AGI Greenpac Expects Over 25% Ebitda Margin In FY26 Led By Higher Capacity Utilisation
Sikka also shares the capital expenditure plans to aid growth. The company plans a capex of Rs 1,700 crore aimed at bolstering its glass and aluminium can production capacities.
AGI Greenpac, a leading player in the packaging industry, is aiming to achieve an Ebitda margin of around 26% in FY26, according to its Group CFO Sandeep Sikka.
This will be fuelled by an improvement in its capacity utilisation ratio. The company has given a long-term Ebitda margin guidance of 22% to 25%.
“If we are able to unlock our capacities further go beyond 95%, touching 100%, definitely I feel a 0.5% to 1% expansion can happen over 25%,” he said during a conversation with NDTV Profit on Tuesday.
The company’s topline can grow by 10% till FY27. It maintains a range of 8% to 10% for topline growth in FY26.
“Right now we've given guidance of 8% to 10% growth over the last year number on a full-year basis. At least till 2027, we are able to maintain 10% growth year-on-year,” he said.
Sikka also shares the capital expenditure plans to aid growth. The company plans a capex of Rs 1,700 crore aimed at bolstering its glass and aluminium can production capacities.
“These are two investments. One is on the expansion of glass by investing Rs 700 crores, we are going to expand the capacity by around 25% and our investments into aluminium are very strategic because the high growth element in the liquid packaging market is the aluminium can,” he underlined.
The top executive said that approximately 60% of the capex will be funded through debt, while the remaining 40% will come from internal accruals.
“Aluminium cans are a strategic move with a long-term growth impact of 10-15 years,” Sikka noted. He highlighted the segment’s potential to capitalise on evolving consumer preferences with rising income levels.
The company is also open to raising equity closer to the commercial launch of its new production facilities, depending on market conditions.
“We should have a sustained growth of 15% to almost 20% year-on-year once these projects come on stream,” he noted.
The company is eyeing global markets, particularly in speciality glass for high-end applications like perfumery and cosmetics.
“We’ve been stabilising our speciality glass portfolio for two years, competing with global players. Once stabilised, we plan to set up port-based furnaces to boost exports,” Sikka added.
AGI Greenpac reported a 41% year-on-year (YoY) rise in net profit at Rs 89 crore in Q1FY26 from Rs 63 crore in the same period a year ago. Ebitda for Q1FY26 stood 20% higher YoY at Rs 176 crore against Rs 147 crore in Q1FY25.
Shares of AGI Greenpac ended 14.08% higher at Rs 966 apiece on the NSE, while the benchmark Nifty closed 0.12% lower at 25,060.9.
