Kabra Extrusion Technik Ltd: From Plastic Pipes to EV Batteries – But Still Leaking Profits
1. At a Glance
Kabra Extrusion (part of the Kolsite group, est. 1982) is a tale of two businesses: a boring but cash-generating extrusion machinery unit (74% revenue in FY25) and a glamorous but money-bleeding EV battery division (Geon/Battrixx). With ₹475 Cr sales, ₹17.5 Cr PAT, ROE 6% and a lofty P/E 53.7x, it’s like paying five-star hotel rates for a roadside chai. Q1 FY26 results were a facepalm: ₹86 Cr sales, -₹6.8 Cr loss, thanks to Fame-II subsidy mess and slowdown in EV batteries.
2. Introduction
Kabra started as India’s go-to maker of plastic extrusion machines (the ones that make pipes & films). That business is still steady, with ~40% market share in India and exports to 100+ countries. But around FY21, management decided “plastic is not sexy enough” and jumped into lithium-ion battery packs via its Geon brand.
The battery dream was fueled by EV hype and collaborations (Hero Electric, Eve Power Co., etc.). It looked great on PowerPoint — supply packs for 2W, 3W, swapping stations, and even low commercial vehicles. But ground reality? Fame-II subsidy cuts, pricing pressure, and margin erosion. Result: extrusion profits subsidize battery losses.
Investors are now wondering: Is Kabra a machine company with a battery hobby, or a wannabe battery giant that just happens to sell extrusion gear?
3. Business Model – WTF Do They Even Do?
Two main divisions:
Extrusion Machinery (74% FY25 rev, 40% mkt share)
Blown film lines, pipe extrusion, compounding lines.
Tie-up with Battenfeld-Cincinnati (since 1983) and JV with Extron (Finland).
Core business: boring, slow, but dependable.
Battery Packs (26% FY25 rev)
Branded under Geon/Battrixx.
Supplies 2W/3W EVs, battery swapping infra, and started home inverter lithium-ion batteries (July 2025).
