Cosmo First Q3 FY26: Sales Surge 28% to ₹899 Cr, EBITDA Up 19% to ₹103 Cr
Cosmo First reported Q3 FY26 consolidated sales of ₹899 Cr, up 28% YoY, with EBITDA at ₹103 Cr, up 19% YoY. The company is optimizing its ₹1,100 Cr capex, focusing on debt reduction over 2-3 years. Specialty Chemicals achieved ₹52 Cr sales, and Rigid Packaging reached breakeven. Consumer business Zigly grew over 50% YoY.
The announcement details strong financial performance in the current quarter, outlines strategic priorities for optimizing capex and reducing debt, and provides a positive outlook for future growth across various business segments. These factors are material to investors.
The company reported significant year-on-year growth in sales and EBITDA, with positive outlooks for capacity utilization, debt reduction, and growth in specialty and consumer businesses. Despite some headwinds, the overall financial performance and future strategy appear positive.
Cosmo First Limited (CFL) hosted an Analyst/Investor Earnings Call on February 12, 2026, to discuss its Q3 and nine-month FY26 results. The company reported a consolidated sales of ₹899 crore for the December 2025 quarter, marking a 28% increase from the previous year, primarily driven by a 29% rise in volume. EBITDA for the quarter grew by 19% to ₹103 crore from ₹86 crore in the December 2024 quarter. This growth was attributed to higher sales volume, improved specialty margins due to a better product mix, and enhanced performance of the specialty chemical subsidiary.
However, the EBITDA was impacted by several factors, including margin decline in BOPP core films due to increased imports and seasonal effects, higher USA tariffs, a volume loss of approximately 6% due to a BOPP line shutdown, a non-repetitive inventory loss of ₹8.4 crore, and a one-time increase in employee benefit gratuity liability. Other income included a foreign exchange gain of ₹6 crore. The net impact of these adverse factors was approximately ₹19 crore.
The company's strategic capex of over ₹1,100 crore is largely complete, with the focus now shifting to optimizing utilization and growing the specialty business. A clear roadmap exists to reduce net debt over the next 2-3 years, with no major capex planned. New businesses are scaling, promising incremental ROCE, and the focus is on intrinsic value growth for each business.
In terms of business verticals, Specialty Chemical posted sales of ₹52 crore with 25% EBITDA in Q3 FY26, with three new products developed. Cosmo Plastech (Rigid Packaging) reached EBITDA breakeven in December 2025, operating at nearly 70% capacity. Consumer businesses, Zigly (Petcare) and Cosmo Consumer (Window films, etc.), continue to scale, with Zigly achieving over 50% YoY topline growth in Q3 FY26.
Net debt stood at ₹1,215 crore at the end of December 2025, a reduction of ₹20 crore from the previous quarter. The company expects double-digit revenue growth in the coming quarters due to enhanced capacity utilization. The reduction in USA tariffs is expected to improve profitability from USA operations starting Q1 FY27. Management anticipates reducing net debt by ₹200-250 crore annually over the next few years.
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COSMO FIRST LIMITED filed this with the NSE as a statutory disclosure, categorised under quarterly results. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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