Mamata Machinery FY26 PAT drops to US$1.81M as US business declined nearly 50%, order book rose 34%

INDIA – Mamata Machinery has reported FY26 revenue of ₹233.1 crore (approximately US$27.9 million), down 8 percent, with PAT falling to ₹15.1 crore (approximately US$1.81 million) from ₹40.8 crore, driven by a nearly 50 percent drop in US business and one-time costs.

EBITDA stood at ₹19.1 crore (approximately US$2.29 million) with an 8.2 percent margin, down from ₹54.64 crore at 21.4 percent in FY25. 

Gross margin compression from 60.8 percent to 54.6 percent was driven by a lower share of higher-margin exports. 

The company booked a one-time provision of approximately ₹3.05 crore (approximately US$365,000) for wage code amendments. 

Exhibition expenses rose to ₹10.2 crore (approximately US$1.22 million) from ₹6.2 crore. Management expects profitability to normalise to historical averages of around 20 percent as the top line recovers.

A Tale of Two Markets

The US business declined by nearly 50 percent in absolute terms, reflecting the impact of tariff policies on Indian-made packaging machinery. 

The company remains debt-free with cash on hand of ₹69.26 crore (approximately US$8.30 million). 

Despite headwinds, the company secured a significant multi-machine order for VFFS packaging machines from a leading Indian snacks brand, with 18 machines scheduled for delivery in H1FY27. 

Mamata also received its first packaging machine order from South Africa, marking entry into a new region.

Order Book Growth Signals Recovery

The order book stood at ₹89.59 crore (approximately US$10.73 million), up 34 percent from ₹66.64 crore (approximately US$7.98 million) in FY25, with a 62 percent export and 38 percent domestic split. 

The company launched RecTech, a recyclable packaging technology, and was granted a European Union patent for its cross-sealing device. 

For a packaging machinery manufacturer, patents protect unique mechanisms that differentiate equipment from competitors.

Outlook for FY27

The priority is to recoup ground lost in the US market due to tariff policies. The firm is pursuing double-digit growth in domestic converting and a 30-40 percent growth objective in packaging businesses. 

It is targeting close to USUS$1 million in initial business from Southeast Asia and has established channel partners in CIS markets and Australia to reduce dependence on the US.

The company’s ability to convert its 34 percent order book growth into revenue will determine whether the FY26 profit decline was a one-year anomaly or the start of a trend.

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