Knack Packaging Q2 net profit rises 25% to ₹25 crore, revenue jumps 53%

What happened

Knack Packaging reported a 25 per cent rise in net profit to ₹25 crore for the September quarter, up from ₹20 crore a year earlier. Revenue jumped 53 per cent to ₹295 crore from ₹193 crore, helped by higher volume and better realisation.

Confirmed

Global impact / market context

Selling more packaging at better prices lifted profit, which is money left after costs. But higher crude oil-driven polymer prices and freight costs squeezed profit per sale, so the company raised prices; those changes are expected to show in realisations from Q3 FY27.

Analyst inference

Packaging makers face a cost squeeze from crude oil driving up polymer prices, a key raw material, and Red Sea-linked freight costs. Knack is passing these costs to customers, so investors will weigh volume growth against whether price increases hold and protect profit per sale.

Analyst inference

What to watch

1. Knack said price revisions meant to pass on input costs are expected to reflect in realisations from Q3 FY27 onwards, subject to market stabilisation. Confirmed
2. The company plans to strengthen manufacturing capabilities and expand customer relationships, saying it will continue investment in capacity and innovation. Confirmed
3. Watch whether higher polymer and freight costs ease and whether volume growth continues, since either shift would change revenue, costs and profit per sale for the packaging business. Analyst inference

Evidence

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