All Time Plastics Ltd Q1 FY2026 Concall Summary

Key Takeaways

• Strong volume-led quarter: Revenue grew 21.5% YoY to ₹158 cr, driven entirely by a 25.5% jump in volumes as the Khatalwada plant ramped up, though margins softened on start-up costs.
• Customer concentration is the double-edged sword: ~60% of sales come from IKEA, a 28-year relationship with no long-term contract, providing stability but also a key risk if the relationship ever falters.
• US tariff risk is real but deferred: Management sees no current impact on orders or margins because tariffs fall on the customer under FOB terms, yet acknowledges that if tariffs materialize, an impact will come, and switching suppliers is hard for buyers due to mold requirements.
• New customer engine is turning slowly: The company added 12 new customers this quarter, but export relationships with big retailers take six months or more to move from testing to core supply, so near-term revenue contribution remains small.
• What to watch next quarter: Whether the 4,000 MT capacity installation completes on time, any signal from US customers on tariff pass-through, and the pace at which new export customers convert from trial orders to repeat business.

Volume Growth & Capacity Expansion

• Volume drove the quarter: Sales volumes rose to 7,399 MT from 5,897 MT a year ago, a 25.5% increase that accounted for essentially all of the revenue growth.
• Utilization is tightening: Capacity utilization reached 89.7%, up 230 bps YoY, which makes the ongoing expansion critical to sustaining the growth trajectory.
• Khatalwada build-out is the near-term catalyst: 4,000 MT of additional capacity is under installation now, with another 8,500 MT expected in H2 FY26, taking the Khatalwada-Manekpur site to 16,500 MT by fiscal year-end. The remaining capacity completes by FY27.
• Start-up costs are compressing margins for now: The Khatalwada plant incurred initial costs after coming online, which depressed EBITDA margin versus the prior year; management expects margins to improve as utilization of that capacity rises.
• Asset turnover reflects the investment cycle: Fixed asset turnover fell from 2.28% to 1.84% because of the heavy CAPEX deployed at Khatalwada, a mechanical consequence of assets coming onstream before they generate a full year of revenue.

Customer Concentration & the IKEA Relationship

• One customer dominates the book: IKEA accounts for approximately 60% of sales, a relationship built over 28 years with no formal long-term contract in place.
• The relationship is deep but unprotected: Management characterizes the tie as continuous business over decades rather than a contractual obligation, meaning the moat is operational reliability and switching cost, not legal lock-in.
• Switching costs provide some defense: In this industry, mold manufacturing is required for every product, and shifting a supplier means re-creating that tooling investment, which makes customers sticky once embedded.

Gattani: "There is no long-standing contract with the customer. It is a relationship of 28 years. So, there is no such contract. It's just the relationship of 28 years and we are doing continuous business with them from last so many years."

US Tariff Exposure

• No damage today: Management stated unequivocally that no orders have been stopped, shipping continues as usual, and there is no impact on current business or margins.
• The burden sits with the customer for now: Because sales are on FOB terms, the tariff is the customer's cost to bear, and All Time Plastics is not sharing it.
• But the future is uncertain: Management acknowledged that if tariffs materialize in a durable way, an impact will come, and there is no clarity from customers yet on how they will respond.
• Switching suppliers is hard, which buys time: Mold manufacturing requirements mean customers cannot easily shift sourcing, giving the company some insulation even if tariff pressure builds. Management is nonetheless exploring other markets as a hedge.

Gattani: "And as of now, today there is no certainty about the tariff and as of now no clarity from our customer, nothing is there. But definitely, if it will be there, then impact will be there."

New Customer & Product Development

• Customer acquisition is active but back-end loaded: The company added 1 customer in Europe, 1 in the USA, and 10 in the domestic market during Q1. Domestic customers ramp quickly, within weeks, while export customers take roughly six months or a season change to move from trial to core supply.
• Big retailers start small: New export customers typically begin with promotional orders rather than core supply, testing the supplier's supply chain and quality before placing larger orders. Target and Walmart are already in this early testing phase, with business contribution still small and not yet in the top five.
• Product range is broadening: Two new articles launched in the domestic market this quarter, and the company has added drinkware, silicone bakeware, and a bamboo pilot project targeting homeware and kitchenware.
• Bamboo is a pilot, not yet a revenue driver: No capacity has been allocated to bamboo yet; management expects the project to materialize by FY26 with some revenue visible this year. Products will mirror the plastic range: chopping boards, bowls, organizers, small furniture.

Shah: "A new customer always tests the supplier. So, the supply chain is established, quality is established, post which the bigger orders come in. So, normally initiation would be from promotions or something like that instead of a core supply."

Margins & Mix

• Margins are mix-dependent and management won't commit: EBITDA margin declined in Q1 on Khatalwada start-up costs, and management declined to provide margin guidance, stating margins depend on customer mix and product mix and that they cannot commit to expansion.
• Branded vs. white label is a narrow spread: Branded sales carry higher margins, but the difference is only 1-2% depending on the customer, and white label margins can also be healthy when volumes are large. Export white label customers tend to have lower margins.
• ROCE and ROE dipped on the pre-IPO equity raise: Both metrics declined because additional equity was introduced in the pre-IPO round, diluting returns against a capital base that is still deploying into revenue-generating assets.
• Brand sales ambition lacks a target: Management wants to push brand sales higher but offered no internal target, noting that capacity is allocated on a FIFO basis and brand orders must compete with white label demand for machine time.

Guidance & Commitments

Key Metrics