Domestic volume growth
Low double-digit
+10-12% YoY
Domestic volume grew low double-digit for both Q3 and 9M FY26.
TCPLPACKAGING
Other
10 Feb 2026
TCPL Packaging Ltd — Q3 FY26
TCPL Packaging reported Q3 FY26 consolidated revenue of ₹471 crore with EBITDA of ₹81 crore, up 15% YoY, and margins expanding 240 bps to 17.2%.
✓ Verified against BSE filing
2-Min Summary
TCPL Packaging reported Q3 FY26 consolidated revenue of ₹471 crore with EBITDA of ₹81 crore, up 15% YoY, and margins expanding 240 bps to 17.2%. Domestic volume grew low double-digit, offsetting subdued exports. Gross margin improvement to 42.7% was driven by favorable product mix and cost control. PAT of ₹25 crore included an exceptional loss of ₹11.6 crore from labor code implementation. The new gravure cylinder facility at Silvasa enhances backward integration. Management expects domestic demand to remain healthy and sees positive export tailwinds from recent trade deals with the US and EU, though recovery will take time. Key risk: cigarette tax hike may pressure domestic tobacco packaging volumes, though the portfolio is diversified.
Key Numbers
Gross margin
42.7%
+270bps YoY
Gross margin expanded from ~40% to 42.7% due to favorable mix and cost control.
Overall capacity utilization
70-75%
flat
Overall capacity utilization is 70-75%; flexible packaging utilization is slightly higher.
Chennai plant utilization
<50%
flat
Chennai plant utilization is below 50% but expected to improve in coming quarters.
Management Guidance
Capex for FY27 similar to FY26 at ~₹100 crore
Management expects capex for FY27 to be around ₹100 crore, similar to the current year's level.
capexExport recovery from US and EU trade deals
Recent tariff reductions with US and EU are expected to improve export sentiment and create a more favorable operating environment over time.
growthChennai plant utilization improvement in coming months
Management expects Chennai plant utilization to improve in the next few months as audits are completed.
growthKey Risks
Cigarette tax hike impact on domestic volumes
A sharp increase in cigarette taxes may negatively impact domestic tobacco packaging volumes, though the portfolio is diversified.
medium · analyst_questionExport recovery slower than expected
Despite trade deals, export recovery may take time as customer development cycles are lengthy; no immediate ramp-up expected.
medium · management_commentaryPotential paper price volatility
If China dumps paper board globally, margin compression could recur, though protectionist measures like MIP provide some buffer.
low · analyst_questionNotable Quotes
With 18% you can do business. So at least that opens a door which was completely closed.
We have lot of plans and things in motion but in the past also I've sounded too upbeat and then investors were disappointed. So this time we'd rather just keep it to ourselves until something actually happens.
The rising tide lifts all boats.