Ecoplast FY26: Revenue Nearly Doubles to ₹221 Cr, Yet Profit Slips 15% as a 45-Year-Old Film Maker Swallows Its Cousin

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1. At a Glance

Ecoplast makes plastic film — the thin protective sheet that keeps steel panels, tiles, and glass from getting scratched on their way to a construction site. This year the story isn’t the film; it’s the arithmetic. Consolidated revenue rose to ₹221 Cr in FY26 from ₹208 Cr the prior year, and both those years already carry a swallowed company inside them — Kunal Plastics, restated in as if it had always been there. Against that, net profit fell to ₹12.0 Cr from ₹14.2 Cr, a 15% drop.

So the topline expanded while the bottom line shrank. Operating margin sat at 8.35%, down from roughly 10% a year earlier — polymer resin, a crude derivative, moves faster than a film maker’s price list. The balance sheet, meanwhile, looks almost pristine: borrowings of ₹1.98 Cr against a net worth near ₹120 Cr, and a debt-to-equity ratio of 0.02.

CRISIL noticed the tidiness and upgraded the rating to BBB/Stable in June 2026. The market pays about 18x earnings here. Two numbers, then, pulling in opposite directions — a swelling company and a thinning margin. Which one is the real Ecoplast?

2. Introduction

Incorporated in 1981 and run out of Valsad, Gujarat, Ecoplast has been extruding multilayer film for over four decades. It is promoted by Mr Jaymin B. Desai, who signs the results as Managing Director. For most of its listed life it was a small, steady, unglamorous manufacturer: revenue hovered around ₹100 Cr for years, profit bounced between a rounding error and a few crore, and FY22 actually posted a loss of ₹1.8 Cr when polymer prices misbehaved.

FY26 is the year the shape changed. The Board approved the amalgamation of Kunal Plastics Private Limited into Ecoplast, sanctioned by the NCLT Ahmedabad Bench on May 14, 2026 and effective May 28, 2026. Because accounting rules require a merger like this to be shown as if it had happened from the start of the preceding year, the FY25 and FY26 figures were restated to include Kunal. That is why revenue appears to leap from ₹113 Cr (FY24, pre-merger) to ₹208 Cr and ₹221 Cr — a chunk of that jump is a bookkeeping reunion, not a sales miracle.

Alongside the merger came a board refresh: Jayesh Shah joined as Independent Director and Jay Ketan Shroff as Whole-time Director, both from January 2026.

3. Business Model: WTF Do They Even Do?

Ecoplast supplies multilayer co-extruded polyethylene and co-polymer films to the flexible packaging trade, plus a speciality most people never think about — surface protection film. That’s the peel-off layer guarding steel, aluminium composite panels, carpets, tiles and glass from dust and scratches before they reach the customer. Someone has to make the sticker that protects the thing, and Ecoplast has decided that someone is Ecoplast.

The product shelf carries four brand families: EcoGen lamination films, EcoProtect surface protection films, EcoBond adhesive films, and EcoPrime speciality and metalized films. The Valsad plant runs at roughly 9,000 MTPA of multilayer film. End markets range from food and beverages to cosmetics, pet food, cable wrap, cement packing, automobiles, and pharmaceuticals — a spread wide enough that no single sneeze takes the whole business down. Exports reach Canada, the USA, the UK, Dubai, Ethiopia, Mauritius, Sri Lanka and Malaysia.

It’s a genuinely useful, deeply boring business. The film’s entire purpose is to be thrown away once it has done its job. The margin, as the year showed, lives and dies on the price of resin — the one input Ecoplast doesn’t control and can only pass through with a lag.

Does a business built on peel-and-discard film need to be exciting to be durable?

4. Financials Overview

Figures are consolidated, in ₹ crore. The latest reported period is the March 2026 quarter.