The Transcript of the conference call held on Wednesday, August 06, 2025 to discuss the results of the First quarter of the FY 2025-26 is enclosed herewith.
CCL · price
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CCL Products posted its first-ever INR 1,000+ crore quarter, with Q1 FY26 revenue rising 37% YoY to INR 1,058 crores. EBITDA grew 23% to INR 161.43 crores, but net profit grew only 1% to INR 72.45 crores, dragged by higher interest and depreciation (both described as peak levels). The domestic branded business clocked INR 150 crores in just one quarter, with the company targeting INR 400-500 crores for the year. Management reiterated 10-20% volume growth and 15-20% EBITDA growth guidance, while the CFO laid out a clear deleveraging plan: net debt of INR 1,671 crores to fall to INR 1,200 crores by March 2026 (~INR 150 crore reduction per quarter). Branded business margins are improving from 4-5% to 5-10%, and incremental branded volumes are now accretive to overall margins. Management expects interest and depreciation costs to come down from Q2 onwards, and is seeing increased inquiry from US customers amid tariff-driven trade realignment.
Positive for shareholders: strong top-line momentum, clear debt reduction roadmap, and improving branded margins are key positives, but muted PAT growth (1%) due to peak interest/depreciation may cap near-term enthusiasm. Watch for interest cost normalization from Q2 and the path to INR 1,200 crore net debt by March 2026 as a key re-rating trigger.