Mamata's US business halved as tariffs hit, but Q4 orders signal a turn
The flexible-packaging machine maker's full-year EBITDA fell 65% after a near-50% drop in its US business, but two new order wins and a new recycling tech launch offer a counterpoint.
What's new
- FY26 revenue fell 8% to ₹23,300 lakhs; EBITDA plunged 65% to ₹1,911 lakhs.
- US business revenue dropped nearly 50% due to tariffs, West Asia uncertainty, and rising polymer prices.
- Q4 revenue rose 34% to ₹7,375 lakhs but PAT was just ₹1 lakh after a ₹3.05 cr one-time provision.
Why this matters
This is a classic dual-story quarter: a disastrous full year where the core US market collapsed, set against a Q4 that shows the Indian business recovering and the company landing new orders. The one-time charge masks underlying profitability. The key question is whether the order wins and new tech can offset the continued tariff headwinds in FY27.
What we're watching
- FY27 order execution, especially the multi-machine Indian snack brand and first South Africa deals.
- Whether US demand stabilises or tariffs force a deeper strategic pivot.
- Impact of the new RecTech recyclable film tech on customer wins.
The full read
Mamata Machinery's FY26 is a tale of two markets. The US, which had been a growth engine, saw its business revenue drop nearly 50%. Tariffs, West Asia tensions, and higher polymer costs caused the damage. The impact was severe enough to pull full-year revenue down 8% to ₹23,300 lakhs and crater EBITDA by 65% to ₹1,911 lakhs. The fourth quarter offers a different picture. Revenue jumped 34% to ₹7,375 lakhs, aided by order wins. A leading Indian snacks brand placed a multi-machine VFFS order, and Mamata landed its first-ever deal in South Africa. But the P&L couldn't convert that top-line growth: a ₹3.05 crore one-time employee benefit provisioning and higher show costs left Q4 PAT at just ₹1 lakh. The company also used Plastindia to launch its RecTech recyclable mono-material film technology. The US problem is the core issue. The new orders and tech launch are the counter-narrative, but their scale is not yet enough to offset a 50% shortfall in a key market.
Questions answered
- What caused the massive drop in Mamata's full-year profitability?
- The near-50% collapse in its US business was the primary driver, compounded by West Asia uncertainty and rising polymer prices. The US segment is a core revenue pillar, so its decline hammered margins.
- Why was Q4 profitability so weak despite strong revenue growth?
- Q4 revenue grew 34%, but a one-time employee benefit provisioning of ₹3.05 crore and higher exhibition costs squeezed the bottom line, resulting in a PAT of just ₹1 lakh for the quarter.
- What new orders did Mamata win?
- The company secured a multi-machine VFFS order from a leading Indian snack brand and its first-ever packaging machine order from South Africa. These are early signs of geographic and product diversification.
- What is the RecTech technology mentioned in the results?
- RecTech is a fully recyclable mono-material film technology Mamata launched at the Plastindia exhibition. It represents a push into sustainable packaging solutions.
- How does the FY26 result compare to the quarterly trend?
- The full-year numbers are weak, but Q4 revenue growth of 34% shows a sequential recovery. The contrast suggests the worst of the US tariff impact may have been absorbed, though profitability lags.
- What is the scale of the US business decline?
- The filing states the US business declined by 'nearly 50%'. No absolute revenue figure for the US segment is provided, but the decline was severe enough to drive the entire group's 8% revenue drop.