At a Glance
XPRO India kicked off Q1 FY26 with a shocking ₹5.5 crore net loss, a nosedive from ₹6.6 crore profit last quarter. Sales slumped to ₹145 crore, down 9% sequentially, and operating margins fell to -1.7% – yes, negative. The stock still trades at a nosebleed P/E of 143, because why not? Promoters cut stake to 40.73%, FIIs hover around 15%, and investors wonder if the only thing stretching here is their patience.
Introduction
XPRO India, the polymer processor that makes refrigerator liners and specialty films, has found a new specialty: evaporating profits. While the company enjoys a niche market supplying white goods manufacturers, Q1 results show that margins melted faster than ice in a Chennai summer.
Despite its proud history and strong product mix, the last few quarters have been a rollercoaster with declining profits, promoter stake dilution, and rising debt. Investors clinging to the ₹1,187 stock price are essentially betting on a miraculous turnaround – or divine intervention.
Business Model (WTF Do They Even Do?)
XPRO India’s operations revolve around two main divisions:
- Coex Division (≈68% revenue): Makes coextruded plastic sheets, thermoformed liners, and cast films. Customers? Mostly refrigerator and automotive OEMs.
- Specialty Films: Dielectric and special-purpose BOPP films for niche industrial uses.
The company serves as a quiet but crucial supplier to consumer durable giants. The problem? It’s great at making products but terrible at making profits consistently.
Financials Overview
Q1 FY26 Snapshot:
- Revenue: ₹145 crore (↓9% QoQ)
- Operating Profit: -₹2.5 crore (OPM -1.7%)
- PAT: -₹5.5 crore (from ₹6.6 crore in Q4 FY25)
- EPS: -₹2.46
Annual trend? FY25 PAT collapsed 62% YoY to ₹38 crore, despite revenue inching up to ₹533 crore. Growth is slower than a Monday morning traffic jam.
Valuation
With a P/E of 143, the stock trades as if it’s a SaaS unicorn, not a struggling plastics maker.
Fair Value Calculations
- P/E Method:
- Industry P/E ~20x, EPS ₹8.36 → Fair Price = ₹167
- EV/EBITDA Method:
- EV/EBITDA ~10x, EBITDA ₹31 Cr → EV ≈ ₹310 Cr → Fair Price ≈ ₹180
- DCF (Optimistic):
- Assuming 8% growth, WACC 9%, terminal 3% → Fair Price ≈ ₹200
💡 Fair Value Range: ₹160 – ₹200 (Current ₹1,187 = investors love pain)
What’s Cooking – News, Triggers, Drama
- New CEO Girish Behal appointed; can he fix this polymer mess?
- Capex expansion continues with ₹345 crore CWIP, but returns? TBD.
- Equity dilution: Allotment of 2.4 lakh shares at ₹975 signals promoters needed cash.
- Q1 monitoring report confirmed proper fund use, but investors need profits, not audits.
Balance Sheet
| (₹ Cr) | Mar 2025 |
|---|---|
| Assets | 993 |
| Liabilities | 113 |
| Net Worth | 610 |
| Borrowings | 269 |
Auditor Roast: Assets doubled with capex, but profits didn’t get the memo. Debt crept up – not alarming, but not cute either.
Cash Flow – Sab Number Game Hai
| (₹ Cr) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Ops | 83 | 44 | 13 |
| Investing | -58 | -320 | -113 |
| Financing | -43 | 278 | 203 |
Stand-up Take: Ops cash drying, investing cash burning, financing cash doing CPR.
Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 6.6% |
| ROCE | 7.9% |
| P/E | 143 |
| PAT Margin | 6% (TTM) |
| D/E | 0.44 |
Verdict: Sexy P/E, stressy everything else.
P&L Breakdown – Show Me the Money
| (₹ Cr) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 509 | 463 | 533 |
| EBITDA | 74 | 66 | 51 |
| PAT | 45 | 44 | 38 |
Auditor Joke: Sales inching, profits shrinking – like a rubber band snapping back.
Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| EPL Ltd | 4,213 | 362 | 19 |
| AGI Greenpac | 2,650 | 348 | 18 |
| Uflex | 15,036 | 240 | 18 |
| XPRO India | 542 | 18 | 143 |
Commentary: Peers make profits, XPRO makes headlines.
Miscellaneous – Shareholding, Promoters
- Promoters: 40.73% (↓7.6% in 3 years)
- FIIs: 14.9% (speculators or masochists?)
- DIIs: 3.36%
- Public: 40.9% (the brave souls)
Promoter stake falling is never a love story.
EduInvesting Verdict™
XPRO India is a case study of how hype can sustain valuations while fundamentals scream otherwise. Strong niche products and market leadership in refrigerator liners haven’t translated into shareholder wealth.
Past Performance:
- Sales grew marginally, profits declined, promoter stake fell – a cocktail of red flags.
Current Scenario:
- Q1 FY26 loss, negative margins, and a bloated P/E make this stock a ticking bubble.
Future Outlook:
- New leadership and ongoing capex could revive fortunes, but execution risk is high.
- Profitability must bounce back soon, or investors will.
SWOT Analysis:
- Strength: Market leader, niche products.
- Weakness: Volatile earnings, overvaluation.
- Opportunity: Capex-driven growth, specialty films demand.
- Threat: Raw material costs, aggressive competition, investor exits.
Final Word: A high-risk, high-P/E bet that’s bleeding profits. Enter only if you like thrillers.
Written by EduInvesting Team | July 29, 2025
SEO Tags: XPRO India, Specialty Films, Q1 FY26 Results, Polymer Industry, Stock Valuation
