Glen cuts paper cup capacity forecast by 90%, still chases ₹500cr FY28 revenue
Management slashed its capacity guidance from 7,696 MT to 750 MT. It still plans to more than double revenue by FY28.
— 2 earlier stories on GLEN Industries Ltd. →What's new
- Glen cut its paper cup capacity projection to 750 MT from 7,696 MT—a 90% reduction from prior guidance.
- FY28 targets are ₹500cr revenue and ₹90cr EBITDA, versus ₹205cr current annual turnover.
- New plant delayed three months to Sept FY27 due to West Bengal government approvals; capex is ₹135cr.
Why this matters
A 90% cut to capacity guidance for a core product is a stark admission of earlier planning failure. Setting a five-year target to more than double turnover from this drastically reduced base demands a business mix that was not presented to investors previously.
What we're watching
- How Glen plans to bridge the gap between a 750 MT capacity ceiling and a ₹500cr revenue target.
- Whether the delayed West Bengal plant stays on its revised Sept FY27 timeline.
- How long raw material inflation stays elevated before margins erode.
The full read
Glen Industries just wrote down its paper cup capacity forecast by 90%, from 7,696 MT to 750 MT. No explanation. The filing offers none. Yet management simultaneously set a five-year revenue target of ₹500 crore and ₹90 crore in EBITDA, from a current turnover of ₹205 crore. The math doesn't add up unless the company plans to become a fundamentally different business. A separate capex project is also running three months late to September FY27, held up by West Bengal regulators. Raw material costs have spiked 50% on Middle East tensions, and the capex itself has risen to ₹135 crore. The price pass-through mechanism protects margins today, but that depends on customers keeping pace. The headline isn't the delay or the input costs. It's the gap between a collapsed capacity number and an audacious growth target.
Questions answered
- How severe was the capacity revision, and why?
- The projection was cut by 90% to 750 metric tons from 7,696 metric tons. The filing provides no reason for the massive downward revision in management's own guidance.
- Are the FY28 revenue and EBITDA targets credible given the new capacity?
- Management targets ₹500cr in revenue and ₹90cr in EBITDA by FY28, against ₹205cr in turnover today. Achieving this with a drastically lower projected capacity for paper cups suggests the company must be planning major growth in other business segments not detailed here.
- What caused the three-month project delay?
- The new capacity expansion was delayed due to government approval processes in West Bengal. Commercial production is now expected in September FY27, three months later than initially planned.
- How has raw material inflation affected the business?
- Polypropylene prices surged 50% after Middle East conflicts, but the company's pass-through pricing model has kept absolute rupee margins stable. The model means higher input costs are passed to customers, so volume is key.
Story so far
All notes on GLEN →- 29 May 2026 · 8:27 PM IST Glen cuts paper cup capacity forecast by 90%, still chases ₹500cr FY28 revenue
- 2d ago Glen Industries posts ₹16.50 cr profit on eco-friendly packaging demand
- 3d ago Glen Industries revenue climbs 19% as margins tighten