Cosmo First Limited has reported improved EBITDA performance for the second quarter of FY27, supported by higher sales volumes, growth in speciality films and stronger contributions from its B2B businesses and international operations. Sales volumes increased 15% year-on-year, while speciality sales grew 20%. Better base BOPP film margins and improved performance of the US film business following the reduction in US tariffs also contributed to the performance.
The company’s specialty chemicals and rigid packaging businesses recorded strong growth during the quarter. EBITDA was, however, influenced by certain non-recurring items, including a favourable impact of ₹24.8 crore from the write-back of additional customs duties by its US subsidiary following receipt of a duty refund. This was partly offset by a stock loss of ₹7 crore arising from the decline in raw material prices.
The company has opted for the concessional tax regime under Section 200 of the Income Tax Act, 2025, with effect from Tax Year 2026-27. The tax provision for the quarter includes the benefit arising from this change. As part of its strategy to strengthen the specialty films business, Cosmo First is investing in an expansion of its high-end chemical-coated film capacity. The facility, equipped with an advanced coating line, is expected to add 16,000 metric tonnes of annual capacity in the second half of FY27.
Cosmo Specialty Chemicals continued its growth momentum, recording more than 80% year-on-year topline growth and an EBITDA margin of 23% in Q2 FY27. Its performance was supported by three key verticals: coating chemicals, masterbatches and adhesives.
Cosmo Plastech, the company’s rigid packaging business, registered over 90% topline growth during the quarter, with an EBITDA margin of 8%. The vertical is preparing to expand its capacity in H2 FY27 through the installation of a nine-layer barrier sheet line with an annual capacity of 10,000 metric tonnes. The investment is expected to support the development of higher-value speciality products with limited capital expenditure. The business will focus on improving profitability through higher capacity utilisation and operational efficiency.
The consumer businesses also maintained strong growth. Zigly, the petcare business, recorded 47% topline growth, while Cosmo Consumer, which operates in window films, paint protection films and ceramic coatings, grew 70% year-on-year. Cosmo Consumer began television advertising in July 2026 to strengthen brand visibility and expanded its automotive presence with the launch of its first 4C Cosmo Car Care Centre in Pune.
Cosmo First reduced its net debt to ₹1,057 crore as of September 2026, compared with ₹1,159 crore at March 2026. Net debt stood at 1.9 times EBITDA despite a ₹148 crore increase in net working capital, primarily due to higher raw material prices following the West Asia conflict. Debt associated with the two growth capital expenditure projects is largely reflected in the September balance sheet. The company remains focused on substantially reducing net debt over the next two years.
Commenting on the performance, Pankaj Poddar, Group CEO, Cosmo First Limited, said, “All our B2B businesses are profitable. The FY27 focus will be on higher ROCE with speciality films sale, improved capacity utilization and substantially grow new B2B and B2C businesses.”
Founded in 1981 by Ashok Jaipuria, Cosmo First operates five businesses across industrial and consumer segments. Its industrial portfolio includes Cosmo Films, Cosmo Plastech and Cosmo Specialty Chemicals, while its consumer businesses comprise Zigly Petcare and Cosmo Consumer. Cosmo Films is a pioneer of specialty BOPP films in India and remains the group’s largest business.
