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    EPL Q1 FY27 earnings call

    EPL
    Capital Goods·11 Aug 2026
    Management Summary

    EPL Ltd delivered a strong Q1 FY27, achieving 25.3% revenue growth and 15.2% EBITDA increase, driven by robust performance in Beauty & Cosmetics and Oral Care across all geographies. The company successfully passed on cost increases and raised its revenue growth guidance to high teens, while maintaining margin targets. Despite a slight PAT decline due to tax rate effects and increased working capital, management expressed confidence in its strategy and the ongoing Indovida merger.

    Highlights

    5

    • Revenue grew by 25.3% YoY, marking the 5th consecutive quarter of double-digit growth.

    • Underlying revenue growth was 20% YoY, excluding pass-through impact of higher raw material prices.

    • EBITDA increased by 15.2% YoY, with underlying EBITDA margins at 19.6%, marking the 15th consecutive quarter of double-digit EBITDA growth.

    • Beauty & Cosmetics and Oral Care segments both achieved over 20% growth, with Personal Care & Beyond now accounting for 54% of the portfolio.

    • Raised revenue growth guidance to high teens for the next few quarters, while maintaining underlying EBITDA margin guidance of 20%.

    Concerns

    3

    • PAT declined by 1.4% YoY, primarily due to lapping a very low base year effective tax rate.

    • Working capital increased by INR180 crores in Q1 FY27 (vs March), driven by higher inventory costs and safety stock.

    • Europe experienced operational challenges leading to margin contraction, though management expects recovery in coming quarters.

    Key financials

    Single quarter

    08 metrics
    1. 01Revenue Growth25.3%+25.3%YoY
    2. 02Underlying Revenue Growth20%+20%YoY
    3. 03EBITDA Growth15.2%+15.2%YoY
    4. 04EBITDA Margin18.8%
    5. 05Underlying EBITDA Margin19.6%

    Segment breakdown

    Beauty & Cosmetics
    20% Growth
    Oral Care
    20% Growth
    Personal Care & Beyond
    54% Share of Portfolio
    EAP
    34.3% Growth
    Americas
    29.4% Growth
    Europe
    20.2% Growth
    AMESA
    17% Growth
    List

    Order Book

    low confidence

    Pipeline

    other

    strong pipeline across customers and markets in Beauty & Cosmetics, promising sales pipeline in Europe

    "The company mentioned a strong pipeline of sales in Europe and winning wallet share across many markets, but did not quantify an order book or order inflow for the quarter."

    Source:
    Inferred

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Debt disclosed

    M&A

    Indovida

    merger · pending regulatory

    Guidance & targets

    6
    CategoryTargetPriority
    Revenue
    Revenue Growth
    high teens
    		High
    Margin
    Underlying EBITDA Margin
    20%
    		High
    Margin
    Europe Margins
    mid-teens
    		Medium
    Profitability
    PAT Growth
    double-digit growth
    		High
    Market Share
    Beauty & Cosmetics Market Share
    16%
    		Medium
    Taxation
    Effective Tax Rate (ETR)
    18% to 22%
    		High

    What to watch in Q2 FY27

    4

    Resolution of Europe operational challenges

    coming quarters
    CurrentIdentified, getting disproportionate focus
    TargetOperational efficiencies improve, margins progressively recover

    Why it matters

    Critical for improving profitability in a key region and validating management's confidence in resolving issues.

    The good thing is that these have been identified fully and are now getting disproportionate focus from the team. We are confident that these will be resolved in the coming quarters⏳. ... As the operational efficiency improve, we expect margins to progressively recover.

    Risks & concerns

    3
    RiskSeverity

    Volatile external environment and cost inflation

    EPL has delivered an outstanding quarter in the midst of unparalleled external challenges and a very volatile environment. — Management acknowledged

    high

    Operational challenges in Europe

    There have been operational challenges in Europe, which have been identified and are receiving disproportionate focus for resolution in coming quarters. — Management acknowledged

    medium

    Increased working capital and net debt

    Net working capital increased by INR180 crores in Q1, driven by higher inventory costs (raw materials) and safety stock, as well as ahead-of-the-curve CapEx investments. — Analyst acknowledged

    medium

    Q&A highlights

    6

    “So you're right that our working capital has gone up during this crisis period. However, this is largely driven by inventories. There are 2 reasons. One is the pricing of the inventory itself. With the raw material prices going up, our inventory cost has gone up. So it's not as much an increase in quantity as in the price as well. Second is the safety stock.”

    Clarifies the drivers behind the significant increase in working capital, indicating it's partly due to strategic inventory building and raw material price increases rather than operational inefficiency.

    asked by Sameer Gupta, IIFL Capital

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Q1 FY27 Performance Driven by Broad-Based Growth

    EPL Ltd reported a robust Q1 FY27, with revenue growing 25.3% and underlying revenue growth reaching a record 20% after excluding pass-through impacts. EBITDA increased by 15.2%, maintaining underlying margins at 19.6%. This marks the fifth consecutive quarter of double-digit revenue growth and the fifteenth for EBITDA, demonstrating strong execution despite external challenges🌐.

    02

    Strategic Investments Fueling Category and Regional Expansion

    Growth was broad-based, with both Beauty & Cosmetics and Oral Care segments exceeding 20% growth. Personal Care & Beyond now constitutes 54% of the portfolio. Regionally, EAP led with 34.3% growth, followed by Americas at 29.4%, Europe at 20.2%, and AMESA at 17%. The company continues to invest in capacity expansion, new production capabilities, and front-end teams, particularly in Europe and high-growth markets like Thailand, to capture future opportunities.

    03

    Indovida Merger Progress and Strategic Vision

    The proposed merger with Indovida is progressing well, having received approval from the Competition Commission of India. Management expects to complete the transaction within the planned timeline. Indovida reported strong Q1 results with 25% revenue growth and 62% EBITDA growth, reaching INR383 crores in EBITDA, reinforcing the merger's strategic value in expanding EPL's portfolio beyond tubes into rigid plastics and new emerging markets.

    04

    Margin Management and Cost Recovery in Volatile Environment

    Despite unprecedented🌐 cost inflation, EPL successfully recovered the entire cost impact through judicious pricing across all regions and customers. The company's underlying EBITDA margin remained strong at 19.6%. Management emphasized a 'frugal mindset' and 'relentless cost discipline' while continuing growth investments, aiming to make the business 'cyclicality proof' against commodity price volatility.

    05

    Working Capital and Capex Dynamics

    Net working capital increased by approximately INR180 crores in Q1 FY27, primarily due to higher inventory costs driven by rising raw material prices and a strategic build-up of safety stock to ensure supply security. Additionally, ahead-of-the-curve CapEx investments contributed to the increase in net debt. Management views these as necessary investments for future growth and resilience.

    06

    Revised Guidance and Future Outlook

    Based on strong performance and continued momentum, EPL has raised its revenue growth guidance to 'high teens' for the next few quarters, up from 'early double digits'. The company reiterated its commitment to maintaining an underlying EBITDA margin of 20%. While Q1 PAT saw a 1.4% decline due to a low base year ETR, PBT grew 10%, and the full-year PAT is expected to achieve double-digit growth. The full-year ETR is guided to be between 18-22%.

    This is an AI-generated summary of a publicly available earnings call transcript.