Control Print's consolidated net profit declined by 54.25% to ₹3.92 crore in Q1 FY27, compared to ₹8.57 crore in the corresponding quarter of the previous year, according to the latest financial results. This significant profit decline indicates substantial challenges in the company's operational performance during the first quarter of fiscal 2027, with the company reporting a 51.87% sequential decline from the previous quarter. Despite the annual drop, PAT increased 250.20% sequentially, reflecting improvement over the immediately preceding quarter. The results were approved by the Board of Directors on July 23, 2026, and reviewed by statutory auditor M/s. Jhawar Mantri & Associates.
Despite the profit challenges, sales revenue showed resilience with a 3.84% increase to ₹115.56 crore in Q1 FY27, compared to ₹111.29 crore in the same quarter of the previous year, as reported by Business Standard. However, revenue declined 17.38% sequentially from the previous quarter, indicating weaker demand or seasonal softness during the quarter. This mixed revenue trend suggests the company maintained some business momentum on an annual basis while facing temporary headwinds in the current quarter.
The company's operating profitability came under significant pressure with EBITDA falling 22.19% YoY to ₹19.77 crore from ₹25.41 crore year-on-year, according to the latest financial data. EBITDA margin contracted sharply to 17.11% compared with 22.84% in Q1 FY26 and 22.50% in the previous quarter, reflecting higher costs and weaker operating performance. Profit Before Tax (PBT) declined 29.15% YoY to ₹9.82 crore from ₹13.86 crore in the same period last year, while earnings per share (EPS) also declined significantly to ₹2.45 from ₹5.35 a year earlier. The margin contraction suggests that rising expenses and cost pressures impacted overall profitability during the quarter.
During the quarter, Control Print entered into an Intellectual Property Assignment Agreement with CP Italy S.R.L, a step-down wholly owned subsidiary, for the purchase of Intellectual Property Rights including patents. The total consideration for the transaction is ₹3,120.11 lakhs, equivalent to Euro 28.60 lakhs. The company recorded ₹3,120.11 lakhs as Intangible Assets under development as of June 30, 2026, with the entire transaction expected to be completed within 90 days from the date of execution on May 8, 2026. The company operates a single reportable segment, Coding & Marking Applications, and the acquisition is expected to enhance its R&D capabilities and competitive positioning in the long term.
The company faces ongoing losses in international step-down subsidiaries like CP Italy that continue to weigh down consolidated performance, as highlighted in recent market analysis. Escalating material and employee benefit costs are squeezing standalone operating margins, while slower-than-expected capital expenditure revival in user industries like FMCG and cement presents additional challenges. Despite these headwinds, Control Print's underlying annuity engine remains healthy with its 18% to 20% domestic market share in India's specialized coding and marking industry. The company recently leased 46,823 square meters of land in Assam for a 60-year term to expand manufacturing capabilities and optimize production costs, while CRISIL migrated the company's credit ratings to the 'Issuer Not Cooperating' status following a rating withdrawal request on July 9, 2026.
