Control Print Limited: Navigating Growth with Strategic Diversification in Q2 & H1 FY26

Control Print Limited, a prominent player in India's coding and marking industry, has reported a dynamic performance for the second quarter and first half of the financial year 2026. The company continues to demonstrate robust growth in its core standalone business while strategically expanding into new, high-potential segments like Track & Trace and innovative packaging solutions. This quarter's results reflect a concerted effort to balance established market leadership with future-oriented diversification, setting the stage for sustained long-term growth.

For Q2 FY26, Control Print Limited (standalone) reported an Income from Operations of ₹102.02 crore, marking a 9.5% year-on-year growth. The Gross Profit stood at ₹61.83 crore, an 11.3% increase from the previous year. EBITDA for the quarter was ₹28.85 crore, up 29.1% YoY, with the EBITDA margin improving by 428 basis points to 28.27%. Profit Before Tax (PBT) excluding exceptional items grew by 11.7% to ₹22.95 crore, and Reported PAT saw a significant 18.5% increase to ₹19.90 crore. For the first half of FY26, standalone Income from Operations reached ₹202.47 crore, up 11.6% YoY, with Reported PAT growing 24.7% to ₹41.16 crore.

On a consolidated basis, the company's Income from Operations for Q2 FY26 was ₹111.96 crore, a 10.0% YoY increase. H1 FY26 consolidated operating revenue stood at ₹223.25 crore, an 11.8% rise from the previous year. Consolidated EBITDA for Q2 FY26 was ₹25.92 crore, up 28.1% YoY, and Reported PAT for Q2 FY26 was ₹18.59 crore, a 37.8% increase. The consolidated H1 FY26 Reported PAT grew 8.0% to ₹27.15 crore. The core coding and marking business remains the primary revenue driver, contributing approximately 89% of the standalone revenue.

Financial Highlights (Standalone - Q2 FY26)

Strategic Pillars: Diversification and Innovation

Control Print's long-term growth strategy is built on three key pillars: expanding its coding and marking business globally, scaling its Track & Trace solutions, and establishing a strong presence in the packaging business through V-Shapes. The company aims to outpace the industry growth in India for its existing standalone coding and marking business, targeting a 15% annual growth rate against a market growth of 10-11%. This ambition is supported by a robust installed base of over 21,500 printers and a presence in more than 1700 cities and towns across India.

The Track & Trace segment, operating under the QRiousCodes brand, is gaining significant traction. This division offers comprehensive cloud-based solutions designed to enhance supply chain visibility and product authenticity, leveraging innovative QR code technology. Management noted that the Track & Trace business has picked up and is nearing a breakeven point, with two large pilot projects underway with top pharmaceutical companies. These projects are expected to provide significant traction across the pharmaceutical industry, especially given regulatory requirements for traceability.

The V-Shapes packaging business represents a significant diversification. While still in its early stages and facing initial challenges, the company is committed to its success. V-Shapes focuses on innovative single-use packaging technology, supplying state-of-the-art equipment for single-dose sachets and associated packaging materials. To overcome initial hurdles, such as difficulty in converting interest into sales and technical issues delaying machine deliveries, Control Print has strategically introduced co-packaging services for smaller volumes. This approach allows potential customers to test the market without a large upfront investment, thereby generating future pipelines for machine sales and laminates. Furthermore, the company is investing in developing a recyclable packaging material formulation for V-Shapes, a crucial step for market acceptance, particularly in Europe, and is in the process of patenting this innovation.

Operational Excellence and Future Outlook

Control Print's operational efficiency is evident in its improved EBITDA margins for the standalone business, driven by operational leverage. The company is meticulously managing procurement costs and focusing on the economy, efficiency, and effectiveness of its operations. The installed base of over 21,500 printers continues to drive consumable sales, which are a significant portion of revenue. The company's sales and promotion efforts have also led to an improvement in printer sales.

Sector-wise, Pipes, Food, Dairy, Cable & Wire, Steel and Metal, and Wood segments continue to consolidate market share. Dairy, Sugar, Plywood, and Cement industries are witnessing good traction for the company's products. The management has announced a price increase, which is expected to further support revenue growth. While the Italian V-Shapes operations are currently loss-making, management anticipates achieving breakeven or profitability in the next financial year. The international subsidiaries, Markprint and Codeology, are already profitable, contributing positively to the consolidated results.

Control Print Limited is strategically positioned for continued growth, leveraging its strong core business and investing in innovative new ventures. The company's focus on technological advancements, market diversification, and operational efficiency underscores its commitment to long-term value creation for shareholders. The management's transparent communication regarding challenges and proactive measures to address them instills confidence in its strategic direction.