IPAK Group revenue rises 9.2pc in 1QFY27

International Packaging Films Limited (IPAK) announced a 9.2 percent year-on-year rise in revenue to Rs11.13 billion for the first quarter ending September 30, 2026. Profit after tax remained stable at Rs705 million, up slightly from Rs704 million in the same period a year ago. Earnings per share grew to Rs1.08 from Rs1.01 compared to the previous quarter.

Despite higher revenue, gross profit contracted to Rs1.62 billion, down from Rs1.75 billion, indicating pressure on margins. The company credited a 16 percent reduction in finance costs for alleviating the impact of the challenging margin environment. Export sales nearly doubled to Rs3.515 billion, or roughly USD12.68 million, compared to Rs2.442 billion in the same quarter last year, showcasing progress in international markets.

On a standalone basis, IPAK reported revenue of Rs3.42 billion and profit after tax of Rs211 million for the quarter. The company highlighted that after significant capacity expansion in FY26, its focus is shifting towards optimizing its expanded manufacturing platform, enhancing product mix, and strengthening market presence. Quarterly margins also reflect the normalization of trading conditions after exceptional benefits in the final two quarters of the previous financial year.

Looking ahead, IPAK highlighted supply chain challenges arising from the ongoing Middle East crisis, citing uncertainties over raw material availability, shipping routes, delivery timelines, and costs. Management's immediate priorities include ensuring supply continuity, maintaining operational resilience, managing working capital prudently, while continuing to focus on operational efficiency, value-added products, and export development.