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Many levers for growth and margin expansion to drive re-rating Healthy business performance even in a challenging year of FY26

FY26 was a year full of challenges. Tensions in West Asia, the prolonged RussiaUkraine conflict, and volatility in crude and polymer prices, freight costs and currency markets created an operating environment that could have placed significant pressure on margins. However, TIME not only weathered this turbulence but also converted it into an opportunity to demonstrate the strength of its strong and sustainable business model. FY26 turned out to be the most successful year in company's history, as revenue/EBITDA/PAT grew ~12%/14%/21% YoY, each scaling new highs. TIME’s predominantly B2B model, backed by a disciplined monthly pricing mechanism, allowed it to pass on input cost movements to customers with a lag of 20-25 days, thereby protecting margins even in an unpredictable external environment. This momentum continued in 1QFY27 and is expected to remain intact in the rest of FY27.

Business well on track for 13-15% volume growth, as guided

TIME management is confident of achieving 13-15% volume growth in the medium term, as guided earlier. We see many levers of growth that can help even surpass the guided growth range. On 29th Sep’26, the board will consider the merger of its ~75% subsidiary, TPL Plastech, with itself. TPL operates in the same line of rigid packaging product business and the merger is expected to boost operational efficiency. TPL posted FY26 revenue/PAT of INR4.2b/INR2.9b. The company recently completed its greenfield project, a fully automatic plant using robotics, at Bhilad, Gujarat (India), within the scheduled time. The plant will manufacture packaging products such as conical polymer pails and injection moulded products and has a revenue potential of INR1b. In the composite business, TIME continued to receive orders from its customers. The company continues to explore business opportunities in areas of hydrogen cylinders with a small order from NTPC’s locomotive pilot project.

Rising RM prices to boost value growth; margin may optically look lower

With a healthy YoY rise in key polymer prices and the company’s ability to pass on cost inflation, we expect revenue growth in excess of 20% in FY27 (up 25% YoY in 1Q). TIME operates on an absolute EBITDA/t basis; thus, margins may appear optically lower in an inflationary scenario. In our view, EBITDA growth tracking better than volume growth should be viewed as a healthy scenario. The company’s focus remains on efficiency improvement through plant automation and consolidation. PAT growth is expected to be boosted by savings on interest costs after debt repayment using QIP proceeds

Valuation and view

We reiterate our BUY rating on TIME with a TP of INR280 (55% upside), based on 20x FY28E EPS. We estimate 17%/16%/21% CAGR in revenue/EBITDA/PAT over FY26-28. Despite a QIP-led equity dilution, RoE/RoCE (pre-tax) are expected to expand to ~14%/19% in FY28 (FY24: ~12%/17%), driven by healthy operating results, improved efficiency, and better working capital cycle.

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