Dhaval Packaging Ltd. IPO

Dhaval Packaging 

• Dhaval Packaging is coming out with an initial public offering (IPO) of 37,48,800 shares in a price band of Rs 92-97 per equity share.
• The issue will open for subscription on July 30, 2026 and will close on August 3, 2026.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 9.20 times of its face value on the lower side and 9.70 times on the higher side.
• Book running lead manager to the issue is Rarever Financial Advisors.
• Compliance officer for the issue is Jeet Alkeshkumar Shah.

Profile of the company

Dhaval Packaging designs, manufactures, and supplies plastic packaging solutions for domestic and international markets. Its core philosophy is to translate brand intent into manufacturable and scalable packaging solutions for food and FMCG categories such as sweets, dairy, dry fruits, bakery and other related items. It positions itself as a solutions partner that aligns design, materials, labelling, and tooling with production realities so that packaging enhances shelf presence, protects product integrity, and supports reliable throughput on customer lines.

The company is certified for key international management standards, reflecting its focus on quality, environmental responsibility, workplace safety, and process reliability. The Company holds ISO 14001:2015 certification for its Environmental Management System, ISO 9001:2015 certification for its Quality Management System, and ISO 45001:2018 certification for Occupational Health and Safety Management Systems, each covering the scope of manufacturing Plastic IML (In-Mold Labeling) food containers, plastic food containers, Plastic IML sweet boxes, plastic square boxes, plastic lids, plastic spoons, plastic trays, and plastic end caps. 

In addition, the company is certified under ISO/IEC 17025:2017 for compliance with general requirements for the competence of testing and calibration laboratories, further strengthening its commitment to maintaining testing accuracy and product quality across its manufacturing operations. Its products span two categories, including IML Containers and SAW (Submerged Arc Welded) Pipe Protection Plastic Caps (End Caps).

Proceed is being used for:

• Part finance the cost of establishing new manufacturing facility at Taluka Sanand, District Ahmedabad (Proposed facility)
• Full or part repayment and/or prepayment of certain outstanding secured borrowings availed by the company
• General corporate purposes

Industry overview

The Indian plastic packaging sector is a vital and rapidly expanding segment of the country's broader packaging industry, driven by increasing demand from FMCG, pharmaceuticals, and retail sectors. Plastic packaging is favoured for its versatility, lightweight nature, durability, cost-effectiveness, and ability to preserve and protect products throughout the supply chain. It includes both rigid plastics (bottles, containers, closures, trays) and flexible plastics (films, pouches, sachets), with flexible packaging witnessing particularly high growth due to its convenience and adaptability.

India’s plastic packaging ecosystem witnessed significant activity in FY 2024, with a total of 7,88,027 tonnes of plastic packaging placed on the market by all IPP (Importers, Producers, and Packers) brands. This reflects the growing scale of packaged goods consumption across sectors such as FMCG and pharmaceuticals. A closer look at the composition reveals that rigid plastic packaging held the dominant share at 67%, compared to 33% for flexible packaging, indicating a strong reliance on sturdy and durable formats for product safety and shelf appeal. Additionally, primary packaging, which directly encloses the product, made up a staggering 92% of total usage, while secondary packaging, meant for grouping and transport, accounted for only 8%. These insights highlight the critical role of primary, rigid plastic packaging in India’s supply chains, driven by hygiene standards, consumer convenience, and the need for robust protection in long-distance logistics.

The In-Mold Labelling (IML) and SAW Pipe Protection Plastic caps segments in India are experiencing a structural transformation driven by evolving end-user expectations, stricter environmental regulations, and the increasing adoption of automation and quality-driven packaging standards. While legacy manufacturers with large-scale production capabilities dominate volumes, the market is gradually opening up to innovation-led niche players focused on customization, sustainability, and integration with automated production lines. In sectors like FMCG, industrial packaging, infrastructure, and oil & gas, demand is being shaped by higher product safety, branding needs, and efficiency in logistics and shelfreadiness.

Pros and strengths

In-house IML manufacturing with automation: It runs In-Mold Labelling as a fully in-house, end-to-end process, integrating pre-press and label readiness with injection molding machines equipped with robotic take-out and handling. This setup shortens cycle times, stabilises changeovers, and gives it tights control over critical-to-quality parameters like bond integrity between label and substrate, surface finish, dimensional accuracy, and colour fidelity across long runs. By keeping tooling, label integration, and molding under one roof, it eliminates handoffs that typically introduce variability, so artwork approvals translate cleanly into production without rework or delays. Automation is embedded at each step: robots manage part extraction and placement with consistent timing; in-line checks flag variances early; and standardised work instructions lock in repeatability when it scales programs. The result is faster ramp-up from pilot to volume and reliable on-time dispatch even under compressed customer timelines.

Backward integration: Its label integration with Octa Labels turns IML into a single, governed workflow including artwork, pre-press, substrate selection and molding are planned as one schedule instead of a chain of vendors. That alignment gives it direct control over the critical path: it can book press time against molding windows, lock specifications before trials, and gate each step through the same quality system. Because the decision-makers for design, materials and production sit on the same side of the table, escalation is faster and trade-offs are resolved in hours, not days.

Dual-Segment portfolio: It runs two complementary product lines under one operating system, allowing it to serve distinct demand profiles without fragmenting execution. The IML line is oriented to brand-led, food-grade programs with tight artwork discipline and finish quality, while End Caps address industrial movement where fit, durability, and handling resilience are paramount. Managing both inside a single governance and QA framework lets it shares tooling know-how, CTQ controls, and automation practices, so development gates (design approval, trials, qualification, run-at-rate) remain consistent even when the end use differs. This structure improves plant utilisation and delivery reliability. It can allocate machine time across seasonally peaking consumer volumes and project-based industrial orders, absorb short-notice call-offs, and stage split dispatches without creating separate islands of capacity. Commercially, it broadens its solutions stack, IML primary packaging where branding matters and protective components for downstream logistics, delivered through a common operating and quality framework.

Risks and concerns

Revenue reliance on top 10 customers: The company derives a significant portion of its revenue from sale of products from its top 10 customers. The top 10 customers accounted for 51.27%, 46.37%, and 49.76% of its revenue from operations for the fiscal years ended March 31, 2026, March 31, 2025, and March 31, 2024, respectively. Additionally, a significant portion of its revenue from operations is derived from its existing customers. Loss of any such customers or reduction in business or demand from such customers will have a significant adverse impact on its business and results of operation.

High supplier concentration risk: It depends on a limited number of suppliers for its raw material requirements of its business. For the year ended March 31, 2026, March 31, 2025 and March 31, 2024, its top 10 suppliers contributed around 88.31%, 89.98% and 94.86% respectively of its purchases. It is, to a major extent, dependent on external suppliers for its raw material requirements; it does not have any long-term supply agreements or commitments in relation to the same used in its business process. Further, it does not have definitive agreements or fixed terms of trade with most of its suppliers. Failure to successfully leverage its relationships with existing suppliers or to identify new suppliers could adversely affect its business operations.

Dependence on two key states for revenue: The company derives a significant portion of its revenue from customers located in the States of Gujarat and Maharashtra. For the Fiscals 2026, 2025 and 2024, 85.92%, 86.32% and 78.69%, respectively, of its revenue from operations was generated from customers situated in these two States. The concentration of revenue in two States exposes it to risks arising from adverse economic, social, political or regulatory developments in these regions. Its business may be adversely affected if it is unable to diversify geographically or reduce such concentration risk. Any adverse developments in these regions could adversely impact its business, financial condition and results of operations.

Outlook

Dhaval Packaging is engaged in the business of manufacturing and trading of plastic packaging materials, pipe protection material and related products. It primarily caters to industrial clients across various sectors requiring customized packaging solutions. On the concern side, any increase in raw material prices may affect its procurement of raw materials and will result in corresponding increases in its product costs, while the increase in the selling price of the finished products may not be in proportionate to the increase in raw material price. Such change in pricing may adversely affect its sales, cash flow and its overall profitability.

The company is coming out with a maiden IPO of 37,48,800 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 92-97 per equity share. The aggregate size of the offer is around Rs 34.49 crore to Rs 36.36 crore based on lower and upper price band respectively. On performance front, its total income increased by 24.36% from Rs 5,242.88 lakh in the financial year ended March 31, 2025, to Rs 6,520.23 lakh in the financial year ended March 31, 2026. Profit for the period increased by 33.05% to Rs 803.89 lakh in the financial year ended March 31, 2026, from Rs 604.22 lakh in the financial year ended March 31, 2025.

Meanwhile, it intends to position IML containers as a clear brand upgrade that also improves line reliability and reduces packaging cost for food and FMCG brands that use sticker-labelled containers. It shall target categories that face handling and moisture issues, such as sweets, dairy products, ice cream, ready-to-eat foods, bakery, confectionery, pharmaceuticals, agro food products and frozen foods. Its marketing messaging will focus on scuff-resistant branding, consistent colour, fewer labelling errors, and a cleaner shelf presentation.

The revenue zoomed 21.03% to Rs. 35588.70 millions for the quarter ended June 2026 as compared to Rs. 29404.70 millions during the corresponding quarter last year.A humble growth in net profit of 8.03% reported in the quarter ended June 2026 to Rs. 3700.70  millions from Rs. 3425.50 millions.Operating Profit saw a handsome growth to 5397.10 millions from 5009.10 millions in the quarter ended June 2026.

(Rs. in Million)

	Quarter ended			Year to Date			Year ended
	202606	202506	% Var	202606	202506	% Var	202512	202412	% Var
Sales	35588.70	29404.70	21.03	67429.30	59505.40	13.32	132027.30	121883.10	8.32
Other Income	926.70	997.50	-7.10	1923.10	1920.80	0.12	3523.60	3534.00	-0.29
PBIDT	5397.10	5009.10	7.75	10477.50	11528.40	-9.12	23953.60	26586.30	-9.90
Interest	17.10	41.80	-59.09	55.20	88.70	-37.77	198.90	164.50	20.91
PBDT	5380.00	4967.30	8.31	10422.30	11439.70	-8.89	23754.70	26421.80	-10.09
Depreciation	392.30	353.50	10.98	815.90	689.30	18.37	1455.30	1289.20	12.88
PBT	4987.70	4613.80	8.10	9606.40	10750.40	-10.64	22299.40	25132.60	-11.27
TAX	1287.00	1188.30	8.31	2486.60	2751.80	-9.64	5605.40	6386.50	-12.23
Deferred Tax	-180.00	132.30	-236.05	-206.90	219.40	-194.30	389.20	77.70	400.90
PAT	3700.70	3425.50	8.03	7119.80	7998.60	-10.99	16694.00	18746.10	-10.95
Equity	423.80	423.80	0.00	423.80	423.80	0.00	423.80	423.80	0.00
PBIDTM(%)	15.17	17.04	-10.98	15.54	19.37	-19.80	18.14	21.81	-16.83

The revenue for the June 2026 quarter is pegged at Rs. 7854.10 millions, about 6.05% up against Rs. 7405.70 millions recorded during the year-ago period.The Total revenue for the quarter ended June 2026 of  Rs. 53.10  millions  grew by 637.50% from Rs. 7.20 millions.Operating profit surged to 363.40 millions from the corresponding previous quarter of 306.80 millions.

(Rs. in Million)

	Quarter ended			Year to Date			Year ended
	202606	202506	% Var	202606	202506	% Var	202603	202503	% Var
Sales	7854.10	7405.70	6.05	7854.10	7405.70	6.05	28065.10	26550.00	5.71
Other Income	58.50	80.60	-27.42	58.50	80.60	-27.42	234.10	189.60	23.47
PBIDT	363.40	306.80	18.45	363.40	306.80	18.45	1954.30	1870.40	4.49
Interest	158.20	157.70	0.32	158.20	157.70	0.32	487.60	502.80	-3.02
PBDT	205.20	149.10	37.63	205.20	149.10	37.63	1466.70	1367.60	7.25
Depreciation	130.60	138.00	-5.36	130.60	138.00	-5.36	621.00	619.20	0.29
PBT	74.60	11.10	572.07	74.60	11.10	572.07	845.70	748.40	13.00
TAX	21.50	3.90	451.28	21.50	3.90	451.28	205.00	226.90	-9.65
Deferred Tax	8.50	2.00	325.00	8.50	2.00	325.00	57.80	97.60	-40.78
PAT	53.10	7.20	637.50	53.10	7.20	637.50	640.70	521.50	22.86
Equity	643.00	643.00	0.00	643.00	643.00	0.00	643.00	653.80	-1.65
PBIDTM(%)	4.63	4.14	11.69	4.63	4.14	11.69	6.96	7.04	-1.15

The company witnessed a 18.14% growth in the revenue at Rs. 11900.80 millions for the quarter ended June 2026 as compared to Rs. 10073.20 millions during the year-ago period.Profit for the quarter ended June 2026 rises by 56.29% to Rs. 1557.70  millions from Rs. 996.70 millions.Operating profit surged to 2415.30 millions from the corresponding previous quarter of 1646.00 millions.

(Rs. in Million)

	Quarter ended			Year to Date			Year ended
	202606	202506	% Var	202606	202506	% Var	202603	202503	% Var
Sales	11900.80	10073.20	18.14	11900.80	10073.20	18.14	43743.10	42188.20	3.69
Other Income	223.10	186.40	19.69	223.10	186.40	19.69	792.90	678.50	16.86
PBIDT	2415.30	1646.00	46.74	2415.30	1646.00	46.74	7741.50	5577.30	38.80
Interest	22.10	16.80	31.55	22.10	16.80	31.55	87.20	88.80	-1.80
PBDT	2393.20	1629.20	46.89	2393.20	1629.20	46.89	7437.20	4364.70	70.39
Depreciation	299.20	288.60	3.67	299.20	288.60	3.67	1179.20	1172.20	0.60
PBT	2094.00	1340.60	56.20	2094.00	1340.60	56.20	6258.00	3192.50	96.02
TAX	536.30	343.90	55.95	536.30	343.90	55.95	1690.30	1151.10	46.84
Deferred Tax	-14.10	-3.80	271.05	-14.10	-3.80	271.05	-17.30	-22.50	-23.11
PAT	1557.70	996.70	56.29	1557.70	996.70	56.29	4567.70	2041.40	123.75
Equity	159.30	159.30	0.00	159.30	159.30	0.00	159.30	159.30	0.00
PBIDTM(%)	20.30	16.34	24.20	20.30	16.34	24.20	17.70	13.22	33.87

The revenue for the June 2026 quarter is pegged at Rs. 6738.00 millions, about 8.57% up against Rs. 6206.00 millions recorded during the year-ago period.A humble growth in net profit of 14.89% reported in the quarter ended June 2026 to Rs. 540.00  millions from Rs. 470.00 millions.Operating Profit saw a handsome growth to 920.00 millions from 791.00 millions in the quarter ended June 2026.

(Rs. in Million)

	Quarter ended			Year to Date			Year ended
	202606	202506	% Var	202606	202506	% Var	202603	202503	% Var
Sales	6738.00	6206.00	8.57	6738.00	6206.00	8.57	28281.00	29014.00	-2.53
Other Income	160.00	124.00	29.03	160.00	124.00	29.03	474.00	408.00	16.18
PBIDT	920.00	791.00	16.31	920.00	791.00	16.31	4357.00	4000.00	8.93
Interest	20.00	6.00	233.33	20.00	6.00	233.33	68.00	51.00	33.33
PBDT	900.00	785.00	14.65	900.00	785.00	14.65	3875.00	4057.00	-4.49
Depreciation	173.00	152.00	13.82	173.00	152.00	13.82	643.00	584.00	10.10
PBT	727.00	633.00	14.85	727.00	633.00	14.85	3232.00	3473.00	-6.94
TAX	187.00	163.00	14.72	187.00	163.00	14.72	842.00	852.00	-1.17
Deferred Tax	-19.00	-41.00	-53.66	-19.00	-41.00	-53.66	52.00	-143.00	-136.36
PAT	540.00	470.00	14.89	540.00	470.00	14.89	2390.00	2621.00	-8.81
Equity	159.00	159.00	0.00	159.00	159.00	0.00	159.00	159.00	0.00
PBIDTM(%)	13.65	12.75	7.13	13.65	12.75	7.13	15.41	13.79	11.75