1. Opening Hook
If capacity expansion alone made money, Pyramid Technoplast would already be sipping coconut water.
Instead, Q2 FY26 reminded everyone of a hard truth: new plants don’t print profits on Day One—they first eat electricity, salaries, and depreciation for breakfast.
Yes, revenues grew nicely. Yes, volumes were strong. And yes, the management kept repeating “next quarter” like a Spotify loop.
Wada plant is live, recycling is “almost” live, solar is “just about” live—and investors are politely waiting for margins to wake up.
This was not a bad quarter. It was an in-between quarter.
The kind where execution matters more than PowerPoint optimism.
Read on—because once fixed costs stop partying alone, things might finally fall into place.
2. At a Glance
- Revenue up 21% YoY – Volumes showed up, margins took a half-day leave.
- H1 revenue ₹325 crore – Annual ₹700 crore guidance still breathing.
- EBITDA ₹12.6 crore – Expansion costs hogged the limelight.
- PAT ₹6.2 crore – Profit grew, but not fast enough to impress.
- Capacity utilization 66% – Wada plant still learning the ropes.
- Solar savings ₹15 crore/year – Sun promised results, billing starts next quarter.
3. Management’s Key Commentary
“This quarter was significant, not just
in performance, but in building a future-ready business.”
(Translation: Profits postponed, infrastructure delivered 😏)
“Major CAPEX cycle is largely complete.”
(Translation: No more big cheques, please.)
“Capacity utilization was 66% due to Wada ramp-up.”
(Translation: Fixed costs arrived before customers.)
“Electricity cost increased by ₹70 lakhs, labour by ₹83 lakhs.”
(Translation: New plant, new bills.)
“Solar will save us ₹15 crore annually.”
(Translation: Trust the sun, wait one quarter ☀️)
“Recycling plant is our trump card.”
(Translation: Please wait for certification.)
“FY26 revenue guidance remains ₹700 crore.”
(Translation: No upgrade till execution speaks.)
4. Numbers Decoded
| Metric | Q2 FY26 | Reality Check |
|---|---|---|
| Revenue | ₹161 crore | Healthy volume-led growth |
| H1 Revenue | ₹325 crore | On track for ₹700 crore |
| EBITDA | ₹12.6 crore | Fixed costs dominated |
| PAT | ₹6.2 crore | Margin patience test |
| Utilization | 66% | Ramp-up phase pain |
| Solar Savings | ₹15 crore/year | Starts showing in Q3 |
Key takeaway: Earnings lagged revenue because Wada wasn’t ready to
