EPL Limited: A Strong Quarter Fueled by Sustainability and Strategic Growth

EPL Limited, a global leader in laminated plastic tubes, has reported a robust performance for Q2 FY26, showcasing significant growth across key financial metrics. The company, formerly known as Essel Propack Limited, continues to solidify its position in the FMCG and Pharma packaging space, driven by strategic initiatives and a strong focus on sustainability. For the quarter ended September 30, 2025, EPL delivered an impressive 11.0% year-on-year revenue growth, reaching 1,205.9 crore rupees. This strong top-line expansion translated into a 16.1% increase in EBITDA, which stood at 251.6 crore rupees, and a substantial 19.9% surge in Profit After Tax (PAT) to 104.3 crore rupees. The company's EBITDA margin expanded by 91 basis points year-on-year to 20.9%, marking its fifth consecutive quarter with a margin above 20%. This performance underscores EPL's disciplined operational management and effective strategy execution.

Segmental Performance and Growth Drivers

The company's growth narrative is largely dominated by the 'Personal Care & Beyond' category, which includes Beauty & Cosmetics, Pharma, Home, and Industrial segments. This category delivered an outstanding 26% growth in Q2 FY26, reflecting strong momentum across all operating regions. Notably, the Personal Care & Beyond portfolio now accounts for over 50% of EPL's total revenue, indicating successful diversification away from its traditional Oral Care stronghold. The Americas region was a standout performer, achieving an exceptional 27.4% revenue growth, significantly bolstered by capacity expansion in Brazil and solid Beauty & Cosmetics momentum. The East Asia Pacific (EAP) region also maintained strong growth with a 10.6% increase, driven by both Oral and Beauty & Cosmetics segments.

However, not all regions experienced uniform growth. Europe recorded a modest 2.8% revenue growth, impacted by temporary softness from a few large customers and significant inventory destocking. Similarly, the AMESA region (Africa, Middle East, and South Asia) saw a marginal revenue decline of 0.7%, primarily due to GST-led inventory corrections in the oral category. Management has acknowledged these challenges and is implementing focused initiatives to drive improved growth momentum in these areas, including leadership strengthening in AMESA and leveraging a strong order pipeline for recovery in Europe.

Financial Summary (INR Crore)

Strategic Initiatives and Sustainability Leadership

EPL's commitment to sustainability continues to be a core pillar of its strategy and a significant growth enabler. The company proudly announced its EcoVadis Platinum Rating, a testament to its sustained efforts in improving its product portfolio, people processes, and carbon footprint since its initial Bronze rating in 2018. This achievement positions EPL as the only Indian packaging company to be globally certified at this top tier, reinforcing its appeal to global brands prioritizing sustainable solutions. The proportion of sustainable tubes in EPL's portfolio has now reached 38%, demonstrating tangible progress in this area.

In terms of operational expansion, EPL successfully commercialized its greenfield plant in Thailand in October 2025, a remarkable feat achieved within just nine months. This plant is strategically positioned to cater to the promising Beauty & Cosmetics market in the East Asia Pacific region, with management already considering further expansion due to a strong business development pipeline. The company also continues to drive innovation, introducing new capabilities like 60 Dia Tubes, and pioneering formats such as Precise Dosage Control Tubes and Tube in Tube, alongside new product categories like Anti Itch Tubes and Spring Masks. These innovations are crucial for meeting diverse customer demands and maintaining market leadership.

Capital Efficiency and Future Outlook

EPL has demonstrated a sharp focus on capital efficiency, with its Return on Capital Employed (ROCE) improving significantly to 18.7% in Q2 FY26, a 220 basis points increase year-on-year. The net debt-to-EBITDA ratio also improved to 0.51x from 0.76x year-on-year, reflecting prudent financial management. The management is confident in achieving a ROCE of 25% plus by FY29, driven by consistent margin improvement, a robust capital deployment model, and operational efficiencies in net working capital and asset utilization.

Looking ahead, EPL's priorities remain clear: accelerating growth through continued momentum in Beauty & Cosmetics, scaling new growth engines like Thailand and Brazil, leveraging sustainability as a key enabler, and further expanding margins and capital efficiency. The company's ability to adapt to market realities, such as shifting laminate production between India and China based on tariffs and commodity prices, highlights its agile operational strategy. With a planned leadership transition where Mr. Hemant Bakshi will take over as MD and Global CEO from January 1, 2026, following Mr. Anand Kripalu's retirement, EPL is poised for continued growth and value creation, building on a strong foundation of innovation, sustainability, and operational excellence.