was led by the wrap and carry segment, which rose 43% YoY to INR 101 crore, while food services revenue increased 34% to INR 18.5 crore. The food services business, however, recorded a loss of INR 1.6 crore for the quarter as it expanded its asset-light model. Management highlighted the addition of 34 new key customers and expansion of its Chuk container availability to 22 new cities, with retail presence growing from 3 to 12 platforms.
Pakka also provided updates on Project Jagriti, a INR 753 crore capacity expansion expected to add over 30,000 tons annually. The PM4 paper machine is over 85% complete, with commercial production targeted for mid-November 2026. Boiler and recovery boiler startups are slated for late August or early September, while FlexiBase lab trials in Europe are complete, with pilot trials set for early September and a commercial launch planned for November.
For the full fiscal year 2027, management guided revenue to reach INR 500 crore with an EBITDA margin target of about 19%. The company’s gross profit margin stood at 36% over the last 12 months, with a P/E ratio of 47.8 and a Price/Book multiple of 6.3, according to InvestingPro data. Promoter share pledges tied to Neo Asset Management are expected to be unpledged within 18 months following refinancing.
Group Lead Ved Krishna noted the record revenue achievement and emphasized ongoing efforts to improve profitability. Independent Director Himanshu Kapoor acknowledged margin compression in prior quarters but stated margins would recover only if gross margins improve or variable costs decline.
