Q3 FY26 Conference Call; TCPL Reports Revenue of INR 471 Crore with Improved Profitability, Falling Paper Prices Not Necessarily Negative for Packaging Sector

Q3 FY26 Conference Call; TCPL Reports Revenue of INR 471 Crore with Improved Profitability, Falling Paper Prices Not Necessarily Negative for Packaging Sector

The Pulp and Paper Times

Mr. Akshay Kanoria, Executive Director of TCPL Packaging Limited, addressed the Q3 FY26 conference call and responded to questions from investors regarding the company’s performance and outlook.

After a measured start to the quarter, demand improved gradually across key segments, enabling the company to deliver healthy double-digit growth in the domestic market. The strong domestic performance helped offset the decline in export volumes, which remained subdued amid continued softness in international markets. In this environment, the company said it remains focused on strengthening customer relationships across geographies while taking a calibrated approach.

Coming to the financial performance, consolidated revenue for Q3 FY26 stood at INR 471 crore. On the profitability front, the company reported a strong improvement, with EBITDA increasing by about 15 percent year-on-year to INR 81 crore and margins expanding to 17.2 percent, reflecting an improvement of over 240 basis points. The expansion was primarily driven by better gross margins, supported by favourable product mix and tighter cost control.

During the quarter, the company recognized an exceptional loss of INR 11.57 crore related to the implementation of the revised labour code framework, representing a one-time impact. Reported PAT for the quarter stood at INR 25 crore, while cash profit was INR 56.5 crore.

Mr. Kanoria also highlighted the commissioning of the gravure cylinder manufacturing facility at Silvassa, established under the company’s wholly owned subsidiary Accura Technik Private Limited. He said the facility marks an important milestone in the company’s backward integration journey. By bringing this critical input in-house, the company enhances process control, improves print precision and quality consistency, and reduces dependence on external outsourcing. The facility has been designed with surplus space, providing flexibility to address external demand over time and further strengthening integrated capabilities.

Alongside operational milestones, the company also received important recognitions during the quarter. TCPL Packaging Limited was awarded the Most Preferred Workplace Award 2025–26 in the manufacturing category, reflecting its continued focus on building a strong, inclusive and performance-driven organization. In addition, the company secured six wins at the IFCA Star Awards 2025, reaffirming its commitment to creativity, innovation and excellence in delivering differentiated packaging solutions.

On the outlook, the company stated that domestic demand continues to remain healthy and is expected to be a key driver of growth, supported by policy measures aimed at boosting consumption and strengthening manufacturing competitiveness. In addition, recent trade developments involving the EU and the US, as well as some other markets, are expected to improve export sentiment and create a more favourable operating environment over time. With an expanding manufacturing footprint, diversified product portfolio and disciplined capital allocation approach, the company believes it is well-positioned to capture growth opportunities as the industry continues to consolidate towards organized players.

Before closing the address, Mr. Kanoria acknowledged that the Board conferred the honorary title of Chairman Emeritus on his grandfather, K. K. Kanoria, the founder of TCPL Packaging Limited. He noted that Mr. Kanoria laid the foundations of the company and shaped its early growth trajectory. Over the years, he served the organization in various capacities, including as Chairman, and has been instrumental in building a strong institution anchored in values, governance and long-term strategic thinking.

Commenting on paper prices, Mr. Kanoria said that paper prices going down are not necessarily bad for the company. He explained that when there is a very weak commodities market, the differentiation between larger players and smaller players tends to go down, which is not good. However, he noted that there is now more protectionism in the world, making it more difficult for producers to dump products. He added that in India there is a minimum import price imposed on virgin paperboard, so dumping is not possible, and therefore the negative effect is not really felt.

On the Minimum Import Price (MIP), he said it is only applicable if the material is meant for domestic use. If the material is imported under an advance license for export purposes, it can be re-exported without any issue. Therefore, even with the MIP in place, it does not make the company uncompetitive.

Speaking about free trade agreements with the US and the EU, Mr. Kanoria noted that earlier tariffs of around 50 percent in the US made business difficult, but with tariffs around 18 percent it opens a door that was previously closed. With the EU, folding cartons were already at zero tariff, while on the flexible packaging side there is some tariff saving. He also pointed out that the main positive from such trade developments will come from other industries exporting from India, such as toys and textiles, which will require packaging, creating second-order benefits for the packaging industry.
 

Published at : May 27, 2026 07:37 AM (IST)

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