Control Print Q1 Revenue Steady at ₹1,046 Million

Control Print Limited – Investor Presentation Summary

Key Operational Highlights

Installed base now exceeds 23,000 printers, adding 2,500–3,000 units annually, driving strong recurring revenue from consumables.
Presence in 1,700+ cities/towns and serving 2,700+ pin codes in India with 350+ sales and service engineers.
Key drivers: Robust printer sales supported by focused sales & promotion initiatives; strong performance in Indian operations with healthy order pipeline for FY27.

Segment-wise Performance

Coding & Marking Current Standalone (India) Business: Represents 90-95% of consolidated revenue; FY25 standalone revenue stood at ₹385 crore.
International Businesses: Markprint BV (digital printing) and Codeology UK (label printing & automation systems) provide complementary diversification.
Track & Trace: QRiousCodes brand offers cloud-based solutions for supply chain visibility and product authenticity.
Packaging: V Shapes business focuses on creating a second consumables annuity model.
Explanation: The company is consolidating market share in Pipes, Food, Dairy, Cable & Wire, FMCG, Steel & Metal, and Wood sectors, with Dairy, Sugar, Plywood, and Cement segments showing healthy traction.

Financial Highlights

Revenue: ₹1,046.3 million (Standalone Q1FY27)
Gross Profit: ₹603.5 million (Standalone Q1FY27)
EBITDA: ₹210.8 million (Standalone Q1FY27)
PAT (excl. exceptional): ₹123.9 million (Standalone Q1FY27)
EPS (excl. exceptional): ₹7.75 (Standalone Q1FY27)
Margins: Gross margin 57.68% (Standalone Q1FY27), EBITDA margin 20.15% (Standalone Q1FY27), PAT margin 11.84% (Standalone Q1FY27)
YoY comparison: Revenue up 4.2% YoY; PAT (excl. exceptional) down 28.3% YoY; EBITDA down 4.9% YoY
Drivers: Higher revenue growth offset by margin compression; exceptional items of ₹-39.9 million in Q1FY26 not repeated
Comparison to market estimates: Not Specified
Key Risks: Not Specified

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not Specified
Regional Breakdown: International infrastructure includes CP Italy SRL (Bologna, Italy) for packaging and track & trace, Markprint (Netherlands) for digital printing, and Codeology UK for automation systems. Domestic manufacturing at Nalagarh (30,000 sq.ft) and Guwahati (70,000 sq.ft) facilities.

Balance Sheet Snapshot

Net Debt/Equity: Not Specified
Reserves: Other Equity stood at ₹4,937.1 million (Standalone FY26)
Current Assets/Liabilities: Current Assets ₹3,315.5 million vs Current Liabilities ₹914.9 million (Standalone FY26)
Working Capital/Leverage Metrics: Not Specified
Financial Health Insights: Strong cash flow generation with annual operating cash flows consistently ≈₹50 crore and EBITDA-to-cash conversion of ~65%; zero borrowings.

Capex & Cash Flow Health

Capital Expenditure: New manufacturing facility in Assam on 46,823 sqm land (11.57 acres) with total consideration ₹861.18 lakhs; eligible for benefits under UNNATI 2024 scheme.
Free Cash Flow: Not Specified
Operating Cash Flow: Consistently ≈₹50 crore annually
Net Debt Movement: Not Specified
Investment Rationale: Focus on packaging business expansion and operational synergies with existing Guwahati operations.

Strategic & R&D Initiatives

Investments in Innovation: Acquired Intellectual Property Rights from CP Italy S.R.L. for ₹3,120.11 lakhs (≈ EURO 28.60 lakhs) recorded as Intangible Assets under development.
Expected impact: Strategic global acquisitions (Markprint BV, Codeology UK, V Shapes assets) diversify portfolio into digital printing, automation, sustainable packaging, and advanced track-and-trace.
Strategic Rationale: Expanding into high-growth markets including Europe and Middle East through subsidiary Control Print MEA FZE (UAE); manufacturing and selling international products in India.

Industry Trends & Business Environment

Macro/Industry Trends: Coding/marking essential for compliance (batch numbers, QR codes) across FMCG, healthcare; industry expected to grow at 1.5x GDP; Indian coding and marking industry estimated at ₹2,000-2,200 crore.
Impact on Company: Regulatory and habit-driven demand creates stable annuity business; company holds 18-20% market share in organized segment.

Management Commentary & Growth Outlook

Strategic Outlook: Three-pronged growth strategy: 1) Grow coding and marking business in India and globally, 2) Increase scale of Track and Trace business, 3) Enter and expand packaging business (Vshapes).
FY Guidance: Not Specified
Market Share Targets: Continue to outpace industry growth in India
Risks and Opportunities: Track & Trace segment expected to gain strong momentum; leveraging innovative QR code technology for anti-counterfeiting and customer engagement.

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