All Time Plastics Ltd Q1 FY2027 Concall Summary

Key Takeaways

• Raw material shock, not demand shock: Polymer prices spiked 40–50% at peak on West Asia supply disruption, compressing gross margin 240 bps sequentially to 39.5% while volume processed still rose over 25% QoQ.
• Pricing pass-through is secured but lagged: Domestic customers accepted the full increase and the largest customer's revision rolls into Q2, so the revenue benefit of this quarter's pain lands next quarter.
• Utilization is the real margin story: Capacity utilization climbed from 52% to nearly 65% and management targets ~75% for FY27, with 18–19% EBITDA margins framed as sustainable once 80% utilization is reached.
• Bamboo is now a dated catalyst: Machinery has shipped from China, installation targets September, and commercial contribution is expected from Q4 FY27, with customer response to samples described as genuinely encouraging.
• What to watch next quarter: Whether the confirmed Q2 pricing pass-through restores gross margin, whether raw material volatility persists with the conflict, and whether the undisclosed US opportunity converts.

Raw Material Shock & Margin Compression

• The shock: West Asia geopolitical crisis triggered an unprecedented strike in polymer prices, with material cost up 40–50% over base at peak, alongside supply availability issues, port congestions, extended transit times, and container non-availability that disrupted both inflows and shipments.
• The margin hit: Gross margin fell 240 bps sequentially from 41.9% to 39.5%, attributable entirely to raw material inflation set against a partial and time-lagged revenue-side pass-through; year-on-year gross margin was marginally higher.
• EBITDA decline: 20% YoY EBITDA decline reflects the raw material environment plus a higher fixed cost base from the newly commissioned Khatalwada plant, a transition dynamic expected to correct as utilization improves and fixed costs are absorbed.
• Working capital stretched: Net working capital cycle extended 3 days to 60 days, with inventory days up to 44 from 42 on deliberately higher raw material cover, and receivable days up to 50 from 48 on shipment timing; payable days stable at 34.
• The persistence risk: Management stated that as long as the conflict continues, volatility will persist in pricing, shipment availability, and timelines of material coming inwards.

Gattani: "Once we achieve 80% utilization of our capacity, we'll be there."

Pricing Pass-Through

• Domestic fully reset: Commercial teams renegotiated pricing across the customer base; domestic business adopted revised pricing in full and passed the increase to customers, with orders now flowing in full flow after a deliberate halt pending acceptance.
• Largest customer rollover: The largest customer arrangement is a structured pass-through but operates with a rollover in pricing, meaning benefits of the revision agreed during the quarter will be fully visible in Q2 FY27.
• Export book mostly done: Price revisions were secured with a substantial majority of export customers, with the balance following standard rollover mechanisms over the weeks.
• The residual gap: 15–20% of business has only 50% pricing passed on, restricted to about 10–15% of business; recovery of lost margin on that slice will come later when price momentum goes down.
• Volume vs revenue delta explained: Q1 volume grew ~5% while revenue grew 11%; the gap is the pricing increase yet to be passed to customers, already confirmed and reflecting in Q2.
• Domestic reset constraint: Domestic customers don't offer the transition opportunity to reset prices like export customers do, which is why domestic business was flat in Q1 while the full price change was secured.

Shah: "Because domestic we will never get that transition opportunity of resetting the prices with them like, how we are able to do with our export customers."

Volume, Demand & Capacity

• Volume processed surged: Polymers processed rose over 25% sequentially from 5,056 to 6,323 metric tons, lifting capacity utilization from 52% to nearly 65%.
• Sales volume lagged production: Sales volume was 6,090 tons in Q1 vs 5,831 tons in Q4 (about 5% growth); the 25% production growth did not show in revenue because Q4 sales came more from inventory while production was lesser.
• Low sales volume was supply, not demand: Raw material availability hit April and May, with June improving; shipment challenges were supply delays of a week or so, not lost sales, flowing through in the subsequent month or next vessel cycle.
• Demand is better than expected: Order book remains strong and customer forecasts held firm through the period; management confirmed demand is more than a 15–20% increase.
• FY27 utilization target: Management targets approximately 75% utilization at 41,000 metric tons capacity, described as a current working assumption given dependence on the external geopolitical environment.
• Utilization confidence: Management is confident of achieving 75% utilization and says it is not contingent on geopolitical normalization; the only contingency is supply delays, which is the biggest challenge today.
• Capacity addition: Orders placed for 14 new injection moulding machines adding approximately 1,500 tons of incremental capacity, expected on stream in Q4 FY27; the remaining 4,000 tons of the planned 6,000-ton addition will be ordered in Q3 based on demand visibility.
• Investment discipline: Management is waiting to select the right project and equipment rather than making a generic investment, given volatility.

Shah: "This is the strength of our underlying demand architecture, long product life cycles, repeated SKUs refreshes, and embedded supply chains with global and domestic retail chains."

US Opportunity

• US share jumped: US contributed 19% of revenue in Q1 FY27 vs about 12% for FY26 as a whole, with growing project wins from marquee accounts including inquiries across new product categories, notwithstanding the tariff environment.
• A material undisclosed opportunity: Management is in active discussion on a further significant opportunity in the US market which, if it converts, would materially change the shape of the geography; no further details were provided.
• Incremental capacity direction: New capacity is directed more towards the US market and new customers; concentration of US customer will definitely be more.
• Competitive tailwind: The unorganized sector is under working capital stress due to high output and high cost, giving the company a better opportunity to enter; large retailers now understand brand, packaging, and product functionality matter and are looking at different supplier selection strategies.

Shah: "We are also in active discussion on a further significant opportunity in the market, which if it converts would materially change the shape of our geography for us. I am not in a position to say more at this stage on the subject, but I want you to understand that our conviction on the United States is high."

Bamboo Adjacency

• Facility secured: A brand new 75,000 square feet facility at Madanpur, Guwahati has been taken for fully-owned subsidiary All-Time Bamboo Private Limited, with pre-installation work for machinery currently happening.
• Machinery in transit: Manufacturing machinery has shipped out of China and is expected to arrive in Guwahati by mid-August; installation is targeted for completion by end of September, with all preparatory work including electrification already underway.
• Split processing model: Upstream boards will be made at Guwahati, with downstream processing and finishing of end bamboo articles installed at the Khatalwada facility in Gujarat.
• Policy support: An MoU with North Eastern Cane and Bamboo Development Corporation under the Ministry of Development of North Eastern Region provides empanelment as product and market development partner, on a non-exclusive and non-binding basis.
• Commercial timeline: Management anticipates commercial contribution from bamboo commencing from Q4 of FY27, with around 20% of 75% utilization of 3,000 CBM for the year.
• Customer traction: Post exhibition show and sample display, there is good traction with existing and new customers; customers like the Indian bamboo color, feel, and quality, and the initial fear about darker shade vs Chinese bamboo color is gone.
• No cannibalization expected: Different price point customers exist for both product segments; a plastic chopping board is a much different price than a bamboo chopping board and the end consumer is different.
• Capex contained: Only marginal increase possible for existing capacity; some special machines and equipment may be needed, with a call to be taken later.

Shah: "The best part is that they like the Indian bamboo color and feel and the quality, which was one of our fears initially that people are used to seeing Chinese bamboo color, whether they will appreciate a darker shade or not, but that fear is now no more."

Domestic Business & Largest Customer

• Domestic growth target intact: Management remains focused on delivering domestic growth of 30% to 35%, progressing on both the All-Time brand business and domestic OEM business, with order books full and a stated commitment to definitely achieve the numbers.
• Q1 domestic flatness explained: Domestic business was flat because the company went for a full price change with all domestic customers and had to set up Khatalwada capacities for domestic business; production was halted while waiting for full price change acceptance.
• Domestic margin opportunity: The domestic market gives an opportunity to improve the overall margin profile over time, though management noted the percentage looks higher because the base is small.
• Largest customer expansion: The largest customer has announced an aggressive expansion plan in India over the next two years, with 20–25 stores announced publicly; import substitution items currently imported by the customer may start adding to the company's range.
• Store economics: Per an analyst's math, each store adds roughly ₹40–50 lakhs per month in revenue.
• Product development: The company is developing product categories designed specially for the Indian consumer.

Guidance & Commitments

Key Metrics