Shree Tirupati Balajee Agro Trading Co. Ltd Q2 FY26: Profits Down 70%, IPO Glow Fades Faster Than Its Polypropylene Bags — Can Indore’s FIBC King Re-seal the Leaks?

1. At a Glance

Indore-basedShree Tirupati Balajee Agro Trading Co. Ltd (STBATC)– a freshly listed packaging manufacturer that once had the market buzzing post its ₹170 crore IPO – is now learning the hard truth: even jumbo bags can leak air. The stock, which listed at ₹83 in 2024, now sits at a deflated₹41, a43% collapsefrom its peak. Market cap has shrunk to ₹335 crore — barely enough to buy a few IPL teams’ cheerleading squads.

InQ2 FY26, revenue stood at₹142.65 crore, down8.3% QoQ, and profit crashed70.5% QoQto₹1.70 crore, courtesy of a vicious squeeze in margins. TheOPMnosedived to4.33%, whileROCEcooled to13.2%andROEto10.9%. For a company that makes bags for nearly every global industry — from agrochemicals to mining — its own numbers are starting to look like a bag full of holes.

Debt sits at a chunky₹217 crore, keeping itsDebt-to-Equityratio at0.72. Despite a top line of₹548 crore (TTM), the company still doesn’t pay dividends. Clearly, the only thing it packs tightly is working capital — now stretching159 days, up from111 dayslast year.

So, what happened to the so-called “Bag King of Indore”? Let’s unzip this financial sack of drama.

2. Introduction

Picture this: a company boasting exports to38 countries, with over3.8 million jumbo bagsshipped annually, five factories buzzing across21,000 sq. meters, and a management team that once had Dalal Street drooling. Now picture its Q2 numbers — profits cut by70%, and investors left holding the bag (literally).

Shree Tirupati Balajee Agro Trading Co. Ltd, despite its fancy product catalogue — fromType C conductive bagstorodent-repellent sacks— has fallen prey to the classic small-cap disease: overambitious expansion, overdependence on working capital, and overconfidence post-IPO.

Let’s not forget the glittering IPO ofSeptember 2024, where it raised₹170 crore(₹122.5 crore fresh issue). Funds were meant for debt repayment, subsidiary investments, and working capital. The idea? Become a one-stop FIBC powerhouse. The reality? NSE slapped a fine this November for late annual report submission, and profits shrank faster than polyester under a heat gun.

But hey, this is India — where packaging companies are now global exporters and retail investors love a “plastics-to-riches” story. The real question: can Tirupati Balajee bounce back, or will it be recycled into yet another packaging stock footnote?

3. Business Model – WTF Do They Even Do?

At its core,STBATCis a maker of industrial and consumer packaging products — those massiveFlexible Intermediate Bulk Containers (FIBCs), better known asjumbo bags. Think of them as the sturdy cousins of the rice bag you saw at Big Bazaar — only 10 times stronger and UN-certified.

The company’s product universe is huge — fromAero-Polymesh bagsandfire-retardant sackstocontainer liner bagsandType D conductive bags. Basically, if it can hold something in bulk — chemicals, grains, fertilizer, cement, or waste — Tirupati Balajee probably makes a bag for it.

Theirfive factoriesinIndore, Madhya Pradesh, are strategically located near Mumbai and major ports, giving them decent logistics leverage. Installed extrusion capacity?~2,300 MT/month, with utilization of~2,200 MT/month— almost full throttle.

Export is a major leg — the company ships to38 countries, including theUSA, Germany, the UK, and Australia. In FY23,exports contributed 49.04%of revenue, while domestic sales stood at64.13%— yes, the total crosses 100% because multiple product streams and inter-subsidiary trading overlap.

Through subsidiaries likeHonourable Packaging Pvt Ltd (97.73%),Shree Tirupati Balajee FIBC Ltd (52.14%), andJagannath Plastics Pvt Ltd (99.85%), it controls the entire chain — from granules to finished bags. It’s a packaging mafia, but with