EPL Limited held an earnings conference call on August 11, 2026, to discuss its unaudited standalone and consolidated financial results for the quarter ended June 30, 2026 (Q1 FY27). The transcript was submitted to the stock exchanges with a delay attributed to an inadvertent administrative oversight.

Financial Performance

  • Revenue grew by 25.3% year-over-year
  • EBITDA increased by 15.2% year-over-year
  • EBITDA margins stood at 18.8%
  • Underlying revenue growth (excluding pass-through impact of higher raw material prices) was 20%
  • Underlying EBITDA margin was 19.6%
  • PAT declined by 1.4% due to higher effective tax rate
  • PBT increased by 10% year-over-year
  • Return on capital employed was 18.5%

Business Segment Performance

  • Beauty & Cosmetics: Growth exceeded 20%
  • Oral Care: Growth crossed 20% mark
  • Personal Care & Beyond: Now accounts for 54% of portfolio

Regional Performance

  • EAP region: 34.3% growth
  • Americas: 29.4% growth
  • Europe: 20.2% growth
  • AMESA: 17% growth

Operational Highlights

  • Fifth consecutive quarter of double-digit growth
  • Fifteenth consecutive quarter of double-digit EBITDA growth
  • Sustainable tubes now account for 44% of product mix
  • Received ETMA Tube of the Year Award and FIPSA Awards for Responsible Packaging
  • Received IMC Ramkrishna Bajaj National Quality Award for Performance Excellence
  • Recognized as one of India's Best Company to Work For 2026

Working Capital and Investments

  • Net working capital increased significantly, primarily driven by inventory build-up
  • Inventory increase attributed to higher raw material prices and safety stock requirements
  • Made proactive growth investments ahead of curve in key strategic areas
  • Investments include front-end capabilities and capex in new technologies

Merger Update

  • Received approval from Competition Commission of India for proposed merger with Indovida
  • Transaction progressing well and on track to complete within planned timeline
  • Indovida reported strong Q1 results: 11% volume growth, 25% revenue growth, 62% EBITDA growth, margin expansion of 614 basis points to 27%, EBITDA of approximately INR 383 crores

Guidance and Outlook

  • Raised revenue growth guidance to high teens for next few quarters (from previous double-digit guidance)
  • Maintaining underlying EBITDA margin target of 20%
  • Expect double-digit PAT growth for full year FY27
  • Effective tax rate expected to be between 20-22% for FY27 (compared to 18% in FY26)

Strategic Priorities

1. Strengthen leadership in Beauty & Cosmetics category (current market share 8%, target 16%)

2. Accelerate presence in high-growth markets (Thailand operations ramping up)

3. Maintain focus on margins and capital efficiency

4. Expand beyond tubes into newer, higher-growth packaging formats

Cost Management

  • Successfully passed through entire cost increase (raw materials, freight, currency depreciation) to customers
  • Implemented judicious pricing across all regions and customers
  • Maintained strong customer relationships during volatile period
  • Business model demonstrated resilience to overcome commodity cycles

Q&A Highlights

  • Working capital increase driven by inventory price inflation and safety stock requirements
  • Europe facing operational challenges but expected to recover margins to mid-teens range
  • Americas EBITDA decline attributed to investments ahead of growth curve
  • Merger with Indovida expected to be EPS accretive
  • Volume growth not disclosed due to significant mix impact across categories and countries