Time Technoplast's Strong Revenue Growth Masks a Profitability Squeeze
The packaging firm posted robust 34.9% YoY sales growth, but profit fell sequentially as margins contracted.
Time Technoplast's Q1 FY27 saw revenue surge 34.9% year-on-year to ₹867 crore. However, profit declined 12.2% from the previous quarter, reflecting pressure on net margins.
Time Technoplast started its fiscal year with impressive top-line momentum but a notable squeeze on profitability. Revenue for the quarter ended June 2026 surged 34.9% year-on-year to ₹866.8 crore, continuing a strong growth trajectory. However, profit after tax (PAT) declined 12.2% from the previous quarter to ₹56.2 crore, even as it grew 25.3% compared to the same period last year.
The sequential profit drop highlights a margin challenge. The company's net profit margin fell to 6.5% in Q1 FY27, down from 7.9% in the preceding quarter and 7.0% in Q1 FY26. This indicates that while sales are expanding robustly, costs are rising at a faster pace, compressing earnings. The trailing twelve-month (TTM) net profit margin stands at 7.4%, suggesting the latest quarter's performance was below the recent average.
A look at the last five quarters shows the underlying trends clearly.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 866.83YoY +35% | 808.59 | 642.46 |
| Profit (₹ Cr) | 56.17YoY +25% | 64.01 | 44.83 |
| Net Profit Margin (%) | 6.5YoY -7.1% | 7.9 | 7.0 |
Key Points
- The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.22.
- Return on Equity (RoE) for the period was a healthy 14.5%.
- The stock trades at a P/E of 24.4, a significant discount to the industry average P/E of 37.4.
The company's ability to translate its accelerating revenue growth back into stronger profit margins will be the key focus for the coming quarters.
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· TIMETECHNO
(BSE)
ISIN: INE508G01029
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