EPL (500135) Q1 25/26 earnings summary

Executive summary

• Achieved 10% year-over-year revenue growth in Q1 FY26, with EBITDA up 18.1% and EPS rising from INR 2.02 to INR 3.13 per share.

• EBITDA margin expanded to 20.5%, marking the 12th consecutive quarter of margin expansion and four straight quarters above 20%.

• PAT increased by 55.8% year-over-year, with net profit after tax reaching Rs 1,014 million.

• Strong performance in Europe (15% growth), Americas (13%), and TLD/EAP (10%), with beauty and cosmetics driving momentum.

• Sustainability initiatives advanced, with sustainable PUC formats now 38% of sales and top EV/EcoVadis rating retained for the third year.

Financial highlights

• Q1FY26 revenue reached INR 11,079 million, up from INR 10,074 million YoY.

• EBITDA was INR 2,268 million (20.5% margin), up from INR 1,921 million (19.1% margin) YoY.

• PAT stood at INR 1,000 million, up from INR 642 million YoY.

• Net debt-to-EBITDA ratio improved to 0.45x, and net debt reduced to INR 3,898 million.

• Capex increased to INR 857 million from INR 442 million YoY.

Outlook and guidance

• Ambition to sustain double-digit revenue growth, with EBITDA and CAC expected to outpace revenue.

• Aiming to increase ROCE from 18% to over 25% by FY29, with consistent margin improvement.

• Oral care volumes showing early signs of recovery, with H2 expected to see improved growth.

• Thailand Greenfield to contribute in H2, with plans to ramp up quickly and expand regionally.

• Continued focus on geographic expansion, operational efficiency, and investment in subsidiaries.