ARC Insulation & Insulators Ltd. Share Price

Diksha Polymers

• Diksha Polymers is coming out with an initial public offering (IPO) of 15,98,400 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 112 per equity share.
• The issue will open on June 17, 2026 and will close on June 19, 2026.
• The shares will be listed on SME Platform of BSE.
• The share is priced at 11.2 times higher to its face value of Rs 10.
• Book running lead manager to the issue is Aryaman Financial Services.
• Compliance Officer for the issue is Chanchal Gaur.

Profile of the company

The company is engaged in the business of manufacturing PET Bottles/ Containers and PET Preforms. PET Containers are majorly used for storage of beverages, oils, any other ancillary products. PET Preforms is used as a raw material to manufacture PET Containers. It currently operates through three manufacturing facilities which are located at part of Plot 33, part of 32 (1) and part of 62, Industrial Area, Maharajpura, Gwalior in Madhya Pradesh, India and is spread across 26,879 sq. ft on total basis.

The company is able to cater to various companies who generally require components of different size and shapes. All the moulding takes place at its facility on machines which has an installed capacity of 2,163 MTPA for PET bottles and 1,913 MTPA for PET Preforms and it mould products ranging from 8gm to 250gms. Its PET Preforms and PET Containers are plastic products are manufactured using injection moulding and blow moulding techniques, ensuring precision and durability. PET Containers has application across a wide range of industries, including lubricants, food and beverages, consumer goods, pharmaceuticals, agrochemicals, etc. 

Proceed is being used for:

• Repayment/ prepayment, in full or in part, of certain outstanding borrowings 
• General corporate purpose

Industry overview

The India PET bottle market is currently experiencing a transformative phase, driven by a convergence of factors that underscore the dynamic evolution of packaging and beverage industries. Firstly, technological advancements have emerged as a primary driver, reshaping the PET bottle landscape. Additionally, innovations in manufacturing processes, such as advanced injection molding and blow molding techniques, are enhancing production efficiency, allowing for a diverse range of bottle sizes, shapes, and designs. Besides this, with increasing environmental awareness, the industry is witnessing a shift towards eco-friendly practices. Moreover, manufacturers are exploring and implementing methods to reduce the environmental impact of PET bottles, including lightweighting designs to minimize material usage and promoting recycling initiatives.

The India Plastic Bottles market size is estimated at $1.31 billion in 2025, and is expected to reach $1.44 billion by 2030, at a CAGR of 1.9% during the forecast period (2025-2030). In terms of production volume, the market is expected to grow from 1.45 million tonnes in 2025 to 1.58 million tonnes by 2030, at a CAGR of 1.8% during the forecast period (2025-2030).

India is poised to witness a surge in demand for polyethylene, a favored material for packaging. This uptick is predominantly fueled by the escalating needs of the packaging industry, propelled by the expansion of the organized retail landscape. In February 2024, India, through the Bureau of Indian Standards (BIS) under the Ministry of Consumer Affairs, set minimum standards for polyethylene derivatives. India has exempted recycled polyethylene granules, pellets, and powder from quality regulations. The order mandates specific sampling and testing methods for low-density polyethylene (LDPE), linear low-density polyethylene (LLDPE), and high-density polyethylene (HDPE) materials and their compounds.

Pros and strengths

Integrated and well-established manufacturing setup: The company operates through three plastic products manufacturing facilities. The integrated nature of its manufacturing facilities has resulted in the control over all aspects of its operations as well as operating margins, thereby enabling it to focus more on quality and create multiple products for sale across the value chain. It primarily focuses on manufacturing PET Preforms and PET Containers/Bottles.

Healthy financial performance: The company has maintained a healthy balance sheet. It strives to maintain a robust financial position with emphasis on having a strong balance sheet and increased profitability. On account of an increase in sales, its revenue from operations has grown at a CAGR of 61.23% from Rs 1,972.37 lakh in Fiscal 2024 to Rs 5,127.34 lakh in Fiscal 2026, while its Net Worth has grown from Rs 177.26 lakh as of March 31, 2024 to Rs 852.09 lakh as of March 31, 2026. Its restated profit after tax has grown from Rs 101.15 lakh in Fiscal 2024 to Rs 411.74 lakh in Fiscal 2026. It has prudently utilized its resources, which has enabled it to fund its expansions through its internal accruals. Its operational and financial performance will allow it to take advantage of the growth opportunities in the ever-growing plastic industry.

Product portfolio: Its products primarily comprise of PET Bottles, PET Preforms, Caps which amounts to 97.28%, 98.86% and 95.55% of total revenue from operations for the F.Y 2025-26, F.Y 2024-25 and 2023-24 respectively, as per its Restated Financial Statements. Its product range has resulted in a product mix, which has reduced its dependency on a single product and de-risked its revenue streams.

Risks and concerns

High dependence on PET bottles segment revenue: The company derives a significant portion of its revenue from the sale of PET plastic bottles. The PET bottles/containers segment contributed 71.30%, 80.16%, and 91.92% of the company's total revenue during FY 2025-26, FY 2024-25, and FY 2023-24, respectively. Its failure to effectively react to demand and supply situations or to successfully introduce new products or services in the markets could adversely affect its business, prospects, results of operations, financial condition, and cash flows. Any factor which affects the demand for its products would lead it to change its manufacturing as well as marketing strategies and set ups and could entail additional cost outlay and losses.

Heavy reliance on top suppliers: The company is dependent on a top ten suppliers for procuring the raw materials for manufacturing of its products. For the financial year ended March 31, 2026, March 31, 2025 and March 31, 2024 its top ten suppliers accounted for around 99.67%, 98.30% and 99.94% of its total purchases. The company has not entered into agreement with any of its suppliers. If any of its major suppliers ceases to have business dealings with it or materially reduces the quantity of raw materials supplied to it and it is unable to secure new suppliers for such raw materials to meet the requirements at its manufacturing plants, its production schedule may be delayed and its business, financial condition, results of operations and prospects will be adversely affected.

Loss of key customers could materially impact revenue: The company is significantly dependent on top ten customers for its revenue in a particular financial year. The company's top 10 customers contributed 88.93%, 92.67%, and 94.69% of its total revenue during FY 2025-26, FY 2024-25, and FY 2023-24, respectively. Its top customers may vary from period to period depending on the demand and thus the composition and revenue generated from these customers might change as it continues to add new customers in normal course of business. Since its business is dependent among few significant customers, it could experience a reduction in its results of operations, cash flows and liquidity if its losses one or more of these customers or the amount of business it obtains from them is reduced for any reason. The loss of any one or more of such customers may have a material effect on its business operations and profitability.

Outlook

Diksha Polymers is engaged in business of manufacturing of plastic products such as PET bottles/ containers and PET Preforms. It sells its products in Business-to-Business Model (B2B), to the manufacturer/traders who use its product as packaging materials for their products. It operates through three manufacturing facilities located at Gwalior, Madhya Pradesh. Its presence in these locations allows to have easy access to raw materials and end users both which helps it overcomes significant entry barriers in comparison with its competitors. On the concern side, a significant portion of its revenue is derived from Madhya Pradesh, making its business vulnerable to regional economic fluctuations and regulatory changes. Any adverse developments in these states-such as economic downturns, changes in local laws, or increased competition-could lead to a substantial loss of revenue.

The company is coming out with an IPO of 15,98,400 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 112 per equity share to mobilize Rs 17.90 crore. On performance front, in FY 2025-26, its total income increased by 20.02% to Rs 5,127.34 lakh in FY 2025-26 from Rs 4,272.20 lakh in FY 2024-25. Its profit after tax increased by 56.51% to Rs 411.77 lakh in FY 2025-26 from Rs 263.10 lakh in FY 2024-25.

In order to effectively expand its product portfolio, business reach and also grow in market share, along with effectively utilizing its existing facilities it needs to have access to a larger amount of liquid funds and sufficient working capital. It wants to give more credit period to its debtors to increase its sales and simultaneously it wants to manage its credit period to get better pricing to increase its profitability. Further the demand of PET containers is continuously growing and are well positioned to take advantage of such growing demands in the industry. Due to this growing demand, it expects to increase its order taking appetite thus increasing its volumes, revenues and scale of operations and it will requires substantial working capital for the same.