EPL (500135) Q3 24/25 earnings summary

Executive summary

• Achieved 10 consecutive quarters of margin expansion and double-digit EBITDA growth, with strong turnaround in Europe and Americas and robust Beauty & Cosmetics performance.

• Adjusted PAT grew 34% year-over-year, and ROC improved by 321 basis points to 16.9%.

• Revenue grew 4% year-over-year, driven by Europe and Americas, with continued profitability and operational stability across key geographies.

• Sustainability initiatives advanced, with 31% of portfolio now sustainable tubes, industry recognition, and investments in renewable energy.

• Board approved unaudited financial results for the quarter and nine months ended 31 December 2024, with compliance to SEBI regulations.

Financial highlights

• EBITDA increased by 12.4% year-over-year to INR 2,062 million; EBITDA margin reached 20.3%, up 152 basis points.

• Consolidated revenue from operations for the quarter was Rs. 10,143 million, up from Rs. 9,751 million year-over-year.

• Adjusted PAT up 33.8% YoY to INR 935 million; consolidated net profit after tax for the quarter was Rs. 941 million.

• Net debt-to-EBITDA ratio reduced to 0.72; consolidated debt-equity ratio improved to 0.34.

• Non-Oral Care segment now represents 48.7% of total revenue.

Outlook and guidance

• Targeting double-digit revenue growth and strong operating margins for FY 2026 and beyond, with continued investments in innovation and operational efficiency.

• Confident in continued EBITDA growth ahead of revenue growth, with margin improvement plans in place for India.

• Aggressive expansion in 'Personal Care & Beyond' and new geographies, with focus on automation and manufacturing realignment.

• Management continues to invest in renewable energy and operational efficiency, supporting long-term growth.

• Expecting improved performance in beauty and cosmetics, especially in India, in upcoming quarters.