Mitsu Chem Plast Ltd

Mitsu Chem Plast Ltd: Trading window to remain closed from Thursday October 1, 2026 upto the expiry of 48 hours post the date of declaration of the Unaudited Financial results of the Company for the quarter and half year ended September 30, 2026

Resolutions

• Special resolution: up to 10,00,000 warrants convertible into equity on a preferential basis.
• Warrants issued to promoters and non-promoters; related parties excluded from voting.
• Conversion terms and price not disclosed.
• Outcome: Passed by majority.

Director appointment

• Ordinary resolution: appointment of Drishti Shailesh Thakker as Independent Director.
• Voting outcome: Approved by majority; no dissent recorded.

Shareholding impact

• Potential dilution on exercise of warrants; no immediate change in promoter stake.
• Details on warrant terms and exercise price not disclosed.

Key resolutions

• Resolution 1: Type Special; Warrants up to 1,000,000, convertible into equity.
• Resolution 1: Allotment to promoters and non-promoters on a preferential basis.
• Resolution 2: Type Ordinary; Appointment of Drishti Shailesh Thakker as Independent Director.
• Voting outcome: Not disclosed in the filing.
• Governance impact: Adds independent director to board.

Capacity expansion details

• Adds 600 MT/year capacity at existing facility.
• Existing capacity: 36,000+ MT/year.
• Utilization: 64% for year ended Mar 31, 2026.
• FY27 cumulative additions total 6,700 MT/year.
• June 2026: 2,550 MT/year; August 2026: 3,550 MT/year and 600 MT/year.

Financial highlights FY26

• Total Income: ₹ 35,084.56 Lakhs.
• EBITDA: ₹ 3,466.31 Lakhs.
• Net Profit: ₹ 1,561.87 Lakhs.

Operational footprint

• Installed capacity: 36,000+ MT/year across four facilities in Maharashtra.
• Facilities include 57 blow molding and 22 injection molding machines.
• Export presence across 17 countries.
• Total customers: 700+; Fortune 500 customers: 30+.

Outlook and strategic intent

• Management expects sustained demand; capacity expansion supports long-term growth.
• Focus on product portfolio expansion and efficiency improvements.

Capacity expansion details

• Existing capacity: 36,000+ MT/year.
• Capacity utilization stood at 64% for FY2026.
• Proposed capacity addition of 600 MT/year.
• Implementation period by August 2026.
• Investment for machinery: approx INR 107 lakhs.
• Financing: bank finance and internal accruals.
• Rationale: supports growth, diversification, and meeting market demand.

Financial Performance

• Total income grew 11.62% YoY in Q1 FY27.
• EBITDA for Q1 FY27: INR 1,549.48 lakhs; Q4 FY26: INR 1,422.74.
• Net profit for Q1 FY27: INR 873.83 lakhs; up 566.23% YoY.
• Net profit margin: 9.18% in Q1 FY27 vs 1.54% YoY.
• EPS: INR 6.44 vs INR 0.97.
• Capacity utilization FY26: 64%.
• Installed capacity: more than 32,450 MTPA.
• Facilities: 4; 53 blow molding; 22 injection molding machines.
• Exports share of revenue: around 2%.
• Healthcare segment contribution: ~19.8%.
• Capex for expansion: ~INR 2 crores.
• Capacity expansion proposed: 3,550 MTPA.
• 3,500 MTPA capacity online; expansion funded by internal accruals and debt.
• IBC project: commercial production expected in Q3 FY27.

Capacity and Operations

• 4 manufacturing facilities; 53 blow molding; 22 injection molding machines.
• Installed capacity >32,450 MTPA; 17-country export footprint.
• Healthcare furniture Furnastra brand forms part of growth focus.

Q&A Highlights

• Margin drivers: improved operating efficiency, favorable product mix, and raw-material price pass-through.
• Exports share around 2%; domestic revenue ~98%.
• IBC project: Q3 commercial production expected; separate machinery required.
• FY28 target around INR 1,000 crores; growth to be in line with expansion.
• Fundraise via warrants aimed at working capital; use of proceeds discussed.
• Hyderabad facility: not planned as manufacturing/assembly unit; pending decision.
• Rikhav Securities warrants: investor, no existing Mitsu investment or advisory relationship.

Outlook and Guidance

• Looking ahead, priority on capacity expansion, portfolio strengthening, and operational efficiency.
• Top-line growth expected to be steady; bottom-line focus emphasized.

Risks and Watchpoints

• Raw-material price volatility; pass-through mechanics discussed in Q&A.
• Capacity utilization remains high; execution risks on new capacity (~3,550 MTPA).
• IBC project timing and funding details to be disclosed.

EGM schedule and voting

• Mitsu Chem Plast Ltd holds EGM on Sept 9, 2026 at 2:30 PM IST via VC/OAVM.
• Remote e-voting opens Sept 5, 2026 at 9:00 AM and closes Sept 8, 2026 at 5:00 PM IST.

Item 1: Preferential warrant issue

• Up to 10,00,000 convertible warrants issued on a preferential basis.
• Warrants priced at Rs 151 each; convertible into equity shares.
• Promoter and non-promoter allottees include Manish Dedhia, Sanjay Dedhia, Rikhav Securities.
• Conversion period is 18 months; one warrant equals one share.
• 25% of issue price payable at subscription; balance on exercise.
• Total proceeds estimated at Rs 15.1 crore for working capital.
• Relevant date for pricing: August 10, 2026.
• Objects: working capital; proceeds to be utilized within six months of receipt.
• Promoters intend to subscribe; other directors not interested.
• No change in control expected on completion of conversion.
• Post-conversion promoter shareholding could rise to 68.61% if all warrants convert.

Item 2: Independent Director appointment

• Ms. Drishti Shailesh Thakker appointed as Independent Director for five years.
• Appointment effective from August 14, 2026 to August 13, 2031.
• Subject to ordinary resolution approval by members.
• Meets independence criteria under Section 149(6) and SEBI Listing Regulations.
• Remuneration to be paid as sitting fees for meeting attendance.
• Current shareholding of Drishti Thakker in the company NIL.
• No other directors or KMPs have declared interest.