Knack Packaging renews major animal nutrition bag contract, revenue up 52.52%

Knack Packaging has renewed for three years, through December 2028, a contract with one of the world's largest private animal nutrition groups to supply about 60 million bags a year, worth about USD 16m (INR 1,500m) annually. The Ahmedabad-based woven polypropylene bag maker reported record Q2 FY27 revenue of USD 31.38m (INR 2,947.57m), up 52.52% and driven mainly by price increases, while EBITDA margin fell to 16.35% from 19.2% on polymer and freight costs.

Why this mattersA three-year commitment for about 60 million bags a year secures volume for plants running at 90-91% utilisation while polymer and freight costs squeeze margins.

• Contract renewed for three years to December 2028, covering about 60 million bags a year worth about USD 16m (INR 1,500m) annually
• Q2 FY27 revenue was USD 31.38m (INR 2,947.57m), up 52.52% from USD 20.58m (INR 1,932.57m)
• Sales volume rose 13% to 11,252 tonnes; management attributed the revenue growth mainly to price increases
• Profit after tax rose 21.24% to USD 2.66m (INR 250.20m); EBITDA margin fell to 16.35% from 19.2%
• The 50%-owned Mexican joint venture Sayem Knack lost USD 0.65m (INR 60.60m) in the half-year during its scale-up
• 5,040 tonnes of capacity was added in August 2026; plant utilisation is about 90-91%

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