TCPL Packaging Limited Q2 & H1 FY27 Earnings Conference Call Summary

Trading Symbol: TCPLPACK

Financial Performance Highlights

Q2 FY27 Consolidated Results:

  • Total Income: ₹564.6 crore, growth of 20.2% year-on-year
  • EBITDA (including other income): ₹100.1 crore, increase of 27.5% YoY
  • EBITDA Margin: 17.7%, improvement of approximately 100 basis points
  • PAT: ₹45.3 crore, growth of 57.7% YoY
  • Cash Profit: ₹84.9 crore, growth of 44.2% YoY

H1 FY27 Consolidated Results:

  • Total Income: ₹1,059.5 crore, growth of 18.2% YoY
  • EBITDA: ₹188 crore, increase of 22.5% YoY
  • EBITDA Margin: 17.7%, improvement of 63 basis points
  • PAT: ₹85.3 crore, growth of 67.2% YoY
  • Cash Profit: ₹160.5 crore, growth of 49.5% YoY

Business Performance and Operational Highlights

The company achieved significant milestones by crossing ₹500 crore in quarterly total income and ₹100 crore in quarterly EBITDA for the first time. Performance was driven by:

  • Sustained business momentum and healthy customer demand across packaging segments
  • Continued focus on operational efficiencies and customer relationships
  • Domestic business sustaining double-digit growth
  • Satisfactory export performance despite challenging geopolitical environment
  • Benefits from pricing actions, favorable product mix, and positive operating leverage

Strategic Initiatives

TCPL Energy Materials Limited:

  • Incorporated on September 24, 2026, as a wholly-owned subsidiary
  • Will undertake lithium-ion battery separator films business
  • Represents diversification into electric mobility, grid-scale energy storage, and other applications
  • Currently in initial stages with focus on establishing manufacturing infrastructure and building capabilities
  • Long-term strategic initiative with phased approach to implementation

Industry Recognition

The company received multiple awards during the year:

  • 'Packaging Converter (F&B) of the Year' at PrintWeek Awards 2026
  • 4 Awards at India Star Awards 2026
  • 6 honours at IFCA Awards 2026 across Folding Cartons and Flexible Packaging categories

Management Commentary and Outlook

Management remains positive about growth opportunities across paperboard and flexible packaging businesses. Key focus areas include:

  • Improving operational efficiencies
  • Maintaining focus on profitability
  • Sustaining historical revenue growth trajectory
  • Enhancing cash generation
  • Creating long-term value for stakeholders

Question & Answer Session Highlights

Growth Drivers: Growth was broad-based with good mix of price and volume increases. Volume growth was particularly strong in domestic segment and flexible packaging business. Export performance was satisfactory but domestic-led.

Margin Sustainability: Margin improvement driven by scale improvement and operational level. Sustainability depends on continuation of current working conditions.

Battery Separator Films Business:

  • Phase 1 is a "baby step" with sufficient land and infrastructure for scaling over 5-6 years
  • Initial revenue target: up to ₹200 crore on current investment
  • Long-term potential: ₹1,000-2,000 crore at full scale
  • Technology agnostic to battery chemistry (LFP, NMC, all lithium-ion cell types)
  • Manufacturing process: Starting with water-based coating, then backward integration into extrusion
  • Capacity: 8-12 million square meters required per GWh of cell capacity
  • Cost: 6-10% of cell cost (not pack cost)
  • Competitive advantages: Process know-how, first-mover advantage in India, technical complexity

Working Capital: Working capital position described as "okay" with virtually no change in working capital debt. Company aims for constant improvement.

Subsidiary Performance (COPPL): Growth disappointing due to memory chip price increases affecting smartphone volumes and export-oriented business not panning out as expected due to geopolitical disruptions.

Chennai Facility: Steadily improving utilization with potential for additional line next year.

Debt Levels: Operating at around 2x debt to EBITDA, considered reasonable with no substantial reduction planned.

Flexible Packaging vs Paperboard: Approximately 1/4 of business is flexible packaging (shared annually). Flexible packaging performed better with good growth in both domestic and export markets.

Customer Pipeline for Separator Business: Engaging with potential customers including Reliance, Amara Raja, Exide, Ola, and others. Formal contracts will take time as plant is not yet operational.

Closing Remarks

Management thanked participants and wished Happy Diwali and Happy New Year.