Control Print Limited — Q2 FY26 earnings call

Call held 14 Nov 2025

Management summary

Control Print delivered a strong H1 FY26 with standalone total revenue reaching ₹210 crores and operating revenue at ₹202 crores, driven by robust growth in its core coding and marking business. Profitability metrics like EBITDA, PAT, and PBT (ex-exceptional) showed double-digit YoY growth. However, the Italian V-Shapes operations continued to incur losses, approximately EUR 950,000 in H1, partly due to technical issues delaying machine deliveries. The company is focused on cost optimization, expanding its Track and Trace and Packaging segments, and aims for a standalone PBT exceeding ₹100 crores for the full year.

Highlights

  • H1 FY26 standalone total revenue approximately ₹210 crores, representing good growth from ₹185 crores last year.

  • H1 FY26 standalone operating revenue of ₹202 crores, compared to ₹181 crores in the previous period.

  • EBITDA, PAT, and PBT (excluding exceptional items) grew YoY by 14.1%, 18.5%, and 11.7% respectively.

  • The core coding and marking business continues to be the dominant share (89% of revenue) and has seen steady growth.

  • Management expects standalone PBT to comfortably cross ₹100 crores this year.

Concerns

  • Italian operations (V-Shapes) incurred a loss of approximately EUR 670,000 in Q2 and EUR 950,000 (approx. ₹9.5-10 crores) in H1.

  • Technical issues in V-Shapes delayed machine orders and execution in Q2.

  • The annual GST benefit of ₹8.5 crores from the Guwahati facility expired on May 26, 2025, which was previously included in revenue from operations.

Key financials

5 periods

Headline

  • EBITDA Growth (YoY)
    14.1%
  • PAT Growth (YoY)
    18.5%
  • PBT Growth (YoY, ex-exceptional)
    11.7%

Q1

  • Exceptional Income
    ₹4 Cr

H1

  • Italian Operations Loss
    9,50,000 EUR

H1 Consolidated

  • Operating Revenue
    ₹223 Cr
    YoY +11.5%
  • Gross Margin
    59.9%

H1 Standalone

  • Total Revenue
    ₹210 Cr
    YoY +13.5%
  • Operating Revenue
    ₹202 Cr
    YoY +11.6%

What they filed

Q1 FY27: revenue up 3.8%, net profit down 54.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue102 103 122 111 112 +10%119 +15%140 +15%116 +4%
EBITDA20 17 22 19 26 +28%18 +3%26 +19%15 −18%
Net profit13 8 67 9 19 +38%5 −36%11 −83%4 −54%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

SegmentPrintersConsumablesSparesServices
Coding and Marking————
Coding and Marking (Q2 Revenue Mix)14%60%9%16%
Coding and Marking (Q1 Revenue Mix)11%62%12%14%

Guidance & targets

Profitability

  • Standalone PBT Profitability · FY26 · High confidence cross ₹100 crores
    We should cross ₹100 crores quite comfortably in our opinion this year in stand-alone business in India.

    — Shiva Kabra

  • Italian Operations (V-Shapes) Loss Profitability · FY26 · High confidence EUR 1-1.2 million
    So we are still sticking to that EUR 1 million to EUR 1.2 million loss in the Italian operations overall.

    — Shiva Kabra

  • Italian Operations (V-Shapes) Breakeven Profitability · FY27 · Medium confidence Breakeven
    So I think hopefully, next financial year that is we should be at least breakeven, if not profitable, but we should at least be breakeven.

    — Shiva Kabra

Growth

  • Coding and Marking Business Growth Growth · annual · Medium confidence 15%+
    if the market is growing at 10%, 11%, we're expecting to grow at 15% or so in the -- that's what our target is in the stand-alone business, 15% plus.

    — Shiva Kabra

  • Overall Company Growth Growth · annual · Medium confidence faster than market (10-11%)
    if the market is growing 10%, 11%, we expect to grow faster than that in the coding and marking business.

    — Shiva Kabra

Revenue

  • Standalone Total Revenue Revenue · FY26 · High confidence cross ₹395 crores
    The previous year, the revenue was about ₹395 crores and we definitely expect you going to cross that and show improved performance by 2025-2026 year.

    — Jaideep Barve

What to watch in Q3 FY26

Italian Operations (V-Shapes) Loss Reduction

Next quarter (Q3 FY26) and next financial year (FY27)
Current EUR 950,000 loss in H1 FY26
Target Reduced loss, moving towards breakeven

Why it matters

Continued losses from V-Shapes are a drag on consolidated profitability; reduction is key for overall performance improvement.

Now in the second quarter, we lost about EUR 670,000, something like that, I can't remember approximately. ... So I think hopefully, next financial year that is we should be at least breakeven, if not profitable, but we should at least be breakeven.

Risks & concerns

  • Italian Operations (V-Shapes) Losses

    high

    V-Shapes incurred EUR 950,000 loss in H1, expected EUR 1-1.2 million loss for FY26, partly due to technical issues delaying machine orders.

    Management acknowledged

  • Lack of Recyclable Packaging Material for V-Shapes

    medium

    European sales of V-Shapes are hindered by the lack of recyclable packaging materials; a project is underway to develop this in India.

    Management actively developing

  • Track and Trace Pilot Project Execution

    medium

    Two large Track and Trace pilot projects with top pharma companies are facing technical ups and downs, requiring significant resources.

    Management acknowledged

  • Expiry of GST Benefit

    medium

    The annual ₹8.5 crores GST benefit from the Guwahati facility expired on May 26, 2025, which was previously part of revenue from operations, impacting YoY comparisons.

    Analyst acknowledged

Q&A highlights

7 direct
Revenue Breakup for future years Direct
So I can tell you the numbers for the Q1 and Q2, so between printers, consumables, spares and services, which are the four verticals under the coding and marking business. For the Q2, we did a business of 14%, 60%, 9%, 16%, respectively. Yeah, Vineet, was I audible? ... The comparable for Q1 of current year was 11%, 62%, 12%, and 14% respectively

Provides detailed insight into the composition of the core coding and marking business revenue, which is crucial for understanding growth drivers.

Asked by Vineet Thakur

V-Shapes Europe operations turnaround and margin expansion Partial
So I think hopefully, next financial year that is we should be at least breakeven, if not profitable, but we should at least be breakeven. So like I said EUR 2.5 million to like between EUR 1.1 million, EUR 1 million to EUR 1.2 million this year and hopefully breakeven next year if not more.

Addresses the ongoing losses in the European V-Shapes business, providing a timeline for breakeven and quantifying expected losses for the current year.

Asked by Vineet Thakur

Decrease in EBITDA and gross margin in H1 Direct
So the gap between the consolidated and standalone numbers is basically some losses what we've incurred in the Italian operations. Barring that, like both the Codeology even that is doing well. Markprint has also turned out to be profitable and the smaller Indian companies like even they are into profits now. So the gap is purely as a result of the Italian losses.

Clarifies that the primary reason for any consolidated margin difference is the losses from Italian operations, while other subsidiaries are profitable.

Asked by Vineet Thakur

Impact of GST reduction on packaging segment and revenue Direct
I don't think anyone has recoded the pricing or anything from at least my knowledge. It would be too cumbersome to take material that you've already manufactured and reprint the price, the MRP on it. ... What I do see is that the reduction in GST has somewhat definitely given a boost to the Packaging segment.

Explains that while direct price recoding is unlikely, the GST reduction has positively impacted demand in the packaging segment, potentially leading to increased prints and revenue.

Asked by Aniket Sapre

V-Shapes business model and margin strategy Direct
We have locked the machine with certain sort of electronic countermeasures so that when you buy the packaging material, it is connected to our machine. You cannot use anyone else's packaging material in our machine. So the lock is enforced. ... No, no. We make a margin on the machines, similar to all packaging, machinery companies also.

Confirms the razor-and-blade model for V-Shapes, ensuring recurring revenue from consumables, and clarifies that margins are made on machine sales as well.

Asked by Tushar Talwar

Status of domestically manufactured consumables for V-Shapes Direct
Yeah. That project is very much on. ... we've been working on developing a recyclable material. We think we've got something that's working at a certain level. ... we wanted to go in India straight for the manufacturing, straight for the recyclable material rather than really invest in the current packaging material, which is not recyclable.

Highlights progress on a critical project to develop recyclable packaging materials in India, which is essential for European market adoption and cost reduction.

Asked by Awanindra Singh

GST benefit from Guwahati facility and its impact on P&L Direct
So I tell you, this benefit got over on the 26th of May 2025. And the yearly benefit was about ₹8.5 crores. And what we should do is that we used to include it as part of the sales. So you would find that in the revenue from operations.

Clarifies the cessation of a significant annual GST benefit and its previous accounting treatment, which will affect year-on-year revenue comparisons.

Asked by Hardik Bora

Sustainability of the record standalone EBITDA margin Direct
Yeah. Fundamentally, if the revenue levels are maintained, we should see a similar EBITDA. ... So obviously, fundamentally, what you're saying is it sustainable. And I think that, yeah, unless some other things slip back into some issue in terms of the packaging or the QRiousCodes or whatever, I think it's sustainable.

Addresses concerns about the sustainability of high EBITDA margins, attributing it to operational leverage and the core business performance, assuming no major setbacks in newer ventures.

Asked by Rahul Koti

2 min read 7 chapters

Detailed narrative

H1 FY26 Performance Overview

Control Print reported a strong first half of FY26, with standalone total revenue reaching approximately ₹210 crores, a notable increase from ₹185 crores in the prior year. Standalone operating revenue grew to ₹202 crores from ₹181 crores. The company also achieved significant year-on-year growth in profitability metrics, with EBITDA up 14.1%, PAT up 18.5%, and PBT (excluding exceptional items) increasing by 11.7%.

Core Business & Segmental Contribution

The core coding and marking business remains the dominant revenue driver, contributing almost 89% of the total revenue and demonstrating steady growth. In Q2, the revenue mix for coding and marking was 14% from printers, 60% from consumables, 9% from spares, and 16% from services. Management aims for the coding and marking business to grow at 15%+, outpacing the market's 10-11% growth rate.

Italian Operations (V-Shapes) Update

The Italian V-Shapes operations continued to be a drag on consolidated results, incurring a loss of approximately EUR 670,000 in Q2 and EUR 950,000 (around ₹9.5-10 crores) in H1. The company anticipates a full-year loss of EUR 1-1.2 million for V-Shapes but expects to reach breakeven by the next financial year (FY27). Technical issues delayed some machine deliveries in Q2, which are expected to be resolved in Q3 or Q4.

Track and Trace Business Development

Control Print is actively pursuing opportunities in the Track and Trace segment, focusing on two large pilot projects with top pharmaceutical companies in India. These projects are technology-platform driven and, if successful, are expected to provide significant traction across the pharmaceutical industry. The company is also developing domestically manufactured recyclable packaging materials for V-Shapes, which is crucial for European market adoption and cost efficiency.

Cost Structure and Margins

The cost of goods sold remained stable at around 42-43% in Q1 and Q2, consistent with the previous year. Manufacturing costs were approximately 3% of operating revenue, and employee costs ranged from 16-18%. Consolidated gross margin for H1 was 59.9%, slightly down from 60.2% last year, primarily due to losses from the Italian operations. Management is committed to optimizing procurement and operational costs to further improve efficiency.

Impact of GST Changes

The annual GST benefit of ₹8.5 crores from the Guwahati facility, previously included in revenue from operations, expired on May 26, 2025. This will impact year-on-year revenue comparisons. However, management noted that recent GST reductions in certain sectors (e.g., FMCG, pharma) have created bullishness and boosted demand in the packaging segment, which could indirectly benefit the company through increased prints.

Outlook and Strategic Focus

The company aims to consolidate its existing coding and marking business, increase its installed base, and provide robust solutions, including a recently announced price increase. It plans to capitalize on opportunities in the Track and Trace segment and expects increased revenue from the packaging business, both domestically and overseas. Management is confident in crossing ₹100 crores in standalone PBT for the current financial year.

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