💰 Financial Performance

Revenue Growth by Segment

In Q2 FY26, regional revenue growth was led by the Americas at 27.4% YoY, followed by EAP at 10.6% and Europe at 2.8%, while AMESA saw a slight decline of 0.7% YoY.

Geographic Revenue Split

Based on Q2 FY26 regional performance, AMESA contributed 29.9% (INR 3,904 Mn), Americas 26.9% (INR 3,512 Mn), EAP 22.6% (INR 2,951 Mn), and Europe 20.6% (INR 2,690 Mn) to regional totals.

Profitability Margins

Consolidated EBITDA margin for Q2 FY26 stood at 20.9%, up 91 bps YoY. EBIT margin improved to 13.0% from 12.1% YoY, and PAT margin was approximately 8.6% (INR 1,043 Mn on INR 12,059 Mn revenue).

EBITDA Margin

EBITDA margin reached 20.9% in Q2 FY26, marking the 11th consecutive quarter of margin expansion, driven by operational efficiencies and a shift toward higher-margin Beauty & Cosmetics products.

Capital Expenditure

EPL maintains a capital expenditure control system to authorize investments. While specific future INR Cr values are not disclosed, the company prioritizes capex efficiency to drive ROCE, which rose to 18.7% in Q2 FY26.

Credit Rating & Borrowing

EPL holds a 'Stable' outlook from CareEdge Ratings, reflecting a strong financial risk profile. Borrowing costs are supported by a low Net Debt/EBITDA ratio of 0.51x as of Q2 FY26.

⚙️ Operational Drivers

Raw Materials

Key raw materials include polymers (derived from crude oil) and aluminum foil. Raw material costs form a significant portion of total expenses for tube production.

Import Sources

Sourced globally; polymer prices are influenced by international crude oil indices and global supply-demand factors in markets like the Middle East and Asia.

Key Suppliers

EPL maintains strong relationships with established global suppliers to ensure supply stability, though specific company names are not disclosed in available documents.

Capacity Expansion

EPL produces over 9 billion tubes annually. Expansion includes the stabilization of the Brazil facility and the incorporation of EPTL in Thailand to pursue manufacturing opportunities.

Raw Material Costs

Raw material costs are a major expense. While polymer prices have stabilized recently, they remain above pre-Covid levels. Pass-through clauses in long-term contracts help mitigate cost volatility.

Manufacturing Efficiency

EPL focuses on automated operations and greater traceability. Margin expansion over 11 quarters reflects improved productivity and disciplined execution of cost-saving initiatives.

Logistics & Distribution

Freight costs increased in Q2 FY26 due to customer mix expansion and inflation in the Western part of the world, impacting regional margins in Europe.

📈 Strategic Growth

Expected Growth Rate

11%

Growth Strategy

Growth will be achieved through capacity expansion in Brazil, entering the Thailand market via EPTL, and aggressively pursuing market share in the high-margin Beauty & Cosmetics segment (which grew 28.1% in the Americas in FY25).

Products & Services

Laminated plastic tubes, extruded plastic tubes, and caps and closures for oral care, beauty, cosmetics, pharmaceuticals, and home care sectors.

Brand Portfolio

EPL (formerly known as Essel Propack Limited).

New Products/Services

Sustainable packaging solutions, including recyclable tubes and EcoVadis Platinum-rated products, intended to capture ESG-focused brand owners.

Market Expansion

Targeting high-growth regions like Brazil (stabilizing new facility) and Thailand (incorporating EPTL) to diversify geographic revenue and reduce regional concentration.

Market Share & Ranking

EPL holds a significant global market share in the oral care segment, producing over 9 billion tubes annually.

Strategic Alliances

EPL is backed by Blackstone, one of the world's leading investment firms, which provides financial flexibility and supports global operational integration.

🌍 External Factors

Industry Trends

The industry is evolving toward sustainability-led packaging. EPL is positioning itself as a leader through SBTi Net Zero targets and achieving an EcoVadis Platinum rating.

Competitive Landscape

Intense competition from unorganized players with low entry barriers and large established global players in the laminated tube market.

Competitive Moat

Durable advantages include global scale (9bn+ tubes), Blackstone's backing, and sustainability leadership (top 1% globally by EcoVadis), which are highly valued by global FMCG brands.

Macro Economic Sensitivity

Global growth is projected at 2.8% for FY26. Recessionary trends or prolonged inflation in key geographies could impact demand for packaged consumer goods.

Consumer Behavior

Growing consumer preference for sustainable and recyclable packaging is driving brand owners to shift toward EPL's innovative tube solutions.

Geopolitical Risks

Trade restrictions, political instability (e.g., Egypt), and regulatory shifts in operating countries could disrupt supply chains or affect customer sentiment.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to increasing focus on sustainability regulations regarding material usage, carbon emissions, and recyclability in various global jurisdictions.

Environmental Compliance

EPL is the first Indian packaging company with SBTi Net Zero targets approved and holds an EcoVadis Platinum rating, placing it in the top 1% of companies globally.

Taxation Policy Impact

Not disclosed in available documents; the company follows Indian Accounting Standards (Ind AS) for financial preparation.

Legal Contingencies

Not disclosed in available documents; the company maintains robust internal control systems and risk audits to ensure compliance with global statutes.

⚠️ Risk Analysis

Key Uncertainties

Macroeconomic volatility and raw material price fluctuations (polymers/aluminum) are key risks that could impact margins by up to several percentage points if not managed.

Geographic Concentration Risk

AMESA is the largest regional contributor (29.9% of regional revenue), making the company sensitive to economic and political shifts in India and Egypt.

Third Party Dependencies

High dependency on top-tier global customers for a significant portion of revenue, making regional performance sensitive to their order volumes.

Technology Obsolescence Risk

EPL faces cybersecurity risks as it scales digital infrastructure; a data breach or system downtime could impact operations and reputation.

Credit & Counterparty Risk

Not disclosed in available documents; the company uses structured internal audit processes to ensure the integrity of financial and operational controls.