EPL Limited: Sustaining Double-Digit Growth with a Strategic Shift to Beauty & Cosmetics in Q3 FY26

EPL Limited, formerly known as Essel Propack Limited, has reported a robust performance for the third quarter of Financial Year 2026 (Q3 FY26), demonstrating strong revenue growth and improved capital efficiency. The company, a global leader in specialty packaging, particularly laminated plastic tubes, continues to execute its strategic priorities with discipline, focusing on high-growth segments and sustainability. For Q3 FY26, EPL Limited recorded a consolidated revenue from operations of INR 1,148.8 crore, marking a significant 13.3% year-on-year increase. EBITDA stood at INR 230.8 crore, growing by 11.9%, with an EBITDA margin of 20.1%. While reported Profit After Tax (PAT) remained flat at INR 93.7 crore due to one-off benefits in the base year and current period adjustments, PAT excluding exceptional items grew by 11%, aligning with EBITDA growth. The company's Return on Capital Employed (ROCE) improved by 182 basis points year-on-year to 18.7%, reflecting enhanced capital allocation and operational efficiency.

The strong performance was broad-based, with three out of four regions delivering double-digit growth. The Asia, Middle East, and Africa (AMESA) region, including India, grew by 9.7%, while India alone saw an 8.7% revenue increase. East Asia Pacific (EAP) and Americas regions delivered particularly strong performances, growing by 18.0% and 19.0% respectively, driven by an improved product mix and customer momentum. Europe, however, grew by 8.0%, which was below expectations, impacted by short-term operational issues and an adverse mix. The Beauty & Cosmetics (B&C) segment continued its exceptional run, delivering 26.2% year-on-year growth, marking four consecutive quarters of over 20% growth. This segment now accounts for 53% of the company's non-oral portfolio, underscoring the success of its strategic pivot.

EPL's strategic focus on accelerating momentum in the Beauty & Cosmetics segment is clearly translating into sustained performance. The company is making continued investments in innovation, extruded solutions, front-end specialization, and new technologies, which are expected to sustain and scale this momentum. Management emphasized that the B&C market is twice the size of the Oral Care market and is growing at twice the rate, presenting a significant runway for growth given EPL's relatively lower market share in this segment. The company's innovative solutions, such as tube-in-tube formats in China, are gaining traction and commanding a premium over standard tubes.

Geographical expansion, particularly in high-growth emerging markets, is another key pillar of EPL's strategy. Brazil has been a consistent outperformer, and the company has successfully initiated commercial production in its Thailand plant during Q3 FY26. This organic entry model in Thailand, built on a strong sales pipeline, is expected to drive long-term growth and open up new market opportunities. The company is also actively exploring other white-space markets to further expand its global footprint.

Sustainability remains central to EPL's growth agenda and competitive advantage. The company has been awarded the EcoVadis Platinum Rating, placing it among the top 1% of over 150,000 assessed companies globally for sustainability performance. This recognition, along with being on the CDP Climate & Water A List 2025, underscores its leadership in sustainable packaging. Currently, 38% of EPL's sales come from sustainable tube formats, reflecting sustained customer adoption and a strong alignment with increasing customer preference for eco-friendly solutions. This focus on sustainability is expected to deepen relationships with global customers and help win incremental market share.

Margin expansion and capital efficiency are also key priorities. EPL has maintained 20%+ EBITDA margins for six consecutive quarters, and management expects gradual improvement through scale benefits. Despite short-term operational issues and an adverse mix impacting Europe's margins, the company is confident of returning to targeted mid-teen margins in the coming quarters through identified initiatives. The Net Debt/EBITDA ratio improved to 0.65x, and ROCE expanded to 18.7%, demonstrating disciplined capital allocation. The company's investment philosophy prioritizes growth, with CAPEX aligned with depreciation and expected to remain lower than revenue growth.

EPL Limited's Q3 FY26 performance highlights its strategic clarity and disciplined execution. The company is successfully pivoting towards high-growth segments like Beauty & Cosmetics, expanding its presence in key emerging markets, and leveraging its leadership in sustainability to drive future growth. With a clear focus on margin expansion and capital efficiency, EPL is building a resilient and future-ready business, reinforcing investor confidence in its long-term trajectory.