Pakka Ltd Q1 FY26 – From ₹364 Highs to ₹153 Lows: Compostable Dreams, Guatemala Gambles & Auditor Headaches
1. At a Glance
Pakka Ltd (earlier Yash Pakka) – market cap a modest ₹688 Cr, stock chilling at ₹153 after a freefall of –53% in 1 year (Bhai, this is not a small correction; this is a midlife crisis). From a high of ₹364, the stock now looks like that cousin who had a six-pack in 2023 and now hides behind loose kurtas. Current P/E stands at 25.1, higher than industry median of 16.6, despite profits actually declining. Debt at ₹206 Cr, promoter holding slipping from ~49% to 41.6%, and almost 9% promoter shares pledged. PAT last quarter? Negative ₹1.53 Cr. But hey, at least they make eco-friendly packaging—because nothing screams sustainability like sustainable losses.
2. Introduction
Pakka Ltd is that indie film actor—everyone loves their intent (eco-friendly tableware, sustainable paper), but box office returns? Meh. Incorporated in 1981, they started as Yash Pakka Limited and have reinvented themselves more times than Bollywood star kids. Today, they produce agro-based specialty paper, pulp, and tableware under the “CHUK” brand.
Now, don’t get fooled by the “green” branding. Yes, they sell compostable bowls and spoons to Haldiram’s and Blinkit, but they also raise hundreds of crores in debt to fund ambitious expansions in Ayodhya and Guatemala. Because nothing says “local packaging player” like announcing a $265 Mn project in Central America while struggling to post quarterly profits in India.
In short: Pakka is a classic desi smallcap—big dreams, glossy investor decks, frequent fund raises, and quarterly results that make you wonder if they spend more on making presentations than profits.
So, should we clap for the eco-friendliness or worry about the financial mess?
3. Business Model – WTF Do They Even Do?
Okay, let’s simplify. Pakka Ltd has two main hustles:
Paper & Pulp (87% revenue in H1 FY25): Agro-based machine-glazed paper, greaseproof parchment papers, release base papers. Sounds fancy, but essentially, this is the packaging you wrap your samosa in. They run a pulp capacity of 130 TPD and paper of ~39,000 TPA.
Moulded Products (13% revenue): Under brand “CHUK,” they sell eco-friendly disposables—bowls, spoons, trays, cups. FY24 saw 73% revenue growth in this segment, volumes up from 1,596 to 2,159 tons. Basically, they’re competing with thermocol plates at weddings and trying to win hearts in Haldiram’s thali.
Geographically, 75% sales domestic, 25% exports—to 31 countries (because someone in Portugal is apparently also eating bhel in compostable bowls).
Clients include Borosil, Haldiram’s, Blinkit, Chai Point—so yes, your biryani delivery might just come in a Pakka plate.
But here’s the kicker: while they proudly sell biodegradable disposables, their financial model feels more like “disposable profits.”
4. Financials Overview
Source table
Metric
Latest Qtr (Jun 25)
Same Qtr Last Yr (Jun 24)
Previous Qtr (Mar 25)
YoY %
QoQ %
Revenue
₹81.97 Cr
₹96.79 Cr
₹92.16 Cr
-15.3%
-11.1%
EBITDA
₹5.93 Cr
₹18.35 Cr
₹5.73 Cr
-67.7%
+3.5%
PAT
-₹1.53 Cr
₹8.56 Cr
₹3.19 Cr
-118%
-148%
EPS (₹)
-0.34
2.17
0.71
-115.7%
-147.8%
Commentary: Imagine scoring 98 marks last year, 70 last quarter, and now –5. That’s Pakka’s quarterly P&L trajectory. Revenue tanked double digits, EBITDA margins fell off a cliff, and PAT slipped into negative. Annualised EPS? Forget it—negative, so P/E “not meaningful” this quarter. But hey, they still quote a 25x multiple on trailing EPS—classic desi optimism.
