This article first appeared on GuruFocus .
Release Date: May 21, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Control Print Ltd ( BOM:522295 ) reported a significant increase in total revenue, reaching Rs. 484 crores for FY26, up from Rs. 431 crores in the previous year.
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The company's core coding and marking business continues to be a major profit center, showing steady growth across various sectors including pipes, cable and wire, and FMCG.
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The packaging division is gaining traction with new solutions and customer acquisitions, particularly in co-packing activities.
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The company has successfully reduced the cost of goods sold to 40% of operating revenue, down from 42% in the previous year.
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Control Print Ltd ( BOM:522295 ) is focusing on developing new solutions and capitalizing on market opportunities in the packaging segment, both domestically and internationally.
Negative Points
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International acquisitions, particularly in the packaging business, are incurring significant losses, raising concerns about the sustainability of these investments.
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Employee costs have increased to 23% of operating revenue, up from 21% the previous year, impacting overall profitability.
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The company is facing challenges in stabilizing its packaging machines, leading to delays and increased costs.
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There is uncertainty regarding the timeline for achieving profitability in the V-shapes and track and trace businesses.
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The company's international subsidiaries, especially CP Italy, are experiencing operational inefficiencies and quality control issues, contributing to financial losses.
Q & A Highlights
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Warning! GuruFocus has detected 3 Warning Signs with BOM:522295.
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Q: Mr. Kabra, I'm concerned about the losses from our international acquisitions, especially in saturated Western markets. Are we following a predictable pattern of losses? A: Shiva Kabra, Joint Managing Director: The losses are primarily from the packaging division abroad, not from coding and marking. We are investing in technology with a long-term view, believing it will be more profitable than our current business. This is a calculated decision to build intellectual property and expand our market reach.
Q: Why has there been a sharp increase in employee benefit expenses on a standalone basis? A: Jaidee Barve, Chief Financial Officer: The increase is due to the implementation of the new wage code, which required us to recast liabilities. Additionally, provisions for sales and service incentives and loyalty bonuses for key management have contributed to the rise.
Q: Can you explain the rationale behind the new manufacturing unit in Guwahati? A: Shiva Kabra, Joint Managing Director: The Guwahati facility will help reduce the cost of packaging materials significantly, making us more competitive. The location also offers incentives, such as GST refunds and interest subsidies, which make it a strategic choice for expansion.
Q: What is the outlook for the track and trace business, and what market share do you expect to capture? A: Shiva Kabra, Joint Managing Director: We are running pilot projects with major pharmaceutical companies. If successful, these will lead to significant growth. Our solution offers a differentiated approach, and we expect it to attract more customers once proven.
Q: How are you addressing the quality control issues at CP Italy, and what are the costs involved? A: Shiva Kabra, Joint Managing Director: We are standardizing machine production to ensure consistency. The R&D expenses are around 100,000 euros per month, with total operational costs between 2 to 3 million euros annually. We are working to streamline operations and reduce costs.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
