1. At a Glance – Blink and You’ll Miss the Margins
XPRO India Ltd is one of those companies where the business sounds solid, the brands are everywhere, but the numbers quietly whisper “meh” while the valuation screams “I’m special.”
With a market cap of ~₹2,243 crore and a current price of ~₹956, XPRO trades at a jaw-dropping P/E of ~175×, which is usually reserved for SaaS unicorns, not polymer sheet manufacturers making fridge liners.
In Q3 FY26, XPRO reported revenue of ₹106.3 crore and PAT of ~₹6.8 crore, with QoQ profit down ~9% despite sales inching up by ~1.7%. Operating margins have compressed meaningfully over the last few quarters, falling from mid-teens to single digits.
ROCE sits at ~7.9%, ROE at ~6.6%, and debt remains chunky at ~₹317 crore.
So yes — this is a real manufacturing company, with real factories, real clients, and real plastic.
But at this valuation? The stock market seems to think it’s also curing cancer on the side.
Curious already? Good. Let’s peel the polymer layers.
2. Introduction – From Turnaround Darling to Valuation Darling (Too Fast?)
XPRO India’s story over the last decade has been a classic Indian midcap redemption arc.
Once plagued by losses, restructuring stress, and operational hiccups, the company slowly clawed its way back into profitability post-FY18. By FY22–FY24, margins expanded, debt reduced, and suddenly XPRO looked… respectable.
The market, smelling a “manufacturing + specialty films + China+1” cocktail, did what it does best — re-rated the stock aggressively.
Between FY20 and FY25, the stock delivered ~100%+ returns over five years, despite revenue growing at a much more polite ~8–9% CAGR. Profits bounced sharply off a low base, which helped narratives.
But here’s the catch:
While valuation sprinted, business fundamentals jogged.
By FY25 and into FY26, growth slowed, margins thinned, and quarterly earnings turned volatile again. Yet the stock price never really sobered up.
So the
big question now is simple:
Is XPRO a temporarily tired compounder… or a permanently over-priced plastic sheet?
Let’s understand what they actually do.
3. Business Model – WTF Do They Even Do? (Plastic, But Make It Fancy)
XPRO India operates in polymer processing, split mainly into two divisions:
A. Coex Division (~68% of Revenue)
This is the bread-and-butter business.
XPRO manufactures:
- Co-extruded plastic sheets
- Thermoformed refrigerator liners
- Cast films
These products go into:
- Refrigerators (liners & inner panels)
- White goods
- Disposable food containers
- Automotive applications
In simple terms:
👉 If you’ve opened a fridge in India, there’s a decent chance XPRO is chilling inside.
This division benefits from:
- Long-term OEM relationships
- High switching costs once approved
- Stable but low-glamour volumes
Margins here are steady but not sexy.
B. Biax Division (~32% of Revenue)
This includes:
- BOPP films
- Dielectric films
- Specialty films for packaging & electronics
Historically, this division caused headaches — volatile margins, global competition, and capacity issues.
XPRO shut unviable units in the past and has been restructuring this segment for years.
Recently, management has pivoted aggressively toward dielectric films, including a UAE subsidiary, aiming for higher-margin specialty applications.
Sounds exciting, right?
Yes — but execution risk is very real.
So tell me:
Do you trust commodity plastic companies when they say “specialty pivot”? 🤔
4. Financials Overview –
