EPL Limited delivered a robust third quarter for FY26, marked by 13.3% revenue growth and an EBITDA margin of 20.1%. The growth was broad-based, with three out of four regions achieving double-digit expansion, supported by a 26.2% surge in Beauty & Cosmetics (B&C) sales. The company also saw its Return on Capital Employed (ROCE) improve to 18.7%, while maintaining a healthy Net Debt/EBITDA ratio of 0.65x.
Q3FY26 Highlights: Financial Strength and Growth
EPL Limited announced a strong financial performance for the third quarter of FY26 (ending December 31, 2025). Key performance indicators include:
- Revenue from Operations: Grew by 13.3% to INR 11,488 million (up from INR 10,143 million in Q3FY25).
- EBITDA Margin: Stood at 20.1%, reflecting an absolute EBITDA growth of 11.9%.
- PAT (Adjusted): Grew by 11% when excluding one-off exceptional items, although reported PAT saw a decline of 12.6% due to adjustments for labor code changes and a plant closure in China.
- Capital Efficiency: ROCE increased by 182 basis points (bps) year-over-year to 18.7%.
- Leverage: Net Debt/LTM EBITDA ratio improved to 0.65x from 0.72x YoY.
Revenue Growth Across Regions
Revenue growth was strong across most geographies, with three out of four regions delivering double-digit growth:
- EAP: +18.0% growth.
- Americas: +19.0% growth.
- AMESA: +9.7% growth (strong B&C growth offset soft Oral care demand).
- Europe: +8.0% growth (despite soft oral care performance).
Update on Key Initiatives: Accelerating Momentum
The company is focused on accelerating growth momentum, particularly through the Beauty & Cosmetics (B&C) segment, which delivered a robust 26.2% growth, marking its fourth consecutive quarter above 20%+ growth.
Category Mix Shift
The strategic pivot towards high-growth segments is evident, with the ‘Personal Care & beyond’ category (including B&C, Pharma, etc.) contribution to Tube Revenue reaching 53% in YTDFY26, an increase of 1175 bps since FY18. This category has grown at an approximate ~8% CAGR over the last 11 years.
Oral Care Stability
The traditional Oral Care segment continues to show resilience, achieving a revenue growth of 1.1% Y-o-Y for YTDFY26, sustained by a long-term CAGR of approximately ~4.0% since FY15.
Sustainability: Leading the Pack
EPL highlighted continuous improvement in sustainability:
- Ecovadis Platinum Rating: The company achieved the Platinum Rating, placing it in the top 1% of over 150,000 companies assessed globally. It is noted as the only Indian Packaging company to achieve this status.
- Recyclable Volumes: Sustainable tubes now comprise 38% of the portfolio (up from 10% in FY23).
- Process Excellence: EPL retained its top ‘A’ rating in supplier engagement and recognition among the top ~2% globally on the CDP Climate & Water A List 2025.
Awards and Recognition
The period was marked by several industry accolades:
- Won an excellence award at the CII Sustainable Packaging Awards 2025 in collaboration with Colgate.
- Honored at the IFCA awards 2025 for innovative tubing solutions.
- Certified as a “Great Place to Work” in 7 countries for FY 25-26 (including India, China, Brazil, Egypt, etc.).
Looking Ahead: Targets and Strategy
EPL is focused on scaling further through strategic targets:
- Double Digit Revenue Growth driven by an aggressive B&C play, scaling up Brazil operations, geographical expansion into Thailand, and potential M&A.
- Targeting ROCE to improve from 18.7% to 25%+ by FY29, supported by margin consistency and operational efficiencies.
Source: BSE
