Cosmo First Targets Broader Revenue Mix as Consumer Businesses Ramp-Up

Cosmo First is expanding its shift from a pure-play B2B films manufacturer to a diversified packaging and consumer products company, with recently commissioned capacities and new verticals expected to drive growth through FY26 and beyond.

The company’s consumer businesses such as Zigly (Pet care), Cosmo Sunshield (window films), and Cosmo PPF (Paint Protection Films) are emerging as a growth lever for the group. Among these, Zigly, with four years of operations has now adding immensely to the revenue mix. Cosmo Sunshield and Cosmo PPF are again high-margin consumer businesses with initial focus on domestic markets; while the company is also evaluating export opportunities in US, Europe, South America and Middle East markets.

The company doubled its profit after tax in FY25 to Rs 133 crore from Rs 62 crore in FY24, supported by higher specialty film sales, improved films margins and savings from cost rationalisation efforts. Group CFO Neeraj Jain said the focus through FY26 remains on building on this momentum.

“FY25 profitability is higher primarily due to higher specialty sales, cost rationalisation of about Rs 25 crore, better BOPP and BOPET film margins and improved performance of the specialty chemical subsidiary,” he said. “In FY26 we expect balanced demand and supply for domestic BOPP flexible packaging, which should support a stable margin scenario.”

Cosmo First has invested Rs 1,180 crore over the last three years in new BOPP, CPP and polyester lines, along with metallisers, coating lines, window films, paint protection films, pet care business Zigly and rigid packaging. “These will yield a significant ramp up in revenue as well as profitability in the next two to three years,” Jain said.

The newly added film lines, including the 81,000 MTPA BOPP line and 22,000 MTPA CPP line commissioned earlier this year, have begun contributing. “All of these lines are using latest technology and will have an edge in cost of production and quality over existing lines in India,” he said.

Jain added that the company has maintained its leverage profile despite the capex cycle. “We are not over leveraged with net debt-to-equity at 0.7x and net debt-to-EBITDA at 2.7x in March 2025,” he said.

Cosmo First’s diversification strategy spans specialty chemicals, rigid packaging, consumer-facing window and PPF films, and D2C pet care. Jain said most verticals are aligned with the company’s packaging ecosystem. “All our other businesses except Zigly are directly or indirectly related to packaging,” he said. “Zigly may take some time to become profitable but we see it as a stakeholder value creator.”

The specialty chemicals unit recorded Rs 98 crore in revenue and Rs 25 crore EBITDA in H1 FY26. “Within a few years, we target it to reach about 10% of consolidated revenue with 25% plus ROCE,” Jain said. The rigid packaging business is expected to turn EBITDA positive by FY26 end.

On the consumer side, commercial production of window films and PPF has begun. Jain said the window film vertical completed pilot distribution with more than 50 partners and the PPF vertical turned profitable soon after launch.

Cosmo First expects FY26 revenue of Rs 3,500–3,800 crore, with 12–18% growth projected the following year depending on raw material prices.

As the company positions itself across B2B and B2C categories, Jain said, “We aim to get recognised from a flexible packaging player to a diversified packaging and consumer business conglomerate. The upcoming years will be a period of monetisation of the new businesses and investments that has already started to take shape.”