Does Cosmo manufacture its own PPF? From what I can make out, it does not look like they have manufacturing facilities for PPF. Is this just a white-labeled product (imported from China, presumably)? Unlike Garware, they don’t have the R&D muscle or the brand recall either. I am not sure how they plan to make a dent here - is it just distribution presence? They are giving lifetime warranty though - so that indicates confidence in the product. Makes me wonder where they are sourcing from.
For Sun protection films, it does look like one of their Aurangabad facilities may have some production capacity, but even that I am not sure if they have sufficient capacity as those facilities are more focused on BOPP, BOPET, DTP films etc.
If someone has researched this more, appreciate your input.
Your doubts are genuine.
May be if you would like to see two different notifications (one original, one revised) submitted to exchanges on this subject … may be you can have better understanding.
Original notification - https://www.bseindia.com/xml-data/corpfiling/AttachHis/53f5c2bd-2668-45d8-97c6-281162d0f96f.pdf
Revised notification - https://www.bseindia.com/xml-data/corpfiling/AttachHis/cfe8a8cf-3339-4d93-a674-90aa74e9eb7a.pdf
Thank you! Interesting - not sure why they changed the notification 
However, I am still not fully sure - the original notification says use of ‘Lubrizol TPU’ and ‘Ashland adhesive’. But it’s not clear if they are manufacturing it as they still need to get the ‘base layer, adhesive and top coat’ constructed together via the production process to make the PPF. There is no mention of that, so my assumption is they are actually just buying it readymade from some reliable supplier (Chinese, elsewhere?) and selling it in India. At best, they may be doing some final step in the process like matte finish or some coating - not sure if that can be done later though.
This is unlike Garware who make it themselves even though they are not fully backward integrated.
If my understanding is incorrect, do let me know.
Your doubts may be right for the train run. Like CDMO in Pharma, Complete formula from Cosmo as they have 35+ R&D team and they may hire some contractor for trail run. Its not good idea to spend capital on the product which is not tested in ground level. The confidence i noted here is giving life time warranty for the product, such statements can not be published by any company without proper detailed backward engineering or proven chemistry. After seeing the real market they may go for commercial production. As they said in many concalls, their existing lines are easily adoptable to new product line with minimal changes. So, this brings me another view that, may be they are using one line for trail run as they are not running at full capacity and intentionally they have stopped few lines in Q1 (Not remembered correctly) to avoid loss making production due to low margins. We can get clear idea in next concal. If someone have information about it, please share. thank you.
Here comes the solid punch, to the emerging competition, from the well - established leader.
Another interesting fact about Garware is their Garware Application Studios (GAS) - which provides them much better advantage vs competition.
Think with more competition, TAM is going to enlarge. What share Cosmo, will be able to grab - will be a key point to monitor going forward.
Disc: Invested in Cosmo, no position as on date in Garware Hi-tech films.
I am guessing this is what Cosmo wants to do and Garware is doing?
Most of the stocks, which were issued by ESOP trust to KMPs (including Jain & Jain duos and other employees) and subsequently offloaded by these KMPs in open market during last 11 months, have been repurchased by ESOP trust from open market in last one week.
Same thing happened in FY2024 too.
Let’s see if in FY2026 it will continue - if yes, KMPs will ensure CMP is substantially higher (at the time of sale) so as to gain maximum gain from these easily available ESOPs purchase from ESOP trust.
Even more capacities being added - China’s PP capacity additions have been significant, with
approximately 9.5 million mt of new capacity being added by 2028, which will represent more than 59% of the total new PP capacity expected in the next five years.
With tariffs, will India exports to US benefit when compared to china dumping?
Hi @asarun,
In their Q3FY25 Earnings Call Transcript, on Page 9, Dinesh Sharma mentioned that PPF manufacturing is currently outsourced. See screenshot below. The good thing is they have started selling PPF and will start sharing the sales figure soon.
Jindal Poly is a key supplier of BOPP, and the fire incident at Jindal Poly Films create a supply squeeze.
Direct competitors in BOPP/BOPET films:
- Cosmo Films
- Uflex Ltd
- Polyplex Corp
- Garware Hi-Tech Films
After Jindal Poly fire company is the key beneficiary as company has the highest BOPP capacity at present. Company’s revenue will shoot up because of 2 reason one is capacity and other is Increase in Prices of the BOPP after fire.
Jindal Poly will take 1.5 Years to revive as this is the minimum standard time to start production line after placing order.
Ravi Kant Japuriya promoter of Varun Beverages also make a huge position in Comso First at an average rate of ~1000 (can check on screener aswell)
BOPP prices rises by 25-30% after Fire. Whole increase in prices will flow into the Margins as raw material prices remain same. This will shoot up EPS as well which was running at a rate of Rs. 10 Per share will be Rs. 30 in Q1 and then i will be Rs 60 in Q2 and Q3 as well.
Demand will be high till Diwali because of major demand in Economy as a whole as used in Packaging, lamination, etc.
Currently Cosmo has a capacity of 2,77,000 Tonnes annually where as second highest capacity is of Uflex and third highest i.e. 95000 of Polyplex. hence Cosmo is the price driver at present.
Any reliable industry source / website - from where you have got an input on 35% increase in prices (specially post fire @ Jindal poly plant). Would be a great help to all who are invested.
From price list information available @ Jindal poly website, we can see that latest price published by them is dated 16/June vs last published price dated 17/May. B/w these two dates (which is almost with a gap of 30 days) there seems to be a price jump of Rs. 30/Kg (average across categories) which comes to be approx 25% jump.
Moreover, from the pricelist data available at same webpage of Jindal Poly, it can be observed that in Apr & May month selling price was lower than the selling rate in March 2025.
So impact on Q1 numbers QOQ would be interesting to see when numbers are published. But YOY numbers looks promising from publically available information.
Disc: Invested in both Cosmo & Polyplex.
Sorry for the 35% Increase Number…I just want to say the range and if you see the increase in BOPET rate in 21st rate list rate has been increased by 3% which does not have too much demand as compared to BOPP hence BOPP rates will also spikes once the new rate list will come to the market.
COSMO FIRST LIMITED FY25 AGM NOTES
- Revenue increases by 10% last year, this year we will see more growth than last year.
- Commission New line this year which is the biggest production line till date in whole world.
- Margins increased from 7 to 10% last year. This year we will see futher improvement because increase in higher margin products, and growth in higher margin business which company has setup earlier.
- Company is doing R&D which help in cost optimisation and development of new products which has higher margins.
- Company has recently setup CPP line which is currently working at 60-65% Capacity utilisation, which company will take it to 100% by Year end.
- Company is working on 100% capacity utilisation in BOPP segment. Despite new production line which increases the production capacity from 197000 Tons to 277000 Tons and still company is working on full capacity.
- Chairman also mentioned company is working on debottle necking that capacity to increases it further. This show there is huge demand in the market.
- Chairman said next 1.5-2 years company will do very good. Because of Enough demand and new products segments which will grow further.
- Speciality Chemical Segment has done very well recently and has 20% margins, this segment will grow further.
- Rigid packaging segment is under working and growing steadily. Management said they will turn this segment profitable by the year end.
- Company’s Window Films business done 50 Cr sales last year which is also grow futher and have good margins.
- Company has done 1200 Cr capex in last 3 years. Through which company started 3-4 new business segments which will give fruits in next 1-2 years.
- Company has added 400 new employees due to increase in business.
- Company has 2.7 times Debt/EBITDA and 0.7 times Debt/Equity Ratio, management believes they will further strengthen this position in coming time.
- Crude oil prices does not directly linked to margins of the business as decrease or increase in crude price will further pass on to the consumers.
- But decrease in crude oil prices will helps company in terms of lower working capital needs which is good for the business.
- Cosmo is the biggest exporter in the India and will sustain this title in future.
- Exports are inline with the Industry growth and company is focusing more to increase its exports more as there is good margins in export markets and demand is also good in export markets.
- Management said for next 1.5-2 years there is huge demand in the market and supply will be limited. After that there will new lines by competitors that will leads to more competition and supply will increase. Till then company has enough space to cater demand.
- FY26 will be very good in terms of profitability and growth.
Thanks Tushar for sharing the notes.
Since management mentioned that they are the largest exporter (in their segment) - wondering if they also mentioned if uncertainty around tariffs on exports to USA have any -ve impact on all the assumption of revenue growth / margin expansion etc. in FY2026 ?
Also did they also talked if the recent fire at Jindal plant - caused the improvement in BOPP margin, if yes to what extent, and by when situation is expected to normalize (means back to pre-fire level margin) ?
Thanks.
Thankyou very much @Tushar_Gupta1 for sharing the notes. This notes gave much needed clarity on the business
As i saw company has minimal exports to US, company majorly catering European Markets. So US tariffs are not the major issue for the company.
And as per present market conditions company doing the exports inline with the previous growth rate.
There is a supply constraints in Indian Market which create to huge demand to fulfil and this will continue for next 1-1.5 year. So the primary focus should be on domestic side as per my analysis.
Management shows sympathy to Jindal, and prayed for the early recovery, didn’t comment on the business front.
Solid Numbers by COSMO FIRST LTD in Q1 FY26
- Outperforms at each level i.e. Revenue, EBITDA and PAT.
- Operating Leverage play out.
- Margin expanded by almost 230 Basis Point on YoY and 310 Basis Point on QoQ.
- Films margin increased by 270 Basis Points which is huge. This only consider 1 Month impact of BOPP Price Increase post Jindal Poly Fire.
- Q2 could be much higher than Q1 as supply crunch in the economy.
Prices of BOPP is continuously increasing or stable at higher levels.
(I am uploading price list of BOPP Films which has average monthly prices for each category)
and also check the prices of Raw Material of BOPP Films i.e. PP(Poly Propylene)
BOPP Films i.e. Finished Product Prices increases with big number but Raw Material prices are almost same. This is the one point we have to consider. In this way whole increase in price will flow to margins.
Operational Updates (source - Investor Presentation)
- Uptick in BOPP margins Q1, FY26
- Volumes increased by 19%, which is significantly increase.
- New BOPP film line started operations from June beginning and will add close to 45% to Company’s BOPP capacity.
- Window film which started operations in May 2025 under brand “Sunshield” has gained momentum with 50+ distributors.
- Within short time span of one month, the company is running close to full capacity utilization on new BOPP line.
- Due to 100% utilisation of capacity, company plans to debottle necking to further increase the capacity.
- This shows demand is limitless and going to continue for 1.5 Years as no new lines are coming in India in the mean time.
Some Interesting Facts
- Institutional money starts increasing.
- Veteran Investors also investing in the business:
- Ravi Kant Jaipuria
- Dolly Khana
- As the Diwali the biggest festival is coming, the BOPP demand start increasing because of Packaging usage increases. This will further boost the demand and because of supply crunch Cosmo is the biggest beneficiary at present and will lead the market.
Q2 will be more interesting, Lets see how the things will play out.