💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 15% YoY in FY2025 to INR 1,772.5 Cr, primarily driven by robust export sales in the tobacco segment and healthy demand in FMCG. However, Q2 FY2026 revenue was flat at INR 460.5 Cr compared to INR 462.6 Cr in Q2 FY2025 due to muted domestic volume growth of 3-5% in end-user sectors.

Geographic Revenue Split

While specific regional percentages are not disclosed, the company expanded its geographical footprint with a new plant in Chennai and commenced initial export supplies to the USA market during FY2025 to diversify beyond its domestic base.

Profitability Margins

Operating margins improved to 17.2% in FY2025 from 16.7% in FY2024 due to a higher proportion of value-added products and backward integration. Net profit margin stood at 8.1% in FY2025 (INR 143 Cr PAT) but moderated to 6.2% in Q2 FY2026 (INR 28.7 Cr PAT) due to higher finance and raw material costs.

EBITDA Margin

EBITDA margin was 17.2% in FY2025 but declined by 155 bps to 15.1% in Q2 FY2026. EBITDA for Q2 FY2026 stood at INR 69.4 Cr, a 9.7% decrease from INR 76.9 Cr in Q2 FY2025, reflecting margin pressure from a time lag in passing through raw material costs.

Capital Expenditure

Planned capex for FY2026 is estimated between INR 120-130 Cr, primarily for capacity enhancement and efficiency improvements. This follows regular historical capex that supported the setup of the Chennai plant within 9 months and the acquisition of Accura Technik for engraved cylinders.

Credit Rating & Borrowing

The company maintains an [ICRA]A (Stable) rating. Interest coverage improved to 5.3 times in FY2025 from 4.6 times in FY2024. Finance costs increased 42.1% YoY in Q2 FY2026 to INR 19.7 Cr, reflecting higher debt levels for expansion.

⚙️ Operational Drivers

Raw Materials

Key raw materials include paperboard, polymers, LME-indexed aluminum, and specialized chemicals. Raw material expenses accounted for INR 271.2 Cr in Q2 FY2026, representing approximately 59% of total revenue.

Import Sources

Not specifically disclosed, though the company notes exposure to global price volatility in LME-indexed aluminum and polymers, suggesting international price sensitivity.

Key Suppliers

Not disclosed in available documents; however, the company maintains long-standing relationships with a diversified supplier base to mitigate procurement risks.

Capacity Expansion

Current operations span Silvassa, Haridwar, Ponda (Goa), Chennai, and Guwahati. The Chennai plant is now fully operational. The acquisition of Accura Technik Private Limited in May 2025 provides in-house manufacturing of engraved cylinders, reducing third-party dependency.

Raw Material Costs

Raw material costs rose 3.3% YoY in Q2 FY2026 to INR 271.2 Cr. The company utilizes partial cost pass-through mechanisms, but a time lag in these adjustments often leads to temporary margin compression.

Manufacturing Efficiency

Efficiency is driven by technological advancements and the integration of Innofilms for specialized R&D in flexible packaging, enhancing the value-added product mix.

Logistics & Distribution

Logistics costs are noted as erratic; the company uses its multi-location strategy to optimize distribution to FMCG and tobacco clients across India.

📈 Strategic Growth

Expected Growth Rate

15%

Growth Strategy

Growth will be achieved through targeting new export markets (specifically the USA), scaling the new Chennai facility, and leveraging the acquisition of Accura Technik for internal cylinder requirements. The company is also focusing on high-margin specialized products developed via the Innofilms R&D team.

Products & Services

Paperboard packaging, folding cartons, flexible packaging solutions, sustainable packaging materials, and engraved gravure cylinders.

Brand Portfolio

TCPL Packaging, TCPL Innofilms, Creative Offset Printers (COPPL), and Accura Technik (ATPL).

New Products/Services

Specialized flexible packaging products from the Innofilms division and in-house engraved cylinders from ATPL are expected to contribute to margin expansion.

Market Expansion

Active targeting of the USA export market and expansion of the tobacco segment sales which grew significantly in FY2025.

Market Share & Ranking

One of India's largest paperboard packaging companies in the organized sector with FY2025 revenues of INR 1,772 Cr.

Strategic Alliances

Acquired 100% stake in Accura Technik Private Limited (ATPL) in May 2025; merged TCPL Innofilms Private Limited into the parent company in June 2024.

🌍 External Factors

Industry Trends

The packaging industry is growing due to e-commerce expansion and a shift toward sustainable solutions. TCPL is positioning itself as a leader in sustainable packaging to capture this shift.

Competitive Landscape

Highly fragmented industry with intense competition from both large organized players and small, price-sensitive unorganized local manufacturers.

Competitive Moat

Moat is built on 30+ years of promoter experience, deep relationships with top-tier FMCG clients, and a multi-plant pan-India manufacturing footprint that is difficult for smaller players to replicate.

Macro Economic Sensitivity

Highly sensitive to domestic consumption patterns in FMCG and F&B sectors; a rebound to pre-COVID growth rates of 8-12% in these sectors would significantly benefit revenue.

Consumer Behavior

Shift toward sustainable and eco-friendly packaging is driving demand for TCPL's R&D-led specialized paperboard and flexible solutions.

Geopolitical Risks

Benefits from the 'China Plus One' strategy as global manufacturers shift sourcing to India, opening new export avenues in the USA.

⚖️ Regulatory & Governance

Industry Regulations

Subject to government regulations on packaging materials, statutory compliances, and environmental norms regarding plastic and paper waste.

Environmental Compliance

Focus on sustainable packaging solutions to meet evolving environmental regulations and consumer preferences.

Taxation Policy Impact

Effective tax rate was approximately 22.7% in Q2 FY2026 (INR 8.5 Cr tax on INR 37.2 Cr PBT).

⚠️ Risk Analysis

Key Uncertainties

Volatility in raw material prices (polymers/aluminum) and the ability to scale up and garner returns from debt-funded capex (INR 120-130 Cr) are primary risks.

Geographic Concentration Risk

Diversified across India with plants in North, West, South, and North-East; increasing focus on international markets to reduce domestic concentration.

Third Party Dependencies

Historically dependent on third parties for gravure cylinders, now mitigated by the ATPL acquisition.

Technology Obsolescence Risk

Mitigated by continuous investment in advanced machinery and R&D for specialized flexible packaging.

Credit & Counterparty Risk

Working capital utilization is high at 89%, indicating tight liquidity management requirements; however, a reputed client base minimizes bad debt risks.