EPL net profit drops to ₹986 mn in Q1FY26 despite revenue growth
EPL Limited’s Q1FY26 results show a decline in consolidated net profit to ₹986 million despite an 11.7% rise in revenue to ₹13.9 billion. Standalone profits fell sharply by 30.4% to ₹220 million. While revenue grew across all segments, particularly in the Americas and East Asia Pacific, EBITDA margins compressed to 18.82% from 20.47%, reflecting operational cost pressures.
*this image is generated using AI for illustrative purposes only.
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:
| Metric: | Q1FY26 | Q1FY25 |
|---|---|---|
| Consolidated Net Profit: | ₹986 mn | ₹1 bn |
| Consolidated Revenue: | ₹13.9 bn | ₹11.1 bn |
| EBITDA: | ₹2.6 bn | ₹2.27 bn |
| EBITDA Margin: | 18.82% | 20.47% |
| Standalone Net Profit: | ₹220 mn | ₹316 mn |
| Standalone Revenue: | ₹4,003 mn | ₹3,340 mn |
| Consolidated Basic EPS: | ₹3.08 | ₹3.13 |
| Standalone Basic EPS: | ₹0.69 | ₹0.99 |
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.
| Segment: | Revenue (₹ mn) | YoY Change | Segment Result (₹ mn) |
|---|---|---|---|
| AMESA: | 4,374 | 16.9% | 476 |
| EAP: | 3,602 | 34.3% | 545 |
| Americas: | 3,792 | 29.1% | 376 |
| Europe: | 3,214 | 20.2% | 154 |
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.
Historical Stock Returns for EPL
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.97% | +4.01% | -0.75% | +5.75% | +4.24% | -2.19% |
How will the full implementation of the New Labour Codes impact EPL's operational costs and margin structure in Q2FY26 compared to the one-time charges seen in Q4FY25?
What specific strategies is EPL employing to mitigate the 1.65% contraction in EBITDA margins amidst rising input costs across its key geographical segments?
Will the proposed merger with Indovida India Private Limited proceed as planned, and what synergies or cost savings are expected once statutory approvals are finalized?
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