TCPL Packaging Q4 FY26 Revenue Up 9% YoY

Trading Symbol: TCPLPACK

Event Date: June 3, 2026

Q4 FY26 Financials:

Consolidated Total Income: INR 465 crore, representing over 9% year-on-year growth.
EBITDA (including other income): INR 81 crore.
EBITDA Margin: 17.4%.
Other Income: Primarily comprised of operational forex gains arising from exports during the quarter.
Cash Profit: INR 61 crore for the quarter.

Full Year FY26 Financials:

Consolidated Revenues: Approximately INR 1,836 crore, registering a growth of 3% year-on-year.
EBITDA: INR 318 crore.
EBITDA Margin: 17.3% for the full year.

Balance Sheet & Leverage (Consolidated, end of FY26):

Profitability Impact:

Finance costs were elevated during the year. An MTM (Mark-to-Market) loss of INR 18 crore was recognized due to adjustments on an ECB (External Commercial Borrowing). This is a non-cash accounting adjustment.
Deferred tax was higher due to timing differences related to the capex undertaken during the year, particularly for the Chennai greenfield and Silvassa gravure cylinder facilities.
The actual tax outgo and annualized tax rate remain in line with expectations.

Business Segment Performance:

Flexible Packaging Business: Delivered a strong performance with healthy capacity utilization across plants. The last commercialized line is operating at an optimum level.
Paperboard Segment (Chennai Plant): The greenfield facility has scaled up steadily with encouraging customer traction. Current utilization is more than 50%, with a positive outlook and recent customer approvals expected to aid further ramp-up.
Gravure Cylinder Facility (Silvassa): Recently commissioned facility has ramped up well. It strengthens backward integration, improves operating efficiency, and supports faster turnaround for customer requirements.
Creative (Noida Operations): The business improved over the last year, just about reaching EBITDA break-even in FY25 and showing further improvement in FY26. Management expects it to further improve towards cash and net profit in the coming year.

Market Dynamics:

Domestic Demand: Remained relatively stable and was supported by healthy consumption trends across key categories. Volume growth in the domestic business was ahead of underlying consumer market growth trends in India.
Export Markets: Faced significant challenges due to a subdued global demand environment and geopolitical disruptions in the Middle East during Q4, which affected shipments. Post-ceasefire, some improvement was noted with more vessels sailing, but the situation remains highly uncertain.
Growth Initiatives: Meaningful progress was made in strengthening presence in other international markets (UK, US, other North American countries, Europe, Africa, Southeast Asia) and deepening global customer relationships.

Raw Material (RM) Costs & Margins:

Margin performance was impacted by elevated RM costs and a timing lag in passing on cost inflation.
The company remains focused on calibrated pricing actions, product mix improvement, and operating efficiencies to support margin improvement over the coming quarters.
Paper prices have seen consistent increases over the last 3-4 months, with further increases anticipated, creating a challenge for cost pass-through.

Innovation & Sustainability:

Innovation and customer-centricity remain key differentiators. Continued investment in advanced technologies and future-ready packaging capabilities for FMCG, food and beverage, pharmaceutical, and consumer product segments.
EcoVadis Bronze Medal awarded in its debut sustainability assessment, placing the company among the top 35% of companies assessed globally.
Became a formal participant of the UN Global Compact.

Accolades:

Received the "Industry Best Practices" award from Marico Industries.
Six honours at the SIES SOP Star Awards, including the President's Award for innovation and sustainability.
Recognized as a "Most Preferred Workplace" in the manufacturing category.
"Best Supplier's Award" from customer Abbott.

FY27 Capex: Planned at approximately INR 100 crore.
The focus is on brownfield expansion in the flexible packaging business, which is running well-utilized.
Capex will also involve enhancing factory areas and building expansions in some plants to create scope for future volume growth.
The company maintains the capability to expand faster if market conditions require.

Demand Environment:

Domestic demand conditions remain encouraging, and the company expects a good year domestically.
Export recovery is anticipated as external conditions normalize, supported by groundwork in new geographies and customer relationships.

Margin Outlook:

Management is comfortable with the current margin front as cost increases are being passed through.
Future margin trajectory depends on whether cost increases persist and geopolitical situations prolong.

Capacity & Growth:

The new flexible packaging line is expected to be completed and commercialized by the end of FY27.
Operating leverage is expected to play out after the absorption period for new capacities, such as the fourth flexible packaging line and the ramp-up of the Chennai and Silvassa facilities.

Exports: Optimism for recovery in FY27; scaling up in UK, US, Europe, Africa, and Southeast Asia.
Domestic Growth: Momentum is broad-based across customer segments, not industry-specific.
Recyclable Films: Demand pickup in exports but limited in domestic market due to lack of government mandate and associated upcharge.
Segment Revenue Split: Flexible packaging constitutes about 20% of total revenue; the majority is from the folding carton business serving FMCG and food & beverage segments.
Leverage: Comfortable leverage metrics provide flexibility to invest in growth while maintaining financial discipline.