Cosmo First Ltd

Cosmo First Limited — Trading Window Closure from October 01, 2026 till the expiry of 48 hours after the Financial Results of the Company for the quarter ended September 30, 2026 becomes generally available information.

Acquisition overview

• Acquisition of Prolife Speciality Vet Clinic in Malad, Mumbai, to expand Zigly Pet Care's veterinary network.
• Prolife treats close to 20,000 pets and reports ARR of INR 4.36 crore.
• Clinic offers outpatient consultations, diagnostics, surgery, endoscopy, pathology, and pharmacy; to continue with existing team.
• Zigly plans to convert facility to 24x7 operations within 9-12 months.
• Third strategic acquisition for Zigly Pet Care, following Khar West and Dr. Santa's Pet Clinic.
• Acquisition supports Zigly's strategy to scale high-quality veterinary services through partnerships with established clinicians.
• Expanded Mumbai footprint aims to improve access to timely veterinary care.

Target overview

• Target: Prolife Speciality Vet Clinic LLP, Mumbai-based veterinary clinic in India.
• Industry: Petcare; animal healthcare services provider.
• Established 2000; turnover disclosed for three years.
• Last three-year turnover: FY24 0.83 cr; FY25 0.83 cr; FY26 1.95 cr.
• Assets include brand name, goodwill, social handles, and licenses.

Transaction structure

• Not a related party transaction.
• Acquisition by slump sale on 'as is, where is' basis.
• Cash consideration; lumpsum, payable in six installments.
• Completion target: 20 days from execution date.

Economics & timing

• Total lump-sum consideration to be mutually agreed; not disclosed.
• Installments: six, contingent on seller obligations.
• Regulatory approvals: Not Applicable.

Strategic rationale

• Aims to accelerate Zigly Petcare veterinary services.
• Strategic fit within Cosmo First's Zigly Petcare division.

Target background

• Target: Prolife Speciality Vet Clinic LLP; Mumbai-based veterinary clinic.
• Incorporated in 2000; operates in India.
• FY24-FY26 turnover: 0.83 cr, 0.83 cr, 1.95 cr.

Meeting Details

• Date and time: September 23, 2026 at 3:30 PM.
• Type and mode: group investor visit; physical plant tour at Aurangabad.
• Event/organiser: Analyst/Investor Meeting conducted by Cosmo First Limited.
• Key company participants: Company Secretary & Compliance Officer.
• Purpose: Analyst/investor plant visit; no UPSI to be shared.

Meeting Details

• Date and time: Tuesday, August 25, 2026 at 04:00 PM (virtual).
• Type: Analyst/Institutional Investor meeting; Mode: virtual.

Participants

• Key company participant: Company Secretary & Compliance Officer.

Purpose

• Purpose: investor interaction; discussion related to company developments.

Financial Performance

• Consolidated June 2026 sales Rs 1,166 crores; up 46% YoY; volumes +9%; raw-material pass-through.
• EBITDA Rs 147 crores in June 2026 quarter; up 26% YoY; drivers: higher volume, BOPP scaling, margins.
• EBITDA margin 12.6% in June 2026 quarter vs 14.5% in Jun-2025.
• BOPP gross margin Rs 30/kg in June 2026; vs Rs 20/kg Mar-26 and Rs 23/kg Jun-2025.
• BOPET gross margin Rs 9/kg in June 2026; vs Rs 18/kg Mar-26 and Rs 13/kg Jun-2025.
• Specialty film margins remain stable at Rs 63 per kg.
• Net debt at June 2026 end Rs 1,166 crores; 2.3x EBITDA; to reduce below 2x in 12 months.
• US subsidiary received USD 7 million tax refund in July 2026; not yet appropriated.
• Capex cycle largely complete; focus on ROCE; ₹1,200 crore capex in last 3 years.
• ROCE improvement path: target 15-20% over 12-24 months.

Operating and Segment Update

• Specialty Chemicals topline grew 34% YoY; EBITDA 25% in June 2026Q.
• Cosmo Plastech (Rigid Packaging) topline grew 58% in June 2026Q; EBITDA positive 7%.
• Zigly grew ~70% YoY; expanded retail footprint; 20+ private-label launches; run-rate ~Rs 100 crores monthly.
• Cosmo Consumer: TVC launched July 2026; 150 dealers across 100+ cities.
• Cosmo Consumer: 4 PPF variants; private-label push; export-market exploration.
• Cosmo Consumer: launched first 4C Cosmo Car Care Centre in Pune.
• Plastech capacity up 50% with minimal capex; expected Rs 250+ crores revenue.
• Film utilization 85% in June quarter; 15% spare capacity.
• Specialty chemicals capacity headroom 15-20%.
• BOPP capacity 277,000 MT; BOPET capacity 30,000 MT.
• Plastech capacity utilization 100%.
• Zigly: 4 new retail centers; 150 dealers; 29,000 customers served; EBITDA losses narrowing.
• Cosmo Specialty Chemicals 80% backward integrated; third-party sales to grow faster over time.
• Cosmo Consumer margins: gross margins target 35-40% over medium term.

Balance Sheet and Cash Flow

• Net working capital increased by Rs 85 crores due to higher raw-material prices.
• Capex cycle largely complete; ROCE-led value creation; ROCE improvement aided by last 3 years’ capex.
• Renewable energy savings projected at Rs 25 crores per annum; two PPAs; one to kick in Q3, other FY28Q1.
• New businesses (Cosmo Specialty Chemicals, Plastech, Cosmo Consumer) scaling; incremental ROCE.
• Plastech is already profitable in Q1 FY27.

Outlook and Guidance

• Topline growth guidance: about 20% for FY26-27 on overall basis.
• New four businesses expected to grow about 60% in FY27.
• US growth 25-30% this year post-duty rationalization.
• ROCE improvement target: 15-20% over the next 12-24 months.

Q&A Highlights

• ROCE outlook: management intends to take ROCE to 15-20% over 12-24 months.
• FY26-27 topline ~20%; new businesses ~60% growth; US growth 25-30% post-duty rationalization.
• Zigly breakeven around Rs 250 crores revenue; Cosmo Consumer break-even around Rs 100 crores.
• Plastech profitable in Q1 FY27; ROCE target >20% after scaling to Rs 300-350 crores revenue.
• US tariff rationalization benefits margins; port disturbances caused higher in-transit volumes.
• Debt reduction plan: Rs 400-500 crores of debt cut in 2 years; below 2x.

Risks and Watchpoints

• Raw-material price volatility and availability; port congestion impacting in-transit volumes.
• Foreign exchange movements affecting other income; currency volatility.
• Execution risk in scaling new businesses; dependence on ROCE improvements.

Meeting Details

• Date of call: August 07, 2026.
• Event: Analyst/Investor Call on operational and financial performance.
• Mode: not specified in filing.

Participants

• Key company participants not disclosed in filing.

Purpose

• Purpose: discuss operational and financial performance for quarter ended June 30, 2026.

Additional Notes

• Audio recording of the Analyst/Investor Call available on the company website.

Business Overview

• Cosmo First: Cosmo Films, Cosmo Chemicals, Cosmo Plastech, Cosmo Consumer.
• Strategy: shift to high-ROCE specialty films and consumer verticals.
• Capex cycle completed with ₹1,200+ Cr invested; limited capex ahead.

Operational Highlights

• Q1 FY27 revenue ₹1,166 Cr; EBITDA ₹147 Cr; PAT ₹54 Cr; EBITDA margin 12.6%.
• Net debt ₹1,166 Cr; Net debt/EBITDA 2.3x; target below 2.0x in 12–18 months.
• Launched Window Films and Paint Protection Films in FY26.
• Specialty Chemicals revenue +34% YoY; EBITDA +46% YoY in Q1 FY27.
• Cosmo Plastech revenue +58% YoY; EBITDA turnaround to 7%.
• Cosmo Films export share ~50% of revenue; global reach 80+ countries.
• Bidkin expansion underway for next phase of capacity growth.

Financial Performance

• FY26 Cosmo Films revenue ₹3,265 Cr; Q1 FY27 ₹1,034 Cr.
• Q1 FY27 net revenue ₹1,166 Cr; EBITDA ₹147 Cr; PAT ₹54 Cr; EBITDA margin 12.6%.
• Specialty Chemicals FY26 revenue ₹204 Cr; Q1 FY27 ₹66 Cr.
• Cosmo Plastech FY26 revenue ₹92 Cr; Q1 FY27 ₹36 Cr.
• Cosmo Consumer FY26 revenue ₹23 Cr; Q1 FY27 ₹11 Cr.
• Net debt/equity 0.7x; Net debt/EBITDA 2.3x.

Capital Structure & Liquidity

• Promoter 40.78%; Institutional 3.93%; Non-institutional 54.18%; ESOP Trust 1.11%.
• Net debt ₹1,166 Cr; net debt/equity 0.7x; net debt/EBITDA 2.3x.
• Capex ahead: minimal capex; no debt details disclosed.

Strategic Priorities & Outlook

• Capex cycle completed; deleveraging to below 2.0x within 12–18 months.
• Shift to specialty films; specialty mix 61%; target ~70%.
• FY30 target revenue for niche verticals ₹400-500 Cr.
• Bidkin expansion to drive capacity growth.

Risks & Mitigation

• Higher raw-material costs post West Asia conflict pressured margins; mitigated by higher volumes and premium mix.

Governance & Leadership

• Board: 60% independent directors; 2 women; 6 active committees.
• Group CEO Pankaj Poddar; CFO Neeraj Jain; Cosmo Consumer leadership Abhineesh Das.
• Shareholding: Promoter 40.78%, Institutional 3.93%, Non-institutional 54.18%.