L.K. Mehta Polymers Ltd H1 FY26 Results – ₹15.27 Cr Sales Surge, 115% Growth, But Margins Playing Hide & Seek
1. At a Glance – The Plastic Rope That Ties Profits… Loosely
L.K. Mehta Polymers Ltd is that classic SME stock which looks calm on the surface but has a full Bollywood script playing underneath. Market cap sitting at ₹17.3 crore, current price chilling at ₹45, and a recent 3-month return of –7.79%, the stock clearly hasn’t impressed momentum traders. But fundamentals? They’re doing their own quiet bhajan in the corner. Latest half-yearly numbers show quarter sales of ₹15.27 crore, up a jaw-dropping 115% YoY, while quarterly PAT clocked in at ₹0.30 crore, up 20% YoY. Not explosive, but profitable—like a Kirana store that expanded into wholesale but still counts every rupee twice.
ROCE stands at 10.6%, ROE at 8.44%, and P/E at 26.6x, which means the market is pricing this company like it wants to grow up to be a midcap someday, but right now is still wearing school uniform. Debt to equity is 0.58, not scary but definitely noticeable—like that one relative who always asks about your salary.
This is not a dividend story, not a hype story, but a “numbers are slowly improving, boss” story. And the latest results? They are half-yearly. Lock that in. No switching moods mid-article.
2. Introduction – 30 Years Old, Still Hustling Like a Startup
Incorporated in 1995, L.K. Mehta Polymers Ltd has survived liberalisation, dot-com busts, global financial crises, demonetisation, COVID, and now SME investors with Excel sheets and Twitter accounts. That alone deserves some respect. The company started with plastic ropes and granules and decided not to get fancy. No buzzwords like AI-enabled polymers or sustainable blockchain twines. Just ropes, granules, and trading—plus a side hustle in gold trading, because why not?
Operating under the “Super Pack” brand, the company manufactures and trades monofilament, danline, and tape ropes, baler twines, packaging twines, and polypropylene/polyethylene granules. These products are not glamorous. You won’t see them in Instagram reels. But without them, agriculture, packaging, logistics, and storage would collectively collapse and cry.
The company listed on the BSE SME platform in February 2025, raising ₹7.38 crore via IPO. The stated objective? Working capital. Translation: “Business chalane ke liye paisa chahiye.” As of March 2025, ₹2.36 crore from IPO proceeds had already been utilised, which means money is moving, not sleeping.
This is a smallcap that doesn’t pretend to be something else. It is what it is. And that honesty makes the analysis more fun—and more brutal.
3. Business Model – WTF Do They Even Do?
Let’s simplify this for a smart but lazy investor.
L.K. Mehta Polymers does three main things:
Manufactures plastic ropes and twines
Trades plastic granules
Dabbles in gold trading
The core manufacturing happens at their Ratlam, Madhya Pradesh facility with an installed capacity of 1,116 MTPA. Utilisation in FY24 was 34.4%, which basically means two-thirds of the factory is chilling, waiting for demand to wake up.
The ropes and twines are sold largely to agriculture-linked and packaging customers. This is a B2B business. No brand loyalty like FMCG, but once a customer sticks, they usually don’t jump ship unless price or credit terms go crazy.
Granule trading adds volume but thinner margins. Think of it as turnover padding with working capital gymnastics.
Gold trading exists, but the dump does not give a detailed revenue split for it. So we don’t speculate. We just politely acknowledge it exists and move on.
The biggest business risk? Concentration. Top 10 customers = 78% of sales Top 10 suppliers = 90%+ of purchases Top 5 states = ~93% of revenue
This is not diversification. This is dependence with extra steps.
Result Type Locked: Half-Yearly Results Annualised EPS = Latest EPS × 2
Half-Yearly Comparison Table (₹ in Crores)
Source table
Metric
Latest Half (Sep 2025)
YoY Half (Sep 2024)
Prev Half (Mar 2025)
YoY %
QoQ %
Revenue
15.27
7.11
11.86
114.8%
28.8%
EBITDA
0.56
0.59
0.78
-5.1%
-28.2%
PAT
0.30
0.25
0.35
20.0%
-14.3%
EPS (₹)
0.78
0.89
0.91
-12.4%
-14.3%
Annualised EPS (Half-Yearly) = ₹0.78 × 2 = ₹1.56
Commentary time. Revenue exploded like a viral WhatsApp forward, but margins quietly slipped into the background. OPM dropped to 3.67% from 8.30% a year ago. That tells you growth is coming from volume and trading, not pricing power.
This is growth with thin gravy. Not bad, but don’t expect butter chicken margins.
