EPL (500135) Q1 26/27 earnings summary

Executive summary

• Achieved record quarterly revenue growth of 25.3% year-over-year, reaching INR 13,879 million, with broad-based momentum across categories and geographies, aided by inflation-led pricing and strong underlying demand.

• EBITDA grew 15.2% year-over-year, with reported margin at 18.8% and underlying margin at 19.6%, marking the fifth consecutive quarter of double-digit growth.

• PAT declined by 1.4% due to a higher effective tax rate, but PBT increased by 10% year-over-year; full-year double-digit PAT growth remains on track.

• ROCE remains strong at 18.5%, with a marginal decline due to proactive capex investments.

• Total comprehensive income for the quarter was Rs 1,330 million, with significant contributions from foreign exchange translation gains.

Financial highlights

• Q1FY27 revenue from operations: INR 13,879 million, up 25.3% year-over-year.

• EBITDA: INR 2,612 million, up 15.2% year-over-year; underlying margin at 19.6%.

• PAT: INR 986 million, down 1.4% year-over-year; EPS at 3.08.

• Net debt increased to INR 5,806 million, with net debt/LTM EBITDA at 0.58x, reflecting higher capex and working capital.

• Regional revenue growth: AMESA +17%, India +19.9%, EAP +34.3%, Americas +29.4%, Europe +20.2%.

Outlook and guidance

• Growth guidance raised to high teens for the next few quarters, with underlying EBITDA margin guidance maintained at 20%.

• Confident in sustaining double-digit PAT growth for the full year and targeting ROCE improvement from 18% to over 25% by FY29.

• Focus remains on margin expansion, capital efficiency, and disciplined capital allocation, with continued operational efficiencies and robust capital deployment.

• Merger with Indovida progressing, with CCI and most foreign anti-trust approvals received; completion expected by Q4 FY27.

• Monitoring regulatory changes, especially regarding new Labour Codes, and will adjust reporting as needed.