Kabra Extrusion Technik Ltd Q2FY26 Results – From Plastic Pipes to Battery Dreams: ₹1,358 Mn Sales, ₹3 Mn PAT, and a 97% QoQ Profit Crash That Deserves a Meme of Its Own
1. At a Glance
Ladies and gentlemen, presenting Kabra Extrusion Technik Ltd, the Kolsite Group’s flagship venture — a company that went from building machines to building dreams on lithium-ion cells. And this quarter, reality hit those dreams like a short circuit.
In Q2FY26, Kabra reported consolidated revenues of ₹1,358 million (₹135.8 crore) — a healthy 56.6% QoQ jump — only to end the party with a PAT of ₹3 million (₹0.3 crore), down 97% QoQ. Yes, you read that right. They sold more but earned less — capitalism’s saddest haiku. The operating profit margin (OPM) stands at 6.66%, which feels like a cosmic joke compared to its 17.16% in Sep FY24.
At a CMP of ₹231 and a market cap of ₹805 crore, the stock trades at an eye-popping P/E of 213 — a valuation that would make even high-growth tech startups blush. ROE at 5.3%, ROCE at 7.1%, and debt at ₹143 crore paint a picture of a company that’s trying hard to stay both plastic and elastic.
So, here’s the question: is Kabra a misunderstood EV revolutionist or just another machinery veteran moonlighting as a battery startup? Let’s pop open the numbers and find out.
2. Introduction
Once upon a time in Daman, Kabra Extrusiontechnik was happily extruding plastic pipes and films — a steady, predictable business where extrusion lines hummed and profits dripped. Then FY21 arrived, and Kabra decided it was time to plug into India’s EV revolution through its battery division, Battrixx.
Fast forward to FY25-26: the world’s shouting “energy transition,” subsidies are playing hide and seek, and Kabra’s quarterly profits look like they went through a grinder.
The company’s revenue mix tells the story of its identity crisis — Extrusion Machinery now contributes 74% (up from 48% in FY23), while the once-glamorous battery business slumped to 26% (from 52%). Clearly, the Fame II subsidy rollback hit the lithium-ion dreams hard.
But credit where it’s due — the company isn’t just making batteries, it’s now building complete Battery Management Systems (BMS) after acquiring Varos Technology in FY22. It even tied up with EVE Power Co. Ltd. in 2024 to make BESS (Battery Energy Storage Systems) — a move that sounds futuristic, though current profits suggest we’re still in the “beta testing” phase of profitability.
Is this a strategic masterstroke or a case of too many volts, too little charge? Keep reading.
3. Business Model – WTF Do They Even Do?
Kabra Extrusiontechnik Limited operates in two parallel universes:
(A) Extrusion Machinery Division (74% of FY25 revenue) Think of this as Kabra’s old, loyal friend. They design and manufacture plastic extrusion machinery used for making pipes and films. Over 15,000 installations in 100+ countries and a ~40% market share make Kabra a big fish in a very plastic pond. Its two Daman facilities churn out blown film lines, pipe extrusion, and compounding lines that help India’s pipe makers stay well… pipey.
(B) Battery Division (26% of FY25 revenue) Branded as Battrixx, this is Kabra’s moonshot into the EV and energy storage world. The company makes lithium-ion battery packs and modules for electric 2-wheelers, 3-wheelers, and ESS (energy storage systems). After acquiring Pune-based Varos Technology, it now has in-house BMS (battery management system) design and testing.
In May 2024, they partnered with China’s EVE Power Co. Ltd. to bring advanced BESS solutions to India. And in July 2025, they made their first big B2C move — launching inverter batteries for home use, clearly aiming at the Indian middle class that wants backup power for everything except accountability.
So, Kabra today is a strange but fascinating hybrid — part industrial machinery veteran, part EV-age hustler. One division makes stable cash, the other burns it faster than an overcharged lithium cell.
4. Financials Overview
Source table
Metric
Latest Qtr (Sep’25)
YoY Qtr (Sep’24)
Prev Qtr (Jun’25)
YoY %
QoQ %
Revenue
₹1358 mn
₹1280 mn
₹867 mn
+6.1%
+56.6%
EBITDA
₹90 mn
₹219 mn
₹-30 mn
-58.9%
—
PAT
₹3 mn
₹123 mn
₹-76 mn
-97.6%
—
EPS (₹)
0.09
3.53
-2.18
-97.5%
—
Figures in ₹ million as per company release.
The company managed to grow topline smartly QoQ but couldn’t keep the profits from evaporating. Operating profit bounced from a loss to a measly ₹90 mn, while PAT was almost wiped out.
Annualized EPS now stands at ₹0.36 — implying a P/E ratio north of 640x. Even AI startups look more rational.
5. Valuation Discussion – Fair Value Range Only
Let’s run through the numbers with a magnifying glass and a pinch of sarcasm.
Method 1: P/E Based Valuation Industry P/E: 34.6 Company EPS (TTM): ₹3.03 → Fair Price Range = ₹(3.03 × 25 to 35) = ₹76 – ₹106
Method 2: EV/EBITDA EV = ₹942 Cr; EBITDA (TTM) = ₹40 Cr (approx) EV/EBITDA = 23.5x (as per screener) If fair multiple = 10–15x, → Fair EV = ₹400–₹600 Cr ⇒ Equity Value ≈ ₹350–₹550 Cr → Fair Price Range ≈ ₹100–₹157
Method 3: Simplified DCF (Assuming 10% growth, 10% discount) Considering volatile earnings, DCF suggests intrinsic range near ₹120–₹150
📘 Fair Value Range (Educational Purpose Only): ₹90 – ₹150 (Current CMP ₹231 = 50–150% above fair range. Read that again.)
Disclaimer: This fair value range is for educational purposes only and not investment advice.
