AGI Greenpac: A Decade of
Strategic Transformation
From diversified HSIL to India's #2 focused packaging leader
A good decade turning better:
Strategic portfolio pivot & rebrand enhances packaging focus Quality of earnings improved:
Operating margins expand to ~24% Balance sheet deleveraged, enabling next growth capex
cycle Regulatory tailwinds from India's sustainability push
Company Overview and Context
Business Lines
Container Glass
Packaging solutions for alcoholic
beverages, food, pharmaceuticals,
and cosmetics
Specialty Glass
Custom-designed glass packaging
for premium segments
PET Packaging
Recyclable plastic containers for various
industries
Caps & Closures
Complementary packaging solutions ensuring
product integrity
Company Profile
AGI Greenpac (formerly HSIL Ltd.) India's #2 container-glass
player
Diversified packaging portfolio including PET, specialty glass, caps &
closures
Source: Screener.in
Overview of Balance Sheet: 10 years
Total assets grew from ~₹2,705cr
(FY14) to ~₹3,496cr (FY25).
Indicates steady capacity additions and
reinvestments, but not an overly
aggressive expansion given ~48%
growth in 11 years.
Long-term borrowings peaked
around FY15–FY16 (>₹600cr), but fell
steadily to ~₹374cr by FY25.
This points to deleveraging,
strengthening the capital structure and
reducing financial risk.
Reserves rose from ~₹1,108cr (FY14) to
~₹2,053cr (FY25), almost doubling.
Signals consistent profit retention
(plowback) over dividends, contributing
to stronger net worth.
Source: Screener.in
Decade of Financial Performance : 2014–2025
Revenue & Margin Evolution
Cost Structure Evolution
Balance Sheet Strength
Key Narrative Insights
What the decade tells us:
Sales growth of ~48% over decade (₹1,708cr → ₹2,529cr)
Operating margin expanded from ~16% to ~24%
COVID dip in FY20–21 followed by sharp recovery
Strategic pivot in FY22 accelerated margin expansion
~48%
Decade Revenue Growth
+8pp
OPM Expansion
0.5x
Net-debt/EBITDA (FY25)
Overview of P/L Statement: 10 years
HSIL Ltd. (PreFY22)
Strategic Pivot
(FY22)
AGI Greenpac (PostFY22)
₹2,529cr
~24%
#2
Sales (FY25)
Operating Margin
(FY25)
Market Position in
India
Four Headline Insights Shaping Value Creation
Current Ratio
1
current ratio has steadily risen from below 1 in 2017 to over 1.33 in 2023,
signaling a clear improvement in short-term financial strength and
liquidity
net profit margin, long stuck at modest levels, shot up to double
digits in recent years, signaling a powerful boost in profitability and
business health
jump in margin means AGI Greenpac now has a financial cushion—it can
reinvest, withstand challenges, and return value to shareholders more reliably
2
quick ratio has steadily improved from 0.45 to 0.80, showing growing financial
flexibility and ability to cover immediate liabilities using its most liquid assets.
AGI Greenpac’s quick ratio fluctuated between 0.45 and 0.65, a sign that it was
sometimes a bit stretched on truly liquid resources.
AGI Greenpac has moved from borderline short-term solvency to a
more comfortable and resilient position
Net Profit Margin
Quick ratio
3
Operating profit margin
4
operating profit margin stayed robust and rebounded sharply after a dip,
confirming strong operational health and efficiency across the last decade.
After 2019, OPM rallied strongly, reaching 21.11% in 2021 and maintaining healthy
levels above 18% in subsequent years, signaling a major operational turnaround
Four Headline Insights Shaping Value Creation
5
Return on Assets (ROA)
Debt-to-Equity (D/E)
6
ROA surged from under 1% to nearly 8% in just a few years, proving a
massive improvement in asset efficiency and overall business
performance.
AGI Greenpac has drastically reduced its reliance on debt, with a debt-to-equity
ratio plummeting from 1.8 to 0.58, signalling far greater financial stability and
lower risk.
Since 2019, ROA rebounded quickly, reaching 7.82% in 2023, which
signals a much higher return from every rupee invested in the
company’s assets.
By 2023, D/E had dropped to 0.58, marking a clear shift to a healthier, more
financially resilient structure with much less borrowing
Return on Equity (ROE)
7
ROE recovered from historic lows to hit 16.51% in 2023, showing it’s now
using shareholder money far more effectively and delivering real value.
After 2019, ROE rebounded aggressively, reaching 16.51% in 2023, a clear signal of
improved profitability and stronger shareholder value.
Interest Coverage Ratio (ICR)
8
ICR climbed above 9 in recent years, highlighting a big improvement in its
ability to cover interest payments and a sharp reduction in financial risk.
The ratio hit 9.5 in 2021 and staying above 9 afterward, reflecting strong operating
income and much lower risk of default on debt payments.
DuPont Analysis
The 3-step DuPont identity decomposes Return on Equity as
ROE = Net Profit Margin × Asset Turnover × Equity Multiplier
Key Narrative Insights
From FY2014 to FY2025, ROE rose from 5.0% to 15.40% even as the equity multiplier eased from ~2.38 to ~2.57,
showing returns were driven by operating improvements rather than balance-sheet leverage expansion
What contributed to ROI gains: Attribution by log-change shows that between FY2018→FY2023, about 75% of ROE
improvement came from NPM, ~16% from AT, and ~9% from EM, and between FY2014→FY2023, about 75% came from
NPM, ~19% from AT, and ~6% from EM, underscoring that margin expansion is the dominant driver of the ROE
renaissance
Efficiency helped too: the company is generating more sales per rupee of assets than before, adding a useful tailwind
to ROE without leaning on debt.
Horizontal Analysis
Analyzing Profit and Loss YoY Values
Key Narrative Insights
Growth at a glance
1. Sales grew from 1,708 to 2,529 with a ~3.6% CAGR, while Operating Profit rose from
268 to 614 at ~7.8% CAGR, indicating operating leverage as costs scaled more slowly
than revenues over time.
2. Net Profit expanded from 56 to 322 at ~17.2% CAGR, outpacing both sales and
operating profit growth, reflecting improved margins and lower drag below the
operating line across the span.
3. Total Assets increased from 2,705 to 3,496 (~2.4% CAGR), suggesting measured
balance-sheet expansion relative to the profit growth achieved
Balance sheet shifts
1. Borrowings fell from 1,098 to 553 (−49.6% total change; ~−6.0% CAGR), while Equity
(capital + reserves) rose from 1,121 to 2,098 (+87.1% total change; ~5.9% CAGR), pointing
to deleveraging and stronger internal capital formation.
2. Net debt dropped from ~1,040 to ~189 (−81.8% total change), materially reducing
financial risk and interest burden over the period.
3. Cash balances climbed from 58 to 364 (+527.6% total change; ~18.2% CAGR), adding
a sizable liquidity buffer for working capital and investment needs.
What it means :
The return profile is being powered
by faster-growing profits than sales,
supported by deleveraging and a
rising equity base, which tends to be
more durable than debt-fuelled
growth through cycles.
Vertical Analysis
Analyzing Profit and Loss Values
Analyzing Balance Sheet Values
P&L insights (percent of sales)
Balance sheet shifts
1. Margin rebuild: Operating Profit/Sales improved from ~15.7%
(FY2014) to ~20.3% (FY2023) and ~24.3% (FY2025), showing
materially better unit economics on the income statement.
1. Balance-sheet strength: Equity share of assets rose from ~41.4%
(FY2014) to ~54.1% (FY2024), while Borrowings share fell from ~40.6% to
~18.4%, a cleaner capital mix that reduces risk while preserving flexibility
2. Net margin step-up: Net Profit/Sales rose from ~3.3% (FY2014)
to ~11.5% (FY2023) and ~12.7% (FY2025), reflecting the combined
effect of better operations and a lighter finance load per rupee
of revenue
2. Liquidity cushion: Cash equivalents rose as a share of assets from ~2.1%
(FY2014) to ~10.8% (FY2024), adding resilience for working capital and
investment needs.
3. Working-capital shape: Inventories fell from ~15.0% (FY2014) to ~11.8%
(FY2024), and receivables hovered around ~9–11%, pointing to tighter
working-capital intensity than earlier years on a common-size basis
AGI Greenpac: Data-Backed Investment Thesis
Structurally Better Positioned for the Packaging Decade Ahead
Investment Thesis : A Good Decade Turning Better
Over the last decade, AGI Greenpac has grown steadily while becoming more profitable and financially stronger. By focusing on glass
packaging, it has aligned itself with rising demand for sustainable solutions. Today, it is seen as a stable, reliable player in the market with good
potential to grow further.
Key Metrics Supporting Our Thesis
48% Growth
Revenue expansion from ₹1,708cr (FY14) to ₹2,529cr (FY25)
~24%
Operating margin (FY25) vs. ~16% in FY14
~0.5x
Net-Debt/EBITDA in FY25E, down from 1.28x in FY23
Regulatory Tailwinds
India's Single-Use Plastic Ban (July 2022): Nationwide ban on identified singleuse plastics
Push toward sustainable packaging alternatives Glass gaining favorable
regulatory status Brands shifting from plastic to recyclable glass
100%
Glass is infinitely recyclable without quality loss
17-20%
AGI's share of India's organized glass capacity
Made with Genspark AGI Greenpac: Strategic Transformation Analysis
Annexure
Worksheet
Greenfield Expansion: Madhya Pradesh Plant