EPL Limited delivered its highest-ever top-line growth in the first quarter ended June 30, 2026 (Q1 FY27), with revenue surging 25.3% year-on-year to ₹13,879mn. The packaging solutions leader also reported a 15.2% increase in EBITDA to ₹2,612mn, achieving an underlying EBITDA margin of 19.6%. This performance marks the fifth consecutive quarter of double-digit revenue growth and the 15th consecutive quarter of double-digit EBITDA growth, demonstrating resilience amid global market volatility. Consequently, management has raised its revenue growth guidance to the high-teens for the coming quarters while reaffirming its commitment to a 20% underlying EBITDA margin.

The results were approved by the Board of Directors at a meeting held on August 11, 2026, in compliance with Regulation 30 of the SEBI LODR Regulations. The financial figures are unaudited and subject to finalisation. Onkar Ghangurde, Head - Legal, Company Secretary & Compliance Officer, filed the press release with the stock exchanges.

Financial Performance

Revenue growth was broad-based across all geographies and categories. Excluding the pass-through impact of higher raw material prices, underlying revenue growth stood at 20%. EBITDA margins were protected through judicious pricing actions that fully recovered cost increases. While PBT increased by 10% year-on-year, PAT declined by 1.4%, primarily due to a lower effective tax rate in the corresponding quarter last year, which is expected to normalise over the full year.

Segment and Geographic Highlights

Growth was driven by strong performances in Beauty & Cosmetics and Oral Care, which grew 23.6% and 23.9% respectively. Personal Care & Beyond expanded to account for 54% of the total portfolio, growing 25.1% year-on-year.

Geographically, all regions delivered double-digit growth:

• East Asia Pacific (EAP): 34.3%
• Americas: 29.4%
• Europe: 20.2%
• India: 19.9%
• AMESA: 17%

Strategic Developments and Sustainability

EPL announced a definitive agreement to merge with Indovida, creating a $1 billion revenue entity with a combined valuation of $2 billion. The merger received approval from the Competition Commission of India (CCI) and anti-trust approvals across eight countries during the quarter and remains on track for completion within the planned timeline.

Sustainability efforts continued to gain traction, with sustainable tube formats contributing 44% of total sales. EPL achieved an EcoVadis Platinum rating, placing it among the top 1% of companies globally for ESG performance and making it the only packaging company from India to receive this recognition.

What the Numbers Show

The divergence between the 25.3% top-line revenue growth and the 15.2% EBITDA growth highlights the impact of raw material inflation on operational efficiency, even as pricing actions protected the underlying margin at 19.6%. The decline in PAT despite a 10% rise in PBT underscores the volatility of tax rates in the current fiscal environment, suggesting that future profitability comparisons will need to adjust for normalised tax provisions rather than relying solely on headline net profit figures.

EPL Limited reported a consolidated net profit of ₹986 million for the quarter ended June 30, 2026 (Q1FY26), a decline from ₹1 billion in the corresponding period of FY25. Despite the bottom-line contraction, consolidated revenue from operations grew 11.7% year-on-year to ₹13.9 billion, up from ₹11.1 billion. The divergence between top-line expansion and profit compression highlights margin pressure during the quarter, even as the company maintained robust growth across its key geographical segments.

The Board of Directors approved the unaudited standalone and consolidated financial results on August 11, 2026, in compliance with Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Walker Chandiok & Co LLP served as the statutory auditor, issuing a limited review report dated August 11, 2026. The filing also includes additional disclosures under Regulation 52(4) regarding commercial papers listed on the National Stock Exchange of India Limited.

Standalone performance showed sharper declines compared to the consolidated figures. Net profit after tax fell 30.4% year-on-year to ₹220 million from ₹316 million. Standalone revenue from operations increased 19.8% to ₹4,003 million from ₹3,340 million. Basic earnings per share (EPS) stood at ₹0.69 for the standalone entity, compared to ₹0.99 in Q1FY25. Consolidated basic EPS was ₹3.08, down slightly from ₹3.13 in the prior year period.

Key Financial Highlights

The following table summarises EPL's consolidated financial performance for Q1FY26:

Segment Performance

The group's growth was driven by strong performances across its geographical segments. Americas revenue surged 29.1% to ₹3,792 million, while East Asia Pacific (EAP) rose 34.3% to ₹3,602 million. Europe and AMESA (Africa, Middle East, South Asia) also posted double-digit growth. However, segment results varied, with EAP delivering the highest segment result at ₹545 million, followed by AMESA at ₹476 million.

What the Numbers Show

A key analytical observation is the impact of exceptional items recorded in the prior year. In Q1FY25, there were no exceptional items, but the previous quarter (Q4FY25) saw significant one-time costs related to the implementation of New Labour Codes and the proposed merger with Indovida India Private Limited. The current quarter's EBITDA margin contracted to 18.82% from 20.47% in Q1FY25, suggesting rising input or operational costs that were not fully passed on to customers. Additionally, finance costs remained relatively stable at ₹291 million, indicating controlled debt servicing costs amidst the revenue expansion.

The company continues to monitor the finalization of Central and State Rules regarding the New Labour Codes, which became effective November 21, 2025. The merger with Indovida India remains subject to statutory and regulatory approvals. No dividend was declared for the quarter.