1. At a Glance
Cosmo First is what happens when a packaging films company wakes up one day and decides — “let’s also sell pet food.” FromBOPP filmsto the Zigly pet care app, this ₹2,782 Cr smallcap is basically trying to be both Reliance Packaging and Petco at once.
Q1 FY26 saw revenue hit ₹800 Cr (+16% YoY), PAT jump to ₹43 Cr (+39% YoY), and margins finally getting their breath back after last year’s packaging slump. Also, anew BOPP linejust boosted capacity by 45% — because if you’re going to wrap snacks, wrap more snacks.
2. Introduction
This company’s story is a blend of industrial seriousness and D2C chaos. On one side, you’ve got film rolls worth crores whizzing out of factories. On the other, Instagram reels of dogs in Zigly t-shirts.
Over the last decade, Cosmo has gone from being a films pure-play to a diversified brand with ambitions in pet care, rigid plastics, adhesives, and masterbatches. The real question — can it manage these parallel universes without ending up as “Cosmo Lost”?
3. Business Model (WTF Do They Even Do?)
- Packaging Films– Flexible packaging films for FMCG, food, and industrial use. Big volumes, global markets.
- Lamination & Label Films– Used in publishing, labels, and branding.
- Industrial Films– Speciality grades for tapes, textiles, and printing.
- Rigid Plastics– Customised FMCG packaging.
- Masterbatches & Adhesives– Niche manufacturing plays.
- Pet Care (Zigly)– D2C + stores + app, aiming for 100+ centres by FY26.
In short — they make the packaging for your chips, the label on your shampoo, the box for your detergent, and now, they also
sell your dog a raincoat.
4. Financials Overview
Q1 FY26 vs Q1 FY25 vs Q4 FY25 (Consolidated)
| Metric | Q1 FY26 | Q1 FY25 | Q4 FY25 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 800 | 690 | 746 | 15.9% | 7.2% |
| EBITDA (₹ Cr) | 92 | 68 | 70 | 35.3% | 31.4% |
| PAT (₹ Cr) | 43 | 31 | 27 | 38.7% | 59.3% |
| EPS (₹) | 16.33 | 11.79 | 10.32 | 38.4% | 58.3% |
Commentary:Strong bounce in profitability, driven by better spreads in packaging films and maybe pets eating more kibble. QoQ jump in PAT shows some pricing power returning.
5. Valuation (Fair Value RANGE Only)
Method 1 – P/E
- EPS (TTM) = ₹55.34
- Reasonable P/E for packaging mid-cap: 15x–22x
- FV range = ₹830 – ₹1,217
Method 2 – EV/EBITDA
- EBITDA (TTM) = ₹312 Cr
- Net Debt = ₹1,438 Cr borrowings – ₹166 Cr cash ≈ ₹1,272 Cr
- EV = ₹4,054 Cr
- Current EV/EBITDA ≈ 13x; fair range 10x–12x → FV range = ₹930 – ₹1,116
Method 3 – DCF
- Base FCF ~₹150 Cr, growth 8%, discount rate 12% → FV ≈ ₹900 – ₹1,050
📌Final FV Range:₹900 – ₹1,200 (Educational purposes only, not investment advice).
6. What’s
