EPL Limited delivered robust Q1 FY27 results with revenue from operations surging 25.3% year-on-year to ₹13,879 million, as reported by the company. The impressive growth was driven by broad-based momentum across categories and regions, aided by inflation-led pricing strategies. Underlying revenue growth, excluding commodity pass-through, stood at 20%, indicating strong underlying business acceleration. Following this strong performance, EPL has raised its revenue guidance for the near term to 16-18% and retained its margin guidance at 20%. The company expects growth momentum to continue in July after reporting these strong quarterly results.
EPL reported a consolidated net profit of ₹986 million for the quarter ended June 2026, representing a decline of 1.40% compared to ₹1,000 million in the corresponding quarter of the previous financial year. The company's Earnings Per Share (EPS) stood at ₹3.08 for the quarter. EBITDA also saw healthy growth of 15.2% with underlying EBITDA at ₹2,612 million, while the reported EBITDA margin was 18.8%. Return on Capital Employed (ROCE) remained strong at 18.5% for the quarter.
According to Global CEO Hemant Bakshi, beauty and cosmetics has emerged as the key growth engine going forward, with potential to grow as much as 20% annually. As Bakshi explained, "We think of our business in two engines. One is our engine of cash and steady growth, which is oral. And the second engine of growth, which will be through premiumisation and market share gains, will be beauty and cosmetics." The company currently holds 8% global market share in personal care packaging, significantly below its rightful share of 30%. Bakshi noted that "even half of that will mean that we will have to double our market share from 8 to 16% in the next four to five years." He highlighted the significant growth potential, stating that "An average lady in India will consume two or three (beauty) products every day, compared to women in Korea, who use almost eight products every day. So there is a significant gain in per capita consumption that will happen in India over the next four to five years."
While oral care remains a resilient business with 35% global market share in oral care tubes, it is expected to grow in "middle to high single digits" going forward. As Bakshi explained, "While oral care -- toothpaste and related categories -- remains a resilient, largely inflation-proof business given its habitual, everyday consumption, Bakshi said the segment has matured both in India and globally." The company's global market share in oral care tubes stands at about 35%, while its share in personal care packaging is around 8%. EPL has been investing in building differentiated capabilities through its Innovation CoE and hiring manpower to support this growth strategy.
The company's proposed merger with Indovida is expected to create a consumer packaging major with a combined valuation of around USD 2 billion. EPL has received approval from the Competition Commission of India (CCI) and is now awaiting clearances from stock exchanges and market regulator SEBI, after which the process will move to the National Company Law Tribunal (NCLT). The merger is expected to be completed by early next year. According to Bakshi, Indovida's June quarter volume growth was 12%, revenue growth was 25%, and EBITDA growth was 62%. The merger will expand EPL's capabilities beyond tubes into new packaging formats such as rigid plastics and bottles, giving access to new customers like Coca-Cola and PepsiCo, and strengthening presence in Southeast Asia and Africa where Indovida has strong footprint. Bakshi emphasized that "We want to become a global leader in consumer packaging, focused on emerging markets. Rather than just being a supplier, we have to become an innovation partner for our customers."
