1. Amalgamation of Kunal Plastics - The merger of Kunal Plastics with Ecoplast became effective on 28 May 2026, with the appointed date of 1 April 2025, adding its entire business via a share-swap that raises promoter holding to 74.45%. The pooling of interest brings in a related entity’s assets and earnings at a time when Ecoplast’s own revenue grew 75% in the latest reported year, creating a larger base without cash outflow.
2. Extrusion and coating capacity addition (Dec 2025 approval) - The Board approved adding 1,800 MT of extrusion capacity by June 2026 and 1,680 MT of coating capacity by December 2026, investing ₹12.75 cr from internal accruals and borrowings. These lines directly lift output from a base where extrusion was already at 100% utilisation, removing the main near-term volume ceiling.
3. FY25 capacity expansion now contributing - Blown film capacity rose from 4,200 MT to 5,760 MT and coating capacity from 2,400 MT to 4,080 MT in Q3 FY25, with benefits expected to accrue in FY26. This step-change in scale is already installed and funded, so incremental volume flows straight to revenue and absorption of fixed costs.
4. Surface protection films - USA market push - The company is actively targeting new US customers for its surface protection film business, using the uncertainty around tariffs on Chinese imports as an opening. A shift in US sourcing away from China can redirect orders to an existing, qualified Indian supplier with available coating capacity.
5. Preferential issue strengthens balance sheet - The company raised ₹24.99 cr in February 2025 via a preferential allotment of 4.54 lakh shares at ₹550 per share, with participation from the promoter group and external investors. The infusion supports the capex pipeline while keeping debt negligible - interest coverage already stands at 28x.
6. Glue-less films - new product introduction - Ecoplast introduced Glue-less Films that eliminate adhesives, with efforts underway to educate customers and build a stable order base. A successful ramp-up creates a differentiated, higher-margin product line in a market accustomed to adhesive-based solutions.