Cosmo First Q1 FY27: Sales Surge 46% to ₹1,166 Cr, EBITDA Up 26%
Cosmo First reported Q1 FY27 sales of ₹1,166 Cr, up 46% YoY, with EBITDA rising 26% to ₹147 Cr. The company expects FY27 topline growth of 20%, with new businesses growing 60%. Focus is on increasing specialty film share and improving ROCE to 15-20%. Net debt to EBITDA target is below 2x within 12 months.
The significant increase in consolidated sales and EBITDA, coupled with positive future guidance and strategic focus on high-margin segments like specialty films, indicates a material positive impact on the company's financial health and market position.
The company reported strong year-on-year growth in sales and EBITDA, with positive outlook for the upcoming fiscal year. Management's commentary and forward-looking statements indicate confidence in future performance, driven by strategic initiatives and expansion in new business verticals.
Cosmo First Limited (CFL) announced its Q1 FY27 results, showcasing robust growth across its businesses. Consolidated sales for the quarter reached ₹1,166 crores, a significant 46% increase year-on-year, driven by a 9% rise in volume and higher raw material prices passed on to customers.
EBITDA saw a 26% increase, reaching ₹147 crores from ₹116 crores in the prior year's quarter. Key drivers for this growth included higher overall sales volume (9%), increased BOPP specialty sales volume (12%), improved BOPP and BOPET film margins, enhanced performance of the USA film business following tariff reductions, and higher EBITDA from specialty chemicals and rigid packaging.
Despite these positives, EBITDA margin declined to 12.6% from 14.5% in Q1 FY26, primarily because the sales growth outpaced volume growth due to higher raw material prices. However, gross margins per kg improved across base, semi-specialty, and specialty categories. BOPP margins were ₹30/kg compared to ₹23/kg in Q1 FY26, while BOPET margins were ₹9/kg versus ₹13/kg in Q1 FY26.
The company is strategically focusing on increasing the share of specialty films, expanding its product portfolio, and driving operational efficiencies. The outlook for FY27 projects topline growth of approximately 20% overall, with new businesses expected to grow by about 60%.
Other business verticals also showed strong performance. Specialty Chemicals reported a 34% topline growth with 25% EBITDA. The Rigid Packaging vertical (Cosmo Plastech) achieved over 58% topline growth and turned EBITDA positive at 7%, with plans to augment capacity by 50%.
Consumer businesses, including Zigly (Petcare) and Cosmo Consumer (Window films, Paint Protection Films & Ceramic Coatings), maintained strong growth trajectories. Zigly grew by approximately 70%, while Cosmo Consumer initiated brand building with TV advertisements and expanded its automotive presence.
Financially, the company aims to improve ROCE (Return on Capital Employed) significantly over the next 12-24 months, targeting 15-20%. Net debt stood at ₹1,166 crores at the end of June 2026, which is 2.3 times the EBITDA. A clear roadmap is in place to reduce net debt over the next two years, aiming for a ratio below 2x within 12 months. The company has largely completed its capital investment cycle, with a focus now on leveraging these assets and strengthening cash generation.
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