All Time Plastics Ltd Q4 FY2026 Concall Summary

Key Takeaways

• Disrupted quarter, resilient margin: Revenue slipped to ₹145.8 cr on supply-chain chaos, yet gross margin jumped to 41.9% as the mix tilted toward higher-value domestic business.
• The price lever is turning: After months of resistance, customers are now listening on price increases because their shelves are emptying, a shift management is using aggressively in domestic markets.
• Bamboo is moving from pilot to production: A leased Guwahati facility and full machinery orders signal the bamboo bet is now a real capacity story, with strong early customer interest tied to sustainability credentials.
• Capacity is ready, utilization is not: The Khatalwada expansion is complete at ~39,000 MT, but geopolitical scepticism keeps FY27 utilization guidance at a cautious 70–75%.
• What to watch next quarter: Whether the 10–12% price increases stick as raw materials moderate, the pace of bamboo volume ramp-up in H2, and any signal that geopolitical uncertainty is easing enough to unlock the next capacity phase.

Supply Chain Disruption & Recovery

• Geopolitical shock hit Q4 hard: The West Asia crisis spiked raw material prices, clogged ports, and extended transit times, while critical input shortages disrupted production schedules at quarter-end.
• Ports froze at the worst moment: Materials sitting at Nhava Sheva and Mundra ports could not move for 10 days due to local disruptions, pushing a sizable quantity of last-week shipments into the next month.
• Customer deferments, not cancellations: Some business expected in February shifted to April at the customer's request; no orders were lost, only delayed.
• Backup plans are now flowing: Materials from alternative sources have started arriving, though April and May were definitely impacted by the conflict's aftermath.
• Volume stayed flat for the year: Total polymer volume of 26,300 MT was broadly in line with FY25's 26,230 MT, meaning the disruption compressed Q4 but did not erase full-year demand.

Kailesh Shah: "The West Asia geopolitical crisis triggered a sharp rise in raw material prices and created significant disruptions across global supply chains."

Pricing Power & Margin Dynamics

• Gross margin improved despite the top-line hit: Gross margin rose to 41.9% in Q4 from 39.1% a year ago, driven by a favourable shift in revenue, product, and customer mix, particularly a lower share of export revenues alongside healthy domestic growth.
• The customer conversation has flipped: Where customers previously resisted price changes because China held prices flat for 1.5–2 months, they are now willing to listen and understand increases, a shift management attributes to emptying shelves and reduced bargaining power.
• 10–12% price increase positioned as structural: Management is aligning with customers that the increase is for the longer term; even if input prices decrease, the company intends to sustain the higher pricing because customers' own MRP pass-through cycles make frequent adjustments difficult.
• Rupee depreciation is a partial tailwind: For the 18–20% of dollar-denominated earnings, depreciation provides some advantage, but competitive pressure means customers understand the math too, and margin pass-throughs will be gradual through the first quarter.
• EBITDA margin recovery tied to volume: Fixed costs from the newly commissioned Khatalwada capacity and elevated employee investment compressed FY26 EBITDA margin to 14.8%; management expects meaningful recovery as revenue scales and absorbs those fixed costs, aiming to return to historical levels.

Kailesh Shah: "Now all customers have also realized that their shelves are getting empty. And now they don't have that bargaining power that we will buy from someone else or someone else where they should have materials. So, we are using this as a leverage for us to enter aggressively with our domestic customers."

Bamboo: The Next Growth Vector

• From pilot to production: The company signed a lease for a 75,000 sq ft facility in Madanpur, Guwahati effective May 2026, and has placed machinery orders in entirety, with primary board production at Madanpur and downstream processing at Khatalwada.
• Sustainability is the demand hook: Strong market interest is coming from new customers drawn by the quality of the bamboo product range and the depth of sustainability certification.
• Revenue potential is material: At maximum utilization of the 3,000 cubic meter facility, potential revenue is approximately ₹60 cr, with good volumes expected to roll out starting H2 FY27.
• Existing infrastructure is bamboo-ready: The expanded Khatalwada building already allocates 25% of its space to bamboo finished goods manufacturing; a separate bamboo building will follow once the Guwahati expansion is fully complete.
• No revenue guidance yet: Management declined to estimate a revenue run rate for FY27 or FY28 from bamboo, calling it too forward-looking, though early pilot shipments have already gone out.

Domestic Business & B2C Push

• Domestic business kept growing through the disruption: The company continued investing in brand building, expanding general trade reach, scaling e-commerce presence, and launching new product categories for Indian consumers.
• B2C contribution target raised: Management aims to move B2C contribution from the current 14% to 22–25% over the next 1 to 1.5 years, signalling a structural shift toward higher-margin branded sales.
• New product pipeline is loaded: A host of new products will launch this quarter-end and into the next quarter, supporting both the domestic push and the B2C mix shift.

Capacity, Utilization & Investment Discipline

• Khatalwada expansion complete: The targeted March 2026 expansion is done, bringing total installed capacity to approximately 39,000 tons per annum.
• Next 6,000 MT is on track but under review: The balance capacity under the expansion program is targeted for completion, but management will watch the evolving geopolitical situation before committing to the next phase beyond 46,000 MT, stating clearly it does not want to invest just for the sake of it.
• FY27 utilization guided at 70–75%: Management expects to use overall annual capacity in that range, reflecting continued scepticism on geopolitical stability; if the situation stabilizes, the outlook will be revisited.
• Working capital discipline delivered cash: Net working capital days improved to 57 from 74, and operating cash flow more than doubled to ₹86.3 cr from ₹39.4 cr, driven by inventory improvement and trade receivable normalization.

Kailesh Shah: "We would want to watch the situation which is currently evolving and then do that next phase."

Costs & People

• Employee expenses jumped in FY26: The increase reflects both employee costs and contract labour costs tied to the hiring process; management expects expenses to rise further in FY27 but not at the same rate as the FY25-to-FY26 step-up.
• Other expenses driven by contract labour: The increase in other expenses is primarily contract labour costs, consistent with the capacity build-out phase.
• Margin recovery is a second-half story: Margins will definitely improve in H2 FY27 and will be better than FY26, as sales improve and fixed costs are properly absorbed.

Guidance & Commitments

Key Metrics