EPL (500135) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 revenue rose 30.0% YoY to ₹15,674 million; growth excluding inflation-related pass-through was 20.3%.

• EBITDA increased 17.6% to ₹2,960 million; underlying margin was 20.4% versus 18.9% reported.

• PAT growth was 5.6%, weighed by higher depreciation, country-mix tax effects and adverse FX movements.

• Growth was broad-based across regions and categories; Beauty & Cosmetics became the largest category in September, overtaking Oral Care.

Financial highlights

• Q2 revenue was ₹15,674 million versus ₹12,059 million YoY; H1 revenue was ₹29,553 million versus ₹23,138 million.

• Q2 EBITDA was ₹2,960 million, up 17.6%; H1 EBITDA growth was 16.5%, with underlying margin at 20.4%.

• EBIT was ₹1,826 million, up from ₹1,572 million; EBIT margin was 11.6% versus 13.0% YoY.

• Reported gross contribution was 56.7%; underlying gross contribution excluding inflationary costs was 60.5%.

• Q2 basic EPS was ₹3.44 versus ₹3.26 YoY; H1 basic EPS was ₹6.52 versus ₹6.39.

Outlook and guidance

• Near-term revenue growth guidance remains high teens, with management expecting performance near 20%; guidance is for revenue, not volume growth.

• Underlying EBITDA margin target remains 20%+; priorities include growth investment, productivity, cost discipline and capital efficiency.

• Europe margins are expected to recover progressively over the next 3–4 quarters as corrective actions address operational challenges.

• ROCE ambition is 25%+ by FY29, from 18.2% in Q2 FY27; focus areas include margin improvement, capital deployment and working-capital and asset-use efficiency.

• Merger completion is expected by Q4 FY27, subject to pending NCLT approvals and other conditions; consolidated Q4 results are possible if approvals proceed as planned.