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    EPL Ltd

    EPL
    Capital Goods·13 Feb 2026
    Management Summary

    EPL Ltd reported a strong Q3 FY26 with revenue growing 13.3% and EBITDA up 12%, driven by robust performance in the Beauty & Cosmetics segment (26% growth) and strong regional growth in EAP (18%) and Americas (19%). EBITDA margin was 20.1%, slightly lower YoY, and PAT was flat due to a one-off benefit in the base year. The company continues to focus on sustainability, with 38% of sales from sustainable tube formats, and aims for sustained double-digit growth and ROCE improvement.

    Highlights

    5

    • Revenue grew by 13.3% YoY, demonstrating broad-based growth across 3 of 4 regions.

    • EBITDA grew by 12% YoY, with EBITDA margin at 20.1%, firmly within the target operating range.

    • ROCE improved significantly to 18.7%, expanding by 184 basis points year-on-year.

    • The Beauty & Cosmetic segment continued to outperform, delivering 26% year-on-year growth, aligning with strategic focus.

    • Sustainable tube formats contributed 38% of sales, reflecting sustained customer adoption and leadership in sustainability.

    Concerns

    4

    • EBITDA margin was 20.1%, 20 basis points lower than last year.

    • Profit after tax (PAT) was flat versus last year due to a one-off benefit in the base.

    • Europe's growth was lower than expectation at 8%, impacted by short-term operational issues and adverse mix.

    • Net debt increased in the last quarter due to dividend payout and accelerated CAPEX spending, though this is considered a timing impact.

    What Changed1

    vs Q4 FY26

    Guidance items5 → 7 (+2)

    Key financials

    Single quarter

    06 metrics
    1. 01Revenue Growth—+13.3%YoY
    2. 02EBITDA Growth—+12%YoY
    3. 03EBITDA Margin20.1%
    4. 04ROCE18.7%
    5. 05Net Debt to EBITDA0.65 ratio

    Segment breakdown

    EAP
    18% Revenue Growth
    Americas
    19% Revenue Growth
    AMESA
    10% Revenue Growth
    India Standalone
    8.7% Revenue Growth
    Europe
    8% Revenue Growth
    Beauty & Cosmetic
    26% Revenue Growth
    Non-oral (Beauty & Cosmetics)
    53% Share of Total Portfolio
    List

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    0.7x EBITDA

    Guidance & targets

    5
    CategoryTargetPriority
    Profitability
    EBITDA growth ahead of revenue
    slightly ahead
    		High
    Margin
    Europe operating margins
    mid-teen
    		High
    Growth
    Beauty & Cosmetics topline growth
    high teen
    		High
    Growth
    Oral and Pharma topline growth
    steady pace
    		Medium
    Capital Efficiency
    ROCE improvement
    improve year-on-year
    		High

    Europe Margin Improvement

    coming quarters
    Current8% growth, margin contraction, below expectation
    TargetReturn to mid-teen margins

    Why it matters

    Europe is a key region, and margin recovery is crucial for overall profitability and meeting guidance.

    We should start seeing the benefits of these in the coming quarters⏳. And we are confident that going forward⏳, Europe will operate at mid-teen margins.

    How to verify

    key_financials.segment_breakdown[name='Europe'].metrics[label='EBITDA Margin']

    Risks & concerns

    3
    RiskSeverity

    Europe underperformance and margin pressure

    Europe's 8% growth was below expectation and margins were impacted by adverse customer mix, short-term operational issues, and Q3 seasonality. — Management acknowledged

    medium

    PAT flat due to one-off benefit in base year

    Profit after tax was flat versus last year due to a one-off benefit in the base, not reflecting underlying operational performance. — Management acknowledged

    low

    Increase in net debt due to timing impacts

    Net debt increased in the last quarter due to dividend payout and accelerated CAPEX, but this is expected to correct on a full-year basis. — Management acknowledged

    low

    Q&A highlights

    8

    “I think, firstly, India continues to be a very attractive market for us with category growth. We have always maintained that India will come back to growth as soon as the impact of the earlier quarters, which were due to one-off like GST. This quarter is definitely a step in the right direction. We are seeing momentum in B&C category and oral is gradually coming back.”

    Clarifies the regional growth drivers and the recovery trend in key segments like Oral Care in India.

    asked by Mihir Shah

    2 min read6 chapters

    Detailed Narrative

    01

    Robust Q3 FY26 Financial Performance

    EPL Ltd delivered a strong Q3 FY26, with revenue growing by 13.3% and EBITDA increasing by 12%. The EBITDA margin stood at 20.1%, although it was 20 basis points lower than the previous year. Return on Capital Employed (ROCE) showed significant improvement, expanding by 184 basis points year-on-year to 18.7%. Profit after tax (PAT) remained flat compared to the previous year, primarily due to a one-off📎 benefit in the base period.

    02

    Strategic Focus on Beauty & Cosmetics Driving Growth

    The company's strategic pivot towards the Beauty & Cosmetics segment continues to yield strong results, with this category delivering an impressive 26% year-on-year growth. This segment now constitutes 53% of the total non-oral portfolio. Management highlighted that the B&C market is twice the size of Oral Care and grows at twice the rate, offering substantial runway for future expansion and market share gains.

    03

    Varied Regional Performance

    Growth was broad-based across most regions, with EAP and Americas delivering particularly strong performances, growing 18% and 19% respectively. AMESA region grew 10%, and India standalone recorded a solid 8.7% growth, primarily driven by the Beauty & Cosmetics segment. However, Europe's growth was 8%, falling below expectations due to adverse customer mix and short-term operational issues, which management is actively addressing to restore mid-teen margins.

    04

    Commitment to Sustainability and Innovation

    Sustainability and innovation remain central to EPL's growth agenda. Sustainable tube formats contributed a significant 38% of total sales, indicating strong customer adoption. The company received global recognition for its sustainability efforts, including being listed among the top 2% globally on CDP Climate and Water A List 2025. Innovative solutions, such as tube-in-tube formats, are scaling up and commanding a premium.

    05

    Capital Allocation and Debt Management

    The company's net debt to EBITDA ratio stood at 0.65. While net debt increased in the last quarter due to a dividend payout and accelerated CAPEX spending, this is considered a timing impact📎 expected to correct on a full-year basis. Management reiterated its commitment to gradual debt reduction and ensuring that interest costs reflect consequential benefits, while prioritizing growth investments.

    06

    Thailand Market Entry and M&A Outlook

    EPL commercialized its Thailand plant in November, marking its entry into a new and attractive market. While it is still in the early stages of scaling up, management anticipates a strong and healthy pipeline. The company is also actively pursuing M&A opportunities, focusing on targets that offer new geographies or capabilities, with a clear criteria for value creation, margin, and growth accretion, though no concrete deals were disclosed this quarter.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.