Company Overview

EPL Limited (BSE: 500135, NSE: EPL) reported strong financial performance for FY 2025-26 with integrated annual results showing robust growth across key metrics.

Financial Performance

Consolidated Results:

  • Revenue: ₹47,631 million (13.0% YoY growth)
  • EBITDA: ₹9,724 million (15.8% YoY growth)
  • EBITDA Margin: 20.4% (49 bps improvement)
  • PAT: ₹4,171 million (15.0% growth excluding exceptional items)
  • ROCE: 19.0% (96 bps improvement)
  • Net Debt/EBITDA: 0.52x
  • Capital Expenditure: ₹4,815 million

Standalone Results:

  • Revenue from Operations: ₹13,829 million
  • Net Profit: ₹2,949 million (40.5% YoY growth)
  • Dividend Income from Subsidiaries: ₹1,598 million
  • Earnings Per Share (Basic): ₹9.22
  • Interim Dividend: ₹2.50 per share declared

Segment Performance

  • Personal Care & Beyond: 53% of tube revenue
  • Beauty & Cosmetics: 29.3% YoY growth
  • Oral Care: 3.4% YoY growth
  • Regional Performance: Americas (21.1% growth), EAP (15.7% growth), Europe (10.4% growth), AMESA (5.1% growth)
  • Geographic Revenue: AMESA ₹13.20B, EAP ₹10.07B, AMERICAS ₹13.44B, EUROPE ₹10.92B

Proposed Merger with Indovida India

The Board approved a Scheme of Amalgamation with Indovida India Private Limited on March 29, 2026, creating a combined entity with:

  • ~$1 billion revenue platform
  • 75% emerging market exposure
  • Expected synergies of $35-50 million over 5 years
  • Net Debt/EBITDA reduction from 0.5x to 0.25x
  • Share exchange ratio: 286 EPL shares for every 10,000 Indovida shares
  • Subject to shareholder, regulatory and judicial approvals
  • ₹156 million incurred in merger-related costs during FY26

Sustainability Achievements

  • EcoVadis Platinum Rating: Top 1% of 150,000 companies globally
  • CDP Climate and Water A List 2025: Top ~2% of companies globally
  • Sustainable Tubes: 39% of portfolio (33% in FY25)
  • Renewable Energy: 23% of total consumption
  • Water Recycling: 55% rate (100 ML recycled)
  • Waste Diversion: 98% from landfill
  • SBTi Validation: Net Zero by 2050 targets approved
  • Energy Conservation: Saved ~1.08 million kWh through various initiatives

Operational Highlights

  • Manufacturing: 21 facilities across 11 countries producing over 9 billion tubes annually
  • Global Workforce: 6,157 employees across 23 nationalities with 32.50% women representation
  • R&D Expenditure: ₹177.42 million (~1.28% of turnover)
  • Patents: 27 secured in FY26, total 154 granted patents globally
  • Foreign Exchange: Earnings of ₹4,997.12 million (44.9% YoY increase)

Corporate Governance & Compliance

  • Board comprises 9 directors with 3 independent directors
  • All Board Committees functional (Audit, NRC, CSR, Risk Management, Stakeholders Relationship, Security)
  • Unmodified audit opinions from statutory, secretarial, and cost auditors
  • CSR spending of ₹365.82 million, exceeding mandatory obligation by ₹5.44 million
  • Complied with all SEBI LODR Regulations and Companies Act requirements

Capital Structure & Ownership

  • Paid-up Equity Capital: ₹641 million (320,247,843 shares of ₹2 each)
  • ESOP Allotment: 688,108 shares issued under ESOS 2020 during FY26
  • Major Ownership Change: Indorama Netherlands BV acquired 24.9% stake from Epsilon Bidco Pte Ltd, reducing Epsilon's holding from 51.31% to 26.38%
  • Investments: Total ₹4,520 million including ₹1,500 million in EPL Brasil LTDA and ₹301 million in new Thailand subsidiary

Risk Management

  • Credit Risk: Trade receivables of ₹8,776 million with expected credit loss allowance of ₹66 million
  • Liquidity Risk: Borrowings maturity profile shows ₹1,314 million due <1 year, ₹3,802 million due 1-5 years
  • Foreign Currency Exposure: Net exposure USD (200M), EUR (818M), CHF (306M), GBP 28M
  • Interest Rate Risk: ₹5,833 million variable rate borrowings, 50bps change impacts PBT by ₹29 million

Forward Outlook

  • Focus on double-digit growth with EBITDA margins above 20%
  • Continue investments in innovation, manufacturing capabilities, and digital transformation
  • Advance sustainability goals including 60% sustainable tube portfolio by 2030
  • Pursue strategic opportunities including Indovida merger completion
  • Target 350,000 kWh/month energy savings in FY27