EPL standalone profit falls 62% as dividend income drops

EPL Limited reported standalone net profit of Rs 35.5 crore for the quarter ended September 30, 2026, down 62% from Rs 94.1 crore a year earlier, as the previous-year result included Rs 73 crore of dividend income from wholly owned subsidiaries while revenue from operations rose 31% to Rs 455.5 crore.

Why did EPL's standalone profit fall despite revenue growth?

EPL's standalone profit fell because higher operating revenue did not offset the absence of the previous year's substantial subsidiary dividend income. Revenue from operations increased by Rs 106.5 crore to Rs 455.5 crore in the quarter ended September 30, 2026, from Rs 349 crore in the corresponding quarter a year earlier. However, other income declined to Rs 7.8 crore from Rs 79.4 crore.

EPL disclosed Rs 73 crore of dividend income from wholly owned subsidiaries in the quarter ended September 30, 2025. No corresponding dividend income is shown in the other-income note for the September 2026 quarter. The prior-year dividend accounted for most of the Rs 79.4 crore other-income total, making the year-on-year profit comparison materially different from the change in revenue from operations.

EPL's profit before tax declined by Rs 60.1 crore to Rs 47.6 crore, while net profit declined by Rs 58.6 crore to Rs 35.5 crore. The company reported a net profit margin of 7.66% for the latest quarter, against 21.97% a year earlier. Its operating margin, defined by EPL as profit before exceptional items, depreciation, amortisation, interest and tax less other income divided by revenue from operations, was 18.53%, compared with 18.85%.

How did EPL's standalone expenses change in September 2026?

EPL's total standalone expenses rose 30% to Rs 415.7 crore in the September 2026 quarter from Rs 320.7 crore a year earlier, broadly in line with the 31% rise in revenue from operations. Cost of materials consumed increased to Rs 251.3 crore from Rs 169.5 crore, employee benefits expense rose to Rs 48.7 crore from Rs 44.2 crore, and other expenses increased to Rs 85.1 crore from Rs 73.2 crore.

Finance costs increased by Rs 4.2 crore to Rs 11.3 crore and depreciation and amortisation rose by Rs 2.9 crore to Rs 33.3 crore. Changes in inventories of finished goods and work-in-progress were negative Rs 14 crore, compared with negative Rs 3.7 crore in the September 2025 quarter. These expense lines resulted in profit before exceptional items and tax of Rs 47.6 crore, compared with Rs 107.7 crore a year earlier.

The sequential result was higher than the June 2026 quarter. Revenue from operations rose from Rs 400.3 crore in the quarter ended June 30, 2026 to Rs 455.5 crore in the September quarter, while net profit rose from Rs 22 crore to Rs 35.5 crore. Total expenses increased from Rs 371.3 crore to Rs 415.7 crore, but profit before tax rose from Rs 29.6 crore to Rs 47.6 crore.

What does EPL's half-year result show about the dividend comparison?

EPL's standalone net profit for the half year ended September 30, 2026 fell 54% to Rs 57.5 crore from Rs 125.7 crore in the corresponding prior-year half, although revenue from operations rose 25% to Rs 855.8 crore. Other income for the latest half year was Rs 8.4 crore, down from Rs 86.9 crore in the half year ended September 30, 2025.

EPL's other-income note records Rs 78.2 crore of dividend income from wholly owned subsidiaries in the prior-year half. It does not show dividend income for the half year ended September 30, 2026. Total income consequently increased to Rs 864.2 crore from Rs 769.9 crore, a smaller increase than the Rs 172.8 crore increase in revenue from operations.

For the six months, total expenses rose to Rs 787 crore from Rs 627.8 crore and profit before tax declined to Rs 77.2 crore from Rs 142.1 crore. EPL's half-year operating margin was 18.29%, compared with 18.74% a year earlier, while its reported net profit margin declined to 6.65% from 16.33%. The operating-margin movement was narrower than the change in net margin during a period with lower other income.

How did EPL's cash flow and balance sheet change?

EPL generated net cash from operating activities of Rs 13.4 crore in the half year ended September 30, 2026, down from Rs 51.2 crore in the prior-year half. Operating profit before working-capital changes increased to Rs 162.4 crore from Rs 132.5 crore, but trade receivables and other assets used Rs 108.8 crore of cash and inventories used Rs 61.1 crore.

EPL's cash-flow statement records Rs 64.9 crore of dividend received in the latest half year, while the other-income note does not show dividend income for that period. The filing does not provide a reconciliation between those two disclosures. Net cash used in investing activities was Rs 64.9 crore in the latest half year, compared with Rs 137.4 crore used in the prior-year half, while net cash generated from financing activities was Rs 60.9 crore against Rs 78.4 crore.

At September 30, 2026, EPL's total assets were Rs 2,157.9 crore, compared with Rs 1,975.4 crore at March 31, 2026. Inventories increased to Rs 254.6 crore from Rs 193.3 crore, and trade receivables rose to Rs 418.9 crore from Rs 325.6 crore. Current and non-current borrowings combined were Rs 507.6 crore, compared with Rs 428.9 crore at March 31, while the debt-equity ratio was 0.41 times against 0.36 times.

What corporate actions did EPL disclose?

EPL made an additional investment of Rs 14.2 crore in its wholly owned subsidiary, EPL Packaging (Thailand) Co. Ltd., during the quarter ended September 30, 2026. The company also allotted 523,514 equity shares with a face value of Rs 2 each to option grantees under its Employee Stock Option Scheme 2020 during the quarter.

EPL disclosed an application to the National Company Law Tribunal, Mumbai Bench, for the proposed absorption of Indovida India Private Limited into EPL. The board approved the merger scheme on March 29, 2025, and the filing says it remains subject to shareholder and tribunal approvals and fulfilment of other applicable conditions. EPL incurred Rs 15.6 crore of merger-related costs in the year ended March 31, 2026.

EPL also said the New Labour Codes had increased its gratuity and compensated-absence liability by Rs 5.9 crore in the year ended March 31, 2026, which it presented as an exceptional item. The company said it continues to monitor the finalisation of Central and State rules and government clarifications, and would account for developments as needed.

Conclusion

EPL's September 2026 standalone result shows revenue from operations increasing to Rs 455.5 crore while net profit declined to Rs 35.5 crore, chiefly because the comparable quarter included Rs 73 crore of dividend income from wholly owned subsidiaries. The half-year figures show the same pattern: revenue increased to Rs 855.8 crore, but other income declined to Rs 8.4 crore from Rs 86.9 crore.

The next disclosed matters to watch are progress on the proposed Indovida India Private Limited merger, which remains subject to approvals, and further accounting effects from final rules and clarifications on the New Labour Codes. EPL's September 30, 2026 balance sheet also showed inventories of Rs 254.6 crore and trade receivables of Rs 418.9 crore, compared with Rs 193.3 crore and Rs 325.6 crore at March 31, 2026.