Cosmo First Limited has declared its financial results for the quarter ended September 2026 (Q2FY27). EBITDA improved year on year, driven by 15% higher sales volume, 20% growth in specialty sales, better base BOPP film margins, a stronger US film business following the reduction in US tariffs, and better performance by other B2B businesses such as specialty chemicals and rigid packaging.
EBITDA was also affected by two non-recurring items. A write-back of additional customs duties by the US subsidiary, following receipt of a duty refund, boosted EBITDA by Rs 24.8 crore. A stock loss of Rs 7 crore, caused by a drop in raw material prices, pulled it down.
The company has opted for the concessional tax regime under Section 200 of the Income Tax Act, 2025, effective tax year 2026-27. The quarter’s tax provision includes the benefit of this changeover.
To strengthen its specialty films business, the company is investing in a high-end chemical-coated film expansion. Built around one of the world’s most advanced coating lines, the facility will add 16,000 MT of annual capacity in H2 FY27.
The specialty chemicals subsidiary continues to perform well, with topline growth of over 80% year on year and an EBITDA margin of 23% in Q2 FY27, driven by three niche verticals: coating chemicals, masterbatches and adhesives.
Cosmo Plastech (rigid packaging) posted topline growth of over 90% year on year in Q2 FY27, with an EBITDA margin of 8%. In H2 FY27, the vertical will expand with a nine-layer barrier sheet line of 10,000 MT annual capacity, enabling higher-value specialty products with minimal capex. Its FY27 focus is higher profitability through better capacity utilisation and efficiency.
Both consumer businesses continue to scale up. In Q2 FY27, Zigly (pet care) grew its topline 47% year on year, and Cosmo Consumer (window films, paint protection films and ceramic coatings) grew 70%. Cosmo Consumer began brand building with TV advertisements in July 2026 and expanded into the automotive segment by launching its first 4C Cosmo Car Care Centre in Pune.
Net debt fell to Rs 1,057 crore as of September 2026 (1.9 times EBITDA), from Rs 1,159 crore in March 2026, even as net working capital rose by Rs 148 crore on higher raw material prices after the West Asia war. Most of the debt tied to the two growth capex projects above is already reflected in the September 2026 balance sheet. The company aims to reduce net debt substantially over the next two years.
Pankaj Poddar, group CEO, Cosmo First, said, “All our B2B businesses are profitable. The FY27 focus will be on higher ROCE through specialty film sales, improved capacity utilisation and substantial growth in new B2B and B2C businesses.”
