PG Foils FY26: A ₹15 Cr Cushion of Other Income, and the Chair It Was Propping Up Just Broke

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1. At a Glance

PG Foils closed FY26 with revenue of ₹318 crore, down from ₹491 crore — a 35% drop in a single year. Operating profit landed at negative ₹5 crore, and the company reported a net loss of ₹8.24 crore against a ₹24 crore profit the year before. The EPS reads negative ₹6.99.

Here is the tension worth sitting with: for years, this business has run a thin or negative operating line and let a large “Other Income” column carry the profit home. In FY26, that column shrank to ₹15 crore — roughly half of FY25’s ₹30 crore — and there was nothing left to carry. On top of the numbers, a credit-rating downgrade arrived, two plant fires were disclosed inside twelve months, and a decades-old court case over forged fixed-deposit receipts still sits open.

A 46-year-old aluminium-foil maker that supplies Cipla, Sun Pharma and Amul does not usually produce a year this eventful. This one did.

2. Introduction

Incorporated in 1979, PG Foils manufactures aluminium foil in many forms from a single plant at Pipalia Kalan, Pali, Rajasthan, with an installed capacity of 11,700 metric tonnes per annum. It is the flagship of the Prem/PG group, ISO- and EN-certified, and its foil ends up wrapping pharmaceuticals, food and packaging for a client list that includes Abbott, Dr. Reddy’s, Lupin, GSK and Amul.

The company also runs a 2.1 MW windmill, keeps a marketing network across ten Indian cities, and exports to 24-plus countries. Exports rose to 21% of sales in FY26 from 12% the year before, per CARE.

The recent record is busy in a way foil companies rarely are. Over roughly a year, the board withdrew a planned preferential issue of convertible warrants, appointed a fresh slate of auditors, disclosed two separate fires at its only plant, and absorbed a credit-rating downgrade. The financials for FY26 sit against that backdrop.

3. Business Model: WTF Do They Even Do?

They roll aluminium into extremely thin sheets and sell it to people who need to wrap things that must not touch air, moisture or light.

The product list is genuinely long: pharma foil, blister foil, child-resistant foil, sachet foil, tea-bag foil, cigarette foil, container foil, chocolate wraps, ice-cream laminates, and — listed with a straight face right next to the chocolate — contraceptive wraps. If a small thing in an Indian pharmacy or grocery is sealed in foil, PG Foils would like to have made that foil.

The catch is baked into the material. Raw material — mainly aluminium foil stock, priced off primary aluminium — accounted for 92% of total operating income in FY26, per CARE. When your single largest input is a globally traded commodity and it eats 92 paise of every rupee of income, the business is essentially a spread between aluminium’s price and foil’s price, run at whatever volume an ageing plant will allow. FY23 production was around 6,286 MT against 11,700 MT of capacity, so the plant spent the year running under half-full.

Does a client roster of Abbott, Cipla and Amul mean much when the input is a commodity and the plant runs part-time?

4. Financials Overview

Figures are standalone, in ₹ crore.

CARE attributes the revenue fall mainly to a decline in trading sales, noting manufacturing sales stayed broadly stable. The PBILDT margin, per CARE, moderated to 1.59% in FY26 from 5.52% in FY25. The operating line swung negative and the year ended in a loss.

There is no recent concall on record to add management’s own framing to these figures.

5. Market Expectations &