EPL Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript EPL Ltd filed with BSE on 07 Apr 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 announced a share-swap merger with Indovida, a rigid-packaging subsidiary of Indorama Ventures, to create a combined entity with revenue of about INR8,300 crores and EBITDA of approximately INR1,750 crores. Management said the deal values EPL at INR339 per share, a roughly 70% premium to the prior closing price, with Indorama Ventures becoming a 51.8% promoter and Blackstone retaining 16.6% as a joint promoter. Management also discussed identified synergies of $35 million to $50 million annually, a reduction in the combined debt-to-EBITDA ratio to 0.25, and detailed the geographic and product rationale for the transaction.
Numbers mentioned
Indovida CY2025 revenue: over INR3,800 crores (2025)
p. 4
“In the year 2025, Indovida delivered over INR3,800 crores in revenue, EBITDA margin of 21.3% and ROCE of 23.7% and a volume CAGR of 8% over the last 5 years”
Hemant Bakshi, page 4 of the filed PDF · View the filing
Indovida EBITDA margin: 21.3% (2025)
p. 4
“In the year 2025, Indovida delivered over INR3,800 crores in revenue, EBITDA margin of 21.3% and ROCE of 23.7% and a volume CAGR of 8% over the last 5 years”
Hemant Bakshi, page 4 of the filed PDF · View the filing
Combined entity revenue: INR8,300 crores
p. 4
“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.”
Hemant Bakshi, page 4 of the filed PDF · View the filing
Combined entity EBITDA: approximately INR1,750 crores
p. 4
“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.”
Hemant Bakshi, page 4 of the filed PDF · View the filing
EPL share valuation: INR339 per share
p. 4
“EPL was valued at INR339 per share, ~70% premium to Friday's closing price.”
Hemant Bakshi, page 4 of the filed PDF · View the filing
IVL post-merger stake: 51.8%
p. 4
“Post-merger, IVL will hold 51.8% of MergeCo and will be promoter of EPL.”
Hemant Bakshi, page 4 of the filed PDF · View the filing
Blackstone post-merger stake: 16.6%
p. 5
“Blackstone has been an integral part of EPL's journey. Post-merger, Blackstone will hold 16.6% of MergeCo and will remain a promoter.”
Hemant Bakshi, page 5 of the filed PDF · View the filing
Synergy estimate: $35 million to $50 million
p. 4
“We've identified synergies of ~$35 million to $50 million across geographical footprint, product capabilities and costs, which will drive an EBITDA upside over the next few years.”
Hemant Bakshi, page 4 of the filed PDF · View the filing
Debt-to-EBITDA ratio post-merger: 0.25
p. 5
“As a result of this merger, our debt-to-EBITDA ratio will come down to 0.25, and therefore we will have significant investment ability.”
Hemant Bakshi, page 5 of the filed PDF · View the filing
Combined entity EV: about $2 billion
p. 11
“So, the total valuation of the combined entity is about $2 billion.”
Deepak Goyal, page 11 of the filed PDF · View the filing
EPL EBITDA multiple: 12.5x EBITDA
p. 11
“In this transaction EPL is being valued at 12.5x EBITDA and Indovida is being valued at 8.1x EBITDA.”
Deepak Goyal, page 11 of the filed PDF · View the filing
Total shares post-merger: around INR51 crores shares
p. 11
“And the number of shares, we currently have INR32.5 crores shares. As part of the transactions, we will issue INR18.5 crores additional shares and hence the total number of shares would be around INR51 crores.”
Deepak Goyal, page 11 of the filed PDF · View the filing
Indovida PAT: 10.6% or INR410 crores (2025)
p. 10
“So Indovida generates a PAT of 10.6% or INR410 crores.”
Deepak Goyal, page 10 of the filed PDF · View the filing
Combined entity PAT: INR815-odd crores
p. 10
“This is almost equal to what EPL generates and hence our combined entity will deliver a PAT of INR815-odd crores.”
Deepak Goyal, page 10 of the filed PDF · View the filing
Combined EBITDA (USD): about $200 million
p. 13
“So the combined business, Mayank, would generate about $200 million of EBITDA.”
Deepak Goyal, page 13 of the filed PDF · View the filing
Cash to EBITDA conversion: 60% to 65%
p. 13
“Both companies, EPL as well as Indovida, have a very healthy cash to EBITDA conversion ratio with about 60% to 65% of EBITDA getting converted into cash.”
Deepak Goyal, page 13 of the filed PDF · View the filing
Indovida working capital: 50 days
p. 17
“So, the working capital for Indovida business is 50 days and the operating cash flow, so the working capital investments are limited in line with the revenue investments, about 90% of EBITDA is the operating cash flow.”
Deepak Goyal, page 17 of the filed PDF · View the filing
EPL EBITDA (trailing 12 months): about INR940 crores (last 12 months)
p. 9
“If you look at the combined entity, in the last 12 months, EPL has delivered a profit of or EBITDA of about INR940 crores.”
Deepak Goyal, page 9 of the filed PDF · View the filing
EPL EBITDA margin improvement: 500 basis points over 15 quarters (last 15 quarters)
p. 3
“Also, we have delivered 500 basis points of EBITDA margin improvement over the last 15 quarters.”
Hemant Bakshi, page 3 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.
EPL revenue growth — double-digit revenue growth · future
stated firmly by Hemant Bakshi
p. 10
“Our guidance on EPL remains unchanged of double-digit revenue growth in the future.”
Hemant Bakshi, page 10 of the filed PDF · View the filing
Merger completion timeline — regulatory approvals · approximately 12 months
stated conditionally by Hemant Bakshi
p. 4
“Completion of merger process is subject to regulatory approvals and is expected to take approximately 12 months.”
Hemant Bakshi, page 4 of the filed PDF · View the filing
Synergy realization — $35 million to $50 million annually · next few years
stated as an aspiration by Hemant Bakshi
p. 14
“So we'll try and move as quickly as possible after the approvals come through and we will try and realize these synergies at the earliest.”
Hemant Bakshi, page 14 of the filed PDF · View the filing
Dividend/capital allocation policy — post-merger
stated conditionally by Hemant Bakshi
p. 14
“Any future dividend policy will be decided by the Board of the combined company post the merger is completed.”
Hemant Bakshi, page 14 of the filed PDF · View the filing
Buyback consideration
stated conditionally by Deepak Goyal
p. 18
“However, if we realize that there is a better opportunity in buyback, we will consider that.”
Deepak Goyal, page 18 of the filed PDF · View the filing
India market entry for Indovida — future post the merger
stated as an aspiration by Hemant Bakshi
p. 6
“How we approach the market, the entry strategy and so on is something which we will have to build. And that is something which we will work on in the future post the merger.”
Hemant Bakshi, page 6 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.
Indorama will get at least three Board seats, Blackstone retains a single seat, with the rest determined by regulations.
Answered by Hemant Bakshi
Asked by Sanjesh Jain: What are the expected changes in Board composition following IVL becoming promoter?
p. 5
“what's been agreed is that Indorama will have at least three Board seats. Blackstone will retain a single Board seat and rest of the independent directors, etc, will be based on the regulations and the laws of the country.”
Hemant Bakshi, page 5 of the filed PDF · View the filing
Deal is arm's length with preferential access to IVL petrochemicals, but no obligation to source from them.
Answered by Hemant Bakshi
Asked by Sanjesh Jain: What percentage of Indovida's raw material is sourced from parent IVL?
p. 6
“the access, the preferential access that Indovida has to IVL being one of the large petrochemical companies is of enormous value to us.”
Hemant Bakshi, page 6 of the filed PDF · View the filing
Management said cost inflation is contractually passed through to customers and inventory has been built up, with no expected margin disruption.
Answered by Hemant Bakshi
Asked by Kirthi K. Jain: Can the 20%+ margin be sustained given crude-related inflation?
p. 10
“our cost inflation is passed through to our customers and that is something which we are already discussing with them.”
Hemant Bakshi, page 10 of the filed PDF · View the filing
Indovida's PAT is 10.6% margin or INR410 crores, roughly equal to EPL's, giving a combined PAT of about INR815 crores.
Answered by Deepak Goyal
Asked by Kirthi K. Jain: What is Indovida's proforma PAT?
p. 10
“So Indovida generates a PAT of 10.6% or INR410 crores. This is almost equal to what EPL generates and hence our combined entity will deliver a PAT of INR815-odd crores.”
Deepak Goyal, page 10 of the filed PDF · View the filing
Management attributed the premium to EPL's stronger track record, pivot to beauty and cosmetics, and higher growth potential as assessed by independent valuers.
Answered by Hemant Bakshi
Asked by Bhavya Gandhi: Why is Indovida valued at a lower multiple than EPL?
p. 11
“EPL is at a 55% premium to Indovida. And firstly, just to clarify, this valuation has been done by independent experts and the fairness opinion has been given by EY.”
Hemant Bakshi, page 11 of the filed PDF · View the filing
Management confirmed majority-of-minority approval is required on EPL's side.
Answered by Hemant Bakshi
Asked by Sameer Gupta: Does the transaction require majority-of-minority shareholder approval?
p. 13
“It is required on our end for sure.”
Hemant Bakshi, page 13 of the filed PDF · View the filing
Management said Indovida is net cash and the combined entity's debt-to-EBITDA will fall, and dividend policy remains unchanged.
Answered by Deepak Goyal
Asked by Pratham Kankariya: Will EPL take on more dividends or debt given Indorama parent's debt levels?
p. 14
“if you look at it, Indovida today is also IVL subsidiary and it still manages net cash position and it's not leveraged.”
Deepak Goyal, page 14 of the filed PDF · View the filing
Management cited a high tourism base in Thailand in 2024, weak weather patterns in 2025, and a Vietnam tax policy change that closed about 8,000 stores.
Answered by Hemant Bakshi
Asked by Jaymin: Why were Indovida's CY25 numbers weaker year-on-year versus CY24?
p. 15
“Equally in Vietnam there was a significant change in the tax policy which led to almost 8,000 stores shutting down during that period which had an impact.”
Hemant Bakshi, page 15 of the filed PDF · View the filing
Working capital is 50 days and operating cash flow is about 90% of EBITDA.
Answered by Deepak Goyal
Asked by Majid Ahamed: What is Indovida's working capital and cash flow conversion?
p. 17
“So, the working capital for Indovida business is 50 days and the operating cash flow, so the working capital investments are limited in line with the revenue investments, about 90% of EBITDA is the operating cash flow.”
Deepak Goyal, page 17 of the filed PDF · View the filing
Management said both businesses are managing supply security and cost pass-through, with Indovida also benefiting from IVL's preferential raw material access.
Answered by Hemant Bakshi
Asked by Aman Gupta: Is EPL's laminated packaging or Indovida's rigid packaging more exposed to commodity inflation from the geopolitical conflict?
p. 18
“Overall, both businesses are managing the situation to ensure we remain resilient and come out of it stronger than where we were earlier.”
Hemant Bakshi, page 18 of the filed PDF · View the filing
Risks flagged
Geopolitical crisis disrupting raw material supply and causing cost inflation
p. 10
“It is a fact that geopolitical things are disrupting the supply chain. We have day-to-day management of supplies.”
M.R. Ramasamy, page 10 of the filed PDF · View the filing
Vietnam tax policy change led to store closures impacting Indovida's business
p. 15
“Equally in Vietnam there was a significant change in the tax policy which led to almost 8,000 stores shutting down during that period which had an impact.”
Hemant Bakshi, page 15 of the filed PDF · View the filing
Weak weather patterns and high prior-year tourism base impacted Indovida's 2025 performance
p. 15
“And then again '25 the weather patterns were not very strong.”
Hemant Bakshi, page 15 of the filed PDF · View the filing
Difficulty and time required to enter new geographies as part of synergy realization
p. 16
“You can imagine entering a new country is not straightforward, but we'll start working on it, both from an EPL's perspective, but also from an Indovida's perspective.”
Hemant Bakshi, page 16 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.