In , EPL Ltd (Packaging - FMCG/Consumers) is outperforming Nifty 500 with +13.4% relative strength. Fundamentals: Average. On a 6-week streak.
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
Based on Q4 FY26 earnings • Updated Apr 18, 2026
What: Combined Revenue: ₹8,300 Cr
Impact: EBITDA of ₹1,750 Cr
“This merger will create a $1 billion revenue packaging powerhouse with expanded product portfolio and capabilities, wider global presence across emerging markets.”
What: B&C Growth: 26%
Impact: 53% of portfolio is non-oral
“The Beauty & Cosmetic segment continued to outperform delivering 26% year-on-year growth... with non-oral accounting for 53% of our total portfolio.”
What: New Markets: Brazil, Thailand, Vietnam, Nigeria
Impact: 75% revenue from emerging markets
“The combined platform will be an emerging market leader with 75% of revenue coming from emerging markets in Asia, Africa and Latin America.”
What: Net Debt to EBITDA: 0.25x
Impact: Reduction from 0.65x
“After the merger, our debt-to-EBITDA ratio will fall to 0.25 from 0.65 right now. This gives us significant and strong free cash flow.”
What: Synergy Benefits: $35M - $50M
Impact: Annual EBITDA upside
“We've identified synergies of ~$35 million to $50 million across geographical footprint, product capabilities and costs, which will drive an EBITDA upside.”
What: Beauty & Cosmetic segment growth of 26%
“The Beauty & Cosmetic segment continued to outperform delivering 26% year-on-year growth in line with our strategic focus to grow faster in this category.”
Earnings deceleration risks from management commentary
Trigger: Geopolitical things are disrupting the supply chain and raw material costs are going up.
Management view: Securing supply for customers and implementing price increases to pass through cost inflation.
Monitor: geopolitical
Trigger: Polymer remains the largest raw material and prices can fluctuate based on commodity cycles.
Management view: Strengthened capabilities to review margins at customer level and proactive pricing discussions.
Monitor: commodity
Trigger: The company operates in multiple geographies and represents results in INR.
Management view: Management does not expect FX rates to move dramatically and uses representative exchange rates.
Monitor: fx
Key quotes from recent conference calls
“Our guidance remains unchanged, which is that we will deliver sustained double-digit growth on revenue. [Previous Revenue Growth guidance]”
“Together, we are creating a diversified multiformat packaging platform that doubles our combined revenue to INR8,300 crores and EBITDA to approximately INR1,750 crores. [Initiative: Merger with Indovida]”
“So firstly, the Middle East crisis is a significant event for us. Our raw material costs are going up. But our model is very clear. Our cost inflation is passed through. [Risk (geopolitical): MEDIUM]”
“See, polymer is a significantly higher part of our raw material cost. We have built in capabilities to review our margins and have proactive discussions with our customers. [Risk (commodity): MEDIUM]”
Headline numbers from the latest earnings call
Revenue
₹8,300 Cr (Combined Proforma)
Why: Revenue growth was broad-based with double-digit growth in 3 of 4 regions, particularly EAP and Americas growing 18% and 19% respectively.
The company delivered its third consecutive quarter of double-digit growth driven by the Beauty & Cosmetic segment.
EBITDA
₹1,750 Cr (Combined Proforma)
Why: Margins improved across all regions except Europe, where performance was impacted by short-term operational issues and adverse mix.
EBITDA growth of 12% was slightly lower than revenue growth due to a 20 bps margin contraction.
PAT
₹815 Cr (Combined Proforma)
Why: Profit after tax was flat versus last year due to a one-off benefit in the base year; excluding this, PAT grew by 11%.
Underlying PAT growth remains healthy at 11% when adjusted for one-time items.
Other Highlights
• ROCE expanded by 184 basis points year-on-year to 18.7%.
• Sustainable tube formats contributed 38% of total sales during the quarter.
• Net debt to EBITDA ratio stood at 0.65x as of the current quarter.
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Beauty & Cosmetic Revenue Growth
26%
Why: Strategic focus and accelerating market share gains in the B&C category.
Sustainable Tube Formats % of Sales
38%
Why: Reflects sustained customer adoption of sustainable packaging solutions.
Non-Oral Portfolio Share
53%
Why: Deliberate strategic shift towards Beauty & Cosmetics and other non-oral segments.
Combined Proforma Revenue
₹8,300 Cr
Why: Result of the proposed merger between EPL and Indovida.
Combined Proforma EBITDA
₹1,750 Cr
Why: Combined earnings potential of EPL and Indovida post-merger.
Indovida EBITDA Margin
21.3%
Why: Efficient operations and high-quality management team at Indovida.
Emerging Market Revenue Share
75%
Why: Complementary geographic footprints of EPL and Indovida in high-growth markets.
Proforma Net Debt to EBITDA
0.25x
Why: Indovida being a net cash company reduces the overall leverage of the merged entity.
Estimated Annual Synergies
$35M - $50M
Why: Expected benefits from footprint expansion, product diversification, and cost optimization.
Indovida 5-Year Volume CAGR
8%
Why: Consistent growth through organic and inorganic expansions.
Forward-looking targets from management for Long-term
OPM Guidance
20%
Double-digit
EBITDA growth slightly ahead of revenue growth
Guidance Changes
Revenue Guidance: Double-digit → Double-digit
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +13% | +7% | Accelerating |
| PAT (Net Profit) | -12% | +18% | Inflection Down |
| OPM | 20.0% | 0 bps | Expanding |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
EPL Ltd's latest quarterly results (Dec 2025) show
EPL Ltd's profit is declining with an inflecting downward trend.
EPL Ltd's revenue growth trend is accelerating.
EPL Ltd's operating margin is expanding.
EPL Ltd's long-term compounding rates
EPL Ltd's earnings growth is inflecting downward with mixed signals on a sequential basis.
EPL Ltd's trailing twelve month (TTM) performance
EPL Ltd appears significantly undervalued based on our fair value analysis.
EPL Ltd's current PE ratio is 18.5x.
EPL Ltd's current PE is 18.5x.
EPL Ltd's price-to-book ratio is 2.9x.
EPL Ltd is rated Average with a fundamental score of 52.6/100. This score is calculated from objective financial metrics
EPL Ltd has a debt-to-equity ratio of N/A.
EPL Ltd's return ratios over recent years
EPL Ltd's operating cash flow is positive (FY2025).
EPL Ltd's current dividend yield is 2.09%.
EPL Ltd's shareholding pattern (Mar 2026)
EPL Ltd's promoter holding has remained stable recently.
EPL Ltd has been outperforming Nifty 500 for 6 consecutive weeks, indicating building momentum.
EPL Ltd is an established outperformer with 6 weeks of consecutive Nifty 500 outperformance.
EPL Ltd has 6 key growth catalysts identified from recent earnings analysis
EPL Ltd has 3 key risks worth monitoring
In Q4 FY26, EPL Ltd's management highlighted
EPL Ltd's management has provided the following forward guidance for Long-term
EPL Ltd's most important sub-sector-specific KPIs from the latest concall
Based on quantitative research signals, here is why EPL Ltd may be worth studying
EPL Ltd investment thesis summary:
EPL Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
