- Cosmo First reported Q2 FY27 PAT of Rs 99 crore, up 111% from Rs 47 crore in Q2 FY26.
- Q2 FY27 EBITDA of Rs 177 crore included a Rs 24.8 crore USA customs-duty write-back and a Rs 7 crore stock loss.
- Q2 FY27 EBITDA margin declined to 12.8% from 14.0% a year earlier despite 51% revenue growth.
- Net debt declined to Rs 1,057 crore at September 2026 from Rs 1,159 crore at March 2026.
Cosmo First reported Q2 FY27 profit after tax (PAT) of Rs 99 crore, up 111% year on year from Rs 47 crore, aided by a Rs 24.8 crore USA customs-duty refund write-back in earnings before interest, tax, depreciation and amortisation (EBITDA) and a benefit from its new concessional tax regime. EBITDA margin declined to 12.8% from 14.0%.
Results, valuation, peers and who’s buying, in one view.
Why did Cosmo First’s Q2 FY27 profit rise?
Cosmo First’s Q2 FY27 PAT rose because revenue and EBITDA increased, while the quarter also included the duty-refund write-back and a tax-regime benefit. Net revenue grew 51% year on year to Rs 1,388 crore from Rs 919 crore, and EBITDA increased 38% to Rs 177 crore from Rs 128 crore. Reported earnings per share (EPS), not annualised, rose to Rs 38 from Rs 18.
Management attributed the year-on-year EBITDA increase to 15% higher sales volume, 20% higher speciality sales, improved performance at the USA film business, and better results in specialty chemicals and rigid packaging. Revenue grew faster than EBITDA, however, and EBITDA margin fell by 120 basis points to 12.8% from 14.0%. A basis point equals one-hundredth of a percentage point.
Did Cosmo First’s Q2 earnings include non-repetitive items?
Yes, Cosmo First’s Q2 FY27 EBITDA included a Rs 24.8 crore favourable write-back after its USA subsidiary received a refund of additional customs duties. The same quarter included a Rs 7 crore stock loss caused by a drop in raw-material prices. Based on the figures disclosed by management, the two items had a net favourable impact of Rs 17.8 crore on EBITDA.
The tax provision also affected the relationship between pre-tax and post-tax profit during Q2 FY27. Profit before tax (PBT) was Rs 98 crore while PAT was Rs 99 crore, and Cosmo First said it elected to adopt the concessional tax regime under Section 200 of the Income Tax Act, 2025, effective from Tax Year 2026-27. The company did not separately quantify the tax benefit but said the quarter’s provision reflects the changeover.
The sequential comparison shows EBITDA improved before the effect on final profit became more pronounced. Revenue rose from Rs 1,173 crore in Q1 FY27 to Rs 1,388 crore in Q2 FY27, while EBITDA rose from Rs 147 crore to Rs 177 crore and margin increased from 12.5% to 12.8%. PAT increased from Rs 54 crore to Rs 99 crore, with the disclosed duty refund and tax provision relevant to that change.
| Metric (Rs crore, except margin) | Q2 FY26 | Q1 FY27 | Q2 FY27 | H1 FY27 |
|---|---|---|---|---|
| Net revenue | 919 | 1,173 | 1,388 | 2,561 |
| EBITDA | 128 | 147 | 177 | 324 |
| EBITDA margin | 14.0% | 12.5% | 12.8% | 12.7% |
| PAT | 47 | 54 | 99 | 152 |
Which Cosmo First businesses drove Q2 EBITDA?
Flexible packaging generated the largest share of Cosmo First’s Q2 FY27 segment EBITDA, rising to Rs 171 crore from Rs 129 crore in Q2 FY26. Management linked the increase to higher volumes, higher speciality sales and the performance of the USA film business. The Rs 42 crore increase in flexible-packaging EBITDA accounted for most of the Rs 49 crore rise in total reported EBITDA.
Cosmo Specialty Chemicals reported Q2 FY27 EBITDA of Rs 21 crore, compared with Rs 13 crore a year earlier, while Cosmo Plastech moved to Rs 3 crore from a Rs 1 crore loss. Management said the chemicals subsidiary delivered more than 80% year-on-year topline growth and a 23% EBITDA margin through coating chemicals, masterbatches and adhesive verticals. It said the rigid-packaging business reported more than 90% topline growth and an 8% EBITDA margin.
The two consumer businesses remained EBITDA-negative in the disclosed segment results. Cosmo Consumer’s loss widened to Rs 4 crore from Rs 2 crore, including higher marketing expenditure driven by its television campaign, while Zigly Pet Care’s loss widened to Rs 14 crore from Rs 10 crore. Management reported Q2 year-on-year topline growth of 70% at Cosmo Consumer and 47% at Zigly Pet Care.
What is Cosmo First planning for H2 FY27?
Cosmo First plans to add 16,000 metric tonnes of annual high-end chemical-coated film capacity in H2 FY27 under its specialty-films expansion strategy. Management said the facility will use one of the world’s most advanced coating lines. The presentation also identifies the 16,000 metric tonne line as the largest coating line expected in H2 FY27.
Cosmo Plastech plans to add a nine-layer barrier-sheet line with annual capacity of 10,000 metric tonnes in H2 FY27. Management said the line should enable higher and improved speciality products with minimal capital expenditure, while the FY27 focus is on higher profitability through capacity utilisation and efficiency. The group reported more than Rs 1,250 crore of capital expenditure across FY24 to FY26, with incremental spending directed to specialty businesses.
Debt reduction remains a stated management focus. Net debt fell to Rs 1,057 crore at September 2026 from Rs 1,159 crore at March 2026, despite a Rs 148 crore increase in net working capital that management attributed to higher raw-material prices after the West Asia war. Net debt to EBITDA declined to 1.9 times at September 2026 from 2.4 times at March 2026 and 3.0 times at September 2025.
Conclusion
Cosmo First’s Q2 FY27 result combined 51% revenue growth with reported-profit support from the Rs 24.8 crore USA duty-refund write-back and the concessional tax-regime changeover. EBITDA rose 38% to Rs 177 crore, but its 12.8% margin remained below the 14.0% recorded in Q2 FY26, while Cosmo Consumer and Zigly Pet Care together recorded Rs 18 crore of segment EBITDA losses.
The next disclosed milestones are the planned H2 FY27 additions of 16,000 metric tonnes of chemical-coated film capacity and 10,000 metric tonnes of barrier-sheet capacity. Management’s stated two-year deleveraging focus is also a point to watch after net debt fell by Rs 102 crore between March 2026 and September 2026, alongside the planned improvement in Cosmo Plastech profitability through utilisation and efficiency.
Frequently Asked Questions
Cosmo First reported Q2 FY27 PAT of Rs 99 crore, compared with Rs 47 crore in Q2 FY26. The 111% year-on-year increase came alongside revenue growth, a duty-refund write-back and the disclosed tax-regime changeover benefit.
Cosmo First reported a Rs 24.8 crore EBITDA write-back after its USA subsidiary received a refund of additional customs duties in Q2 FY27. The company also disclosed a Rs 7 crore stock loss from falling raw-material prices in the same quarter.
Cosmo First reported a Q2 FY27 EBITDA margin of 12.8%, down from 14.0% in Q2 FY26, even as EBITDA rose to Rs 177 crore from Rs 128 crore. The presentation lists volume, speciality sales and business performance as drivers of EBITDA growth but does not separately quantify the cause of the margin decline.
Cosmo First reported Rs 171 crore of flexible-packaging EBITDA, Rs 21 crore from Cosmo Specialty Chemicals and Rs 3 crore from Cosmo Plastech. Cosmo Consumer recorded a Rs 4 crore EBITDA loss and Zigly Pet Care recorded a Rs 14 crore loss, taking total reported EBITDA to Rs 177 crore.
Cosmo First reported net debt of Rs 1,057 crore at September 2026, down from Rs 1,159 crore at March 2026. Net debt to EBITDA was 1.9 times at September 2026, compared with 2.4 times at March 2026.
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