Control Print

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 item^📎s) increasing by 11.7%.

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.

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.

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.

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.

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.

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.