EPL Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript EPL Ltd filed with BSE on 28 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
EPL Limited reported Q1 FY27 revenue growth of 25.3% and EBITDA growth of 15.2%, with EBITDA margins at 18.8%, while underlying revenue growth excluding raw material pass-through was 20% with underlying EBITDA margins of 19.6%. Management raised its revenue growth guidance to high teens for the next few quarters while retaining its underlying EBITDA margin guidance of 20%, citing momentum in Beauty & Cosmetics and a recovery in Oral Care. The company also discussed progress on its proposed merger with Indovida, noting it received Competition Commission of India approval during the quarter and remains on track to complete the transaction within its planned timeline.
Numbers mentioned
Revenue growth: 25.3% (Q1 FY27)
p. 3
“Revenue for the quarter grew by 25.3%, while EBITDA increased by 15.2% with EBITDA margins at 18.8%.”
Hemant Bakshi, page 3 of the filed PDF · View the filing
EBITDA growth: 15.2% (Q1 FY27)
p. 3
“Revenue for the quarter grew by 25.3%, while EBITDA increased by 15.2% with EBITDA margins at 18.8%.”
Hemant Bakshi, page 3 of the filed PDF · View the filing
Underlying revenue growth: 20% (Q1 FY27)
p. 3
“On an underlying basis, excluding the pass-through impact of higher raw material prices, we delivered 20% underlying revenue growth while delivering EBITDA margins of 19.6%.”
Hemant Bakshi, page 3 of the filed PDF · View the filing
Underlying EBITDA margin: 19.6% (Q1 FY27)
p. 3
“On an underlying basis, excluding the pass-through impact of higher raw material prices, we delivered 20% underlying revenue growth while delivering EBITDA margins of 19.6%.”
Hemant Bakshi, page 3 of the filed PDF · View the filing
Beauty & Cosmetics growth: exceeding 20% (Q1 FY27)
p. 3
“Beauty & Cosmetics maintained its strong growth trajectory with growth exceeding 20%, while Oral Care also crossed the 20% growth mark.”
Hemant Bakshi, page 3 of the filed PDF · View the filing
Personal Care & Beyond share of portfolio: 54% (Q1 FY27)
p. 3
“Personal Care & Beyond continues to expand and now accounts for 54% of our portfolio, further strengthening our presence in high-growth categories.”
Hemant Bakshi, page 3 of the filed PDF · View the filing
EAP regional growth: 34.3% (Q1 FY27)
p. 3
“Regionally, EAP led the quarter with growth of 34.3%, followed by Americas at 29.4%, while Europe and AMESA grew by 20.2% and 17%, respectively, marking another quarter where every region delivered double-digit growth.”
Hemant Bakshi, page 3 of the filed PDF · View the filing
Americas regional growth: 29.4% (Q1 FY27)
p. 3
“Regionally, EAP led the quarter with growth of 34.3%, followed by Americas at 29.4%, while Europe and AMESA grew by 20.2% and 17%, respectively, marking another quarter where every region delivered double-digit growth.”
Hemant Bakshi, page 3 of the filed PDF · View the filing
Europe regional growth: 20.2% (Q1 FY27)
p. 3
“Regionally, EAP led the quarter with growth of 34.3%, followed by Americas at 29.4%, while Europe and AMESA grew by 20.2% and 17%, respectively, marking another quarter where every region delivered double-digit growth.”
Hemant Bakshi, page 3 of the filed PDF · View the filing
AMESA regional growth: 17% (Q1 FY27)
p. 3
“Regionally, EAP led the quarter with growth of 34.3%, followed by Americas at 29.4%, while Europe and AMESA grew by 20.2% and 17%, respectively, marking another quarter where every region delivered double-digit growth.”
Hemant Bakshi, page 3 of the filed PDF · View the filing
PAT decline: -1.4% (Q1 FY27)
p. 4
“While Q1 PAT declined by 1.4%, our PBT increased by 10%.”
Hemant Bakshi, page 4 of the filed PDF · View the filing
PBT growth: 10% (Q1 FY27)
p. 4
“While Q1 PAT declined by 1.4%, our PBT increased by 10%.”
Hemant Bakshi, page 4 of the filed PDF · View the filing
Return on capital employed: 18.5% (Q1 FY27)
p. 4
“This is translating in higher growth. While doing so, we have maintained strong capital efficiency and a disciplined capital allocation approach, resulting in return on capital employed at 18.5%.”
Hemant Bakshi, page 4 of the filed PDF · View the filing
Sustainable tubes share of product mix: 44% (Q1 FY27)
p. 4
“We continue to make meaningful progress on our sustainability agenda with sustainable tubes now accounting for 44% of our overall product mix.”
Hemant Bakshi, page 4 of the filed PDF · View the filing
Indovida EBITDA: INR383 crores (Q1 FY27)
p. 8
“So as you can see, they are doing exceedingly well.”
Hemant Bakshi, page 8 of the filed PDF · View the filing
Indovida volume growth: 11% (Q1 FY27)
p. 8
“Their volume grew by 11%. Their revenue grew by 25%. Their EBITDA grew by 62%.”
Hemant Bakshi, page 8 of the filed PDF · View the filing
Indovida EBITDA margin expansion: 614 basis points to 27% (Q1 FY27)
p. 8
“The margin expanded by 614 basis points to 27%.”
Hemant Bakshi, page 8 of the filed PDF · View the filing
B&C market share: 8%
p. 11
“Currently, our market share is 8%. This, we believe, can go up to 16%.”
Hemant Bakshi, page 11 of the filed PDF · View the filing
Effective tax rate: 22% (Q1 FY27)
p. 14
“Last year was at the lower end of this range, at 18% for the full year. And this quarter is at the higher range, at the 22% of this quarter.”
Deepak Goyal, page 14 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Revenue growth — high teens · next few quarters
stated firmly by Hemant Bakshi
p. 5
“Based on our recent performance and the current environment, we are raising our growth guidance to high teens for next few quarters while holding on to our margin range of underlying 20% EBITDA.”
Hemant Bakshi, page 5 of the filed PDF · View the filing
Underlying EBITDA margin — 20%
stated firmly by Hemant Bakshi
p. 7
“Having said this, on margin, we are holding on to our guidance of 20% underlying margin in terms of EBITDA, and this is something which we will sustain as we go forward.”
Hemant Bakshi, page 7 of the filed PDF · View the filing
PAT growth — double-digit growth · full year
stated firmly by Hemant Bakshi
p. 4
“PAT delivery was in line with our estimates and is on track to deliver double-digit growth in the full year.”
Hemant Bakshi, page 4 of the filed PDF · View the filing
Europe EBITDA margin — mid-teens · coming quarters
stated conditionally by Hemant Bakshi
p. 12
“And I think in the coming quarters, we will see Europe margins improving to our target range of mid-teens.”
Hemant Bakshi, page 12 of the filed PDF · View the filing
Effective tax rate — 20% to 22% · full year
stated conditionally by Deepak Goyal
p. 14
“I think this year, on a full year basis, we should land anywhere between 20% to 22%. That's how we are looking at it.”
Deepak Goyal, page 14 of the filed PDF · View the filing
B&C market share — 16% · next few years
stated as an aspiration by Hemant Bakshi
p. 11
“Currently, our market share is 8%. This, we believe, can go up to 16%.”
Hemant Bakshi, page 11 of the filed PDF · View the filing
EBITDA growth relative to revenue growth — steady-state
stated as an aspiration by Hemant Bakshi
p. 10
“On a steady-state basis, our EBITDA will grow faster than our revenue growth.”
Hemant Bakshi, page 10 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management attributed the increase mainly to higher inventory value and safety stock, with receivables aging remaining normal.
Answered by Deepak Goyal
Asked by Sameer Gupta: What drove the increase in net working capital this quarter, and is it due to receivables?
p. 5
“However, this is largely driven by inventories. There are 2 reasons. One is the pricing of the inventory itself.”
Deepak Goyal, page 5 of the filed PDF · View the filing
Management said operational challenges in Europe have been identified and are expected to be resolved, with the manufacturing footprint centralized in Poland and Germany.
Answered by Hemant Bakshi
Asked by Sameer Gupta: Can you explain the Europe margin contraction and whether manufacturing base transitions are complete?
p. 6
“Having said that, as we had called out a couple of quarters back also, there have been operational challenges in Europe. The good thing is that these have been identified fully and are now getting disproportionate focus from the team.”
Hemant Bakshi, page 6 of the filed PDF · View the filing
Management confirmed high teens growth is expected to translate into PBT growth for the full year as well.
Answered by Sanjesh Jain
Asked by Sanjesh Jain: Does the raised revenue guidance also apply to PBT growth given currency and cost offsets?
p. 7
“So we are looking at a high teens growth in revenue as well as EBITDA and a lot of it will get translated to PBT for the year as a whole. Correct?”
Sanjesh Jain, page 7 of the filed PDF · View the filing
Management said it is actively scouting acquisitions in new formats or markets that meet growth and margin criteria.
Answered by Hemant Bakshi
Asked by Sanjesh Jain: What other growth opportunities beyond Indovida is the company evaluating?
p. 8
“We will seek targets which allow us to move into new capabilities, which means new formats or indeed into new markets.”
Hemant Bakshi, page 8 of the filed PDF · View the filing
Management said the entire cost impact, including raw material, freight, and currency, was recovered through pricing in the quarter.
Answered by Hemant Bakshi
Asked by Sanjesh Jain: Was there any inventory gain benefit from sharply rising prices this quarter?
p. 9
“I think net-net, what's important is that in quarter 1, we have recovered the entire cost impact, and we are absolutely confident that we will continue to do so in the future quarters as well.”
Hemant Bakshi, page 9 of the filed PDF · View the filing
Management described investments in a B&C center of excellence, divisionalized sales teams, and embellishment capabilities as part of a long-term strategy while keeping underlying costs efficient.
Answered by Hemant Bakshi
Asked by Jaymin: How should investors think about the split between temporary growth-enabling opex and structural cost additions?
p. 10
“This includes setting up of a full-service center of excellence for B&C, which we've set up in India. We've fully divisionalized our front-end sales team, which means that in the past, we had one sales team which would sell both -- all our categories.”
Hemant Bakshi, page 10 of the filed PDF · View the filing
Management said revenue growth is the preferred indicator and volume growth is less meaningful due to category and country mix impact.
Answered by Deepak Goyal
Asked by Sumant Kumar: What is the volume growth for the quarter?
p. 11
“The volume growth, I can tell you that the -- this growth is driven by a very strong underlying business performance. However, volume growth still will not make too much of sense because there is a significant mix impact given that the product prices differ strongly between categories and countries.”
Deepak Goyal, page 11 of the filed PDF · View the filing
Management said this was not the worst quarter and that the entire cost impact has already been recovered through pricing.
Answered by Hemant Bakshi
Asked by Sameer Gupta: Is the worst cost impact yet to hit the P&L given elevated FY26 inventory levels?
p. 12
“Yes, Sameer, so firstly, I want to say this isn't the worst quarter. It's actually quite a positive quarter for us.”
Hemant Bakshi, page 12 of the filed PDF · View the filing
Management attributed it to pricing pass-through impact making margins sequentially non-comparable and to growth investments in Brazil and the U.S.
Answered by Hemant Bakshi
Asked by Sanjesh Jain: What happened with Americas margins given stable revenue but a sharp EBITDA/EBIT decline?
p. 13
“And second is that the investments that we are making also then are rubbing off in Americas because we are seeing exciting opportunities both in Brazil as well as in the U.S. markets, and we are investing in our capabilities there.”
Hemant Bakshi, page 13 of the filed PDF · View the filing
Management guided to 20-22% for the full year but declined to comment on the post-merger consolidated tax rate given the pending approval.
Answered by Deepak Goyal
Asked by Jayesh Gandhi: What is the full-year effective tax rate guidance, and could it rise post the Indovida merger?
p. 14
“I think at this point in time, it may not be the right thing to comment on the consolidated financials, given we are still in the approval process.”
Deepak Goyal, page 14 of the filed PDF · View the filing
Risks flagged
Operational challenges and cost inefficiencies in Europe affecting margins
p. 6
“Having said that, as we had called out a couple of quarters back also, there have been operational challenges in Europe.”
Hemant Bakshi, page 6 of the filed PDF · View the filing
High inflationary and volatile commodity cost environment
p. 7
“At this stage, we expect to operate in a high inflationary environment for some time.”
Hemant Bakshi, page 7 of the filed PDF · View the filing
Lag in pricing recovery from certain customers against rising raw material costs
p. 9
“So the consumption cost does have an impact of old inventory, but the pricing also comes with some lag with a few customers.”
Hemant Bakshi, page 9 of the filed PDF · View the filing
Effective tax rate variability across countries affecting profitability comparability
p. 13
“On a steady-state basis, it will remain in the range between 18% to 22%. While the range is a little wide, it is also a function of the profitability delivery by various countries and hence we have to live with that variability.”
Deepak Goyal, page 13 of the filed PDF · View the filing
Uncertainty around Indovida merger pending regulatory approval limiting information sharing
p. 13
“We are not able to comment on the underlying reasons for the results, Giriraj, because we are in a period where we are still seeking approval on the merger.”
Hemant Bakshi, page 13 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.