Rajshree Polypack (RPPL) Q4 2025 Earnings: A Turnaround Story with Upside Potential

Rajshree Polypack Ltd (NSE: RPPL) has delivered a compelling Q4 2025 earnings report that underscores its transformation from operational struggles to a sustainable growth trajectory. The company's revenue surged 23.86% QoQ to ₹90.05 crore, while EBITDA jumped 91.3% to ₹12.32 crore, and net profit rebounded from a ₹0.94 crore loss to a ₹3.65 crore profit. These results, driven by margin expansion, cost discipline, and strategic initiatives, signal a structural turnaround. Here's why investors should take notice.

The Financial Turnaround: Metrics That Matter

The quarter's standout performance is best viewed through three lenses:
1. Revenue Growth: The ₹90.05 crore revenue, up sharply from ₹72.70 crore in Q3 2025, reflects robust demand for Rajshree's packaging solutions. Export orders—particularly in the U.S., Middle East, and UK—contributed significantly, leveraging its new Olive Eco Pack joint venture (JV) and expanded manufacturing capacity.
2. Margin Expansion: EBITDA's 91.3% QoQ surge highlights improved operational efficiency. The EBITDA margin rose to 13.7% in Q4, up from 8.9% in Q3, as cost controls and higher utilization of new machinery (e.g., a 750-tonne thermoforming machine) cut waste and boosted productivity.
3. Profitability Recovery: After a loss in Q3, net profit turned positive, signaling better expense management. While the YoY comparison to Q4 2024's ₹20.3 crore profit appears weak, this reflects one-time charges in the prior year. The sequential recovery is far more telling of management's progress.

Strategic Initiatives Driving the Turnaround

Rajshree's revival isn't accidental. Key initiatives are directly fueling its growth:
- Olive Eco Pack JV: This venture, now reducing losses and targeting ₹90 crore in revenue by FY26, is a game-changer. By manufacturing all processes in-house, it ensures quality control for export markets and leverages a network of 200+ distributors across India.
- Export Expansion: Exports surged 27.5% YoY in FY25, with Q4 marking a record contribution. The company's focus on high-margin export contracts (e.g., a USD 0.16M U.S. order) is paying off.
- Operational Efficiency: The delay of its Odisha expansion project (postponed by 12–15 months) highlights fiscal prudence. Capital is instead prioritized for debt reduction and high-return initiatives.

Industry Tailwinds and Risks

The plastic packaging sector is ripe for recovery, driven by:
- Global Demand: Rising consumer goods consumption in emerging markets and a shift toward premium packaging solutions favor companies like Rajshree, which excel in custom, high-quality products.
- Technological Edge: Its in-house 6-color dry offset printing and shrink sleeving technologies set it apart in a competitive landscape.

However, risks persist:
- Debt Reduction Timeline: The company aims to cut debt over 1.5–2 years. Execution delays could pressure margins.
- JV Performance: Olive Eco Pack's break-even target hinges on sustained export demand and operational synergies.

Investment Thesis: Buy with a Bullish Outlook

Rajshree's Q4 results validate its turnaround narrative. With export momentum, margin improvements, and disciplined capital allocation, the company is well-positioned to capitalize on sectoral recovery. Key catalysts for upside:
- Resumed Dividends: Management hinted at payouts in FY26 if cash flows stabilize.
- Stock Valuation: At ₹25.85 (as of June 19, 2025), the stock trades at a 12.5x P/E—below its historical average and peers like TPL Plastech.

Buy Recommendation: Rajshree offers asymmetric upside. A target price of ₹35–₹40 (based on FY26E EPS of ₹1.0–₹1.2) suggests 35–55% potential. Investors should consider a position in this undervalued turnaround story, especially as global packaging demand continues to grow.

Final Thoughts

Rajshree Polypack's Q4 earnings are not just a blip—they're the culmination of strategic execution and operational discipline. With a clear path to debt reduction, export-led growth, and margin expansion, this stock could be a standout performer in the coming quarters. For investors seeking exposure to India's industrial recovery, Rajshree Polypack deserves a closer look.