Control Print expects Middle East unit to break even in FY27

Control Print Limited expects its Middle East unit to break even in FY27, management said on October 29, 2026, supported by an order pipeline for the operation launched in January 2025. Control Print is also reducing personnel costs in Italy and the UK as it seeks to narrow losses at Codeology and the V-Shapes business in H2 FY27.

Will Control Print's Middle East unit break even in FY27?

Yes. Control Print said its CP MEA operations would break even during FY27 and management was positive that the entity would be profitable by the year-end. The Middle East operation began in January 2025 and is therefore still in its early build-up phase. Management cited a good pipeline of orders that it expects to execute, without disclosing the pipeline value, revenue schedule or conversion rate.

The break-even statement is management's expectation, rather than a reported result. During the Q2 and H1 FY27 call, management said CP MEA would “definitely” break even this year, then said it expected the unit to be profitable by year-end. Control Print did not disclose the unit's revenue, current loss, margin or the sales volume required to reach break-even.

CP MEA's target differs from the position of the company's longer-established overseas technology operations. Management described the Middle East business as one that is still picking up after its January 2025 launch, whereas Markprint was described as profitable year on year. The call did not specify whether CP MEA's route to break-even depends solely on sales growth or also on a cost-reduction programme.

Which overseas businesses are reducing Control Print's profitability?

Control Print identified Codeology and the V-Shapes packaging business as the operations under a focused loss-reduction exercise, while saying Markprint remains profitable. Management did not provide company-by-company financial results for any of the overseas businesses during the October 29, 2026 call. It said investors could seek further detail directly from the company, leaving the individual contributions of Codeology, V-Shapes and CP MEA undisclosed.

Markprint is not part of the loss-making group, according to management. Control Print said the business earns a profit each year, although it said that profit is not large relative to Control Print's own results. Codeology and V-Shapes, by contrast, are being closely monitored through reviews of their operating processes, expenses, marketing and sales activities.

An analyst cited international-business losses of about Rs 20 crore in FY25 and Rs 36 crore in FY26, a rise of Rs 16 crore between those periods. Management did not confirm either number and did not issue a FY27 overseas-loss forecast. Its response was that the loss trend was moving down, supported by lower structural costs, improved margins and sales growth if conditions remain positive.

How is Control Print lowering costs in Italy and the UK?

Control Print has reduced headcount in its Italian and UK operations and expects personnel costs to decline over the next two quarters. Management described the action as part of a concentrated review of operating expenses, including staff costs, and said it had already downscaled the teams in both locations. The company did not disclose the number of employees affected or the expected quarterly saving.

The expected cost benefit provides a stated H2 FY27 milestone. Management said it hoped the second half would be on a better footing than H1 FY27 as lower personnel costs take effect during the coming two quarters. That comparison is an operational expectation, not numerical guidance, because Control Print did not provide a target for H2 revenue, operating profit or overseas losses.

The programme extends beyond headcount. Control Print said it is reviewing how Codeology and V-Shapes processes and operations are run, while also reconsidering marketing and sales activity. Management said this combined approach is intended to increase the top line and optimise costs, acknowledging that sales growth is needed alongside the personnel reductions.

What could reduce Control Print's overseas losses further?

Control Print said higher sales could reduce overseas losses because it does not expect to add people or costs to service the sales currently being pursued. Management described sales at the affected businesses as low, meaning additional revenue could feed directly into the bottom line. It did not disclose a sales target, customer pipeline value or timetable for the anticipated revenue improvement.

For V-Shapes, Control Print is working on manufacturing its own materials, recyclable packs, lower-maintenance machines and higher reliability for existing equipment. Management said better machine reliability can help customers produce more packs more consistently. It is also pursuing longer-term projects involving high-speed machines and lower-cost materials, but did not disclose spending, commercial launch dates or a projected margin effect.

Management described the V-Shapes effort as a technology-development platform with potential returns over the next two decades once the technology reaches the required level. That is management's long-term view and not a quantified forecast. In the nearer term, Control Print's disclosed measures are lower personnel costs over the next two quarters, tighter operating control and efforts to lift sales at Codeology and V-Shapes.

Conclusion

Control Print's overseas plan has separate objectives for its businesses. CP MEA is expected by management to reach break-even in FY27 after starting in January 2025, and Markprint is already profitable, according to the company. Codeology and V-Shapes remain the focus of expense reviews, reduced Italian and UK staffing, and sales measures intended to narrow losses.

The next point to watch is H2 FY27, when management expects the lower personnel costs from reduced headcount to appear over the next two quarters. Management also plans to execute CP MEA's stated order pipeline and expects the unit to reach break-even by the end of FY27. Results from those actions will show whether the company achieves the better H2 footing it outlined on the call.