Cosmo First reports improved EBITDA for Q2 FY26

Cosmo First, through its films, chemicals, and packaging segments, declared an improved EBITDA for the quarter ended September 2025 (Q2 FY26), primarily fuelled by a 25% jump in sales volume and strong results from its speciality chemicals business. However, the gains were partially offset by significant industry challenges, including the margin decline of BOPP and BOPET commodity films, high US tariffs, which could only be partially passed on to customers, and stabilisation costs associated with newly commissioned production lines. The company noted that the overall impact on profit after tax (PAT) was muted due to increased depreciation and interest expenses stemming from these new capacities, which are expected to be fully utilised by Q4 FY26. Group CEO Pankaj Poddar stated that the focus for the financial year will be on fully leveraging these investments and achieving faster scaling in the new business verticals.

The core films business (Cosmo Films) continued its strategic shift towards high-value offerings. Key developments included the commissioning of the advanced KARO IV Laboratory Stretching Machine, enhancing the company’s R&D capability for speciality film development at its Waluj facility. Furthermore, Cosmo expanded its global manufacturing and supply capabilities in the US market through the addition of a high-speed slitter rewinder and launched CSP Dualcoat under Cosmo Synthetic Paper, strengthening its sustainable product portfolio. The firm also achieved ISO27001:2022 certification, underscoring its focus on digital and data security excellence.

Meanwhile, the chemicals business (Cosmo Speciality Chemicals) maintained strong momentum, announcing the development of three new products slated for commercialisation over the next two quarters. The business introduced performance-driven coating chemicals, masterbatches, and adhesives specifically aimed at the crucial packaging and lamination segments. Concurrently, the rigid packaging (Cosmo Plastech) segment focused on achieving profitability by maximising capacity utilisation. The subsidiary highlighted its adherence to food-grade standards through FSSC 22000 certification and demonstrated product innovation with the launch of an advanced ESD PET sheet designed to strengthen electronic component packaging.

Beyond these core segments, Cosmo First is strategically scaling its consumer businesses, including Zigly Petcare and Cosmo Consumer (window films and paint protection films), reinforcing the group CEO's strategic focus on leveraging investments and ensuring the faster scaling of new businesses in FY26.