Control Print Limited , a leading player in the coding and marking solutions industry, has reported a mixed set of financial results for the first quarter of fiscal year 2026. The company saw significant revenue growth but faced challenges in maintaining profit margins across its diverse business segments.

Revenue Growth

Control Print reported standalone revenue of ₹109.00 crores for Q1 FY26, marking a substantial increase from ₹89.00 crores in the same quarter last year. The company's operating revenue stood at ₹100.00 crores, up from ₹88.00 crores in the previous year. On a consolidated basis, the operating revenue reached ₹111.00 crores, compared to ₹98.00 crores in Q1 FY25.

Margin Pressures and EBITDA Decline

Despite the revenue growth, the company faced margin pressures, primarily due to losses in its packaging business. Consolidated EBITDA declined from ₹20.00 crores to ₹18.50 crores year-on-year. The company's Italian subsidiary, CP Italy (V-Shapes), recorded a loss of €384,000 (approximately ₹4.50-5.00 crores) in the quarter.

Business Segment Performance

Coding and Marking Business

The core coding and marking business showed steady performance. To improve margins in this segment, the management announced price increases effective August 1st, with benefits expected from Q3 onwards.

Track and Trace Business

The track and trace business is approaching breakeven, showing positive signs of improvement.

Packaging Business

The packaging business continues to face challenges, particularly with material costs. The company is targeting to reduce material costs from ₹2.00 per piece to ₹1.00 through in-house manufacturing.

Financial Highlights

Strategic Initiatives

1. Price Increase: Implemented in the coding and marking business to improve margins
2. Co-Packaging Facilities: Set up for cosmetics and food in Nalagarh to cater to sample and low-volume orders
3. R&D Investment: Plans to invest ₹10.00-15.00 crores in R&D for developing recyclable packaging materials
4. International Expansion: Focus on Middle East and other international markets through subsidiaries

Management Commentary

Shiva Kabra, Joint Managing Director, stated, "We are on the right path despite the challenges. The Q1 results were disappointing, but we are addressing the issues step-by-step. Our core coding and marking business remains steady, and we are working on improving profitability in our new business segments."

Outlook

While not providing specific guidance, the management expects improvement in the coming quarters. The company aims to continue growing its coding and marking business at around 14-15% annually for the next few years, while focusing on turning around its newer business segments.

Control Print's diversification strategy shows promise, but the company needs to navigate the challenges in its packaging business and optimize costs across segments to improve overall profitability in the coming quarters.

Control Print Limited , India's leading coding and marking solutions provider, has announced its financial results for the first quarter, showcasing robust growth and strategic expansion.

Record-Breaking Revenue

The company achieved its highest ever Q1 revenue of Rs 1,005.00 million, marking a significant 14.00% year-over-year growth. This performance underscores Control Print's strong market position and effective growth strategies in the coding and marking sector.

Profitability Highlights

Control Print's standalone profit before tax (PBT), excluding exceptional items, grew by an impressive 30.00% year-over-year. The company's profit after tax (PAT) also saw substantial growth compared to the same quarter last year.

Operational Performance

During the quarter, Control Print sold two packaging machines, signaling positive traction in its diversification efforts. The company maintains a robust installed base of over 21,500 printers, which continues to drive consumable sales and recurring revenue.

Market Position

Control Print has solidified its position in India's organized coding and marking sector, holding a substantial 19-20% market share. This strong foothold allows the company to capitalize on the growing demand for coding and marking solutions across various industries.

Exceptional Income

The company recognized an exceptional income of Rs 39.90 million during the quarter. This amount represents a capital investment grant received under the Central Capital Investment Incentive for Access to Credit (CCIIAC) from the Directorate of Industries, Government of Himachal Pradesh.

Margin Analysis

While the company demonstrated strong top-line and bottom-line growth, there was a slight compression in margins:

• Gross margin softened to 56.47% from 61.65% in the previous year, primarily due to higher printer sales.

Business Segments

Control Print operates through multiple business segments including:

1. Coding & marking equipment
2. Track & trace solutions through QRiousCodes brand
3. Packaging business through V Shapes

Outlook

With its strong market position, diverse product portfolio, and strategic focus on high-volume customers, Control Print is well-positioned to capitalize on the growing demand for coding and marking solutions. The company's efforts in expanding its presence and introducing new technologies are expected to drive future growth.

As Control Print continues to innovate and expand its market reach, investors and industry observers will be keenly watching its performance in the coming quarters, especially in light of its recent acquisitions and expansion efforts.